Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 16, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.1 | ||
Documents Incorporated by Reference | Information required in response to Part III of Form 10-K (Items 10, 11, 12, 13 and 14) is hereby incorporated by reference to portions of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held in 2023. The Proxy Statement will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended December 31, 2022. | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Entity Central Index Key | 0001445305 | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 49,207,363 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,890,583 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Chicago, Illinois |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 240,197 | $ 300,386 |
Marketable securities | 190,595 | 230,060 |
Accounts receivable, net of allowance for doubtful accounts of $744 and $591 at December 31, 2022 and 2021, respectively | 106,316 | 76,848 |
Deferred costs | 38,350 | 31,152 |
Other receivables | 6,674 | 3,538 |
Prepaid expenses and other | 17,957 | 15,108 |
Total current assets | 600,089 | 657,092 |
Property and equipment, net | 27,096 | 28,821 |
Operating lease right-of-use assets | 13,932 | 17,760 |
Deferred costs, non-current | 33,682 | 33,091 |
Goodwill | 109,740 | 34,556 |
Intangible assets, net | 28,234 | 10,434 |
Other assets | 6,847 | 5,005 |
Total assets | 819,620 | 786,759 |
Current liabilities | ||
Accounts payable | 6,174 | 4,114 |
Accrued expenses and other current liabilities | 83,999 | 84,126 |
Deferred revenue | 316,263 | 258,023 |
Convertible senior notes, current | 0 | 298,661 |
Finance lease obligations | 504 | 1,575 |
Total current liabilities | 406,940 | 646,499 |
Convertible senior notes, non-current | 340,257 | 0 |
Deferred revenue, non-current | 38,237 | 34,181 |
Other long-term liabilities | 1,518 | 1,605 |
Operating lease liabilities, non-current | 12,102 | 16,408 |
Finance lease obligations, non-current | 14,583 | 15,087 |
Total liabilities | 813,637 | 713,780 |
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 | 537,732 | 525,646 |
Accumulated deficit | (525,116) | (452,430) |
Accumulated other comprehensive loss | (6,686) | (288) |
Total stockholders’ equity | 5,983 | 72,979 |
Total liabilities and stockholders’ equity | 819,620 | 786,759 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock | 49 | 47 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 4 | $ 4 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts | $ 744 | $ 591 |
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, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 48,761,804 | 47,293,775 |
Common stock, shares outstanding | 48,761,804 | 47,293,775 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 3,890,583 | 4,150,583 |
Common stock, shares outstanding | 3,890,583 | 4,150,583 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Total revenue | $ 537,875 | $ 443,285 | $ 351,594 |
Cost of revenue | |||
Total cost of revenue | 129,885 | 103,833 | 90,177 |
Gross profit | 407,990 | 339,452 | 261,417 |
Operating expenses | |||
Research and development | 151,716 | 115,735 | 94,844 |
Sales and marketing | 245,260 | 178,785 | 144,687 |
General and administrative | 99,778 | 74,287 | 59,688 |
Total operating expenses | 496,754 | 368,807 | 299,219 |
Loss from operations | (88,764) | (29,355) | (37,802) |
Interest income | 4,880 | 1,041 | 3,282 |
Interest expense | (6,042) | (14,015) | (13,964) |
Other income and (expense), net | 926 | 3,229 | (205) |
Loss before provision (benefit) for income taxes | (89,000) | (39,100) | (48,689) |
Provision (benefit) for income taxes | 1,947 | (1,370) | (291) |
Net loss | $ (90,947) | $ (37,730) | $ (48,398) |
Net loss per common share: | |||
Basic (in dollars per share) | $ (1.72) | $ (0.74) | $ (1) |
Diluted (in dollars per share) | $ (1.72) | $ (0.74) | $ (1) |
Weighted-average common shares outstanding - basic (in shares) | 52,954,079 | 51,126,510 | 48,448,166 |
Weighted-average common shares outstanding - diluted (in shares) | 52,954,079 | 51,126,510 | 48,448,166 |
Subscription and support | |||
Revenue | |||
Total revenue | $ 464,935 | $ 379,340 | $ 295,877 |
Cost of revenue | |||
Total cost of revenue | 77,711 | 60,551 | 49,503 |
Professional services | |||
Revenue | |||
Total revenue | 72,940 | 63,945 | 55,717 |
Cost of revenue | |||
Total cost of revenue | $ 52,174 | $ 43,282 | $ 40,674 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (90,947) | $ (37,730) | $ (48,398) |
Other comprehensive loss | |||
Foreign currency translation adjustment | (4,304) | 266 | (137) |
Unrealized (loss) gain on available-for-sale securities | (2,094) | (784) | 80 |
Other comprehensive loss | (6,398) | (518) | (57) |
Comprehensive loss | $ (97,345) | $ (38,248) | $ (48,455) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Adjustment | Common Stock (Class A and B) | Additional Paid-in-Capital | Additional Paid-in-Capital Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Accumulated Deficit Adjustment |
Beginning of the period (in shares) 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 | 45,771 | 45,771 | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,398,000 | |||||||
Issuance of common stock upon exercise of stock options | 19,189 | $ 2 | 19,187 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 187,000 | |||||||
Issuance of common stock under employee stock purchase plan | 7,227 | 7,227 | ||||||
Issuance of restricted stock units (in shares) | 796,000 | |||||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (231,000) | |||||||
Tax withholdings related to net share settlements of stock-based compensation awards | (13,657) | (13,657) | ||||||
Net loss | (48,398) | (48,398) | ||||||
Other comprehensive loss | (57) | (57) | ||||||
End of the period (in shares) at Dec. 31, 2020 | 48,789,000 | |||||||
End 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 | 48,633 | 48,633 | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,141,000 | |||||||
Issuance of common stock upon exercise of stock options | 16,600 | $ 2 | 16,598 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 149,000 | |||||||
Issuance of common stock under employee stock purchase plan | 8,861 | 8,861 | ||||||
Issuance of restricted stock units (in shares) | 1,578,000 | |||||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (213,000) | |||||||
Tax withholdings related to net share settlements of stock-based compensation awards | (27,144) | (27,144) | ||||||
Net loss | (37,730) | (37,730) | ||||||
Other comprehensive loss | (518) | (518) | ||||||
End of the period (in shares) at Dec. 31, 2021 | 51,444,000 | |||||||
End of the period at Dec. 31, 2021 | $ 72,979 | $ (40,299) | $ 51 | 525,646 | $ (58,560) | (288) | (452,430) | $ 18,261 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | |||||||
End of the period at Jan. 01, 2022 | (58,600) | 18,300 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | |||||||
Beginning of the period (in shares) at Dec. 31, 2021 | 51,444,000 | |||||||
Beginning of the period at Dec. 31, 2021 | $ 72,979 | $ (40,299) | $ 51 | 525,646 | $ (58,560) | (288) | (452,430) | $ 18,261 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | $ 70,660 | 70,660 | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 239,943 | 239,000 | ||||||
Issuance of common stock upon exercise of stock options | $ 3,273 | $ 1 | 3,272 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 131,000 | |||||||
Issuance of common stock under employee stock purchase plan | 9,256 | $ 1 | 9,255 | |||||
Issuance of restricted stock units (in shares) | 958,000 | |||||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (120,000) | |||||||
Tax withholdings related to net share settlements of stock-based compensation awards | (12,541) | (12,541) | ||||||
Net loss | (90,947) | (90,947) | ||||||
Other comprehensive loss | (6,398) | (6,398) | ||||||
End of the period (in shares) at Dec. 31, 2022 | 52,652,000 | |||||||
End of the period at Dec. 31, 2022 | $ 5,983 | $ 53 | $ 537,732 | $ (6,686) | $ (525,116) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net loss | $ (90,947) | $ (37,730) | $ (48,398) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 10,212 | 5,244 | 4,296 |
Stock-based compensation expense | 70,660 | 48,633 | 45,771 |
Provision for (recovery of) doubtful accounts | 156 | (125) | (159) |
Amortization of premiums and discounts on marketable securities, net | 1,079 | 3,024 | 668 |
Amortization of debt discount and issuance costs | 1,298 | 9,171 | 8,889 |
Gain on settlement of equity securities | 0 | (3,698) | 0 |
Deferred income tax | 538 | (1,973) | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (28,893) | (7,683) | (8,028) |
Deferred costs | (8,496) | (19,207) | (15,953) |
Operating lease right-of-use asset | 5,153 | 4,197 | 3,906 |
Other receivables | (1,655) | (391) | (680) |
Prepaid expenses and other | (2,913) | (6,522) | (2,492) |
Other assets | (2,441) | (1,222) | (215) |
Accounts payable | 2,438 | 972 | (4,106) |
Deferred revenue | 61,657 | 47,419 | 37,479 |
Operating lease liability | (5,055) | (4,934) | (4,525) |
Accrued expenses and other liabilities | (1,457) | 14,669 | 16,790 |
Net cash provided by operating activities | 11,334 | 49,844 | 33,243 |
Cash flows from investing activities | |||
Purchase of property and equipment | (3,458) | (3,534) | (1,873) |
Purchase of marketable securities | (130,754) | (170,070) | (175,926) |
Maturities of marketable securities | 150,565 | 143,159 | 62,922 |
Sale of marketable securities | 14,981 | 250 | 11,423 |
Acquisitions, net of cash acquired | (99,186) | (37,467) | 0 |
Purchase of intangible assets | (160) | (219) | (296) |
Other investments | 0 | (750) | 0 |
Net cash used in investing activities | (68,012) | (68,631) | (103,750) |
Cash flows from financing activities | |||
Proceeds from option exercises | 3,273 | 16,600 | 19,189 |
Taxes paid related to net share settlements of stock-based compensation awards | (12,541) | (27,144) | (13,657) |
Proceeds from shares issued in connection with employee stock purchase plan | 9,256 | 8,861 | 7,227 |
Principal payments on finance lease obligations | (1,575) | (1,705) | (1,641) |
Net cash (used in) provided by financing activities | (1,587) | (3,388) | 11,118 |
Effect of foreign exchange rates on cash | (1,924) | (270) | 478 |
Net decrease in cash and cash equivalents | (60,189) | (22,445) | (58,911) |
Cash and cash equivalents at beginning of year | 300,386 | 322,831 | 381,742 |
Cash and cash equivalents at end of year | 240,197 | 300,386 | 322,831 |
Supplemental cash flow disclosure | |||
Cash paid for interest | 4,742 | 4,837 | 5,067 |
Cash paid for income taxes, net of refunds | 1,429 | (41) | 679 |
Supplemental disclosure of noncash investing and financing activities | |||
Allowance for tenant improvements | 0 | 0 | 149 |
Purchases of property and equipment, accrued but not paid | $ 0 | $ 350 | $ 263 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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 consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Workiva Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Seasonality affects our revenue, expenses and cash flows from operations. Revenue from professional services is generally higher in the first quarter as many of our customers file their 10-K in the first calendar quarter. Our sales and marketing expense also has some degree of seasonality. With the exception of September 2020 and September 2021 when we transitioned to a virtual event, sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September, which was held as a hybrid in-person/virtual event in 2022. In addition, the timing of cash bonus payments to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. Segments Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable by the chief operating decision maker, or anyone else, for operations, operating results and planning for levels or components below the consolidated unit level. Accordingly, we determined we have one operating and reportable segment. Foreign Currency We translate the financial statements of our foreign subsidiaries, which have a functional currency in the respective country’s local currency, to U.S. dollars using month-end exchange rates for assets and liabilities and average exchange rates for revenue, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income as a component of stockholders’ equity. Gains and losses resulting from foreign currency transactions that are denominated in currencies other than the entity's functional currency are included within other income and (expense), net on the consolidated statements of operations. 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, 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. Cash and Cash Equivalents Cash consists of cash on deposit with banks that is stated at cost, which approximates fair value. We invest our excess cash primarily in highly liquid money market funds and marketable securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities. Marketable Securities Our marketable securities consist of corporate debt securities, U.S. treasury debt securities and foreign government debt securities. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond twelve months as current assets in the accompanying consolidated balance sheets. Available-for-sale securities are recorded at fair value each reporting period. Unrealized gains and losses are excluded from earnings and recorded as a separate component within accumulated other comprehensive income on the consolidated balance sheets until realized. Dividend income is reported within other income and (expense), net on the consolidated statements of operations. We evaluate our investments to assess whether the amortized cost basis is in excess of estimated fair value and determine what amount of that difference, if any, is caused by expected credit losses. Allowance for credit losses are recognized as a charge in other income and (expense), net on the consolidated statements of operations, and any remaining unrealized losses are included in accumulated other comprehensive loss on the consolidated balance sheets. There were no credit losses recorded for the years ended December 31, 2022, 2021 and 2020. We determine realized gains and losses on the sale of marketable securities on the specific identification method and record such gains and losses in other income and (expense), net on the consolidated statements of operations. Fair Value of Financial Instruments Our financial assets, which include cash equivalents and marketable securities, are measured and recorded at fair value on a recurring basis. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value due to their short-term maturities. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with high credit-quality financial institutions. Such deposits may be in excess of federally insured limits. To date, we have not experienced any losses on our cash and cash equivalents. We perform periodic evaluations of the relative credit standing of the financial institutions. We perform ongoing credit evaluations of our customers’ financial condition and require no collateral from our customers. We maintain an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable balances. We did not have a significant concentration of accounts receivable from any single customer or from customers in any single country outside of the United States at December 31, 2022 or 2021. Deferred Costs We pay sales commissions for initial contracts and expansions of existing contracts with customers. These commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid where the amortization period is one year or less are expensed as incurred. All other sales commissions are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three years. We determined the period of benefit by taking into consideration our standard contract terms and conditions, rate of technological change and other factors. Amortization expense is included in sales and marketing expense in the accompanying consolidated statements of operations. Property and Equipment, net Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, generally three Revenue Recognition We generate revenue through the sale of subscriptions to our cloud-based software and the delivery of professional services. We recognize revenue when control of these services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation We report revenue net of sales and other taxes collected from customers to be remitted to government authorities. Subscription and Support Revenue We recognize subscription and support revenue on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our subscription contracts are generally twelve Professional Services Revenue and Customer Options Professional services revenues primarily consist of fees for document set up, XBRL tagging, and consulting with our customers on business processes and best practices. We have determined that an agreement to purchase these professional services constitutes an option to purchase services in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification No. 606, Revenue from Contracts with Customers, (ASC 606) rather than an agreement that creates enforceable rights and obligations because of the customer's contractual right to cancel services that have not yet been used. In the limited case of agreements where we determined that the option provides the customer with a material right, we allocate a portion of the transaction price to the material right based upon the relative standalone selling price. Professional service agreements that do not contain a material right are accounted for when the customer exercises its option to purchase additional services. Revenue is recognized for document set ups when the service is complete and control has transferred to the customer. Revenues from XBRL tagging and consulting services are recognized as the services are performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for the individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and entity-specific factors, including the value of our arrangements, length of term, customer demographics and the numbers and types of users within our arrangements. Deferred Revenue We typically invoice our customers for subscription and support fees annually in advance on one- to three-year contract terms. For contracts with a two Customer Deposits As an agreement to purchase professional services constitutes a customer option, fees received in advance of these services being performed are considered customer deposits and are included in accrued expenses and other current liabilities on the consolidated balance sheets. Unpaid invoice amounts for these professional services starting in future periods are excluded from accounts receivable and accrued expenses and other current liabilities. Cost of Revenue Cost of revenue consists primarily of personnel and related costs directly associated with the professional services and customer success teams and training personnel, including salaries, benefits, bonuses, and stock-based compensation; the costs of contracted third-party vendors; the costs of server usage by our customers; information technology costs; and facility costs. Sales and Marketing Expenses Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, our annual user conference, online marketing, product marketing, information technology costs, and facility costs. Advertising costs are charged to sales and marketing expense as incurred. Advertising expense totaled $6.1 million, $5.6 million and $3.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Research and Development Expenses Research and development expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, and stock-based compensation, costs of server usage by our developers, information technology costs, and facility costs. General and Administrative Expenses General and administrative expenses consist primarily of personnel and related costs for our executive, finance, legal, human resources, and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate expenses; information technology costs; and facility costs. Leases We determine whether an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We do not include options to extend or terminate the lease term unless it is reasonably certain that we will exercise any such options. We recognize rent expense under our operating leases on a straight-line basis. For finance leases, we record interest expense on the lease liability in addition to amortizing the right-of-use asset (generally straight-line) over the shorter of the lease term or the useful life of the right-of-use asset. We have lease agreements with lease and non-lease components. We have elected to account for these lease and non-lease components as a single lease component. We do not recognize right-of-use assets or lease liabilities for short-term leases, which have a lease term of twelve months or less, and instead will recognize lease payments as expense on a straight-line basis over the lease term. Acquisitions When we acquire a business, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statement of operations. Goodwill 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. For the years ended December 31, 2022 and 2021, we determined there were no events or circumstances which indicated that the carrying value of a reporting unit exceeded the fair value. Intangible Assets Intangible assets consist of patents and intangible assets acquired in a business combination or asset acquisition, primarily technology, customer-related assets, and trade names. Patents are recorded at cost to obtain and amortized over the useful lives. Certain patents are in the legal application process and therefore are not currently being amortized. Intangible assets acquired in a business combination or an asset acquisition are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. Impairment of Long-Lived Assets Long-lived assets, such as property, equipment, right-of-use assets, and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, we first compare the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. There were no impairment losses related to long-lived assets in any of the periods presented. Stock-Based Compensation We measure all share-based payments, including grants of options to purchase common stock and the issuance of restricted stock units and performance stock units to employees, service providers and board members, using a fair-value based method. We record forfeitures as they occur. The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the estimated fair value of those awards on the grant date or reporting date, if required to be remeasured, and amortized on a straight-line basis over the requisite service period. We use the Black-Scholes option-pricing model to determine the fair values of shares to be issued pursuant to our Employee Stock Purchase Plan (“ESPP”). For restricted stock units and performance restricted stock units, fair value is based on the closing price of our common stock on the grant date. Income Taxes We record current income taxes based on our estimates of current taxable income and provide for deferred income taxes to reflect estimated future income tax payments and receipts. We are subject to federal income taxes as well as state taxes. In addition, we are subject to taxes in the foreign jurisdictions where we operate. We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment rate. We account for the effects of Global Intangible Low-Taxed Income in the period incurred. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits on the (benefit) provision for income taxes line in the accompanying consolidated statements of operations. Interest and penalties were not significant during the years ended December 31, 2022, 2021 and 2020. Accrued interest and penalties are included on the accrued expenses and other current liabilities line in the consolidated balance sheets. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of customer accounts. We regularly review our receivables that remain outstanding past their applicable payment terms and established an allowance for potential write-offs by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current and forecasted economic conditions that may affect a customer’s ability to pay. Accounts receivable deemed uncollectible are charged against the allowance once collection efforts have been exhausted. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which amends the accounting related to contract assets and liabilities acquired in business combinations. This ASU requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers . This update is effective for fiscal years beginning after December 15, 2022 with early adoption permitted. We adopted this standard on January 1, 2022. The adoption of this 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 Equit y. Under ASU 2020-06, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in capital. The convertible debt instruments are now accounted for as a single liability measured at amortized cost. This resulted in the interest expense recognized for convertible debt instruments to be closer to the coupon interest rate. The new guidance also required the if-converted method to be applied for all convertible instruments when calculating earnings per share. The new standard was effective for interim and annual periods beginning after December 15, 2021 and could be adopted on either a modified retrospective or full retrospective basis. We adopted this standard on January 1, 2022 using the modified retrospective method under which financial results reported in prior periods were not adjusted. Adoption of the new standard resulted in a decrease to accumulated deficit of $18.3 million, a decrease to additional paid-in capital of $58.6 million, and an increase to convertible senior notes, non-current of $40.3 million on the consolidated balance sheet. See Note 8 to the consolidated financial statements for more information. New Accounting Pronouncements Not Yet Adopted None |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities At December 31, 2022, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 182,878 $ — $ — $ 182,878 U.S. treasury debt securities 72,151 1 (899) 71,253 Corporate debt securities 120,081 62 (1,771) 118,372 Foreign government debt securities 993 — (23) 970 $ 376,103 $ 63 $ (2,693) $ 373,473 Included in cash and cash equivalents $ 182,878 $ — $ — $ 182,878 Included in marketable securities $ 193,225 $ 63 $ (2,693) $ 190,595 At December 31, 2021, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 259,754 $ — $ — $ 259,754 Commercial paper 10,479 — — 10,479 U.S. treasury debt securities 54,809 2 (206) 54,605 Corporate debt securities 161,792 3 (334) 161,461 Foreign government debt securities 5,014 1 — 5,015 $ 491,848 $ 6 $ (540) $ 491,314 Included in cash and cash equivalents $ 261,254 $ — $ — $ 261,254 Included in marketable securities $ 230,594 $ 6 $ (540) $ 230,060 The contractual maturities of the investments classified as marketable securities are as follows (in thousands): As of December 31, 2022 Due within one year $ 127,081 Due in one to two years 63,514 Due in three to five years — $ 190,595 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 December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2022 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ 31,927 $ (258) $ 35,575 $ (641) Corporate debt securities 59,535 (949) 39,823 (822) Foreign government debt securities 970 (23) — — Total $ 92,432 $ (1,230) $ 75,398 $ (1,463) |
Supplemental Consolidated Balan
Supplemental Consolidated Balance Sheet Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidated Balance Sheet Information | Supplemental Consolidated Balance Sheet Information Property and Equipment, net Property and equipment, net as of December 31, 2022 and 2021 consisted of (in thousands): As of December 31, 2022 2021 Building under finance lease $ 21,574 $ 21,574 Computers, equipment and software 13,221 10,856 Furniture and fixtures 8,308 8,373 Vehicles 97 97 Leasehold improvements 8,045 7,907 51,245 48,807 Less: accumulated depreciation and amortization (24,149) (19,986) $ 27,096 $ 28,821 Accumulated amortization related to finance leases was $3.6 million and $2.7 million as of December 31, 2022 and 2021, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of December 31, 2022 and 2021 consisted of (in thousands): As of December 31, 2022 2021 Accrued vacation $ 12,939 $ 11,221 Accrued commissions 10,841 11,122 Accrued bonuses 5,597 8,292 Accrued payroll 5,318 4,494 Estimated health insurance claims 1,841 1,814 Accrued interest 1,455 1,455 ESPP employee contributions 5,661 5,349 Customer deposits 25,520 26,517 Operating lease liabilities 5,720 6,008 Accrued other liabilities 9,107 7,854 $ 83,999 $ 84,126 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
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. As of December 31, 2022 and 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. 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 December 31, 2022 Fair Value Measurements as of December 31, 2021 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 182,878 $ 182,878 $ — $ 259,754 $ 259,754 $ — Commercial paper — — — 10,479 — 10,479 U.S. treasury debt securities 71,253 — 71,253 54,605 — 54,605 Corporate debt securities 118,372 — 118,372 161,461 — 161,461 Foreign government debt securities 970 — 970 5,015 — 5,015 $ 373,473 $ 182,878 $ 190,595 $ 491,314 $ 259,754 $ 231,560 Included in cash and cash equivalents $ 182,878 $ 261,254 Included in marketable securities $ 190,595 $ 230,060 We completed acquisitions during the years ended December 31, 2022 and 2021. The values of the net assets acquired and any 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 December 31, 2022, the fair value of our convertible senior notes was $425.0 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 8 to the consolidated financial statements for more information. |
Deferred Costs
Deferred Costs | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Costs | Deferred CostsDeferred costs, which primarily consist of costs to obtain contracts with customers, were $72.0 million and $64.2 million for the years ended December 31, 2022 and 2021, respectively. Amortization expense for the deferred costs was $44.0 million, $34.1 million and $21.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. There were no material impairment losses in relation to the costs capitalized for the periods presented.Revenue Recognition Disaggregation of Revenue The following table presents our revenues disaggregated by industry as derived from leading software providers (in thousands): For the year ended December 31, 2022 2021 2020 Industrials $ 76,970 $ 59,797 $ 46,764 Diversified financials 71,975 57,470 44,326 Information technology 62,114 47,697 34,878 Banks 54,973 46,702 39,630 Consumer discretionary 51,961 41,826 34,029 Healthcare 47,892 39,394 30,676 Insurance 32,421 27,206 21,993 Real estate 23,815 21,042 18,070 Energy 23,363 21,093 18,380 Utilities 22,306 21,319 13,561 Materials 21,454 19,357 16,321 Consumer staples 16,829 13,146 10,683 Public administration 15,064 13,719 11,433 Other 16,738 13,517 10,850 Total revenues $ 537,875 $ 443,285 $ 351,594 The following table presents our revenues disaggregated by type of good or service (in thousands): For the year ended December 31, 2022 2021 2020 Subscription and support $ 464,935 $ 379,340 $ 295,877 XBRL professional services 54,896 44,763 38,032 Other services 18,044 19,182 17,685 Total revenues $ 537,875 $ 443,285 $ 351,594 Deferred Revenue During the year ended December 31, 2022, we recognized $244.4 million of revenue that was included in the deferred revenue balance at the beginning of the period. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2022, revenue of approximately $761.6 million is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize approximately $420.8 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments We enter into certain non-cancelable agreements with third-party providers primarily for our use of cloud services and cloud infrastructure services in the ordinary course of business. Under these agreements, we are committed to purchase $27.2 million in fiscal year 2023 and $12.7 million in fiscal year 2024. 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
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease certain office space, residential space, buildings and land with various lease terms through May 2043. Certain office leases include one or more options to renew, with renewal terms that can extend the lease term from 2 to 5 years. The exercise of lease renewal options is at our sole discretion and are assessed whether to factor as part of the lease term at lease inception. Our leases generally require us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. The components of lease expense recognized in the consolidated statements of operations were as follows (in thousands): Year ended December 31, 2022 2021 2020 Operating lease cost $ 5,778 $ 4,750 $ 4,475 Finance lease cost: Amortization of right-of-use assets 880 880 922 Interest on lease obligations 861 956 1,197 Short-term lease cost 3,045 1,667 1,727 Variable lease cost 1,189 1,163 1,214 $ 11,753 $ 9,416 $ 9,535 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,876 $ 6,028 $ 5,350 Finance cash flows from finance leases 1,575 1,705 1,641 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,816 $ 6,299 $ 4,121 Finance leases — — — Other supplemental information related to leases was as follows: As of December 31, 2022 2021 2020 Weighted Average Remaining Lease Term (in years) Operating leases 5.4 5.7 6.5 Finance leases 20.4 21.4 22.4 Weighted Average Discount Rate Operating leases 5.4 % 4.9 % 5.5 % Finance leases 5.5 % 5.5 % 5.5 % As of December 31, 2022, the aggregate annual lease obligations were as follows (in thousands): Operating Leases Finance Leases 2023 $ 6,506 $ 1,315 2024 4,416 1,315 2025 2,769 1,315 2026 1,743 1,315 2027 1,603 1,315 Thereafter 3,864 17,346 Total lease obligations 20,901 23,921 Less: Amount representing interest (3,079) (8,834) Net lease obligations $ 17,822 $ 15,087 |
Leases | Leases We lease certain office space, residential space, buildings and land with various lease terms through May 2043. Certain office leases include one or more options to renew, with renewal terms that can extend the lease term from 2 to 5 years. The exercise of lease renewal options is at our sole discretion and are assessed whether to factor as part of the lease term at lease inception. Our leases generally require us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. The components of lease expense recognized in the consolidated statements of operations were as follows (in thousands): Year ended December 31, 2022 2021 2020 Operating lease cost $ 5,778 $ 4,750 $ 4,475 Finance lease cost: Amortization of right-of-use assets 880 880 922 Interest on lease obligations 861 956 1,197 Short-term lease cost 3,045 1,667 1,727 Variable lease cost 1,189 1,163 1,214 $ 11,753 $ 9,416 $ 9,535 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,876 $ 6,028 $ 5,350 Finance cash flows from finance leases 1,575 1,705 1,641 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,816 $ 6,299 $ 4,121 Finance leases — — — Other supplemental information related to leases was as follows: As of December 31, 2022 2021 2020 Weighted Average Remaining Lease Term (in years) Operating leases 5.4 5.7 6.5 Finance leases 20.4 21.4 22.4 Weighted Average Discount Rate Operating leases 5.4 % 4.9 % 5.5 % Finance leases 5.5 % 5.5 % 5.5 % As of December 31, 2022, the aggregate annual lease obligations were as follows (in thousands): Operating Leases Finance Leases 2023 $ 6,506 $ 1,315 2024 4,416 1,315 2025 2,769 1,315 2026 1,743 1,315 2027 1,603 1,315 Thereafter 3,864 17,346 Total lease obligations 20,901 23,921 Less: Amount representing interest (3,079) (8,834) Net lease obligations $ 17,822 $ 15,087 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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. If we undergo a fundamental change (as defined in the indenture), holders may require us to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will increase, in certain circumstances, the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or notice of redemption, as the case may be. 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 fourth quarter of 2021 one of the conversion conditions was met, 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 December 31, 2021. As a result, the Notes were classified as current liabilities on the consolidated balance sheet as of December 31, 2021. As of December 31, 2022 none of the conversion conditions were met and therefore the Notes are not convertible at the option of the holders. As a result, the Notes were classified as non-current liabilities on the consolidated balance sheet as of December 31, 2022. As of December 31, 2022 we have not received any conversion requests for the Notes. As discussed in Note 1, we adopted ASU 2020‑06 on January 1, 2022 and the Notes are now accounted for as a single liability measured at amortized cost. Upon adoption, interest expense representing the amortization of the issuance costs as well as contractual interest expense is amortized to interest expense at an effective interest rate of 1.5% over the term of the notes. Prior to the adoption of ASU 2020-06, interest expense representing the amortization of the debt discount and issuance costs as well as contractual interest expense was amortized to interest expense at an effective interest rate of 4.3%. As of December 31, 2022 the if-converted value of the Notes exceeded the principal amount by $16.4 million. As of December 31, 2022, the remaining life of the Notes is approximately 3.8 years. The net carrying amount of the liability and equity components of the Notes was as follows (in thousands): As of December 31, 2022 2021 Liability component: Principal $ 345,000 $ 345,000 Unamortized discount — (41,193) Unamortized issuance costs (4,743) (5,146) Net carrying amount $ 340,257 $ 298,661 Equity component, net of purchase discounts and issuance costs $ — $ 58,560 Interest expense related to the Notes is as follows (in thousands): Year ended December 31, 2022 2021 2020 Contractual interest expense $ 3,880 $ 3,881 $ 3,880 Amortization of debt discount — 8,153 7,901 Amortization of issuance costs 1,298 1,018 988 Total interest expense $ 5,178 $ 13,052 $ 12,769 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' EquityWe have two classes of authorized common stock: Class A common stock and Class B common stock. The rights of the holders of our Class A common stock and our Class B common stock are identical, except with respect to voting and conversion. Each share of our Class A common stock is entitled to one vote per share and is not convertible into any other shares of our capital stock. Each share of our Class B common stock is entitled to ten votes per share and is convertible into one share of our Class A common stock at any time. Our Class B common stock also will automatically convert into shares of our Class A common stock upon certain transfers and other events. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock units, options to purchase Class A common stock and ESPP purchase rights. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (“the 2009 Plan”). The 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (“the 2014 Plan” and, together with the 2009 Plan, “the Plans”). As of December 31, 2022, awards granted under the 2009 Plan consisted of stock options and awards granted under the 2014 Plan consisted of stock options, restricted stock units, and performance restricted stock units. There were no other grants of any other award types under the Plans. On June 1, 2022, stockholders approved an amendment to the 2014 Plan that increased the number of shares available for grant by 3,000,000. As of December 31, 2022, 3,273,308 shares of Class A common stock were available for grant under the 2014 Plan. Our ESPP became effective on June 13, 2017 and was amended and restated on October 28, 2022. Under the ESPP, eligible employees are granted options to purchase shares of Class A common stock at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about July 15 and January 15 and are exercisable on or about the succeeding January 14 and July 14, respectively, of each year. As of December 31, 2022, 4,165,047 shares of Class A common stock were available for issuance under the ESPP. No participant may purchase more than $12,500 worth of Class A common stock in a six-month offering period. 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): Year ended December 31, 2022 2021 2020 Cost of revenue Subscription and support $ 3,437 $ 2,868 $ 1,709 Professional services 2,128 1,729 1,434 Operating expenses Research and development 12,554 9,590 8,100 Sales and marketing 19,323 13,901 11,062 General and administrative 33,218 20,545 23,466 Total $ 70,660 $ 48,633 $ 45,771 Stock Options The following table summarizes the option activity under the Plans for the year ended December 31, 2022: Options Weighted- Weighted- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2021 1,755,180 $ 14.42 4.0 $ 203,720 Granted — — Forfeited (3,095) 13.26 Expired (2,970) 3.92 Exercised (239,943) 13.64 Outstanding at December 31, 2022 1,509,172 $ 14.57 3.2 $ 104,737 Exercisable at December 31, 2022 1,509,172 $ 14.57 3.2 $ 104,737 Options to purchase Class A common stock generally vest over a three No options were granted during the years ended December 31, 2022, 2021 and 2020. As of December 31, 2021, all outstanding options have vested. The total fair value of options vested during the years ended December 31, 2021 and 2020 was approximately $0.9 million and $3.5 million, respectively. As of December 31, 2022 there was no unrecognized compensation expense related to options. Restricted Stock Units and Performance Restricted Stock Units Restricted stock units granted to employees generally vest over a three The recipient of a restricted stock unit award or performance restricted stock unit award under the 2014 Plan will have no rights as a stockholder until share certificates are issued by us. At the Annual Meeting of Stockholders on June 1, 2022, our stockholders approved the amendment and restatement of the Workiva Inc. Amended and Restated 2014 Equity Incentive Plan which prohibits payment of dividends or dividend equivalents on full-value awards prior to the vesting of such award. Additionally, until the shares are issued, they have no voting rights and may not be bought or sold. The fair value for restricted stock unit awards and performance restricted stock unit awards are calculated based on the stock price on the date of grant. Total performance restricted stock units earned may vary based on the attainment of company-specific performance targets during the vesting period. The total fair value of restricted stock units vested during the years ended December 31, 2022, 2021, and 2020 was approximately $57.7 million, $54.9 million, and $27.7 million, respectively. The following table summarizes the restricted stock unit and performance restricted stock unit activity under the Plan for the year ended December 31, 2022: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2021 1,891,699 $ 73.04 Granted 1,101,832 101.61 Forfeited (123,841) 92.36 Vested (1) (947,763) 60.66 Unvested at December 31, 2022 1,921,927 $ 93.80 (1) During the year ended December 31, 2022, in accordance with our Nonqualified Deferred Compensation Plan, recipients of 18,491 shares had elected to defer settlement of the vested restricted stock units and 27,916 were released from deferral. This resulted in total deferred units of 686,444 as of December 31, 2022. Compensation expense associated with unvested restricted stock units and performance restricted stock units is recognized on a straight-line basis over the vesting period. At December 31, 2022, there was approximately $132.8 million of total unrecognized compensation expense related to restricted stock units and performance restricted stock units, which is expected to be recognized over a weighted-average period of 2.6 years. Employee Stock Purchase Plan The fair value of each option grant issued under the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on the historical volatility of our Class A common stock, and the expected term represents the period of time the ESPP purchase rights are expected to be outstanding and approximates the offering period. The risk-free interest rate is based on yields on U.S. Treasury STRIPS (“Separate Trading of Registered Interest and Principal of Securities”) with a maturity similar to the estimated expected term of the ESPP purchase rights. The fair value of our ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions: Year ended December 31, 2022 2021 2020 ESPP Expected term (in years) 0.5 0.5 0.5 Risk-free interest rate 0.6% - 3.1% 0.1% 0.2% - 1.5% Expected volatility 45.7% - 58.7% 41.8% - 45.0% 40.6% - 61.0% The following table summarizes the ESPP activity under the Plan for the years ended December 31, 2022, 2021 and 2020: For the year ended December 31, 2022 2021 2020 Shares issued 131,467 148,864 186,855 Weighted-average purchase price $ 70.41 $ 59.52 $ 38.68 Total proceeds (in thousands) $ 9,256 $ 8,861 $ 7,227 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table summarizes the activity of accumulated other comprehensive income during the years ended December 31, 2022, 2021 and 2020 (in thousands): Accumulated translation adjustment Accumulated unrealized holding gains (losses) on available-for-sale securities Accumulated other comprehensive income (loss) Balance at December 31, 2019 $ 178 $ 109 $ 287 Other comprehensive (loss) income (137) 80 (57) Balance at December 31, 2020 41 189 230 Other comprehensive income (loss) 266 (784) (518) Balance at December 31, 2021 307 (595) (288) Other comprehensive loss (4,304) (2,094) (6,398) Balance at December 31, 2022 $ (3,997) $ (2,689) $ (6,686) |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Fiscal Year 2022 ParsePort ApS On April 1, 2022, we acquired all of the issued and outstanding equity interests in Denmark-based ParsePort ApS (“ParsePort”), a leading solution provider for the European Single Electronic Format (“ESEF”) financial reporting mandate, which complements Workiva's cloud platform, for $99.2 million net of cash acquired of $1.6 million. The transaction has been accounted for as a business combination and the purchase price has been 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, operational synergies, and strategic benefits that are expected to be achieved and is not deductible for income tax purposes. The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed at the date of acquisition (in thousands) : Cash consideration $ 100,744 Total consideration $ 100,744 Cash $ 1,558 Accounts receivable, net 1,403 Intangible assets 24,000 Goodwill 78,225 Other assets 440 Accounts payable (29) Accrued liabilities (1,444) Deferred revenue (3,299) Other liabilities (110) Fair value of assets and liabilities $ 100,744 We incurred costs related to the acquisition of approximately $0.6 million during the year ended December 31, 2022. Substantially all acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in our consolidated statements of operations. The amount of revenues and net loss from the ParsePort acquisition included in our consolidated statements of operations for the year ended December 31, 2022 was insignificant. Fiscal Year 2021 Mark V Systems Limited On December 29, 2021, we acquired all of the stock in Mark V Systems Limited, the author of the only open source eXtensible Business Reporting Language validation engine, which ensures the continued accessibility of the open source validation engine. The acquisition was not material to the consolidated financial statements. AuditNet, LLC On December 10, 2021, we acquired all of the membership interests in AuditNet, LLC, a global audit content and services provider, which strengthens Workiva’s risk and assurance offerings. The acquisition was not material to the consolidated financial statements. OneCloud, Inc. On July 30, 2021, we acquired all of the equity interest in OneCloud, Inc. (“OneCloud”), an 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 consolidated statement of operations. The transaction has been accounted for as a business combination and the purchase price has been 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 the 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 34,556 Other assets 548 Deferred revenue (900) Deferred tax liability (1,265) 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 year ended December 31, 2021. All acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in our consolidated statements of operations. The amount of revenues and net loss from the OneCloud acquisition included in our consolidated statements of operations for the years ended December 31, 2022 and December 31, 2021 were insignificant. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): December 31, 2020 $ — Acquisition and purchase accounting adjustment 34,556 December 31, 2021 34,556 Acquisition 78,225 Foreign currency translation adjustments (3,041) December 31, 2022 $ 109,740 Intangible Assets The following table presents the components of net intangible assets (in thousands): December 31, 2022 December 31, 2021 Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology 4.5 $ 15,705 $ (3,849) $ 11,856 $ 7,920 $ (701) $ 7,219 Acquired customer-related 10.0 14,969 (1,169) 13,800 360 (14) 346 Acquired trade names 2.9 2,151 (861) 1,290 1,478 (21) 1,457 Patents 10.0 2,916 (1,628) 1,288 2,740 (1,328) 1,412 Total 7.1 $ 35,741 $ (7,507) $ 28,234 $ 12,498 $ (2,064) $ 10,434 Amortization expense related to intangible assets was $5.3 million, $1.1 million and $0.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands): 2023 $ 6,132 2024 5,368 2025 4,639 2026 3,331 2027 2,048 Thereafter 6,716 Total expected amortization expense $ 28,234 |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenues by geographical region consisted of the following (in thousands): For the year ended December 31, 2022 2021 2020 Subscription and support revenue Americas $ 408,838 $ 342,673 $ 273,574 Other 56,097 36,666 22,303 Professional services revenue Americas 67,309 58,312 51,142 Other 5,631 5,634 4,575 $ 537,875 $ 443,285 $ 351,594 Revenues by geography are generally based on the country of the customer as specified in our subscription order. Total Americas revenue attributed to the United States was approximately 93%, 93%, and 94% during each of the years ended December 31, 2022, 2021, and 2020, respectively. No other country represented more than 10% of total revenue during the years presented. Our long-lived assets, which primarily consist of property and equipment and operating lease right-of-use assets, are attributed to a country based on the physical location of the assets. Aggregate long-lived assets by geographical region consisted of the following (in thousands): For the year ended December 31, 2022 2021 United States $ 35,790 $ 40,585 United Kingdom 2,681 4,437 Other 2,557 1,559 $ 41,028 $ 46,581 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Deferred CostsDeferred costs, which primarily consist of costs to obtain contracts with customers, were $72.0 million and $64.2 million for the years ended December 31, 2022 and 2021, respectively. Amortization expense for the deferred costs was $44.0 million, $34.1 million and $21.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. There were no material impairment losses in relation to the costs capitalized for the periods presented.Revenue Recognition Disaggregation of Revenue The following table presents our revenues disaggregated by industry as derived from leading software providers (in thousands): For the year ended December 31, 2022 2021 2020 Industrials $ 76,970 $ 59,797 $ 46,764 Diversified financials 71,975 57,470 44,326 Information technology 62,114 47,697 34,878 Banks 54,973 46,702 39,630 Consumer discretionary 51,961 41,826 34,029 Healthcare 47,892 39,394 30,676 Insurance 32,421 27,206 21,993 Real estate 23,815 21,042 18,070 Energy 23,363 21,093 18,380 Utilities 22,306 21,319 13,561 Materials 21,454 19,357 16,321 Consumer staples 16,829 13,146 10,683 Public administration 15,064 13,719 11,433 Other 16,738 13,517 10,850 Total revenues $ 537,875 $ 443,285 $ 351,594 The following table presents our revenues disaggregated by type of good or service (in thousands): For the year ended December 31, 2022 2021 2020 Subscription and support $ 464,935 $ 379,340 $ 295,877 XBRL professional services 54,896 44,763 38,032 Other services 18,044 19,182 17,685 Total revenues $ 537,875 $ 443,285 $ 351,594 Deferred Revenue During the year ended December 31, 2022, we recognized $244.4 million of revenue that was included in the deferred revenue balance at the beginning of the period. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2022, revenue of approximately $761.6 million is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize approximately $420.8 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income tax provision (benefit) consisted of the following (in thousands): For the year ended December 31, 2022 2021 2020 United States $ (91,210) $ (41,567) $ (50,193) Foreign 2,210 2,467 1,504 Total $ (89,000) $ (39,100) $ (48,689) The provision (benefit) for income taxes consisted of the following (in thousands): For the year ended December 31, 2022 2021 2020 Current Federal $ — $ — $ — State 327 98 120 Foreign 1020 479 (148) Total Current $ 1347 $ 577 $ (28) Deferred Federal $ — $ (1,252) $ — State — (374) — Foreign 600 (321) (263) Total Deferred $ 600 $ (1,947) $ (263) Total $ 1,947 $ (1,370) $ (291) During the years ended December 31, 2022, 2021 and 2020, we recorded a federal income tax benefit of $0, $1.3 million, and $0, respectively. The prior year benefit was related to the OneCloud acquisition. As the reversal of the acquired net deferred tax liabilities will be recognized on future tax returns, these provide an objective source of taxable income. Therefore, a corresponding portion of our valuation allowance has been released to reflect this availability, resulting in a federal and state tax benefit reflected in the table above. In response to the COVID-19 pandemic, the Canada Revenue Agency extended the filing due dates allowing for the Scientific Research and Experimental Development (“SR&ED”) reporting deadlines to be extended for six months, but no later than December 31, 2020. We were able to leverage this deadline extension and amended our 2018 Canadian return for the SR&ED credit thus generating a current and deferred foreign tax benefit for the year ended December 31, 2020. The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for income taxes consisted of the following (in thousands): For the year ended December 31, 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: Tax benefit at federal statutory rate $ (18,690) $ (8,211) $ (10,225) State taxes, net of federal benefit (5,722) (15,350) (3,394) Revaluation of deferred tax items due to tax rate change (state) — — (404) Section 162(m) limitations 6,083 9,008 6,682 Stock-based compensation (9,768) (49,020) (12,665) Global intangible low-taxed income inclusion 2,850 2,023 1,855 Permanent items 866 (601) 146 Tax benefit of federal R&D credit (6,406) (3,694) (3,509) Valuation allowance 32,896 64,602 21,887 Other (162) (127) (664) Total income tax provision $ 1,947 $ (1,370) $ (291) The components of deferred tax assets and liabilities were as follows (in thousands): As of December 31, 2022 2021 Deferred tax assets: Property and equipment $ 2,931 $ 2,770 Accruals and reserves 79 48 Lease liability 7,726 9,014 Compensation and benefits 15,031 15,266 Deferred revenue 31,497 21,709 Net operating loss and credits 138,517 150,448 Interest expense 386 4,035 IRC 174 Capitalization 38,923 — Other 2,198 546 Total deferred tax assets 237,288 203,836 Valuation allowance (220,016) (174,771) Total deferred tax assets 17,272 29,065 Deferred tax liabilities: Property and equipment (104) (48) Right-of-use asset (7,389) (8,275) Convertible notes — (10,916) Acquired intangibles (1,310) (2,022) Deferred commissions (8,212) (6,761) Other deferred tax liabilities (179) (321) Deferred tax liabilities (17,194) (28,343) Total $ 78 $ 722 Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2022. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, we recognized a full valuation allowance against our net US deferred tax asset at December 31, 2022, because we believe it is more likely than not that these benefits will not be realized. Beginning in 2022, the Tax Cuts and Jobs Act of 2017 (“TCJA”) amended Internal Revenue Code Section 174 to require specific research and experimental (“R&E”) expenditures be capitalized and amortized over five years (U.S. R&E) or fifteen years (non-U.S. R&E). Because of this amendment, we generated U.S. taxable income resulting in a deferred tax asset related to the Section 174 amortization of $38.9 million at December 31, 2022. We were able to utilize pre-TCJA NOL carryforwards and state credits to offset this income. As of December 31, 2022, we have federal and state net operating loss carryforwards of approximately $408.7 million and $373.6 million, respectively, available to reduce any future taxable income. The federal net operating loss carryforwards will expire in varying amounts beginning in 2035. Federal and some state net operating losses incurred after 2017 will have an indefinite carryforward. The state net operating loss carryforwards will expire in varying amounts beginning in 2023. Additionally, we have total net operating loss carryforwards from international operations of $2.9 million that do not expire. We also have approximately $26.2 million of federal and $4.5 million of state tax credit carryforwards as of December 31, 2022. The federal credits will expire in varying amounts between the years 2034 and 2042. The state credits expire beginning in 2023. Utilization of our net operating loss and tax credit carryforwards may be subject to substantial annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code, as amended, and similar state provisions. A reconciliation of the gross unrecognized tax benefits is as follows (in thousands): For the year ended December 31, 2022 2021 2020 Unrecognized tax benefits-beginning of period $ 180 $ 195 $ 178 Additions for tax positions related to prior year 1,400 — — Reductions for tax positions related to prior year — — — Foreign currency adjustments (10) (15) 17 Additions for tax positions related to current year 300 — — Unrecognized tax benefits-end of period $ 1,870 $ 180 $ 195 We have analyzed our inventory of tax positions taken with respect to all applicable income tax issues for all open tax years. The gross unrecognized tax benefits, if recognized, would not materially affect the effective tax rate as of December 31, 2022. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
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 our convertible senior notes, outstanding stock options, stock related to unvested restricted stock, 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 contractual 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. At the Annual Meeting of Stockholders on June 1, 2022, our stockholders approved the amendment and restatement of the Workiva Inc. Amended and Restated 2014 Equity Incentive Plan which prohibits payment of dividends or dividend equivalents on full-value awards prior to the vesting of such award. As such, we no longer consider unvested restricted stock granted under the 2014 Equity Incentive Plan to be participating securities. 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): Year ended December 31, 2022 December 31, 2021 December 31, 2020 Class A Class B Class A Class B Class A Class B Numerator Net loss $ (84,210) $ (6,737) $ (32,724) $ (5,006) $ (39,966) $ (8,432) Denominator Weighted-average common shares outstanding - basic and diluted 49,031,441 3,922,638 44,343,177 6,783,333 40,007,839 8,440,327 Basic and diluted net loss per share $ (1.72) $ (1.72) $ (0.74) $ (0.74) $ (1.00) $ (1.00) 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 December 31, 2022 2021 2020 Shares subject to outstanding common stock options 1,509,172 1,755,180 2,903,167 Shares subject to unvested restricted stock units and performance restricted stock units 1,921,927 1,891,699 2,904,616 Shares issuable pursuant to the ESPP 112,522 53,877 94,390 Additionally, approximately 4.3 million shares of our Class A common stock underlying the conversion option in the Notes, are not considered in the calculation of diluted net loss per share as the effect would be anti-dilutive. Upon adoption of ASU 2020-06 on January 1, 2022, we use the if-converted method for calculating any potential dilutive effect of the Notes on diluted net income per share, if applicable. Prior to adoption of ASU 2020-06 we used the treasury stock method. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We have a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code. In 2022, we began matching a certain percentage of employee contributions. Both employee and employer contributions vest immediately upon contribution. During the year ended December 31, 2022, our contribution to the 401(k) plan was $5.3 million. We also maintain a number of defined contribution plans for certain non-U.S. locations. Total employer contributions under these plans were $2.5 million, $1.8 million, and $1.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Workiva Inc. and its wholly owned subsidiaries. |
Principles of Consolidation | All intercompany accounts and transactions have been eliminated in consolidation. |
Segments | Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable by the chief operating decision maker, or anyone else, for operations, operating results and planning for levels or components below the consolidated unit level. Accordingly, we determined we have one operating and reportable segment. |
Foreign Currency | We translate the financial statements of our foreign subsidiaries, which have a functional currency in the respective country’s local currency, to U.S. dollars using month-end exchange rates for assets and liabilities and average exchange rates for revenue, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income as a component of stockholders’ equity. Gains and losses resulting from foreign currency transactions that are denominated in currencies other than the entity's functional currency are included within other income and (expense), net on the consolidated statements of operations. |
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, 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. |
Cash and Cash Equivalents | Cash consists of cash on deposit with banks that is stated at cost, which approximates fair value. We invest our excess cash primarily in highly liquid money market funds and marketable securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities. |
Marketable Securities | Our marketable securities consist of corporate debt securities, U.S. treasury debt securities and foreign government debt securities. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond twelve months as current assets in the accompanying consolidated balance sheets. Available-for-sale securities are recorded at fair value each reporting period. Unrealized gains and losses are excluded from earnings and recorded as a separate component within accumulated other comprehensive income on the consolidated balance sheets until realized. Dividend income is reported within other income and (expense), net on the consolidated statements of operations. We evaluate our investments to assess whether the amortized cost basis is in excess of estimated fair value and determine what amount of that difference, if any, is caused by expected credit losses. Allowance for credit losses are recognized as a charge in other income and (expense), net on the consolidated statements of operations, and any remaining unrealized losses are included in accumulated other comprehensive loss on the consolidated balance sheets. There were no credit losses recorded for the years ended December 31, 2022, 2021 and 2020. We determine realized gains and losses on the sale of marketable securities on the specific identification method and record such gains and losses in other income and (expense), net on the consolidated statements of operations. |
Fair Value of Financial Instruments | Our financial assets, which include cash equivalents and marketable securities, are measured and recorded at fair value on a recurring basis. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value due to their short-term maturities. |
Concentration of Credit Risk | Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with high credit-quality financial institutions. Such deposits may be in excess of federally insured limits. To date, we have not experienced any losses on our cash and cash equivalents. We perform periodic evaluations of the relative credit standing of the financial institutions.We perform ongoing credit evaluations of our customers’ financial condition and require no collateral from our customers. We maintain an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable balances. |
Deferred Costs | We pay sales commissions for initial contracts and expansions of existing contracts with customers. These commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid where the amortization period is one year or less are expensed as incurred. All other sales commissions are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three years. We determined the period of benefit by taking into consideration our standard contract terms and conditions, rate of technological change and other factors. Amortization expense is included in sales and marketing expense in the accompanying consolidated statements of operations. |
Property and Equipment, net | Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, generally three |
Revenue Recognition, Deferred Revenue, Customer Deposits and Cost of Revenue | We generate revenue through the sale of subscriptions to our cloud-based software and the delivery of professional services. We recognize revenue when control of these services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation We report revenue net of sales and other taxes collected from customers to be remitted to government authorities. Subscription and Support Revenue We recognize subscription and support revenue on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our subscription contracts are generally twelve Professional Services Revenue and Customer Options Professional services revenues primarily consist of fees for document set up, XBRL tagging, and consulting with our customers on business processes and best practices. We have determined that an agreement to purchase these professional services constitutes an option to purchase services in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification No. 606, Revenue from Contracts with Customers, (ASC 606) rather than an agreement that creates enforceable rights and obligations because of the customer's contractual right to cancel services that have not yet been used. In the limited case of agreements where we determined that the option provides the customer with a material right, we allocate a portion of the transaction price to the material right based upon the relative standalone selling price. Professional service agreements that do not contain a material right are accounted for when the customer exercises its option to purchase additional services. Revenue is recognized for document set ups when the service is complete and control has transferred to the customer. Revenues from XBRL tagging and consulting services are recognized as the services are performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for the individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and entity-specific factors, including the value of our arrangements, length of term, customer demographics and the numbers and types of users within our arrangements. two |
Sales and Marketing Expenses | Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, our annual user conference, online marketing, product marketing, information technology costs, and facility costs. |
Advertising Costs | Advertising costs are charged to sales and marketing expense as incurred. |
Research and Development Expenses | Research and development expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, and stock-based compensation, costs of server usage by our developers, information technology costs, and facility costs. |
General and Administrative Expenses | General and administrative expenses consist primarily of personnel and related costs for our executive, finance, legal, human resources, and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate expenses; information technology costs; and facility costs. |
Leases | We determine whether an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We do not include options to extend or terminate the lease term unless it is reasonably certain that we will exercise any such options. We recognize rent expense under our operating leases on a straight-line basis. For finance leases, we record interest expense on the lease liability in addition to amortizing the right-of-use asset (generally straight-line) over the shorter of the lease term or the useful life of the right-of-use asset. We have lease agreements with lease and non-lease components. We have elected to account for these lease and non-lease components as a single lease component. We do not recognize right-of-use assets or lease liabilities for short-term leases, which have a lease term of twelve months or less, and instead will recognize lease payments as expense on a straight-line basis over the lease term. |
Acquisitions | When we acquire a business, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statement of operations. |
Goodwill | 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. |
Intangible Assets | Intangible assets consist of patents and intangible assets acquired in a business combination or asset acquisition, primarily technology, customer-related assets, and trade names. Patents are recorded at cost to obtain and amortized over the useful lives. Certain patents are in the legal application process and therefore are not currently being amortized. Intangible assets acquired in a business combination or an asset acquisition are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. |
Impairment of Long-Lived Assets | Long-lived assets, such as property, equipment, right-of-use assets, and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, we first compare the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. |
Stock-based Compensation | We measure all share-based payments, including grants of options to purchase common stock and the issuance of restricted stock units and performance stock units to employees, service providers and board members, using a fair-value based method. We record forfeitures as they occur. The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the estimated fair value of those awards on the grant date or reporting date, if required to be remeasured, and amortized on a straight-line basis over the requisite service period. We use the Black-Scholes option-pricing model to determine the fair values of shares to be issued pursuant to our Employee Stock Purchase Plan (“ESPP”). For restricted stock units and performance restricted stock units, fair value is based on the closing price of our common stock on the grant date. |
Income Taxes | We record current income taxes based on our estimates of current taxable income and provide for deferred income taxes to reflect estimated future income tax payments and receipts. We are subject to federal income taxes as well as state taxes. In addition, we are subject to taxes in the foreign jurisdictions where we operate. We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment rate. We account for the effects of Global Intangible Low-Taxed Income in the period incurred. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable are recorded at the invoiced amount net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of customer accounts. We regularly review our receivables that remain outstanding past their applicable payment terms and established an allowance for potential write-offs by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current and forecasted economic conditions that may affect a customer’s ability to pay. Accounts receivable deemed uncollectible are charged against the allowance once collection efforts have been exhausted. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted | In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which amends the accounting related to contract assets and liabilities acquired in business combinations. This ASU requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers . This update is effective for fiscal years beginning after December 15, 2022 with early adoption permitted. We adopted this standard on January 1, 2022. The adoption of this 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 Equit y. Under ASU 2020-06, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in capital. The convertible debt instruments are now accounted for as a single liability measured at amortized cost. This resulted in the interest expense recognized for convertible debt instruments to be closer to the coupon interest rate. The new guidance also required the if-converted method to be applied for all convertible instruments when calculating earnings per share. The new standard was effective for interim and annual periods beginning after December 15, 2021 and could be adopted on either a modified retrospective or full retrospective basis. |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | At December 31, 2022, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 182,878 $ — $ — $ 182,878 U.S. treasury debt securities 72,151 1 (899) 71,253 Corporate debt securities 120,081 62 (1,771) 118,372 Foreign government debt securities 993 — (23) 970 $ 376,103 $ 63 $ (2,693) $ 373,473 Included in cash and cash equivalents $ 182,878 $ — $ — $ 182,878 Included in marketable securities $ 193,225 $ 63 $ (2,693) $ 190,595 At December 31, 2021, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 259,754 $ — $ — $ 259,754 Commercial paper 10,479 — — 10,479 U.S. treasury debt securities 54,809 2 (206) 54,605 Corporate debt securities 161,792 3 (334) 161,461 Foreign government debt securities 5,014 1 — 5,015 $ 491,848 $ 6 $ (540) $ 491,314 Included in cash and cash equivalents $ 261,254 $ — $ — $ 261,254 Included in marketable securities $ 230,594 $ 6 $ (540) $ 230,060 |
Schedule of Cash and Cash Equivalents | At December 31, 2022, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 182,878 $ — $ — $ 182,878 U.S. treasury debt securities 72,151 1 (899) 71,253 Corporate debt securities 120,081 62 (1,771) 118,372 Foreign government debt securities 993 — (23) 970 $ 376,103 $ 63 $ (2,693) $ 373,473 Included in cash and cash equivalents $ 182,878 $ — $ — $ 182,878 Included in marketable securities $ 193,225 $ 63 $ (2,693) $ 190,595 At December 31, 2021, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 259,754 $ — $ — $ 259,754 Commercial paper 10,479 — — 10,479 U.S. treasury debt securities 54,809 2 (206) 54,605 Corporate debt securities 161,792 3 (334) 161,461 Foreign government debt securities 5,014 1 — 5,015 $ 491,848 $ 6 $ (540) $ 491,314 Included in cash and cash equivalents $ 261,254 $ — $ — $ 261,254 Included in marketable securities $ 230,594 $ 6 $ (540) $ 230,060 |
Investments Classified by Contractual Maturity Date | The contractual maturities of the investments classified as marketable securities are as follows (in thousands): As of December 31, 2022 Due within one year $ 127,081 Due in one to two years 63,514 Due in three to five years — $ 190,595 |
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 December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2022 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ 31,927 $ (258) $ 35,575 $ (641) Corporate debt securities 59,535 (949) 39,823 (822) Foreign government debt securities 970 (23) — — Total $ 92,432 $ (1,230) $ 75,398 $ (1,463) |
Supplemental Consolidated Bal_2
Supplemental Consolidated Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment, net as of December 31, 2022 and 2021 consisted of (in thousands): As of December 31, 2022 2021 Building under finance lease $ 21,574 $ 21,574 Computers, equipment and software 13,221 10,856 Furniture and fixtures 8,308 8,373 Vehicles 97 97 Leasehold improvements 8,045 7,907 51,245 48,807 Less: accumulated depreciation and amortization (24,149) (19,986) $ 27,096 $ 28,821 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of December 31, 2022 and 2021 consisted of (in thousands): As of December 31, 2022 2021 Accrued vacation $ 12,939 $ 11,221 Accrued commissions 10,841 11,122 Accrued bonuses 5,597 8,292 Accrued payroll 5,318 4,494 Estimated health insurance claims 1,841 1,814 Accrued interest 1,455 1,455 ESPP employee contributions 5,661 5,349 Customer deposits 25,520 26,517 Operating lease liabilities 5,720 6,008 Accrued other liabilities 9,107 7,854 $ 83,999 $ 84,126 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 Fair Value Measurements as of December 31, 2021 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 182,878 $ 182,878 $ — $ 259,754 $ 259,754 $ — Commercial paper — — — 10,479 — 10,479 U.S. treasury debt securities 71,253 — 71,253 54,605 — 54,605 Corporate debt securities 118,372 — 118,372 161,461 — 161,461 Foreign government debt securities 970 — 970 5,015 — 5,015 $ 373,473 $ 182,878 $ 190,595 $ 491,314 $ 259,754 $ 231,560 Included in cash and cash equivalents $ 182,878 $ 261,254 Included in marketable securities $ 190,595 $ 230,060 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease Expense Components, Supplemental Cash Flow Information and Other Information | The components of lease expense recognized in the consolidated statements of operations were as follows (in thousands): Year ended December 31, 2022 2021 2020 Operating lease cost $ 5,778 $ 4,750 $ 4,475 Finance lease cost: Amortization of right-of-use assets 880 880 922 Interest on lease obligations 861 956 1,197 Short-term lease cost 3,045 1,667 1,727 Variable lease cost 1,189 1,163 1,214 $ 11,753 $ 9,416 $ 9,535 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,876 $ 6,028 $ 5,350 Finance cash flows from finance leases 1,575 1,705 1,641 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,816 $ 6,299 $ 4,121 Finance leases — — — Other supplemental information related to leases was as follows: As of December 31, 2022 2021 2020 Weighted Average Remaining Lease Term (in years) Operating leases 5.4 5.7 6.5 Finance leases 20.4 21.4 22.4 Weighted Average Discount Rate Operating leases 5.4 % 4.9 % 5.5 % Finance leases 5.5 % 5.5 % 5.5 % |
Summary of Future Estimated Minimum Operating Lease Payments | As of December 31, 2022, the aggregate annual lease obligations were as follows (in thousands): Operating Leases Finance Leases 2023 $ 6,506 $ 1,315 2024 4,416 1,315 2025 2,769 1,315 2026 1,743 1,315 2027 1,603 1,315 Thereafter 3,864 17,346 Total lease obligations 20,901 23,921 Less: Amount representing interest (3,079) (8,834) Net lease obligations $ 17,822 $ 15,087 |
Schedule of Financing Obligation Payments | As of December 31, 2022, the aggregate annual lease obligations were as follows (in thousands): Operating Leases Finance Leases 2023 $ 6,506 $ 1,315 2024 4,416 1,315 2025 2,769 1,315 2026 1,743 1,315 2027 1,603 1,315 Thereafter 3,864 17,346 Total lease obligations 20,901 23,921 Less: Amount representing interest (3,079) (8,834) Net lease obligations $ 17,822 $ 15,087 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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): As of December 31, 2022 2021 Liability component: Principal $ 345,000 $ 345,000 Unamortized discount — (41,193) Unamortized issuance costs (4,743) (5,146) Net carrying amount $ 340,257 $ 298,661 Equity component, net of purchase discounts and issuance costs $ — $ 58,560 Interest expense related to the Notes is as follows (in thousands): Year ended December 31, 2022 2021 2020 Contractual interest expense $ 3,880 $ 3,881 $ 3,880 Amortization of debt discount — 8,153 7,901 Amortization of issuance costs 1,298 1,018 988 Total interest expense $ 5,178 $ 13,052 $ 12,769 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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): Year ended December 31, 2022 2021 2020 Cost of revenue Subscription and support $ 3,437 $ 2,868 $ 1,709 Professional services 2,128 1,729 1,434 Operating expenses Research and development 12,554 9,590 8,100 Sales and marketing 19,323 13,901 11,062 General and administrative 33,218 20,545 23,466 Total $ 70,660 $ 48,633 $ 45,771 |
Schedule of Stock-Option Activity | The following table summarizes the option activity under the Plans for the year ended December 31, 2022: Options Weighted- Weighted- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2021 1,755,180 $ 14.42 4.0 $ 203,720 Granted — — Forfeited (3,095) 13.26 Expired (2,970) 3.92 Exercised (239,943) 13.64 Outstanding at December 31, 2022 1,509,172 $ 14.57 3.2 $ 104,737 Exercisable at December 31, 2022 1,509,172 $ 14.57 3.2 $ 104,737 |
Summary of Restricted Stock Units and Performance Restricted Stock Units | The following table summarizes the restricted stock unit and performance restricted stock unit activity under the Plan for the year ended December 31, 2022: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2021 1,891,699 $ 73.04 Granted 1,101,832 101.61 Forfeited (123,841) 92.36 Vested (1) (947,763) 60.66 Unvested at December 31, 2022 1,921,927 $ 93.80 |
Schedule of Share-based Payment Award, ESPP, Valuation Assumptions | The fair value of our ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions: Year ended December 31, 2022 2021 2020 ESPP Expected term (in years) 0.5 0.5 0.5 Risk-free interest rate 0.6% - 3.1% 0.1% 0.2% - 1.5% Expected volatility 45.7% - 58.7% 41.8% - 45.0% 40.6% - 61.0% |
Schedule of Employee Stock Purchase Plan | The following table summarizes the ESPP activity under the Plan for the years ended December 31, 2022, 2021 and 2020: For the year ended December 31, 2022 2021 2020 Shares issued 131,467 148,864 186,855 Weighted-average purchase price $ 70.41 $ 59.52 $ 38.68 Total proceeds (in thousands) $ 9,256 $ 8,861 $ 7,227 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table summarizes the activity of accumulated other comprehensive income during the years ended December 31, 2022, 2021 and 2020 (in thousands): Accumulated translation adjustment Accumulated unrealized holding gains (losses) on available-for-sale securities Accumulated other comprehensive income (loss) Balance at December 31, 2019 $ 178 $ 109 $ 287 Other comprehensive (loss) income (137) 80 (57) Balance at December 31, 2020 41 189 230 Other comprehensive income (loss) 266 (784) (518) Balance at December 31, 2021 307 (595) (288) Other comprehensive loss (4,304) (2,094) (6,398) Balance at December 31, 2022 $ (3,997) $ (2,689) $ (6,686) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed at the date of acquisition (in thousands) : Cash consideration $ 100,744 Total consideration $ 100,744 Cash $ 1,558 Accounts receivable, net 1,403 Intangible assets 24,000 Goodwill 78,225 Other assets 440 Accounts payable (29) Accrued liabilities (1,444) Deferred revenue (3,299) Other liabilities (110) Fair value of assets and liabilities $ 100,744 The following table presents the 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 34,556 Other assets 548 Deferred revenue (900) Deferred tax liability (1,265) Other liabilities (174) Fair value of assets and liabilities $ 41,262 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 and purchase accounting adjustment 34,556 December 31, 2021 34,556 Acquisition 78,225 Foreign currency translation adjustments (3,041) December 31, 2022 $ 109,740 |
Summary of Intangible Assets | The following table presents the components of net intangible assets (in thousands): December 31, 2022 December 31, 2021 Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology 4.5 $ 15,705 $ (3,849) $ 11,856 $ 7,920 $ (701) $ 7,219 Acquired customer-related 10.0 14,969 (1,169) 13,800 360 (14) 346 Acquired trade names 2.9 2,151 (861) 1,290 1,478 (21) 1,457 Patents 10.0 2,916 (1,628) 1,288 2,740 (1,328) 1,412 Total 7.1 $ 35,741 $ (7,507) $ 28,234 $ 12,498 $ (2,064) $ 10,434 |
Schedule of Expected Amortization Expense of Intangible Assets | As of December 31, 2022, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands): 2023 $ 6,132 2024 5,368 2025 4,639 2026 3,331 2027 2,048 Thereafter 6,716 Total expected amortization expense $ 28,234 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | Revenues by geographical region consisted of the following (in thousands): For the year ended December 31, 2022 2021 2020 Subscription and support revenue Americas $ 408,838 $ 342,673 $ 273,574 Other 56,097 36,666 22,303 Professional services revenue Americas 67,309 58,312 51,142 Other 5,631 5,634 4,575 $ 537,875 $ 443,285 $ 351,594 |
Schedule of Long-lived Assets by Geographic Areas | Aggregate long-lived assets by geographical region consisted of the following (in thousands): For the year ended December 31, 2022 2021 United States $ 35,790 $ 40,585 United Kingdom 2,681 4,437 Other 2,557 1,559 $ 41,028 $ 46,581 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues disaggregated by industry as derived from leading software providers (in thousands): For the year ended December 31, 2022 2021 2020 Industrials $ 76,970 $ 59,797 $ 46,764 Diversified financials 71,975 57,470 44,326 Information technology 62,114 47,697 34,878 Banks 54,973 46,702 39,630 Consumer discretionary 51,961 41,826 34,029 Healthcare 47,892 39,394 30,676 Insurance 32,421 27,206 21,993 Real estate 23,815 21,042 18,070 Energy 23,363 21,093 18,380 Utilities 22,306 21,319 13,561 Materials 21,454 19,357 16,321 Consumer staples 16,829 13,146 10,683 Public administration 15,064 13,719 11,433 Other 16,738 13,517 10,850 Total revenues $ 537,875 $ 443,285 $ 351,594 The following table presents our revenues disaggregated by type of good or service (in thousands): For the year ended December 31, 2022 2021 2020 Subscription and support $ 464,935 $ 379,340 $ 295,877 XBRL professional services 54,896 44,763 38,032 Other services 18,044 19,182 17,685 Total revenues $ 537,875 $ 443,285 $ 351,594 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Loss before income tax provision (benefit) consisted of the following (in thousands): For the year ended December 31, 2022 2021 2020 United States $ (91,210) $ (41,567) $ (50,193) Foreign 2,210 2,467 1,504 Total $ (89,000) $ (39,100) $ (48,689) |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consisted of the following (in thousands): For the year ended December 31, 2022 2021 2020 Current Federal $ — $ — $ — State 327 98 120 Foreign 1020 479 (148) Total Current $ 1347 $ 577 $ (28) Deferred Federal $ — $ (1,252) $ — State — (374) — Foreign 600 (321) (263) Total Deferred $ 600 $ (1,947) $ (263) Total $ 1,947 $ (1,370) $ (291) |
Schedule of Effective Income Tax Rate Reconciliation | The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for income taxes consisted of the following (in thousands): For the year ended December 31, 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: Tax benefit at federal statutory rate $ (18,690) $ (8,211) $ (10,225) State taxes, net of federal benefit (5,722) (15,350) (3,394) Revaluation of deferred tax items due to tax rate change (state) — — (404) Section 162(m) limitations 6,083 9,008 6,682 Stock-based compensation (9,768) (49,020) (12,665) Global intangible low-taxed income inclusion 2,850 2,023 1,855 Permanent items 866 (601) 146 Tax benefit of federal R&D credit (6,406) (3,694) (3,509) Valuation allowance 32,896 64,602 21,887 Other (162) (127) (664) Total income tax provision $ 1,947 $ (1,370) $ (291) |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows (in thousands): As of December 31, 2022 2021 Deferred tax assets: Property and equipment $ 2,931 $ 2,770 Accruals and reserves 79 48 Lease liability 7,726 9,014 Compensation and benefits 15,031 15,266 Deferred revenue 31,497 21,709 Net operating loss and credits 138,517 150,448 Interest expense 386 4,035 IRC 174 Capitalization 38,923 — Other 2,198 546 Total deferred tax assets 237,288 203,836 Valuation allowance (220,016) (174,771) Total deferred tax assets 17,272 29,065 Deferred tax liabilities: Property and equipment (104) (48) Right-of-use asset (7,389) (8,275) Convertible notes — (10,916) Acquired intangibles (1,310) (2,022) Deferred commissions (8,212) (6,761) Other deferred tax liabilities (179) (321) Deferred tax liabilities (17,194) (28,343) Total $ 78 $ 722 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the gross unrecognized tax benefits is as follows (in thousands): For the year ended December 31, 2022 2021 2020 Unrecognized tax benefits-beginning of period $ 180 $ 195 $ 178 Additions for tax positions related to prior year 1,400 — — Reductions for tax positions related to prior year — — — Foreign currency adjustments (10) (15) 17 Additions for tax positions related to current year 300 — — Unrecognized tax benefits-end of period $ 1,870 $ 180 $ 195 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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): Year ended December 31, 2022 December 31, 2021 December 31, 2020 Class A Class B Class A Class B Class A Class B Numerator Net loss $ (84,210) $ (6,737) $ (32,724) $ (5,006) $ (39,966) $ (8,432) Denominator Weighted-average common shares outstanding - basic and diluted 49,031,441 3,922,638 44,343,177 6,783,333 40,007,839 8,440,327 Basic and diluted net loss per share $ (1.72) $ (1.72) $ (0.74) $ (0.74) $ (1.00) $ (1.00) |
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 December 31, 2022 2021 2020 Shares subject to outstanding common stock options 1,509,172 1,755,180 2,903,167 Shares subject to unvested restricted stock units and performance restricted stock units 1,921,927 1,891,699 2,904,616 Shares issuable pursuant to the ESPP 112,522 53,877 94,390 |
Organization and Significant _3
Organization and Significant Accounting Policies - Segments, Marketable securities, Deferred Costs, Impairment of Long-Lived Assets and Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of operating segments | segment | 1 | ||
Number of reportable segments | segment | 1 | ||
Credit losses recorded for marketable securiites | $ 0 | $ 0 | $ 0 |
Sales commissions amortization period | 3 years | ||
Impairment charges | $ 0 | 0 | 0 |
Interest and penalties | $ 0 | $ 0 | $ 0 |
Organization and Significant _4
Organization and Significant Accounting Policies - Property and Equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 4.8 | $ 4.1 | $ 3.8 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years |
Organization and Significant _5
Organization and Significant Accounting Policies - Revenue Recognition, Deferred Revenue and Advertising Costs and Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Advertising expense | $ 6.1 | $ 5.6 | $ 3.8 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
Subscription and support | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue recognition, customer contract period, min | 12 months | ||
Revenue recognition, customer contract period, max | 36 months | ||
Revenue recognition, customer contract period, median | 2 years |
Organization and Significant _6
Organization and Significant Accounting Policies - Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | Accounting Standards Update 2020-06 [Member] | |||
Stockholders' equity | $ 72,979 | $ 5,983 | $ 64,277 | $ 54,202 | |
Convertible senior notes, non-current | 0 | 340,257 | |||
Accumulated Deficit | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | (452,430) | (525,116) | (414,700) | (366,302) | |
Additional Paid-in-Capital | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | 525,646 | $ 537,732 | $ 478,698 | $ 420,170 | |
Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | (40,299) | ||||
Convertible senior notes, non-current | $ 40,300 | ||||
Adjustment | Accumulated Deficit | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | 18,300 | 18,261 | |||
Adjustment | Additional Paid-in-Capital | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | $ (58,600) | $ (58,560) |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, amortized cost | $ 240,197 | $ 300,386 |
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 193,225 | 230,594 |
Marketable securities, unrealized gains | 63 | 6 |
Marketable securities, unrealized losses | (2,693) | (540) |
Marketable securities, aggregate fair value | 190,595 | 230,060 |
Cash and cash equivalents and marketable securities, amortized cost | 376,103 | 491,848 |
Cash and cash equivalents and marketable securities, aggregate fair value | 373,473 | 491,314 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 10,479 | |
Marketable securities, unrealized gains | 0 | |
Marketable securities, unrealized losses | 0 | |
Marketable securities, aggregate fair value | 10,479 | |
U.S. treasury debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, unrealized gains | 1 | 2 |
Marketable securities, unrealized losses | (899) | (206) |
Cash and cash equivalents and marketable securities, amortized cost | 72,151 | 54,809 |
Cash and cash equivalents and marketable securities, aggregate fair value | 71,253 | 54,605 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 120,081 | 161,792 |
Marketable securities, unrealized gains | 62 | 3 |
Marketable securities, unrealized losses | (1,771) | (334) |
Marketable securities, aggregate fair value | 118,372 | 161,461 |
Foreign government debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 993 | 5,014 |
Marketable securities, unrealized gains | 0 | 1 |
Marketable securities, unrealized losses | (23) | 0 |
Marketable securities, aggregate fair value | 970 | 5,015 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, amortized cost | 182,878 | 259,754 |
Cash and cash equivalents, aggregate fair value | 182,878 | 259,754 |
Cash Equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, amortized cost | 182,878 | 261,254 |
Cash and cash equivalents, aggregate fair value | $ 182,878 | $ 261,254 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Schedule of Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year | $ 127,081 | |
Due in one to two years | 63,514 | |
Due in three to five years | 0 | |
Marketable securities | $ 190,595 | $ 230,060 |
Cash Equivalents and Marketab_5
Cash Equivalents and Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Fair Value | |
Less than 12 months | $ 92,432 |
12 months or greater | 75,398 |
Unrealized Loss | |
Less than 12 months | (1,230) |
12 months or greater | (1,463) |
U.S. treasury debt securities | |
Fair Value | |
Less than 12 months | 31,927 |
12 months or greater | 35,575 |
Unrealized Loss | |
Less than 12 months | (258) |
12 months or greater | (641) |
Corporate debt securities | |
Fair Value | |
Less than 12 months | 59,535 |
12 months or greater | 39,823 |
Unrealized Loss | |
Less than 12 months | (949) |
12 months or greater | (822) |
Foreign government debt securities | |
Fair Value | |
Less than 12 months | 970 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (23) |
12 months or greater | $ 0 |
Supplemental Consolidated Bal_3
Supplemental Consolidated Balance Sheet Information - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Building under finance lease | $ 21,574 | $ 21,574 |
Property and equipment and finance lease, gross | 51,245 | 48,807 |
Less: accumulated depreciation and amortization | (24,149) | (19,986) |
Property and equipment, net | 27,096 | 28,821 |
Finance lease, accumulated amortization | 3,600 | 2,700 |
Computers, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,221 | 10,856 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,308 | 8,373 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 97 | 97 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,045 | $ 7,907 |
Supplemental Consolidated Bal_4
Supplemental Consolidated Balance Sheet Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued vacation | $ 12,939 | $ 11,221 |
Accrued commissions | 10,841 | 11,122 |
Accrued bonuses | 5,597 | 8,292 |
Accrued payroll | 5,318 | 4,494 |
Estimated health insurance claims | 1,841 | 1,814 |
Accrued interest | 1,455 | 1,455 |
ESPP employee contributions | 5,661 | 5,349 |
Customer deposits | 25,520 | 26,517 |
Operating lease liabilities | 5,720 | 6,008 |
Accrued other liabilities | 9,107 | 7,854 |
Accrued expenses and other current liabilities | $ 83,999 | $ 84,126 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents and marketable securities | $ 373,473 | $ 491,314 |
Marketable securities | 190,595 | 230,060 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,479 | |
U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents and marketable securities | 71,253 | 54,605 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 118,372 | 161,461 |
Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 970 | 5,015 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 182,878 | 259,754 |
Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 182,878 | 261,254 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of convertible debt | 425,000 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 190,595 | 230,060 |
Total assets measured at fair value | 373,473 | 491,314 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 10,479 |
Recurring | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents and marketable securities | 71,253 | 54,605 |
Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 118,372 | 161,461 |
Recurring | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 970 | 5,015 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 182,878 | 259,754 |
Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents - money market funds | 182,878 | 261,254 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 182,878 | 259,754 |
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] | ||
Cash and cash equivalents and 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 | 182,878 | 259,754 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 190,595 | 231,560 |
Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 10,479 |
Recurring | Level 2 | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents and marketable securities | 71,253 | 54,605 |
Recurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 118,372 | 161,461 |
Recurring | Level 2 | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 970 | 5,015 |
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 |
Deferred Costs (Details)
Deferred Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred costs | $ 72 | $ 64.2 | |
Amortization expense for deferred costs | 44 | 34.1 | $ 21 |
Impairment loss | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Cloud Services Arrangement $ in Millions | Dec. 31, 2022 USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Other purchase commitments, due in fiscal year 2023 | $ 27.2 |
Other purchase commitments, due in fiscal year 2024 | $ 12.7 |
Leases - Narrative (Details)
Leases - Narrative (Details) - renewal_option | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating leases | 5 years 4 months 24 days | 5 years 8 months 12 days | 6 years 6 months |
Finance leases | 20 years 4 months 24 days | 21 years 4 months 24 days | 22 years 4 months 24 days |
Operating leases | 5.40% | 4.90% | 5.50% |
Finance leases | 5.50% | 5.50% | 5.50% |
Office | |||
Lessee, Lease, Description [Line Items] | |||
Number of renewal options (or more) | 1 | ||
Office | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 2 years | ||
Office | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 5,778 | $ 4,750 | $ 4,475 |
Amortization of right-of-use assets | 880 | 880 | 922 |
Interest on lease obligations | 861 | 956 | 1,197 |
Short-term lease cost | 3,045 | 1,667 | 1,727 |
Variable lease cost | 1,189 | 1,163 | 1,214 |
Lease cost | $ 11,753 | $ 9,416 | $ 9,535 |
Leases - Supplemental Cash flow
Leases - Supplemental Cash flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 6,876 | $ 6,028 | $ 5,350 |
Finance cash flows from finance leases | 1,575 | 1,705 | 1,641 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | 1,816 | 6,299 | 4,121 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | $ 0 | $ 0 | $ 0 |
Leases - Other Information (Det
Leases - Other Information (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted Average Remaining Lease Term (in years) | |||
Operating leases | 5 years 4 months 24 days | 5 years 8 months 12 days | 6 years 6 months |
Finance leases | 20 years 4 months 24 days | 21 years 4 months 24 days | 22 years 4 months 24 days |
Weighted Average Discount Rate | |||
Operating leases | 5.40% | 4.90% | 5.50% |
Finance leases | 5.50% | 5.50% | 5.50% |
Leases - Schedule of Lease Obli
Leases - Schedule of Lease Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases | |
2023 | $ 6,506 |
2024 | 4,416 |
2025 | 2,769 |
2026 | 1,743 |
2027 | 1,603 |
Thereafter | 3,864 |
Total lease obligations | 20,901 |
Less: Amount representing interest | (3,079) |
Net lease obligations | 17,822 |
Finance Leases | |
2023 | 1,315 |
2024 | 1,315 |
2025 | 1,315 |
2026 | 1,315 |
2027 | 1,315 |
Thereafter | 17,346 |
Total lease obligations | 23,921 |
Less: Amount representing interest | (8,834) |
Net lease obligations | $ 15,087 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 USD ($) d $ / shares | Dec. 31, 2022 USD ($) $ / shares | Jan. 01, 2022 | Dec. 31, 2021 $ / 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% | |||
Redemption price, percentage | 100% | |||
Effective interest percentage | 4.30% | 1.50% | ||
If-converted value in excess of principal | $ | $ 16,400,000 | |||
Remaining life of debt instrument | 3 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% | |||
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% | |||
Convertible debt | 1.125% Convertible Senior Notes, Due 2026, Over-Allotment option | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ | $ 45,000,000 |
Debt - Summary of Convertible D
Debt - Summary of Convertible Debt (Details) - Convertible debt - 1.125% Convertible Senior Notes, Due 2026 - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal | $ 345,000 | $ 345,000 |
Unamortized discount | 0 | (41,193) |
Unamortized issuance costs | (4,743) | (5,146) |
Net carrying amount | $ 340,257 | 298,661 |
Equity component, net of purchase discounts and issuance costs | $ 58,560 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Contractual interest expense | $ 3,880 | $ 3,881 | $ 3,880 |
Amortization of debt discount | 0 | 8,153 | 7,901 |
Amortization of issuance costs | 1,298 | 1,018 | 988 |
Total interest expense | $ 5,178 | $ 13,052 | $ 12,769 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended |
Dec. 31, 2022 vote class | |
Equity [Abstract] | |
Number of classes of common stock | class | 2 |
Class A Common Stock | |
Class of Stock [Line Items] | |
Common stock, number of votes per share | 1 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Common stock, number of votes per share | 10 |
Common stock, conversion rate | 1 |
Stock-Based Compensation - Gene
Stock-Based Compensation - General (Details) - USD ($) | 12 Months Ended | ||
Jun. 13, 2017 | Dec. 31, 2022 | Jun. 01, 2022 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock purchase offering period | 6 months | ||
Employee Stock Purchase Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 4,165,047 | ||
Purchase price of common stock, percentage of fair market value | 85% | ||
Maximum stock purchase value per employee | $ 12,500 | ||
2014 Equity Incentive Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares available for grant (in shares) | 3,000,000 | ||
Number of shares available for grant (in shares) | 3,273,308 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 70,660 | $ 48,633 | $ 45,771 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 12,554 | 9,590 | 8,100 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 19,323 | 13,901 | 11,062 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 33,218 | 20,545 | 23,466 |
Subscription and support | Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 3,437 | 2,868 | 1,709 |
Professional services | Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 2,128 | $ 1,729 | $ 1,434 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options | |||
Outstanding beginning of the period (in shares) | 1,755,180 | ||
Granted (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | (3,095) | ||
Expired (in shares) | (2,970) | ||
Exercised (in shares) | (239,943) | ||
Outstanding end of the period (in shares) | 1,509,172 | 1,755,180 | |
Exercisable at end of the period (in shares) | 1,509,172 | ||
Weighted- Average Exercise Price | |||
Outstanding beginning of the period (in dollars per share) | $ 14.42 | ||
Granted (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 13.26 | ||
Expired (in dollars per share) | 3.92 | ||
Exercised (in dollars per share) | 13.64 | ||
Outstanding end of the period (in dollars per share) | 14.57 | $ 14.42 | |
Exercisable at the end of the period (in dollars per share) | $ 14.57 | ||
Outstanding, weighted-average remaining contractual term (years) | 3 years 2 months 12 days | 4 years | |
Exercisable, weighted-average remaining contractual term (years) | 3 years 2 months 12 days | ||
Outstanding, aggregate intrinsic value | $ 104,737,000 | $ 203,720,000 | |
Exercisable, aggregate intrinsic value | 104,737,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options exercised intrinsic value | 17,000,000 | 123,400,000 | $ 55,800,000 |
Options vested in period fair value | $ 900,000 | $ 3,500,000 | |
Options unrecognized compensation expense | $ 0 | ||
Class A Common Stock | Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Expiration period (years) | 10 years | ||
Minimum | Class A Common Stock | Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Award vesting period (years) | 3 years | ||
Maximum | Class A Common Stock | Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Award vesting period (years) | 4 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units and Performance Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted stock units and Performance restricted stock units | |||
Number of Shares | |||
Unvested at beginning of period (in shares) | 1,891,699 | ||
Granted (in shares) | 1,101,832 | ||
Forfeited (in shares) | (123,841) | ||
Vested (in shares) | (947,763) | ||
Unvested at end of period (in shares) | 1,921,927 | 1,891,699 | |
Weighted-Average Grant Date Fair Value | |||
Unvested at beginning of period (in dollars per share) | $ 73.04 | ||
Granted (in dollars per share) | 101.61 | ||
Forfeited (in dollars per share) | 92.36 | ||
Vested (in dollars per share) | 60.66 | ||
Unvested at end of period (in dollars per share) | $ 93.80 | $ 73.04 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested in period, fair value | $ 57.7 | $ 54.9 | $ 27.7 |
Weighted-Average Grant Date Fair Value | |||
Number of vested shares recipient elected to defer settlement (in shares) | 18,491 | ||
Number of vested shares recipients elected to defer settlement, released during period (in shares) | 27,916 | ||
Number of deferred shares vested and outstanding (in shares) | 686,444 | ||
Unrecognized compensation expense | $ 132.8 | ||
Unrecognized compensation expense, period for recognition (years) | 2 years 7 months 6 days | ||
Performance restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Minimum | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Maximum | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 4 years | ||
Cliff-vesting | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Cliff-vesting | Board of Directors | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 1 year |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan Assumptions (Details) - Employee Stock Purchase Plan | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-Average Assumptions | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate, min (as percent) | 0.60% | 0.20% | |
Risk-free interest rate, max (as percent) | 3.10% | 1.50% | |
Risk-free interest rate (as percent) | 0.10% | ||
Expected volatility, min (as percent) | 45.70% | 41.80% | 40.60% |
Expected volatility, max (as percent) | 58.70% | 45% | 61% |
Stock-Based Compensation - Em_2
Stock-Based Compensation - Employee Stock Purchase Plan Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total proceeds (in thousands) | $ 9,256 | $ 8,861 | $ 7,227 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 131,467 | 148,864 | 186,855 |
Weighted average purchase price (in dollars per share) | $ 70.41 | $ 59.52 | $ 38.68 |
Total proceeds (in thousands) | $ 9,256 | $ 8,861 | $ 7,227 |
Unrecognized compensation expense | $ 156 | ||
Unrecognized compensation expense, period for recognition (years) | 14 days |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | $ 72,979 | $ 64,277 | $ 54,202 |
Other comprehensive (loss) income | (6,398) | (518) | (57) |
End of the period | 5,983 | 72,979 | 64,277 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | (288) | 230 | 287 |
Other comprehensive (loss) income | (6,398) | (518) | (57) |
End of the period | (6,686) | (288) | 230 |
Accumulated translation adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | 307 | 41 | 178 |
Other comprehensive (loss) income | (4,304) | 266 | (137) |
End of the period | (3,997) | 307 | 41 |
Accumulated unrealized holding gains (losses) on available-for-sale securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | (595) | 189 | 109 |
Other comprehensive (loss) income | (2,094) | (784) | 80 |
End of the period | $ (2,689) | $ (595) | $ 189 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Apr. 01, 2022 | Jul. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 99,186,000 | $ 37,467,000 | $ 0 | ||
Equity securities | $ 4,700,000 | ||||
Gain on equity securities | 3,700,000 | 0 | 3,698,000 | $ 0 | |
ParsePort ApS | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 99,200,000 | ||||
Cash acquired from acquisition | 1,600,000 | ||||
Goodwill tax deductible amount | $ 0 | ||||
Acquisition related costs | $ 600,000 | ||||
OneCloud, Inc. | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | 35,100,000 | ||||
Cash acquired from acquisition | $ 1,500,000 | ||||
Acquisition related costs | $ 400,000 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Jul. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 109,740 | $ 34,556 | $ 0 | ||
ParsePort ApS | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 100,744 | ||||
Total consideration | 100,744 | ||||
Cash | 1,558 | ||||
Accounts receivable, net | 1,403 | ||||
Intangible assets | 24,000 | ||||
Goodwill | 78,225 | ||||
Other assets | 440 | ||||
Accounts payable | (29) | ||||
Accrued liabilities | (1,444) | ||||
Deferred revenue | (3,299) | ||||
Other liabilities | (110) | ||||
Fair value of assets and liabilities | $ 100,744 | ||||
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 | 34,556 | ||||
Other assets | 548 | ||||
Deferred revenue | (900) | ||||
Deferred tax liability | (1,265) | ||||
Other liabilities | (174) | ||||
Fair value of assets and liabilities | $ 41,262 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 34,556 | $ 0 |
Acquisition and purchase accounting adjustment | 34,556 | |
Acquisition | 78,225 | |
Foreign currency translation adjustments | (3,041) | |
Goodwill, ending balance | $ 109,740 | $ 34,556 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Asset Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 7 years 1 month 6 days | |
Gross Carrying Amount | $ 35,741 | $ 12,498 |
Accumulated Amortization | (7,507) | (2,064) |
Net Carrying Amount | $ 28,234 | 10,434 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 4 years 6 months | |
Gross Carrying Amount | $ 15,705 | 7,920 |
Accumulated Amortization | (3,849) | (701) |
Net Carrying Amount | $ 11,856 | 7,219 |
Acquired customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 10 years | |
Gross Carrying Amount | $ 14,969 | 360 |
Accumulated Amortization | (1,169) | (14) |
Net Carrying Amount | $ 13,800 | 346 |
Acquired trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 2 years 10 months 24 days | |
Gross Carrying Amount | $ 2,151 | 1,478 |
Accumulated Amortization | (861) | (21) |
Net Carrying Amount | $ 1,290 | 1,457 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 10 years | |
Gross Carrying Amount | $ 2,916 | 2,740 |
Accumulated Amortization | (1,628) | (1,328) |
Net Carrying Amount | $ 1,288 | $ 1,412 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 5.3 | $ 1.1 | $ 0.4 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization of Intangible Assets by Fiscal Year (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 6,132 | |
2024 | 5,368 | |
2025 | 4,639 | |
2026 | 3,331 | |
2027 | 2,048 | |
Thereafter | 6,716 | |
Net Carrying Amount | $ 28,234 | $ 10,434 |
Geographic Information - Revenu
Geographic Information - Revenue and Long-lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 537,875 | $ 443,285 | $ 351,594 |
Long-Lived Assets | 41,028 | 46,581 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 35,790 | 40,585 | |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 2,681 | 4,437 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 2,557 | 1,559 | |
Subscription and support | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 464,935 | 379,340 | 295,877 |
Subscription and support | Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 408,838 | 342,673 | 273,574 |
Subscription and support | Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 56,097 | 36,666 | 22,303 |
Professional services revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 54,896 | 44,763 | 38,032 |
Professional services revenue | Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 67,309 | 58,312 | 51,142 |
Professional services revenue | Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 5,631 | $ 5,634 | $ 4,575 |
Geographic Information - Narrat
Geographic Information - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue From Contract With Customer, Americas Revenue | Geographic concentration risk | United States | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 93% | 93% | 94% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 537,875 | $ 443,285 | $ 351,594 |
Subscription and support | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 464,935 | 379,340 | 295,877 |
XBRL professional services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 54,896 | 44,763 | 38,032 |
Other services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 18,044 | 19,182 | 17,685 |
Industrials | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 76,970 | 59,797 | 46,764 |
Diversified financials | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 71,975 | 57,470 | 44,326 |
Information technology | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 62,114 | 47,697 | 34,878 |
Banks | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 54,973 | 46,702 | 39,630 |
Consumer discretionary | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 51,961 | 41,826 | 34,029 |
Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 47,892 | 39,394 | 30,676 |
Insurance | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 32,421 | 27,206 | 21,993 |
Real estate | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 23,815 | 21,042 | 18,070 |
Energy | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 23,363 | 21,093 | 18,380 |
Utilities | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 22,306 | 21,319 | 13,561 |
Materials | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 21,454 | 19,357 | 16,321 |
Consumer staples | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 16,829 | 13,146 | 10,683 |
Public administration | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 15,064 | 13,719 | 11,433 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 16,738 | $ 13,517 | $ 10,850 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue and Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue recognized | $ 244.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | 761.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 420.8 |
Expected period of recognition | 12 months |
Income Taxes - Income Before In
Income Taxes - Income Before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (91,210) | $ (41,567) | $ (50,193) |
Foreign | 2,210 | 2,467 | 1,504 |
Loss before provision (benefit) for income taxes | $ (89,000) | $ (39,100) | $ (48,689) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 327 | 98 | 120 |
Foreign | 1,020 | 479 | (148) |
Total Current | 1,347 | 577 | (28) |
Deferred | |||
Federal | 0 | (1,252) | 0 |
State | 0 | (374) | 0 |
Foreign | 600 | (321) | (263) |
Total Deferred | 600 | (1,947) | (263) |
Total income tax provision | $ 1,947 | $ (1,370) | $ (291) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax benefit | $ 0 | $ 1,300 | $ 0 |
Deferred tax asset related to Section 174 amortization | 38,923 | $ 0 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 408,700 | ||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward | 26,200 | ||
State Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 373,600 | ||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward | 4,500 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 2,900 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
Tax benefit at federal statutory rate | $ (18,690) | $ (8,211) | $ (10,225) |
State taxes, net of federal benefit | (5,722) | (15,350) | (3,394) |
Revaluation of deferred tax items due to tax rate change (state) | 0 | 0 | (404) |
Section 162(m) limitations | 6,083 | 9,008 | 6,682 |
Stock-based compensation | (9,768) | (49,020) | (12,665) |
Global intangible low-taxed income inclusion | 2,850 | 2,023 | 1,855 |
Permanent items | 866 | (601) | 146 |
Tax benefit of federal R&D credit | (6,406) | (3,694) | (3,509) |
Valuation allowance | 32,896 | 64,602 | 21,887 |
Other | (162) | (127) | (664) |
Total income tax provision | $ 1,947 | $ (1,370) | $ (291) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Property and equipment | $ 2,931 | $ 2,770 |
Accruals and reserves | 79 | 48 |
Lease liability | 7,726 | 9,014 |
Compensation and benefits | 15,031 | 15,266 |
Deferred revenue | 31,497 | 21,709 |
Net operating loss and credits | 138,517 | 150,448 |
Interest expense | 386 | 4,035 |
IRC 174 Capitalization | 38,923 | 0 |
Other | 2,198 | 546 |
Total deferred tax assets | 237,288 | 203,836 |
Valuation allowance | (220,016) | (174,771) |
Total deferred tax assets | 17,272 | 29,065 |
Deferred tax liabilities: | ||
Property and equipment | (104) | (48) |
Right-of-use asset | (7,389) | (8,275) |
Convertible notes | 0 | (10,916) |
Acquired intangibles | (1,310) | (2,022) |
Deferred commissions | (8,212) | (6,761) |
Other deferred tax liabilities | (179) | (321) |
Deferred tax liabilities | (17,194) | (28,343) |
Total | $ 78 | $ 722 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits-beginning of period | $ 180 | $ 195 | $ 178 |
Additions for tax positions related to prior year | 1,400 | 0 | 0 |
Reductions for tax positions related to prior year | 0 | 0 | 0 |
Foreign currency adjustments | (10) | (15) | |
Foreign currency adjustments | 17 | ||
Additions for tax positions related to current year | 300 | 0 | 0 |
Unrecognized tax benefits-end of period | $ 1,870 | $ 180 | $ 195 |
Net Loss Per Share - Earnings P
Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Denominator | |||
Weighted-average common shares outstanding - basic (in shares) | 52,954,079 | 51,126,510 | 48,448,166 |
Weighted-average common shares outstanding - diluted (in shares) | 52,954,079 | 51,126,510 | 48,448,166 |
Basic net loss per share (in dollars per share) | $ (1.72) | $ (0.74) | $ (1) |
Diluted net loss per share (in dollars per share) | $ (1.72) | $ (0.74) | $ (1) |
Class A Common Stock | |||
Numerator | |||
Net loss, basic | $ (84,210) | $ (32,724) | $ (39,966) |
Net loss, diluted | $ (84,210) | $ (32,724) | $ (39,966) |
Denominator | |||
Weighted-average common shares outstanding - basic (in shares) | 49,031,441 | 44,343,177 | 40,007,839 |
Weighted-average common shares outstanding - diluted (in shares) | 49,031,441 | 44,343,177 | 40,007,839 |
Basic net loss per share (in dollars per share) | $ (1.72) | $ (0.74) | $ (1) |
Diluted net loss per share (in dollars per share) | $ (1.72) | $ (0.74) | $ (1) |
Class B Common Stock | |||
Numerator | |||
Net loss, basic | $ (6,737) | $ (5,006) | $ (8,432) |
Net loss, diluted | $ (6,737) | $ (5,006) | $ (8,432) |
Denominator | |||
Weighted-average common shares outstanding - basic (in shares) | 3,922,638 | 6,783,333 | 8,440,327 |
Weighted-average common shares outstanding - diluted (in shares) | 3,922,638 | 6,783,333 | 8,440,327 |
Basic net loss per share (in dollars per share) | $ (1.72) | $ (0.74) | $ (1) |
Diluted net loss per share (in dollars per share) | $ (1.72) | $ (0.74) | $ (1) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class A Common Stock | |||
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 | ||
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) | 1,509,172 | 1,755,180 | 2,903,167 |
Shares subject to unvested restricted stock units and performance 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) | 1,921,927 | 1,891,699 | 2,904,616 |
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) | 112,522 | 53,877 | 94,390 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 5.3 | ||
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 2.5 | $ 1.8 | $ 1.1 |