Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36773 | |
Entity Registrant Name | WORKIVA INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-2509828 | |
Entity Address, Address Line One | 2900 University Blvd | |
Entity Address, City or Town | Ames | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 50010 | |
City Area Code | 888 | |
Local Phone Number | 275-3125 | |
Title of 12(b) Security | Class A common stock, par value $.001 | |
Trading Symbol | WK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001445305 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 45,151,293 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,710,181 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 291,125 | $ 322,831 |
Marketable securities | 231,224 | 207,207 |
Accounts receivable, net of allowance for doubtful accounts of $555 and $717 at September 30, 2021 and December 31, 2020, respectively | 64,099 | 68,922 |
Deferred commissions | 28,021 | 21,923 |
Other receivables | 3,354 | 3,155 |
Prepaid expenses and other | 13,092 | 9,047 |
Total current assets | 630,915 | 633,085 |
Property and equipment, net | 28,490 | 29,365 |
Operating lease right-of-use assets | 14,536 | 15,844 |
Deferred commissions, non-current | 29,234 | 23,421 |
Goodwill | 34,279 | 0 |
Intangible assets, net | 8,193 | 1,583 |
Other assets | 4,568 | 3,708 |
Total assets | 750,215 | 707,006 |
Current liabilities | ||
Accounts payable | 4,018 | 2,843 |
Accrued expenses and other current liabilities | 78,799 | 68,256 |
Deferred revenue | 235,754 | 208,990 |
Convertible senior notes, current | 296,341 | 0 |
Finance lease obligations | 1,776 | 1,705 |
Total current liabilities | 616,688 | 281,794 |
Convertible senior notes, net | 0 | 289,490 |
Deferred revenue, non-current | 31,463 | 35,894 |
Other long-term liabilities | 1,335 | 1,680 |
Operating lease liabilities, non-current | 15,231 | 17,209 |
Finance lease obligations, non-current | 15,320 | 16,662 |
Total liabilities | 680,037 | 642,729 |
Stockholders’ equity | ||
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in-capital | 508,025 | 478,698 |
Accumulated deficit | (438,106) | (414,700) |
Accumulated other comprehensive income | 208 | 230 |
Total stockholders’ equity | 70,178 | 64,277 |
Total liabilities and stockholders’ equity | 750,215 | 707,006 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock | 45 | 41 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 6 | $ 8 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts | $ 555 | $ 717 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 45,094,257 | 40,719,189 |
Common stock, shares outstanding | 45,094,257 | 40,719,189 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 5,710,181 | 8,069,610 |
Common stock, shares outstanding | 5,710,181 | 8,069,610 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||||
Total revenue | $ 112,693 | $ 88,099 | $ 322,502 | $ 257,760 |
Cost of revenue | ||||
Total cost of revenue | 26,405 | 21,886 | 74,672 | 66,526 |
Gross profit | 86,288 | 66,213 | 247,830 | 191,234 |
Operating expenses | ||||
Research and development | 29,841 | 23,956 | 84,305 | 70,458 |
Sales and marketing | 46,026 | 35,487 | 128,586 | 106,874 |
General and administrative | 18,390 | 13,642 | 52,795 | 46,564 |
Total operating expenses | 94,257 | 73,085 | 265,686 | 223,896 |
Loss from operations | (7,969) | (6,872) | (17,856) | (32,662) |
Interest income | 219 | 471 | 834 | 2,832 |
Interest expense | (3,508) | (3,500) | (10,495) | (10,467) |
Other income (expense), net | 3,805 | (387) | 3,265 | 263 |
Loss before (benefit) provision for income taxes | (7,453) | (10,288) | (24,252) | (40,034) |
(Benefit) provision for income taxes | (885) | 67 | (846) | 351 |
Net loss | $ (6,568) | $ (10,355) | $ (23,406) | $ (40,385) |
Net loss per common share: | ||||
Basic (in dollars per share) | $ (0.13) | $ (0.21) | $ (0.46) | $ (0.84) |
Diluted (in dollars per share) | $ (0.13) | $ (0.21) | $ (0.46) | $ (0.84) |
Weighted-average common shares outstanding - basic | 51,441,688 | 48,840,131 | 50,921,612 | 48,188,183 |
Weighted-average common shares outstanding - diluted | 51,441,688 | 48,840,131 | 50,921,612 | 48,188,183 |
Subscription and support | ||||
Revenue | ||||
Total revenue | $ 98,912 | $ 75,850 | $ 275,053 | $ 214,907 |
Cost of revenue | ||||
Total cost of revenue | 15,606 | 12,013 | 42,906 | 36,264 |
Professional services | ||||
Revenue | ||||
Total revenue | 13,781 | 12,249 | 47,449 | 42,853 |
Cost of revenue | ||||
Total cost of revenue | $ 10,799 | $ 9,873 | $ 31,766 | $ 30,262 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (6,568) | $ (10,355) | $ (23,406) | $ (40,385) |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment, net of tax | 22 | 30 | 226 | (51) |
Unrealized (loss) gain on available-for-sale securities, net of tax | (18) | (211) | (248) | 251 |
Other comprehensive income (loss), net of tax | 4 | (181) | (22) | 200 |
Comprehensive loss | $ (6,564) | $ (10,536) | $ (23,428) | $ (40,185) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock (Class A and B) | Additional Paid-in-Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Shares, Outstanding, Beginning at Dec. 31, 2019 | 46,639,000 | ||||
Beginning of the period at Dec. 31, 2019 | $ 54,202 | $ 47 | $ 420,170 | $ 287 | $ (366,302) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 9,936 | 9,936 | |||
Issuance of common stock upon exercise of stock options (in shares) | 225,000 | ||||
Issuance of common stock upon exercise of stock options | 2,794 | 2,794 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 94,000 | ||||
Issuance of common stock under employee stock purchase plan | 3,660 | 3,660 | |||
Issuance of restricted stock units (in shares) | 117,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (30,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (1,379) | (1,379) | |||
Net loss | (10,418) | (10,418) | |||
Other comprehensive income (loss) | (9) | (9) | |||
Shares, Outstanding, Ending at Mar. 31, 2020 | 47,045,000 | ||||
End of period at Mar. 31, 2020 | 58,786 | $ 47 | 435,181 | 278 | (376,720) |
Shares, Outstanding, Beginning at Dec. 31, 2019 | 46,639,000 | ||||
Beginning of the period at Dec. 31, 2019 | 54,202 | $ 47 | 420,170 | 287 | (366,302) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (40,385) | ||||
Other comprehensive income (loss) | 200 | ||||
Shares, Outstanding, Ending at Sep. 30, 2020 | 48,131,000 | ||||
End of period at Sep. 30, 2020 | 68,817 | $ 48 | 474,969 | 487 | (406,687) |
Shares, Outstanding, Beginning at Mar. 31, 2020 | 47,045,000 | ||||
Beginning of the period at Mar. 31, 2020 | 58,786 | $ 47 | 435,181 | 278 | (376,720) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 14,894 | 14,894 | |||
Issuance of common stock upon exercise of stock options (in shares) | 443,000 | ||||
Issuance of common stock upon exercise of stock options | 6,664 | $ 0 | 6,664 | ||
Issuance of restricted stock units (in shares) | 153,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (21,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (732) | (732) | |||
Net loss | (19,612) | (19,612) | |||
Other comprehensive income (loss) | 390 | 390 | |||
Shares, Outstanding, Ending at Jun. 30, 2020 | 47,620,000 | ||||
End of period at Jun. 30, 2020 | 60,390 | $ 47 | 456,007 | 668 | (396,332) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 10,601 | 10,601 | |||
Issuance of common stock upon exercise of stock options (in shares) | 371,000 | ||||
Issuance of common stock upon exercise of stock options | 4,795 | $ 1 | 4,794 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 93,000 | ||||
Issuance of common stock under employee stock purchase plan | 3,567 | 3,567 | |||
Issuance of restricted stock units (in shares) | 47,000 | ||||
Net loss | (10,355) | (10,355) | |||
Other comprehensive income (loss) | (181) | (181) | |||
Shares, Outstanding, Ending at Sep. 30, 2020 | 48,131,000 | ||||
End of period at Sep. 30, 2020 | 68,817 | $ 48 | 474,969 | 487 | (406,687) |
Shares, Outstanding, Beginning at Dec. 31, 2020 | 48,789,000 | ||||
Beginning of the period at Dec. 31, 2020 | 64,277 | $ 49 | 478,698 | 230 | (414,700) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 11,623 | 11,623 | |||
Issuance of common stock upon exercise of stock options (in shares) | 312,000 | ||||
Issuance of common stock upon exercise of stock options | 4,138 | $ 1 | 4,137 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 93,000 | ||||
Issuance of common stock under employee stock purchase plan | 4,237 | 4,237 | |||
Issuance of restricted stock units (in shares) | 803,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (70,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (7,146) | (7,146) | |||
Net loss | (7,324) | (7,324) | |||
Other comprehensive income (loss) | (49) | (49) | |||
Shares, Outstanding, Ending at Mar. 31, 2021 | 49,927,000 | ||||
End of period at Mar. 31, 2021 | 69,756 | $ 50 | 491,549 | 181 | (422,024) |
Shares, Outstanding, Beginning at Dec. 31, 2020 | 48,789,000 | ||||
Beginning of the period at Dec. 31, 2020 | $ 64,277 | $ 49 | 478,698 | 230 | (414,700) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 629,755 | ||||
Net loss | $ (23,406) | ||||
Other comprehensive income (loss) | (22) | ||||
Shares, Outstanding, Ending at Sep. 30, 2021 | 50,804,000 | ||||
End of period at Sep. 30, 2021 | 70,178 | $ 51 | 508,025 | 208 | (438,106) |
Shares, Outstanding, Beginning at Mar. 31, 2021 | 49,927,000 | ||||
Beginning of the period at Mar. 31, 2021 | 69,756 | $ 50 | 491,549 | 181 | (422,024) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 11,052 | 11,052 | |||
Issuance of common stock upon exercise of stock options (in shares) | 117,000 | ||||
Issuance of common stock upon exercise of stock options | 1,480 | $ 0 | 1,480 | ||
Issuance of restricted stock units (in shares) | 318,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (8,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (731) | (731) | |||
Net loss | (9,514) | (9,514) | |||
Other comprehensive income (loss) | 23 | 23 | |||
Shares, Outstanding, Ending at Jun. 30, 2021 | 50,354,000 | ||||
End of period at Jun. 30, 2021 | 72,066 | $ 50 | 503,350 | 204 | (431,538) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 12,687 | 12,687 | |||
Issuance of common stock upon exercise of stock options (in shares) | 200,000 | ||||
Issuance of common stock upon exercise of stock options | 3,174 | $ 1 | 3,173 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 56,000 | ||||
Issuance of common stock under employee stock purchase plan | 4,624 | 4,624 | |||
Issuance of restricted stock units (in shares) | 305,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (111,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (15,809) | (15,809) | |||
Net loss | (6,568) | (6,568) | |||
Other comprehensive income (loss) | 4 | 4 | |||
Shares, Outstanding, Ending at Sep. 30, 2021 | 50,804,000 | ||||
End of period at Sep. 30, 2021 | $ 70,178 | $ 51 | $ 508,025 | $ 208 | $ (438,106) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||||
Net loss | $ (6,568) | $ (10,355) | $ (23,406) | $ (40,385) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 1,429 | 1,080 | 3,580 | 3,195 |
Stock-based compensation expense | 12,687 | 10,601 | 35,362 | 35,431 |
Recovery of doubtful accounts | (61) | (550) | (162) | (191) |
Amortization of premiums and discounts on marketable securities, net | 811 | 106 | 2,199 | 319 |
Gain on settlement of equity securities | (3,698) | 0 | (3,698) | 0 |
Amortization of debt discount and issuance costs | 2,301 | 2,231 | 6,851 | 6,641 |
Deferred income tax | (930) | 63 | (914) | (68) |
Changes in assets and liabilities: | ||||
Accounts receivable | 2,074 | (13,307) | 5,233 | 4,805 |
Deferred commissions | (2,027) | (4,818) | (12,104) | (6,381) |
Operating lease right-of-use asset | 985 | 1,019 | 2,906 | 2,992 |
Other receivables | (628) | 224 | (204) | 29 |
Prepaid expenses and other | (1,024) | (211) | (4,049) | (3,056) |
Other assets | (514) | 83 | (1,197) | (600) |
Accounts payable | 478 | (181) | 1,214 | (3,255) |
Deferred revenue | 9,949 | 16,182 | 22,028 | 11,314 |
Operating lease liability | (1,112) | (1,115) | (3,390) | (3,438) |
Accrued expenses and other liabilities | 2,161 | 6,822 | 10,327 | 12,538 |
Net cash provided by operating activities | 16,313 | 7,874 | 40,576 | 19,890 |
Cash flows from investing activities | ||||
Purchase of property and equipment | (771) | (379) | (2,431) | (1,763) |
Purchase of marketable securities | (48,213) | (7,980) | (143,085) | (45,269) |
Sale of marketable securities | 0 | 0 | 250 | 11,423 |
Maturities of marketable securities | 45,579 | 16,300 | 116,371 | 42,337 |
Business combinations, net of cash acquired | (35,067) | 0 | (35,067) | 0 |
Purchase of intangible assets | (64) | (102) | (187) | (253) |
Other investments | 0 | 0 | (750) | 0 |
Net cash (used in) provided by investing activities | (38,536) | 7,839 | (64,899) | 6,475 |
Cash flows from financing activities | ||||
Proceeds from option exercises | 3,174 | 4,795 | 8,792 | 14,253 |
Taxes paid related to net share settlements of stock-based compensation awards | (15,809) | 0 | (23,686) | (2,111) |
Proceeds from shares issued in connection with employee stock purchase plan | 4,624 | 3,567 | 8,861 | 7,227 |
Principal payments on finance lease obligations | (430) | (410) | (1,271) | (1,212) |
Net cash (used in) provided by financing activities | (8,441) | 7,952 | (7,304) | 18,157 |
Effect of foreign exchange rates on cash | (405) | 346 | (79) | (132) |
Net (decrease) increase in cash and cash equivalents | (31,069) | 24,011 | (31,706) | 44,390 |
Cash and cash equivalents at beginning of period | 322,194 | 402,121 | 322,831 | 381,742 |
Cash and cash equivalents at end of period | 291,125 | 426,132 | 291,125 | 426,132 |
Supplemental cash flow disclosure | ||||
Cash paid for interest | 2,177 | 2,240 | 4,607 | 4,787 |
Cash paid for income taxes, net of refunds | 36 | 84 | (30) | 469 |
Supplemental disclosure of noncash investing and financing activities | ||||
Allowance for tenant improvements | $ 0 | $ 0 | $ 0 | $ 149 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Organization Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries (the “Company” or “we” or “us”) simplifies complex work for thousands of organizations worldwide. We are a leading provider of cloud-based compliance and regulatory reporting solutions that are designed to solve business challenges at the intersection of data, process and people. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, the Asia-Pacific region and Canada. Basis of Presentation and Principles of Consolidation The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results expected for the full year ending December 31, 2021. Seasonality has affected our revenue, expenses and cash flows from operations. Revenue from professional services has been higher in the first quarter as many of our customers file their Form 10-K in the first calendar quarter. Our sales and marketing expense also has some degree of seasonality. Sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September. Our transition to a virtual event in September 2020 and September 2021 has mostly mitigated this trend. In addition, the timing of the payments of cash bonuses to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. The condensed consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC on February 17, 2021. The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, the fair value of the liability and equity components of the convertible senior notes, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which was issued to simplify the accounting for income taxes by removing certain exceptions for recognizing deferred taxes, performing intraperiod allocation, and calculating income taxes in interim periods. Further, ASU 2019-12 adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax basis goodwill and allocating taxes to members of a consolidated group. The standard became effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The standard provides different transition methods for the various provisions. Effective January 1, 2021, we adopted this standard. The adoption of this new standard did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity, and modifies the guidance on diluted earnings per share (“EPS”) calculations as a result of these changes. The standard will be effective for us beginning January 1, 2022 and can be applied on either a fully retrospective or modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2020. We intend to adopt this standard using the modified retrospective method on January 1, 2022 and are currently evaluating its impact on our consolidated financial statements. |
Supplemental Consolidated Balan
Supplemental Consolidated Balance Sheet Information | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Supplemental Consolidated Balance Sheet Information | Supplemental Consolidated Balance Sheet Information Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of September 30, 2021 As of December 31, 2020 Accrued vacation $ 11,876 $ 10,294 Accrued commissions 6,975 12,678 Accrued bonuses 16,579 6,573 Accrued payroll 3,013 2,631 Estimated health insurance claims 1,605 1,224 Accrued interest 485 1,455 ESPP employee contributions 2,941 4,269 Customer deposits 24,592 18,283 Operating lease liabilities 4,233 4,541 Accrued other liabilities 6,500 6,308 $ 78,799 $ 68,256 |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities At September 30, 2021, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 253,079 $ — $ — $ 253,079 Commercial paper 12,487 — — 12,487 U.S. treasury debt securities 52,755 4 (28) 52,731 Corporate debt securities 160,945 64 (41) 160,968 Foreign government debt securities 5,037 1 — 5,038 $ 484,303 $ 69 $ (69) $ 484,303 Included in cash and cash equivalents $ 253,079 $ — $ — $ 253,079 Included in marketable securities $ 231,224 $ 69 $ (69) $ 231,224 At December 31, 2020, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 265,578 $ — $ — $ 265,578 Commercial paper 21,489 — — 21,489 U.S. treasury debt securities 51,731 80 (2) 51,809 Corporate debt securities 147,715 214 (47) 147,882 Foreign government debt securities 1,025 2 — 1,027 $ 487,538 $ 296 $ (49) $ 487,785 Included in cash and cash equivalents $ 280,578 $ — $ — $ 280,578 Included in marketable securities $ 206,960 $ 296 $ (49) $ 207,207 The contractual maturities of the investments classified as marketable securities are as follows (in thousands): As of September 30, 2021 Due within one year $ 134,115 Due in one to two years 95,098 Due in three to five years 2,011 $ 231,224 The following table presents gross unrealized losses and fair values for those cash equivalents and marketable securities that were in an unrealized loss position as of September 30, 2021, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of September 30, 2021 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ 34,768 $ (28) $ — $ — Corporate debt securities 73,864 (41) — — Total $ 108,632 $ (69) $ — $ — We do not believe the unrealized losses represent credit losses based on our evaluation of available evidence as of September 30, 2021, which includes an assessment of whether it is more likely than not we will be required to sell the investment before recovery of the investment's amortized cost basis. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 - Inputs are unobservable inputs based on our assumptions. Financial Assets Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. As of September 30, 2021, all of our marketable securities were valued using quoted prices for comparable instruments in active markets and are classified as Level 2. Based on our valuation of our money market funds and marketable securities, we concluded that they are classified in either Level 1 or Level 2, and we have no financial assets measured using Level 3 inputs. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands): Fair Value Measurements as of September 30, 2021 Fair Value Measurements as of December 31, 2020 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 253,079 $ 253,079 $ — $ 265,578 $ 265,578 $ — Commercial paper 12,487 — 12,487 21,489 — 21,489 U.S. treasury debt securities 52,731 — 52,731 51,809 — 51,809 Corporate debt securities 160,968 — 160,968 147,882 — 147,882 Foreign government debt securities 5,038 — 5,038 1,027 — 1,027 $ 484,303 $ 253,079 $ 231,224 $ 487,785 $ 265,578 $ 222,207 Included in cash and cash equivalents $ 253,079 $ 280,578 Included in marketable securities $ 231,224 $ 207,207 We completed an acquisition during the three months ended September 30, 2021. The values of the net assets acquired and the resulting goodwill were recorded at fair value using Level 3 inputs. The majority of the related current assets acquired and liabilities assumed were recorded at their carrying values as of the date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and definite-lived intangible assets acquired in the acquisition was externally estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates used in the present value calculations. Convertible Senior Notes As of September 30, 2021, the fair value of our convertible senior notes was $641.8 million. The fair value was determined based on the quoted price of the convertible senior notes in an over-the-counter market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy. See Note 5 to the condensed consolidated financial statements for more information. |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including the exercise in full by the initial purchasers of their option to purchase an additional $45.0 million principal amount (the “Notes”). The Notes were issued pursuant to an indenture and are senior, unsecured obligations of the Company. The Notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2020. Proceeds from the issuance of the Notes totaled $335.9 million, net of initial purchaser discounts and issuance costs. The initial conversion rate is 12.4756 shares of our common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $80.16 per share, subject to adjustment upon the occurrence of specified events. Holders of the Notes may convert all or a portion of their Notes prior to the close of business on May 15, 2026, in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on September 30, 2019 (and only during such calendar quarter), if the last reported sale price of our Class A common stock, par value $0.001 per share (which we refer to in this offering memorandum as our “Class A common stock”), for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five consecutive business day period immediately following any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined below) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; • if we call any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • upon the occurrence of certain specified corporate events as set forth in the indenture. On or after May 16, 2026, holders of the Notes may convert their Notes at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election, in the manner and subject to the terms and conditions provided in the indenture. It is our current intent to settle conversions through a combination settlement of cash and shares of our Class A common stock with a specified dollar amount per $1,000 principal amount of Notes of $1,000. The Company may redeem for cash all or any portion of the Notes, at its option, on or after August 21, 2023, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. During the third quarter of 2021 one of the conversion conditions was met and the Notes are now convertible at the option of the holders through December 31, 2021. Specifically, the last reported sale price of our Class A common stock exceeded 130% of the conversion price of the Notes for more than 20 trading days during the 30 consecutive trading days ended September 30, 2021. As a result, the Notes were classified as current liabilities on the condensed consolidated balance sheet as of September 30, 2021. As of September 30, 2021, and through the date of this filing, we have not received any conversion requests for the Notes. Interest expense representing the amortization of the debt discount and issuance costs as well as contractual interest expense is amortized to interest expense at an effective interest rate of 4.3% over the term of the Notes. As of September 30, 2021 the if-converted value of the Notes exceeded the principal amount by $261.7 million. As of September 30, 2021, the remaining life of the Notes is approximately 4.8 years. The net carrying amount of the liability and equity components of the Notes was as follows (in thousands): September 30, 2021 December 31, 2020 Liability component: Principal $ 345,000 $ 345,000 Unamortized discount (43,255) (49,346) Unamortized issuance costs (5,404) (6,164) Net carrying amount $ 296,341 $ 289,490 Equity component, net of purchase discounts and issuance costs $ 58,560 $ 58,560 Interest expense related to the Notes is as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Contractual interest expense $ 970 $ 970 $ 2,911 $ 2,910 Amortization of debt discount 2,045 1,983 6,091 5,903 Amortization of issuance costs 256 248 760 738 Total interest expense $ 3,271 $ 3,201 $ 9,762 $ 9,551 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We evaluate the development of legal matters on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Leases In July 2021, we signed an operating lease agreement to lease office space in London which commenced on October 1, 2021. The agreement has a term of three years with an optional two |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation Expense Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Cost of revenue Subscription and support $ 731 $ 426 $ 1,824 $ 1,293 Professional services 407 272 1,183 1,062 Operating expenses Research and development 2,347 2,167 7,195 5,790 Sales and marketing 4,095 2,687 10,481 8,367 General and administrative 5,107 5,049 14,679 18,919 Total $ 12,687 $ 10,601 $ 35,362 $ 35,431 Stock Options The following table summarizes the option activity under the Plans for the nine months ended September 30, 2021: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2020 2,903,167 $ 14.48 4.7 Granted — — Forfeited (6,380) 19.25 Exercised (629,755) 13.96 Outstanding at September 30, 2021 2,267,032 $ 14.61 4.1 Exercisable at September 30, 2021 2,259,753 $ 14.59 4.1 Restricted Stock Units The following table summarizes the restricted stock unit activity under the Plan for the nine months ended September 30, 2021: Number of Shares Weighted- Average Grant Date Fair Value Unvested at December 31, 2020 2,904,616 $ 35.72 Granted 872,135 108.00 Forfeited (182,761) 63.62 Vested (1) (1,557,830) 30.63 Unvested at September 30, 2021 2,036,160 $ 68.96 (1) During the nine months ended September 30, 2021, in accordance with our Nonqualified Deferred Compensation Plan, recipients of 402,832 shares had elected to defer settlement of the vested restricted stock units and 270,567 shares were released from deferral. This resulted in total deferred units of 695,869 as of September 30, 2021. Employee Stock Purchase Plan During the nine months ended September 30, 2021, 148,864 shares of common stock were purchased under the ESPP at a weighted-average price of $59.52 per share, resulting in cash proceeds of $8.9 million. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents our revenues disaggregated by industry (in thousands). Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Information technology $ 16,097 $ 11,983 $ 44,953 $ 34,264 Diversified financials 13,538 10,665 38,094 31,232 Consumer discretionary 12,148 9,748 34,019 28,497 Healthcare 11,860 8,772 34,003 25,517 Industrials 11,826 9,365 33,739 27,768 Banks 9,940 8,959 30,247 25,914 Insurance 7,547 5,828 22,106 17,173 Energy 6,818 5,812 20,178 17,793 Utilities 6,040 3,538 16,795 10,707 Real estate 4,608 3,769 13,727 11,810 Materials 4,570 3,824 13,040 10,735 Other 7,701 5,836 21,601 16,350 Total revenues $ 112,693 $ 88,099 $ 322,502 $ 257,760 The following table presents our revenues disaggregated by type of good or service (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Subscription and support $ 98,912 $ 75,850 $ 275,053 $ 214,907 XBRL professional services 9,003 7,798 33,558 29,543 Other services 4,778 4,451 13,891 13,310 Total revenues $ 112,693 $ 88,099 $ 322,502 $ 257,760 Deferred Revenue We recognized $91.3 million and $68.2 million of revenue during the three months ended September 30, 2021 and 2020, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. We recognized $198.7 million and $148.3 million of revenue during the nine months ended September 30, 2021 and 2020, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. Transaction Price Allocated to the Remaining Performance Obligations |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including convertible senior notes, outstanding stock options, stock related to unvested restricted stock units, and common stock issuable pursuant to the ESPP to the extent dilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The net loss per share is allocated based on the participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis. A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data): Three months ended September 30, 2021 September 30, 2020 Class A Class B Class A Class B Numerator Net loss $ (5,731) $ (837) $ (8,566) $ (1,789) Denominator Weighted-average common shares outstanding - basic and diluted 44,886,268 6,555,420 40,400,270 8,439,861 Basic and diluted net loss per share $ (0.13) $ (0.13) $ (0.21) $ (0.21) Nine months ended September 30, 2021 September 30, 2020 Class A Class B Class A Class B Numerator Net loss $ (19,993) $ (3,413) $ (33,239) $ (7,146) Denominator Weighted-average common shares outstanding - basic and diluted 43,496,619 7,424,993 39,661,228 8,526,955 Basic and diluted net loss per share $ (0.46) $ (0.46) $ (0.84) $ (0.84) The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows: As of September 30, 2021 September 30, 2020 Shares subject to outstanding common stock options 2,267,032 3,265,977 Shares subject to unvested restricted stock units 2,036,160 2,974,719 Shares issuable pursuant to the ESPP 55,561 95,084 |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On July 30, 2021, we acquired all of the equity interest in OneCloud, Inc. (“OneCloud”), an integration platform as a service (“iPaaS”) company, in order to extend our integration and data preparation capabilities, for $35.1 million, net of cash acquired of $1.5 million. We previously held an investment in OneCloud which was accounted for as an investment in equity securities. Prior to performing purchase accounting we remeasured the previous ownership interest to fair value, increasing the value to $4.7 million, which resulted in a gain of $3.7 million recorded in other income (expense), net in the condensed consolidated statement of operations. The purchase price has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill. The goodwill recognized was primarily attributable to the assembled workforce and strategic benefits that are expected to be achieved and is not deductible for income tax purposes. The following table presents a preliminary allocation of the purchase price to the assets acquired and liabilities assumed at the date of acquisition (in thousands) : Cash consideration $ 36,564 Previously held equity interest 4,698 Total consideration $ 41,262 Cash $ 1,497 Intangible assets 7,000 Goodwill 34,279 Other assets 548 Deferred revenue (900) Deferred tax liability (988) Other liabilities (174) Fair value of assets and liabilities $ 41,262 We incurred costs related to the acquisition of approximately $0.4 million during the nine months ended September 30, 2021. All acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in our condensed consolidated statements of operations. The amount of revenues and net loss from the acquisition included in our condensed consolidated statements of operations for the three and nine months ended September 30, 2021 were insignificant. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment test as of October 1. As of September 30, 2021, no impairment charges have been recorded. The changes in the carrying amount of goodwill were as follows (in thousands): December 31, 2020 $ — Acquisition 34,279 September 30, 2021 $ 34,279 Intangible assets consist of patents and intangible assets acquired in a business combination, primarily technology, customer relationships and a trade name. Patents are recorded at cost to obtain and amortized over the useful lives. Intangible assets acquired in a business combination are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. The following table presents the components of net intangible assets (in thousands): As of September 30, 2021 As of December 31, 2020 Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology 4 $ 6,600 $ (275) $ 6,325 $ — $ — $ — Acquired customer relationships 10 300 (5) 295 — — — Acquired trade name 2 100 (8) 92 — — — Patents 10 2,708 (1,227) 1,481 2,538 (955) 1,583 Total $ 9,708 $ (1,515) $ 8,193 $ 2,538 $ (955) $ 1,583 Amortization expense related to intangible assets was $0.4 million and $0.1 million for the three months ended September 30, 2021 and 2020, respectively, and $0.6 million and $0.3 million for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands): Three months ended December 31, 2021 $ 541 2022 2,021 2023 1,910 2024 1,867 2025 1,154 2026 160 Thereafter 540 Total expected amortization expense $ 8,193 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results expected for the full year ending December 31, 2021. |
Principles of Consolidation | All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, the fair value of the liability and equity components of the convertible senior notes, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted | In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which was issued to simplify the accounting for income taxes by removing certain exceptions for recognizing deferred taxes, performing intraperiod allocation, and calculating income taxes in interim periods. Further, ASU 2019-12 adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax basis goodwill and allocating taxes to members of a consolidated group. The standard became effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The standard provides different transition methods for the various provisions. Effective January 1, 2021, we adopted this standard. The adoption of this new standard did not have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity, and modifies the guidance on diluted earnings per share (“EPS”) calculations as a result of these changes. The standard will be effective for us beginning January 1, 2022 and can be applied on either a fully retrospective or modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2020. We intend to adopt this standard using the modified retrospective method on January 1, 2022 and are currently evaluating its impact on our consolidated financial statements. |
Fair Value of Financial Instruments | Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. |
Goodwill Impairment | Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment test as of October 1. |
Supplemental Consolidated Bal_2
Supplemental Consolidated Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): As of September 30, 2021 As of December 31, 2020 Accrued vacation $ 11,876 $ 10,294 Accrued commissions 6,975 12,678 Accrued bonuses 16,579 6,573 Accrued payroll 3,013 2,631 Estimated health insurance claims 1,605 1,224 Accrued interest 485 1,455 ESPP employee contributions 2,941 4,269 Customer deposits 24,592 18,283 Operating lease liabilities 4,233 4,541 Accrued other liabilities 6,500 6,308 $ 78,799 $ 68,256 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | At September 30, 2021, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 253,079 $ — $ — $ 253,079 Commercial paper 12,487 — — 12,487 U.S. treasury debt securities 52,755 4 (28) 52,731 Corporate debt securities 160,945 64 (41) 160,968 Foreign government debt securities 5,037 1 — 5,038 $ 484,303 $ 69 $ (69) $ 484,303 Included in cash and cash equivalents $ 253,079 $ — $ — $ 253,079 Included in marketable securities $ 231,224 $ 69 $ (69) $ 231,224 At December 31, 2020, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 265,578 $ — $ — $ 265,578 Commercial paper 21,489 — — 21,489 U.S. treasury debt securities 51,731 80 (2) 51,809 Corporate debt securities 147,715 214 (47) 147,882 Foreign government debt securities 1,025 2 — 1,027 $ 487,538 $ 296 $ (49) $ 487,785 Included in cash and cash equivalents $ 280,578 $ — $ — $ 280,578 Included in marketable securities $ 206,960 $ 296 $ (49) $ 207,207 |
Schedule of Cash and Cash Equivalents | At September 30, 2021, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 253,079 $ — $ — $ 253,079 Commercial paper 12,487 — — 12,487 U.S. treasury debt securities 52,755 4 (28) 52,731 Corporate debt securities 160,945 64 (41) 160,968 Foreign government debt securities 5,037 1 — 5,038 $ 484,303 $ 69 $ (69) $ 484,303 Included in cash and cash equivalents $ 253,079 $ — $ — $ 253,079 Included in marketable securities $ 231,224 $ 69 $ (69) $ 231,224 At December 31, 2020, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 265,578 $ — $ — $ 265,578 Commercial paper 21,489 — — 21,489 U.S. treasury debt securities 51,731 80 (2) 51,809 Corporate debt securities 147,715 214 (47) 147,882 Foreign government debt securities 1,025 2 — 1,027 $ 487,538 $ 296 $ (49) $ 487,785 Included in cash and cash equivalents $ 280,578 $ — $ — $ 280,578 Included in marketable securities $ 206,960 $ 296 $ (49) $ 207,207 |
Summary of Investments Classified by Contractual Maturity Date | The contractual maturities of the investments classified as marketable securities are as follows (in thousands): As of September 30, 2021 Due within one year $ 134,115 Due in one to two years 95,098 Due in three to five years 2,011 $ 231,224 |
Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair values for those cash equivalents and marketable securities that were in an unrealized loss position as of September 30, 2021, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of September 30, 2021 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ 34,768 $ (28) $ — $ — Corporate debt securities 73,864 (41) — — Total $ 108,632 $ (69) $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured on Recurring Basis | The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands): Fair Value Measurements as of September 30, 2021 Fair Value Measurements as of December 31, 2020 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 253,079 $ 253,079 $ — $ 265,578 $ 265,578 $ — Commercial paper 12,487 — 12,487 21,489 — 21,489 U.S. treasury debt securities 52,731 — 52,731 51,809 — 51,809 Corporate debt securities 160,968 — 160,968 147,882 — 147,882 Foreign government debt securities 5,038 — 5,038 1,027 — 1,027 $ 484,303 $ 253,079 $ 231,224 $ 487,785 $ 265,578 $ 222,207 Included in cash and cash equivalents $ 253,079 $ 280,578 Included in marketable securities $ 231,224 $ 207,207 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Debt | The net carrying amount of the liability and equity components of the Notes was as follows (in thousands): September 30, 2021 December 31, 2020 Liability component: Principal $ 345,000 $ 345,000 Unamortized discount (43,255) (49,346) Unamortized issuance costs (5,404) (6,164) Net carrying amount $ 296,341 $ 289,490 Equity component, net of purchase discounts and issuance costs $ 58,560 $ 58,560 Interest expense related to the Notes is as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Contractual interest expense $ 970 $ 970 $ 2,911 $ 2,910 Amortization of debt discount 2,045 1,983 6,091 5,903 Amortization of issuance costs 256 248 760 738 Total interest expense $ 3,271 $ 3,201 $ 9,762 $ 9,551 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Cost of revenue Subscription and support $ 731 $ 426 $ 1,824 $ 1,293 Professional services 407 272 1,183 1,062 Operating expenses Research and development 2,347 2,167 7,195 5,790 Sales and marketing 4,095 2,687 10,481 8,367 General and administrative 5,107 5,049 14,679 18,919 Total $ 12,687 $ 10,601 $ 35,362 $ 35,431 |
Schedule of Stock-Option Activity | The following table summarizes the option activity under the Plans for the nine months ended September 30, 2021: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2020 2,903,167 $ 14.48 4.7 Granted — — Forfeited (6,380) 19.25 Exercised (629,755) 13.96 Outstanding at September 30, 2021 2,267,032 $ 14.61 4.1 Exercisable at September 30, 2021 2,259,753 $ 14.59 4.1 |
Summary of Restricted Stock Units | The following table summarizes the restricted stock unit activity under the Plan for the nine months ended September 30, 2021: Number of Shares Weighted- Average Grant Date Fair Value Unvested at December 31, 2020 2,904,616 $ 35.72 Granted 872,135 108.00 Forfeited (182,761) 63.62 Vested (1) (1,557,830) 30.63 Unvested at September 30, 2021 2,036,160 $ 68.96 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues disaggregated by industry (in thousands). Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Information technology $ 16,097 $ 11,983 $ 44,953 $ 34,264 Diversified financials 13,538 10,665 38,094 31,232 Consumer discretionary 12,148 9,748 34,019 28,497 Healthcare 11,860 8,772 34,003 25,517 Industrials 11,826 9,365 33,739 27,768 Banks 9,940 8,959 30,247 25,914 Insurance 7,547 5,828 22,106 17,173 Energy 6,818 5,812 20,178 17,793 Utilities 6,040 3,538 16,795 10,707 Real estate 4,608 3,769 13,727 11,810 Materials 4,570 3,824 13,040 10,735 Other 7,701 5,836 21,601 16,350 Total revenues $ 112,693 $ 88,099 $ 322,502 $ 257,760 The following table presents our revenues disaggregated by type of good or service (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Subscription and support $ 98,912 $ 75,850 $ 275,053 $ 214,907 XBRL professional services 9,003 7,798 33,558 29,543 Other services 4,778 4,451 13,891 13,310 Total revenues $ 112,693 $ 88,099 $ 322,502 $ 257,760 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data): Three months ended September 30, 2021 September 30, 2020 Class A Class B Class A Class B Numerator Net loss $ (5,731) $ (837) $ (8,566) $ (1,789) Denominator Weighted-average common shares outstanding - basic and diluted 44,886,268 6,555,420 40,400,270 8,439,861 Basic and diluted net loss per share $ (0.13) $ (0.13) $ (0.21) $ (0.21) Nine months ended September 30, 2021 September 30, 2020 Class A Class B Class A Class B Numerator Net loss $ (19,993) $ (3,413) $ (33,239) $ (7,146) Denominator Weighted-average common shares outstanding - basic and diluted 43,496,619 7,424,993 39,661,228 8,526,955 Basic and diluted net loss per share $ (0.46) $ (0.46) $ (0.84) $ (0.84) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows: As of September 30, 2021 September 30, 2020 Shares subject to outstanding common stock options 2,267,032 3,265,977 Shares subject to unvested restricted stock units 2,036,160 2,974,719 Shares issuable pursuant to the ESPP 55,561 95,084 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table presents a preliminary allocation of the purchase price to the assets acquired and liabilities assumed at the date of acquisition (in thousands) : Cash consideration $ 36,564 Previously held equity interest 4,698 Total consideration $ 41,262 Cash $ 1,497 Intangible assets 7,000 Goodwill 34,279 Other assets 548 Deferred revenue (900) Deferred tax liability (988) Other liabilities (174) Fair value of assets and liabilities $ 41,262 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The changes in the carrying amount of goodwill were as follows (in thousands): December 31, 2020 $ — Acquisition 34,279 September 30, 2021 $ 34,279 |
Summary of Intangible Assets | The following table presents the components of net intangible assets (in thousands): As of September 30, 2021 As of December 31, 2020 Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology 4 $ 6,600 $ (275) $ 6,325 $ — $ — $ — Acquired customer relationships 10 300 (5) 295 — — — Acquired trade name 2 100 (8) 92 — — — Patents 10 2,708 (1,227) 1,481 2,538 (955) 1,583 Total $ 9,708 $ (1,515) $ 8,193 $ 2,538 $ (955) $ 1,583 |
Schedule of Expected Amortization Expense of Intangible Assets | As of September 30, 2021, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands): Three months ended December 31, 2021 $ 541 2022 2,021 2023 1,910 2024 1,867 2025 1,154 2026 160 Thereafter 540 Total expected amortization expense $ 8,193 |
Supplemental Consolidated Bal_3
Supplemental Consolidated Balance Sheet Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued vacation | $ 11,876 | $ 10,294 |
Accrued commissions | 6,975 | 12,678 |
Accrued bonuses | 16,579 | 6,573 |
Accrued payroll | 3,013 | 2,631 |
Estimated health insurance claims | 1,605 | 1,224 |
Accrued interest | 485 | 1,455 |
ESPP employee contributions | 2,941 | 4,269 |
Customer deposits | 24,592 | 18,283 |
Operating lease liabilities | 4,233 | 4,541 |
Accrued other liabilities | 6,500 | 6,308 |
Accrued expenses and other current liabilities | $ 78,799 | $ 68,256 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 291,125 | $ 322,831 |
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized Gains | 69 | 296 |
Unrealized Losses | (69) | (49) |
Aggregate Fair Value | 231,224 | |
Cash and cash equivalents and available-for-sale securities, amortized cost | 484,303 | 487,538 |
Cash, cash equivalents, and available-for-sale securities | 484,303 | 487,785 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,487 | 21,489 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 12,487 | 21,489 |
U.S. treasury debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52,755 | 51,731 |
Unrealized Gains | 4 | 80 |
Unrealized Losses | (28) | (2) |
Aggregate Fair Value | 52,731 | 51,809 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 160,945 | 147,715 |
Unrealized Gains | 64 | 214 |
Unrealized Losses | (41) | (47) |
Aggregate Fair Value | 160,968 | 147,882 |
Foreign government debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,037 | 1,025 |
Unrealized Gains | 1 | 2 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 5,038 | 1,027 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 253,079 | 265,578 |
Cash and cash equivalents, aggregate fair value | 253,079 | 265,578 |
Cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 253,079 | 280,578 |
Cash and cash equivalents, aggregate fair value | 253,079 | 280,578 |
Marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 231,224 | 206,960 |
Unrealized Gains | 69 | 296 |
Unrealized Losses | (69) | (49) |
Aggregate Fair Value | $ 231,224 | $ 207,207 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Schedule of Contractual Maturities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year | $ 134,115 |
Due in one to two years | 95,098 |
Due in three to five years | 2,011 |
Marketable securities | $ 231,224 |
Cash Equivalents and Marketab_5
Cash Equivalents and Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Fair Value | |
Less than 12 months | $ 108,632 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (69) |
12 months or greater | 0 |
U.S. treasury debt securities | |
Fair Value | |
Less than 12 months | 34,768 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (28) |
12 months or greater | 0 |
Corporate debt securities | |
Fair Value | |
Less than 12 months | 73,864 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (41) |
12 months or greater | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 231,224 | |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 253,079 | $ 280,578 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 231,224 | 207,207 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12,487 | 21,489 |
U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 52,731 | 51,809 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 160,968 | 147,882 |
Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,038 | 1,027 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 253,079 | 265,578 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of convertible debt | 641,800 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 484,303 | 487,785 |
Recurring | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 253,079 | 280,578 |
Recurring | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 231,224 | 207,207 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12,487 | 21,489 |
Recurring | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 52,731 | 51,809 |
Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 160,968 | 147,882 |
Recurring | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,038 | 1,027 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 253,079 | 265,578 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 253,079 | 265,578 |
Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 253,079 | 265,578 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 231,224 | 222,207 |
Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12,487 | 21,489 |
Recurring | Level 2 | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 52,731 | 51,809 |
Recurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 160,968 | 147,882 |
Recurring | Level 2 | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,038 | 1,027 |
Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | $ 0 | $ 0 |
Convertible Senior Notes (Detai
Convertible Senior Notes (Details) | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2019USD ($)day$ / shares | Sep. 30, 2021USD ($)$ / shares | Dec. 31, 2020$ / shares | |
Class A Common Stock | |||
Debt Instrument [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 |
Convertible debt | 1.125% Convertible Senior Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ | $ 345,000,000 | ||
Stated interest percentage | 1.125% | ||
Proceeds from the issuance of convertible senior notes, net of issuance costs | $ | $ 335,900,000 | ||
Conversion ratio | 0.0124756 | ||
Conversion price (in dollars per share) | $ / shares | $ 80.16 | ||
Threshold number of trading days (day) | 20 | ||
Threshold number of consecutive trading days (day) | 30 | ||
Threshold percentage of stock price trigger | 130.00% | ||
Redemption price, percentage | 100.00% | ||
Effective interest percentage | 4.30% | ||
If-converted value in excess of principal | $ | $ 261,700,000 | ||
Remaining life of debt instrument | 4 years 9 months 18 days | ||
Convertible debt | 1.125% Convertible Senior Notes Due 2026 | Debt Conversion Terms, One | |||
Debt Instrument [Line Items] | |||
Threshold number of trading days (day) | 20 | ||
Threshold number of consecutive trading days (day) | 30 | ||
Threshold percentage of stock price trigger | 130.00% | ||
Convertible debt | 1.125% Convertible Senior Notes Due 2026 | Debt Conversion Terms, Two | |||
Debt Instrument [Line Items] | |||
Threshold number of trading days (day) | 5 | ||
Threshold number of consecutive trading days (day) | 10 | ||
Threshold percentage of stock trading price | 98.00% | ||
Convertible debt | Over-allotment option | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ | $ 45,000,000 |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Convertible Debt (Details) - 1.125% Convertible Senior Notes Due 2026 - Convertible debt - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal | $ 345,000 | $ 345,000 |
Unamortized discount | (43,255) | (49,346) |
Unamortized issuance costs | (5,404) | (6,164) |
Net carrying amount | 296,341 | 289,490 |
Equity component, net of purchase discounts and issuance costs | $ 58,560 | $ 58,560 |
Convertible Senior Notes - Su_2
Convertible Senior Notes - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Contractual interest expense | $ 970 | $ 970 | $ 2,911 | $ 2,910 |
Amortization of debt discount | 2,045 | 1,983 | 6,091 | 5,903 |
Amortization of issuance costs | 256 | 248 | 760 | 738 |
Total interest expense | $ 3,271 | $ 3,201 | $ 9,762 | $ 9,551 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jul. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease, term of contract | 3 years |
Renewal term | 2 years |
Operating lease annual base rent expense | $ 1.6 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 12,687 | $ 10,601 | $ 35,362 | $ 35,431 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 2,347 | 2,167 | 7,195 | 5,790 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 4,095 | 2,687 | 10,481 | 8,367 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 5,107 | 5,049 | 14,679 | 18,919 |
Subscription and support | Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 731 | 426 | 1,824 | 1,293 |
Professional services | Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 407 | $ 272 | $ 1,183 | $ 1,062 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares | |
Options (in shares): | ||
Outstanding beginning of the period (in shares) | shares | 2,903,167 | |
Granted (in shares) | shares | 0 | |
Forfeited (in shares) | shares | (6,380) | |
Exercised (in shares) | shares | (629,755) | |
Outstanding end of the period (in shares) | shares | 2,267,032 | 2,903,167 |
Exercisable (in shares) | shares | 2,259,753 | |
Weighted-Average Exercise Price (in dollars per share): | ||
Outstanding beginning of the period (in dollars per share) | $ / shares | $ 14.48 | |
Granted (in dollars per share) | $ / shares | 0 | |
Forfeited (in dollars per share) | $ / shares | 19.25 | |
Exercised (in dollars per share) | $ / shares | 13.96 | |
Outstanding end of the period (in dollars per share) | $ / shares | 14.61 | $ 14.48 |
Exercisable (in dollars per share) | $ / shares | $ 14.59 | |
Outstanding, weighted-average remaining contractual term (years) | 4 years 1 month 6 days | 4 years 8 months 12 days |
Exercisable, weighted-average remaining contractual term (years) | 4 years 1 month 6 days |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Shares (in shares) | |
Unvested at beginning of period (in shares) | 2,904,616 |
Granted (in shares) | 872,135 |
Forfeited (in shares) | (182,761) |
Vested (in shares) | (1,557,830) |
Unvested at end of period (in shares) | 2,036,160 |
Weighted- Average Grant Date Fair Value (in dollars per share) | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 35.72 |
Granted (in dollars per share) | $ / shares | 108 |
Forfeited (in dollars per share) | $ / shares | 63.62 |
Vested (in dollars per share) | $ / shares | 30.63 |
Unvested at end of period (in dollars per share) | $ / shares | $ 68.96 |
Number of vested shares recipient elected to defer settlement (in shares) | 402,832 |
Number of vested shares recipients elected to defer settlement, released during period (in shares) | 270,567 |
Number of deferred shares vested and outstanding (in shares) | 695,869 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from shares issued in connection with employee stock purchase plan | $ 4,624 | $ 3,567 | $ 8,861 | $ 7,227 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 1,000 | $ 1,000 | ||
Unrecognized compensation expense, period for recognition (years) | 3 months 18 days | |||
Class A Common Stock | Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued during period (in shares) | 148,864 | |||
Shares issued during period, weighted average price per share (in dollars per share) | $ 59.52 | |||
Proceeds from shares issued in connection with employee stock purchase plan | $ 8,900 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 112,693 | $ 88,099 | $ 322,502 | $ 257,760 |
Subscription and support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 98,912 | 75,850 | 275,053 | 214,907 |
XBRL professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,003 | 7,798 | 33,558 | 29,543 |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,778 | 4,451 | 13,891 | 13,310 |
Information technology | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 16,097 | 11,983 | 44,953 | 34,264 |
Diversified financials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 13,538 | 10,665 | 38,094 | 31,232 |
Consumer discretionary | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,148 | 9,748 | 34,019 | 28,497 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,860 | 8,772 | 34,003 | 25,517 |
Industrials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,826 | 9,365 | 33,739 | 27,768 |
Banks | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,940 | 8,959 | 30,247 | 25,914 |
Insurance | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,547 | 5,828 | 22,106 | 17,173 |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,818 | 5,812 | 20,178 | 17,793 |
Utilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,040 | 3,538 | 16,795 | 10,707 |
Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,608 | 3,769 | 13,727 | 11,810 |
Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,570 | 3,824 | 13,040 | 10,735 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 7,701 | $ 5,836 | $ 21,601 | $ 16,350 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue and Transaction Price Allocated to the Remaining Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue recognized | $ 91.3 | $ 68.2 | $ 198.7 | $ 148.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue expected to be recognized | 518.5 | 518.5 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue expected to be recognized | $ 305.2 | $ 305.2 | ||
Expected period of recognition | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected period of recognition | 24 months | 24 months |
Net Loss Per Share - Earnings P
Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Denominator | ||||
Weighted-average common shares outstanding - basic | 51,441,688 | 48,840,131 | 50,921,612 | 48,188,183 |
Weighted-average common shares outstanding - diluted | 51,441,688 | 48,840,131 | 50,921,612 | 48,188,183 |
Basic net loss per share (in dollars per share) | $ (0.13) | $ (0.21) | $ (0.46) | $ (0.84) |
Diluted net loss per share (in dollars per share) | $ (0.13) | $ (0.21) | $ (0.46) | $ (0.84) |
Class A Common Stock | ||||
Numerator | ||||
Net loss, basic | $ (5,731) | $ (8,566) | $ (19,993) | $ (33,239) |
Net loss, diluted | $ (5,731) | $ (8,566) | $ (19,993) | $ (33,239) |
Denominator | ||||
Weighted-average common shares outstanding - basic | 44,886,268 | 40,400,270 | 43,496,619 | 39,661,228 |
Weighted-average common shares outstanding - diluted | 44,886,268 | 40,400,270 | 43,496,619 | 39,661,228 |
Basic net loss per share (in dollars per share) | $ (0.13) | $ (0.21) | $ (0.46) | $ (0.84) |
Diluted net loss per share (in dollars per share) | $ (0.13) | $ (0.21) | $ (0.46) | $ (0.84) |
Class B Common Stock | ||||
Numerator | ||||
Net loss, basic | $ (837) | $ (1,789) | $ (3,413) | $ (7,146) |
Net loss, diluted | $ (837) | $ (1,789) | $ (3,413) | $ (7,146) |
Denominator | ||||
Weighted-average common shares outstanding - basic | 6,555,420 | 8,439,861 | 7,424,993 | 8,526,955 |
Weighted-average common shares outstanding - diluted | 6,555,420 | 8,439,861 | 7,424,993 | 8,526,955 |
Basic net loss per share (in dollars per share) | $ (0.13) | $ (0.21) | $ (0.46) | $ (0.84) |
Diluted net loss per share (in dollars per share) | $ (0.13) | $ (0.21) | $ (0.46) | $ (0.84) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Shares subject to outstanding common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,267,032 | 3,265,977 |
Shares subject to unvested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,036,160 | 2,974,719 |
Shares issuable pursuant to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 55,561 | 95,084 |
Convertible Debt Securities | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,300,000 | 4,300,000 |
Business Combination (Details)
Business Combination (Details) - USD ($) $ in Thousands | Jul. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 35,067 | $ 0 | $ 35,067 | $ 0 | |
Equity securities | $ 4,700 | ||||
Gain on equity securities | 3,700 | $ 3,698 | $ 0 | 3,698 | $ 0 |
OneCloud, Inc. | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | 35,100 | ||||
Cash acquired from acquisition | $ 1,500 | ||||
Acquisition related costs | $ 400 |
Business Combination - Assets A
Business Combination - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 34,279 | $ 0 | |
OneCloud, Inc. | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 36,564 | ||
Previously held equity interest | 4,698 | ||
Total consideration | 41,262 | ||
Cash | 1,497 | ||
Intangible assets | 7,000 | ||
Goodwill | 34,279 | ||
Other assets | 548 | ||
Deferred revenue | (900) | ||
Deferred tax liability | (988) | ||
Other liabilities | (174) | ||
Fair value of assets and liabilities | $ 41,262 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 0 |
Acquisition | 34,279 |
Goodwill, ending balance | $ 34,279 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Asset Components (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,708 | $ 2,538 |
Accumulated Amortization | (1,515) | (955) |
Net Carrying Amount | $ 8,193 | 1,583 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 4 years | |
Gross Carrying Amount | $ 6,600 | 0 |
Accumulated Amortization | (275) | 0 |
Net Carrying Amount | $ 6,325 | 0 |
Acquired customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 10 years | |
Gross Carrying Amount | $ 300 | 0 |
Accumulated Amortization | (5) | 0 |
Net Carrying Amount | $ 295 | 0 |
Acquired trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 2 years | |
Gross Carrying Amount | $ 100 | 0 |
Accumulated Amortization | (8) | 0 |
Net Carrying Amount | $ 92 | 0 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 10 years | |
Gross Carrying Amount | $ 2,708 | 2,538 |
Accumulated Amortization | (1,227) | (955) |
Net Carrying Amount | $ 1,481 | $ 1,583 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 0.4 | $ 0.1 | $ 0.6 | $ 0.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization of Intangible Assets by Fiscal Year (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Three months ended December 31, 2021 | $ 541 | |
2022 | 2,021 | |
2023 | 1,910 | |
2024 | 1,867 | |
2025 | 1,154 | |
2026 | 160 | |
Thereafter | 540 | |
Net Carrying Amount | $ 8,193 | $ 1,583 |