Backblaze (BLZE) 10-Q 10 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares shares in Millions	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-41026
Entity Registrant Name	BACKBLAZE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-8893125
Entity Address, Address Line One	500 Ben Franklin Ct
Entity Address, City or Town	San Mateo
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94401
City Area Code	650
Local Phone Number	352-3738
Title of 12(b) Security	Class A Common Stock, $0.0001 par value per share
Trading Symbol	BLZE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001462056
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		15.3
Common Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		17.3

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash	$ 24,813	$ 104,843
Accounts receivable, net	720	309
Short-term investments	52,626	0
Prepaid expenses and other current assets	6,373	5,930
Total current assets	84,532	111,082
Restricted cash, non-current	2,544	0
Property and equipment, net	49,814	43,068
Operating lease right-of-use assets	4,753	0
Capitalized software, net	13,648	7,637
Other assets	1,622	1,794
Total assets	156,913	163,581
Current liabilities:
Accounts payable	2,718	2,075
Accrued expenses and other current liabilities	7,944	7,620
Finance lease liabilities and lease financing obligations, current	18,796	13,645
Operating lease liabilities, current	2,058	0
Deferred revenue, current	22,705	21,722
Total current liabilities	54,221	45,062
Finance lease liabilities and lease financing obligations, non-current	17,981	19,603
Operating lease liabilities, non-current	2,862	0
Deferred revenue, non-current	2,784	3,132
Other long-term liabilities	0	298
Debt facility, non-current	2,543	0
Total liabilities	80,391	68,095
Commitments and contingencies (Note 10)
Stockholders’ Equity
Additional paid-in capital	149,767	131,826
Accumulated deficit	(73,248)	(36,343)
Total stockholders’ equity	76,522	95,486
Total liabilities and stockholders’ equity	156,913	163,581
Common Class A
Stockholders’ Equity
Common stock, value, issued	1	1
Common Class B
Stockholders’ Equity
Common stock, value, issued	$ 2	$ 2

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Common Class A
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	113,000,000	113,000,000
Common stock, shares issued (in shares)	15,108,346	8,227,992
Common stock, shares outstanding (in shares)	15,108,346	8,227,992
Common Class B
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	37,000,000	37,000,000
Common stock, shares issued (in shares)	17,328,043	22,156,842
Common stock, shares outstanding (in shares)	17,328,043	22,156,842

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue	$ 22,051	$ 17,320	$ 62,229	$ 48,782
Cost of revenue	10,836	8,519	30,073	24,275
Gross profit	11,215	8,801	32,156	24,507
Operating expenses:
Research and development	8,152	5,338	24,493	14,314
Sales and marketing	9,727	5,025	26,125	13,149
General and administrative	5,396	3,104	16,106	8,261
Total operating expenses	23,275	13,467	66,724	35,724
Loss from operations	(12,060)	(4,666)	(34,568)	(11,217)
Investment income	210	0	405	0
Interest expense	(950)	(968)	(2,811)	(2,686)
Gain on extinguishment of debt	0	0	0	2,299
Unrealized loss on SAFE	0	(359)	0	(359)
Loss before provision for income taxes	(12,800)	(5,993)	(36,974)	(11,963)
Income tax (benefit) provision	0	0	(69)	136
Net loss	$ (12,800)	$ (5,993)	$ (36,905)	$ (12,099)
Net loss per share, basic (USD per share)	$ (0.40)	$ (0.32)	$ (1.18)	$ (0.64)
Net loss per share, diluted (USD per share)	$ (0.40)	$ (0.32)	$ (1.18)	$ (0.64)
Weighted average shares used in computing net loss per share, basic (in shares)	31,994,391	18,936,698	31,245,069	18,775,908
Weighted average shares used in computing net loss per share, diluted (in shares)	31,994,391	18,936,698	31,245,069	18,775,908

CONDENSED STATEMENTS OF CHANGES

CONDENSED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Class A and Class B Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020	3,359,195
Beginning balance at Dec. 31, 2020	$ 2,784
Ending balance (in shares) at Sep. 30, 2021	3,359,195
Ending balance at Sep. 30, 2021	$ 2,784
Beginning balance (in shares) at Dec. 31, 2020		18,614,905
Beginning balance at Dec. 31, 2020	(6,840)	$ 5	$ 7,794	$ (14,639)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(12,099)			(12,099)
Issuance of common stock upon exercise of stock options (in shares)		321,793
Issuance of common stock upon exercise of stock options	148		148
Stock-based compensation	3,882		3,882
Ending balance (in shares) at Sep. 30, 2021		18,936,698
Ending balance at Sep. 30, 2021	$ (14,909)	$ 5	11,824	(26,738)
Beginning balance (in shares) at Jun. 30, 2021	3,359,195
Beginning balance at Jun. 30, 2021	$ 2,784
Ending balance (in shares) at Sep. 30, 2021	3,359,195
Ending balance at Sep. 30, 2021	$ 2,784
Beginning balance (in shares) at Jun. 30, 2021		18,936,698
Beginning balance at Jun. 30, 2021	(10,521)	$ 5	10,219	(20,745)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5,993)			(5,993)
Stock-based compensation	1,605		1,605
Ending balance (in shares) at Sep. 30, 2021		18,936,698
Ending balance at Sep. 30, 2021	$ (14,909)	$ 5	11,824	(26,738)
Beginning balance (in shares) at Dec. 31, 2021	0
Beginning balance at Dec. 31, 2021	$ 0
Ending balance (in shares) at Sep. 30, 2022	0
Ending balance at Sep. 30, 2022	$ 0
Beginning balance (in shares) at Dec. 31, 2021		30,384,834
Beginning balance at Dec. 31, 2021	95,486	$ 3	131,826	(36,343)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (36,905)			(36,905)
Issuance of common stock upon exercise of stock options (in shares)	1,609,789	1,609,789
Issuance of common stock upon exercise of stock options	$ 3,439		3,439
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)		153,195
Issuance of common stock under equity incentive plan, net of taxes withheld	(130)		(130)
Issuance of common stock related to employee stock purchase plan ("ESPP") (in shares)		288,571
Issuance of common stock related to employee stock purchase plan ("ESPP")	1,529		1,529
Stock-based compensation	13,103		13,103
Ending balance (in shares) at Sep. 30, 2022		32,436,389
Ending balance at Sep. 30, 2022	$ 76,522	$ 3	149,767	(73,248)
Beginning balance (in shares) at Jun. 30, 2022	0
Beginning balance at Jun. 30, 2022	$ 0
Ending balance (in shares) at Sep. 30, 2022	0
Ending balance at Sep. 30, 2022	$ 0
Beginning balance (in shares) at Jun. 30, 2022		31,631,532
Beginning balance at Jun. 30, 2022	82,986	$ 3	143,431	(60,448)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(12,800)			(12,800)
Issuance of common stock upon exercise of stock options (in shares)		694,260
Issuance of common stock upon exercise of stock options	1,376		1,376
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)		110,597
Issuance of common stock under equity incentive plan, net of taxes withheld	0		0
Stock-based compensation	4,960		4,960
Ending balance (in shares) at Sep. 30, 2022		32,436,389
Ending balance at Sep. 30, 2022	$ 76,522	$ 3	$ 149,767	$ (73,248)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (36,905)	$ (12,099)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Gain on extinguishment of Paycheck Protection Program ("PPP") loan	0	(2,299)
Net accretion of discount on investment securities	(367)	0
Unrealized loss on SAFE	0	359
Noncash lease expense on operating leases	1,820	0
Depreciation and amortization	14,689	12,041
Stock-based compensation	13,011	3,611
Loss (gain) on disposal of assets and other adjustments	24	(17)
Changes in operating assets and liabilities:
Accounts receivable	(411)	94
Prepaid expenses and other current assets	(234)	(1,406)
Other assets	56	(256)
Accounts payable	(137)	(258)
Accrued expenses and other current liabilities	(901)	1,186
Deferred revenue	635	5,105
Operating lease liabilities	(1,853)	0
Other long-term liabilities	(69)	(97)
Net cash (used in) provided by operating activities	(10,642)	5,964
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities	(113,259)	0
Maturities of marketable securities	61,000	0
Purchases of property and equipment, net	(4,061)	(6,876)
Capitalized internally-developed software costs	(5,645)	(3,013)
Net cash used in investing activities	(61,965)	(9,889)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on finance leases and lease financing obligations	(11,602)	(8,715)
Payments of deferred offering costs	(658)	(1,807)
Proceeds from debt facility	2,543	3,500
Repayment of debt facility	0	(3,500)
Proceeds from SAFE	0	10,000
Proceeds from lease financing obligations	0	2,907
Employee payroll taxes paid related to net settlement of equity awards	(130)	0
Proceeds from exercises of stock options	3,439	148
Proceeds from employee stock purchase plan	1,529	0
Net cash (used in) provided by financing activities	(4,879)	2,533
Net decrease in cash, restricted cash and restricted cash, non-current	(77,486)	(1,392)
Cash and restricted cash at beginning of period	105,012	6,076
Cash, restricted cash and restricted cash, non-current at end of period	27,526	4,684
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	2,838	2,578
Cash paid for income taxes	26	0
Cash paid for operating lease liabilities	1,948	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Stock-based compensation included in capitalized software	1,808	271
Accrued bonus classified as stock-based compensation	1,716	0
Equipment acquired through finance lease and lease financing obligations	15,680	8,895
Accruals related to purchases of property and equipment	337	250
Lease liabilities arising from right-of-use assets upon adoption of ASC 842	5,220	0
Extinguishment of PPP loan	0	2,299
RECONCILIATION OF CASH AND RESTRICTED CASH
Cash	24,813	4,684
Restricted cash - included in prepaid expenses and other current assets	169	0
Restricted cash, non-current	2,544	0
Total cash, restricted cash and restricted cash, non-current	$ 27,526	$ 4,684

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business Description of Business Backblaze, Inc. (“Backblaze” or the “Company”) is a storage cloud platform, providing businesses and consumers with solutions to store and use their data. Backblaze provides these cloud services through purpose-built, web-scale software built on commodity hardware. Backblaze was incorporated in the state of Delaware on April 20, 2007 and is headquartered in San Mateo, California.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 28, 2022 . In management’s opinion, these unaudited condensed financial statements have been prepared on the same basis as its annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of September 30, 2022, results of operations for the three and nine months ended September 30, 2022 and 2021, cash flows for the nine months ended September 30, 2022 and 2021, and stockholders' equity (deficit) for the three and nine months ended September 30, 2022 and 2021. The results of operations for the three and nine months ended September 30, 2022 and 2021 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. Emerging Growth Company The Company is an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an EGC or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The Company expects to use the extended transition period for any other new or revised accounting standards during the period in which it remains an EGC. Segment Information The Company has a single operating and reportable segment. In reaching this conclusion, management considers the definition of the chief operating decision maker (“CODM”), how the business is defined by the CODM, the nature of the information provided to the CODM and how that information is used to make operating decisions, allocate resources, and assess performance. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on an aggregated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Significant accounting policies The Company’s significant accounting policies are disclosed in the Company’s audited financial statements and related notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 28, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Such estimates and assumptions include the costs to be capitalized as intern al-use software and their useful life, the useful lives of other long-lived assets, impairment considerations for long-lived assets, the determination of the incremental borrowing rate for lease agreements, expected lease term, lease and non-lease component allocation, estim ates related to variable consideration, valuation of the Company’s common stock prior to its initial public offering in November 2021 (the “IPO”), stock options, and Employee Stock Purchase Plan (“ESPP”) and accounting for taxes, including estimates for sales tax and VAT liability, deferred tax assets, valuation allowance and uncertain tax positions. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Future actual results could differ materially from these estimates. Concentrations Vendors. The Company acquires infrastructure equipment from third-party vendors. Vendors may have limited sources of equipment and supplies, which may expose the Company to potential supply and service disruptions that could harm the Company’s busine ss. Two vendors represented an aggregate 25% of total cash disbursements during the three months ended September 30, 2022, while two vendors represented an aggregate 23% of total cash disbursements during the three months ended September 30, 2021. Two vendors represented an aggregate 26% of total cash disbursements during the nine months ended September 30, 2022, while two vendors represented an aggregate 25% of total cash disbursements during the nine months ended September 30, 2021. Two vendors represented an aggregate 29% o f the accounts payable balance as of September 30, 2022, while three vendors represented 40% of the accounts p ayable balance as of December 31, 2021. Revenue. The Company derives substantially all of its revenue from the services operating on its Backblaze Storage Cloud platform: its Backblaze B2 Cloud Storage (“Backblaze B2”) and Backblaze Computer Backup (“Computer Backup”) offerings. The potential for severe impact to the Company’s business could result if the Company was unable to operate its platform or serve customers through its platform for an extended period of time. Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , or (“ASC 842”), and since that date, has issued several ASUs to further clarify certain aspects of ASU 2016-02 and provide entities with practical expedients that may be elected upon adoption. The Company adopted the new standard beginning January 1, 2022 using the modified retrospective approach, electing the optional transition approach of not adjusting the comparative period financial statements for the impact of adoption. The Company elected the package of practical expedients permitted under the transition guidance, which allows the Company to carryforward its historical lease classification, its assessment on whether a contract is or contains a lease, and its initial direct costs for any leases that existed prior to adoption of the new standard. In accordance with ASC 842, the Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets, and corresponding lease liabilities, are recognized at the commencement date based on the present value of remaining lease payments over the lease term, which, for the Company, include primarily fixed payments. As a majority of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available as of the commencement date. For leases existing at adoption, the Company elected to use the remaining lease term and remaining minimum lease payments in calculating the incremental borrowing rate for all existing leases. The discount rate used is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company has elected the short-term lease practical expedient for all asset classes, which allows the lessee to not apply the recognition requirements of ASC 842 to short-term leases (leases with original terms of 12 months or less and that do not include a purchase option that the lessee is reasonably certain to exercise). The Company has elected the practical expedient to combine lease and non-lease components for all of its leases, with the exception of its colocation lease agreement asset class. The adoption of the new standard on January 1, 2022 resulted in the recognition of approximately $5.2 million and $5.6 million of operating lease ROU assets and operating lease liabilities on the Company's condensed balance sheets, respectively, with the ROU asset on an existing lease being offset by an existing ASC 420 obligation of approximately $0.4 million. The Company noted no material impact on its condensed financial statements with respect to its finance leases as a result of its ASC 842 adoption. See Note 10 to these condensed financial state ments. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires a financial asset measured at an amortized cost basis to be presented at the net amount expected to be collected, with further clarifications made more recently. For trade receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities are required to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for the Company for its fiscal year beginning January 1, 2023 and interim periods within that fiscal year. The Company is currently evaluating the impact of the adoption of this guidance on its financial statements.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Deferred Contract Costs The Company’s amortization of deferred contract costs was $0.2 million and $0.2 million for the three months ended September 30, 2022 and 2021, respectively, and was $0.7 million and $0.6 million for the nine months ended September 30, 2022 and 2021, respectively. The amount of capitalized contract costs was $0.4 million as of September 30, 2022 and December 31, 2021, respectively. Deferred Revenue Deferred revenue was $25.5 million and $24.9 million as of September 30, 2022 and December 31, 2021, respectively. Revenue recognized for the three months ended September 30, 2022 and 2021 was $9.2 million and $7.6 million, respectively, and was $19.3 million and $15.6 million for the nine months ended September 30, 2022 and 2021, respectively, which was included in each deferred revenue balance at the beginning of each respective period. The Company’s deferred revenue as stated on the condensed balance sheets presented its approximate contract liability balance as of September 30, 2022 and December 31, 2021. The Company’s deferred revenue balance as of September 30, 2022, approximates the aggregate amount of the transaction price allocated to remaining performance obligations (“RPOs”) as of that date. Further, as of September 30, 2022, the Company’s deferred revenue, current, balance on its condensed balance sheet of $22.7 million approximates the expected amount to be recognized from its RPOs as revenue over the next 12 months. Disaggregation of Revenue The following table presents the Company’s revenue disaggregated by timing of revenue recognition (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Consumption-based arrangements (B2 Cloud Storage) $ 8,825 $ 5,977 $ 23,553 $ 16,026 Subscription-based arrangements (Computer Backup) 13,065 11,163 38,168 32,219 Physical Media 161 180 508 537 Total revenue $ 22,051 $ 17,320 $ 62,229 $ 48,782 Revenue by geographic area, based on the location of the Company’s customers, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 15,802 $ 12,435 $ 44,636 $ 35,083 Other 6,249 4,885 17,593 13,699 Total $ 22,051 $ 17,320 $ 62,229 $ 48,782

Investments

Investments	9 Months Ended
	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Investments	Investments The Company holds all investments on a held-to-maturity basis and evaluates each position quarterly for impairment. The Company recognizes an impairment on a security through the statement of operations if (i) the Company intends to sell the impaired security; or (ii) it is more likely than not the Company will be required to sell the impaired security prior to recovery of its amortized cost basis. If a sale is intended or likely to be required, the amortized cost basis of the security will be written down to fair value and the full amount of the impairment will be recognized through the statement of operations as a net realized investment loss. Fair Values and Gross Unrealized Gains and Losses on Investments The following table summarizes adjusted cost, gross unrealized losses, and fair value by significant investment category. The Company’s commercial paper investments are classified as held-to-maturity on its condensed balance sheet as of September 30, 2022. The Company did not have an investments balance as of December 31, 2021. Amortized Cost Gross Unrealized Fair Value Net Carrying Value Gains Losses As of September 30, 2022 (In Thousands) Investments Commercial paper $ 52,626 $ — $ (198) $ 52,428 $ 52,626 Total investments $ 52,626 $ — $ (198) $ 52,428 $ 52,626 Scheduled Maturities The amortized cost and fair value of held-to-maturity securities as of September 30, 2022 by contractual maturity are shown below. As of September 30, 2022 Amortized Cost Fair Value (In Thousands) Within one year $ 52,626 $ 52,428 After one year through five years — — After 5 years through 10 years — — After 10 years — — Total investments $ 52,626 $ 52,428 Aging of Unrealized Losses As of September 30, 2022, the Company’s investments had an aggregate gross unrealized loss of $0.2 million, all of which had been in an unrealized loss position of less than twelve months and are recorded at amortized cost on the Company’s condensed balance sheet. As of September 30, 2022, the investment portfolio did not have any securities that had been in an unrealized loss position for a period of twelve months or longer. The Company did not have held-to-maturity investments as of December 31, 2021. For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows: Less than 12 Months Total # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses As of September 30, 2022 (Dollars In Thousands) Investments Commercial paper 9 $ 52,428 $ (198) 9 $ 52,428 $ (198) Total 9 $ 52,428 $ (198) 9 $ 52,428 $ (198)

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company measures financial assets and liabilities at fair value at each reporting date. Fair value is 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. Fair value measurements are reported under a three-level valuation hierarchy. The classification of the Company’s financial assets within the hierarchy is as follows: • Level 1 — Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 assets include money market funds. • Level 2 — Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 — Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The Company classifies its investments, which are comprised of investment grade commercial paper, within Level 2 of the fair value hierarchy because the fair value of these securities are priced by using inputs based on non-binding market consensus that are primarily corroborated by observable market data or quoted market prices for similar instruments. There were no transfers between levels of the fair value hierarchy for the nine months ended September 30, 2022 and the year ended December 31, 2021, respectively. The Company had no Level 1 and 3 instruments held as of September 30, 2022 and no Level 1, 2 and 3 instruments held as of December 31, 2021. A s of September 30, 2022 and December 31, 2021, the Compa ny had $169 thousand in restricted cash related to the letter of credit established according to requirements under a lease agreement, reported as a component of other current assets on the condensed balance sheets. Additionally, as of September 30, 2022, the Company had $2.5 million in restricted cash related to the line of credit agreement with City National Bank. See Note 11 for further details.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2022
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Unbilled accounts receivable $ 1,473 $ 1,220 Prepaid expenses 1,365 2,403 Prepaid subscriptions 1,255 730 Prepaid Physical Media hardware 274 378 Capitalized commissions 353 345 Receivable from payment processor 516 289 Other 1,137 565 Total prepaid expenses and other current assets $ 6,373 $ 5,930

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): September 30, December 31, Data center equipment $ 26,639 $ 25,338 Leased and financed data center equipment 64,204 50,419 Machinery and equipment 10,947 7,803 Computer equipment 2,454 1,631 Leasehold improvements 966 956 Construction-in-progress 526 — Total property and equipment 105,736 86,147 Less: accumulated depreciation (55,922) (43,079) Total property and equipment, net $ 49,814 $ 43,068 Depreciation expense was $4.8 million and $3.6 million for the three months ended September 30, 2022 and 2021, respectively, and was $13.1 million and $10.8 million for the nine months ended September 30, 2022 and 2021, respectively. For the Company’s equipment under finance leases and collateralized financing obligations, accumulated depreciation was $22.3 million and $13.5 million as of September 30, 2022 and December 31, 2021, respectively. The carrying value of the Company’s equipment under finance lease agreements and lease financing obligations was $41.9 million and $36.9 million as of September 30, 2022 and December 31, 2021, respectively. The Company recorded a loss of less than $0.1 million for the three and nine months ended September 30, 2022 respectively, as a result of disposing of certain hard drives. During the three and nine months ended September 30, 2021, no material gain or loss was realized related to the disposal of long-lived assets. These disposals occurred in the ordinary course of business, as the Company continuously evaluates its requirements for operating its data centers. The loss and gains are recorded as general and administrative expenses in the Company’s condensed statements of operations. As of September 30, 2022 and December 31, 2021, substantially all of the Company’s assets were held in the United States.

Capitalized_Software, Net

Capitalized Software, Net	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized Software, Net	Capitalized Software, Net Capitalized software, net consisted of the following (in thousands): September 30, December 31, Developed software $ 20,133 $ 12,535 General and administrative software 144 144 Total capitalized internal-use software 20,277 12,679 Less: accumulated amortization (6,629) (5,042) Total capitalized internal-use software, net $ 13,648 $ 7,637 In accordance with the adoption of ASU 2018-15, during 2021 the Company aligned its capitalization of implementation costs for cloud computing arrangements with its accounting for the underlying software license included in such arrangements. Accordingly, the Company reclassified these implementation costs on its balance sheet to prepaid expenses and other current assets and other assets as of December 31, 2021, on a prospective basis. Amortization expense of capitalized internal-use so ftware was $0.6 million and $0.4 million for the three months ended September 30, 2022 and 2021, respectively, and was $1.6 million and $1.2 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization of developed software and software purchased for internal use are included in cost of revenue and general and administrative expense, respectively, in the Company’s statements of operations. As of September 30, 2022, future amortization expense is expected to be as follows (in thousands): Year Ending December 31, Remainder of 2022 $ 658 2023 3,389 2024 3,155 2025 2,700 2026 2,247 Thereafter 1,499 Total $ 13,648

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation $ 2,872 $ 1,159 ESPP Withholding 1,271 489 Accrued expenses 1,842 1,646 Accrued sales tax 412 1,209 Accrued value-added tax ("VAT") liability 1,262 2,511 Other 285 606 Accrued expenses and other current liabilities $ 7,944 $ 7,620

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Finance Leases and Lease Financing Obligations The Company enters into finance lease arrangements to obtain hard drives and related equipment for its data center operations. The term of these agreements primarily range from three 2025 . Finance leases are included in property and equipment, net on the Company’s condensed balance sheet. A s of September 30, 2022, the weighted average remaining lease term for finance lease and lease financing obligation agreements were approximately 1.99 years and the weighted average discount rate for finance leases was approximately 10.4%. For th e Company’s assets acquired through finance lease and lease financing obligation agreements, which are related to sale-leaseback agreements, depreciation expense was $3.5 million and $3.0 million for the three months ended September 30, 2022 and 2021, respectively, and was $9.7 million and $8.9 million for the nine months ended September 30, 2022 and 2021, respectively. Depreciation expense on assets acquired through the Company’s finance leases and lease financing obligations is included in cost of revenue in its statements of operations. There have been no material changes to the Company’s finance lease obligation and lease financing commitments during the nine months ended September 30, 2022. During the three months ended September 30, 2022, total finance lease costs were $4.1 million, of which interest expense was approximately $0.9 million, and total lease financing obligation costs were $0.3 million, of which interest expense was approximately $0.1 million. During the nine months ended September 30, 2022, total finance lease costs were $11.4 million, of which interest expense was approximately $2.5 million, and total lease financing obligation costs were $1.0 million, of which interest expense was approximately $0.3 million. The cash paid on interest on finance lease and lease financing obligations was $2.8 million for the nine months ended September 30, 2022. During 2021, the Company entered into four sale-leaseback arrangements with vendors to provide approximately $4.3 million in cash proceeds for previously purchased hard drives and related equipment. The Company concluded the related lease arrangements would be classified as lease financing obligations as it has the option to repurchase the assets at their fair value at a future date. Therefore, the transaction was deemed a failed sale-leaseback and was accounted for as a financing arrangement. The assets continue to be depreciated over their useful lives, and payments are allocated between interest expense and repayment of the financing liability. The failed sale-leaseback transactions will continue to be accounted for as a failed sale-leaseback upon adoption of ASC 842 because the leaseback is classified as financing. The future minimum commitments for these finance leases and lease financing obligations as of September 30, 2022 were as follows (in thousands): Year Ending December 31, Finance leases Lease financing obligations Total Remainder of 2022 $ 5,174 $ 346 $ 5,520 2023 18,394 1,385 19,779 2024 11,038 1,240 12,278 2025 2,841 521 3,362 2026 — — — Thereafter — — — Total future minimum lease and financing commitments 37,447 3,492 40,939 Less imputed interest (3,734) (428) (4,162) Total liability $ 33,713 $ 3,064 $ 36,777 Prior to the ASC 842 adoption, the future minimum commitments for these finance leases and lease financing obligations as of December 31, 2021 were as follows (in thousands): Year Ending December 31, 2022 $ 16,765 2023 14,123 2024 6,707 2025 617 2026 — Thereafter — Total future minimum lease and financing commitments 38,212 Less imputed interest (4,964) Total liability $ 33,248 Prior to the ASC 842 adoption, as of December 31, 2021, the future minimum payments related to the lease financing obligations consisted of the following (in thousands): Year Ending December 31, 2022 $ 1,385 2023 1,385 2024 1,240 2025 387 2026 — Thereafter — Total future minimum financing payments $ 4,397 Operating Leases The Company leases its facilities for data centers and office space under non-cancelable operating leases with various expiration dates. Certain lease agreements include renewal options to extend the lease term at a price to be determined upon exercise. These options are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. Contingent rental payments are generally not included in the Company’s lease agreements. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Th e Company's leases have original lease periods expiring between 2022 and 2031. The Company does not have a material amount of short-term leases as of September 30, 2022. As of September 30, 2022 , the weighted average remaining lease term for operating leases was approximately 4.6 years and the weighted average discount rate for operating leases was approximately 4.7%. The future minimum commitments for these operating leases as of September 30, 2022 were as follows (in thousands), which excludes amounts allocated to services under operating lease agreements that are considered non-lease components: Year Ending December 31, Remainder of 2022 $ 618 2023 1,901 2024 833 2025 379 2026 352 Thereafter 1,465 Total future minimum operating lease commitments 5,548 Less imputed interest (628) Total liability $ 4,920 Non-lease components included in the Company’s colocation lease agreements are related to non-tangible utilities and services used in its data center operations. The Company used judgement and third-party data in determining the stand-alone price for allocating consideration to lease and non-lease components under these colocation lease agreements, such as, the price of utilities as compared to its tangible data center footprint within each colocation facility. Prior to the ASC 842 adoption, the future minimum commitments for these operating leases as of December 31, 2021 were as follows (in thousands), which also include minimum payments for services under operating lease agreements: Year Ending December 31, 2022 $ 4,896 2023 4,351 2024 3,098 2025 1,327 2026 1,363 Thereafter 5,977 Total $ 21,012 Rental expense related to the Company’s operating leases was $1.9 million for the three months ended September 30, 2022, of which $1.4 million is included in cost of revenue in its statement of operations. During the three months ended September 30, 2022, total operating lease cost was $2.3 million, which does not include costs related to services. Rental expense related to the Company’s operating leases was $0.9 million for the three months ended September 30, 2021. Rental expense related to the Company’s operating leases was $4.7 million for the nine months ended September 30, 2022, of which $3.6 million is included in cost of revenue in its statement of operations. During the nine months ended September 30, 2022, total operating lease cost was $5.8 million, which does not include costs related to services . Rental expense related to the Company’s operating leases was $2.8 million for the nine months ended September 30, 2021. As of September 30, 2022, the Company had additional operating leases that had not yet commenced with lease obligations of $12.7 million. The operating leases are expected to commence in 2022 with non-cancellable lease terms of approximately 7 years. Other Contractual Commitments Other non-cancellable commitments relate mainly to service agreements used to facilitate the Company’s infrastructure operations. As of September 30, 2022, the Company had non-cancelable purchase commitments of $4.3 million and $1.9 million payable during the years ending December 31, 2022 and 2023, respectively. 401(k) Plan The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. The Company contributed $0.4 million and $0.3 million to the 401(k) plan during the three months ended September 30, 2022 and 2021 , respectively, and $1.2 million and $0.8 million for the nine months ended September 30, 2022 and 2021, respectively. Legal Matters The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that there are no current legal proceedings that are likely to have a material adverse effect on its financial position, results of operations, or cash flows. However, the results of legal proceedings are inherently unpredictable and if an unfavorable ruling were to occur in any such legal proceeding, there exists the possibility of a material adverse effect on the Company’s financial position, results of operations and cash flows. On July 15, 2022, the Company received a demand letter from the investors that participated in the Simple Agreement for Future Equity (“SAFE”) agreement in August 2021. The investors demanded a refund of their original investment of $10.0 million. To the Company's knowledge, no court action was filed in connection with this matter. On August 2, 2022, the Company responded to the investors’ demand letter, advising the investors that their demand was without factual or legal basis. On August 11, 2022, the investors withdrew their demand letter without prejudice. Accordingly, a loss cannot be estimated at this time. Sales Tax The Company undertook an analysis of its sales tax exposure based on the South Dakota vs. Wayfair case whereby the U.S. Supreme Court determined that physical presence was not required to determine the potential exposure a company has for sales tax purposes. Based on the Company’s analysis, its total accrual for sales tax payable was $0.4 million and $1.2 million as of September 30, 2022 and December 31, 2021, respectively, which includes estimated amounts for penalties and interest. Accrued VAT Liability The Company has calculated a liability for uncollected and unpaid VAT, which is generally assessed by various taxing authorities on services the Company provides to its customers. The Company accrues an amount that it considers probable to be collected and can be reasonably estimated. Based on the Company’s analysis, its total accrual for VAT tax payable was $1.3 million and $2.5 million as of September 30, 2022 and December 31, 2021, respectively, which includes estimated amounts for penalties and interest. Indemnification The Company enters into indemnification provisions under agreements with other parties from time to time in the ordinary course of business. The Company has agreed in certain circumstances to indemnify and defend the indemnified party for claims and related losses suffered or incurred by the indemnified party from third-party claims due to the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. No losses have been recorded in the condensed statements of operations in connection with the indemnification provisions.

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt Credit Facility During October 2021, the Company entered into a revolving credit agreement (“RCA”) with City National Bank (“Lender”). Under this agreement, among other things, (i) amounts available to be borrowed are $9.5 million and (ii) advances on the line of credit will bear monthly interest at a variable rate equal to, at the Company’s discretion, (a) the average Secured Overnight Financing Rate (“SOFR”) plus 2.75%, or (b) the base rate. The base rate under the RCA is a rate equal to the greater of (i) 3.00% or (ii) the prime rate most recently announced by the Lender. The revolving credit agreement matures in September 2024. In connection with this agreement, the Company fully repaid and subsequently terminated its 2017 revolving credit agreement with HomeStreet Bank. During December 2021, the Company entered into its first amendment to the revolving credit agreement with City National Bank. The amendment removed the financial covenants under the agreement and added a requirement for cash collateral to be posted prior to any advance. During April 2022, the Company entered into a second amendment to its revolving credit agreement with City National Bank. Under this amendment, the amount available to be borrowed was increased to $30.0 million from $9.5 million. There were no other material changes to the agreement as a result of the amendment. The Company began borrowing under the RCA during the three months ended September 30, 2022. As of September 30, 2022, the Company had an outstanding balance of $2.5 million and the total amount available to the Company to be borrowed was $27.5 million. Under the RCA, the outstanding balance of $2.5 million as of September 30, 2022 was collateralized by an equal amount of cash held by the Company. As such, the Company held $2.5 million in cash that it deemed to be restricted and is included in restricted cash, non-current on the Company’s condensed balance sheet as of September 30, 2022. With prior written notice to the Lender, the Company has the right, at any time prior to the maturity date, to terminate the RCA. In the event of such termination, the aggregate principal of the then outstanding amounts, including any accrued interest to date, shall be repaid and the restrictions on the associated collateralized cash would be released. The weighted average interest rate associated with the outstanding balance under the RCA was 4.7%, which is a per annum rate, for the three and nine months ended September 30, 2022. Interest payments on outstanding borrowing are due on the last day of each monthly interest period and payments for the commitment fee are due at the end of each calendar quarter. Advances under the RCA are due in full in September 2024. As the RCA is a multi-year revolving credit agreement, the Company classifies the facility as long-term debt on its condensed balance sheet as it has the intent and ability to maintain the facility outstanding for longer than 12 months. Paycheck Protection Program On April 22, 2020, the Company received $2.3 million in funding through the U.S. Small Business Administration’s (“SBA”) PPP that was part of the CARES Act that was signed into law in March 2020. The interest rate on the loan was 1.00% per year and matured in April 2022. The note was payable in monthly installments of principal and interest, beginning in August 2021. The Company recognized the entire loan amount as a financial liability, with interest accrued and expensed over the term of the loan. An application to forgive the entire amount was submitted with the lender in July 2020. In June 2021, the Company received notification from the SBA that the Company’s forgiveness application of the PPP loan and accrued interest, totaling $2.3 million, was approved in full, and the Company has no further obligations related to the PPP loan. Accordingly, the Company recorded the forgiveness of the PPP loan as gain on extinguishment of debt on its statement of operations. Convertible Notes During August 2021, the Company issued investors convertible notes (the “Security”) in the amount of $10.0 million. The Security was classified as a SAFE. The convertible notes were automatically convertible into shares of the Company’s Class A common stock upon the completion of an initial public offering (or other liquidity event if sooner) at a discounted price to the value of its common stock at the time of such event. The Company determined that the SAFE notes should be classified as a liability based on evaluating the characteristics of the instrument, which contained both debt and equity-like features. As such, the Company recorded the carrying value of the SAFE notes and the associated accrued interest as a current liability on its balance sheet upon its issuance. As the SAFE notes were deemed to be a liability, the Company conducted a valuation of the SAFE notes liability as of September 30, 2021, which resulted in an unrealized loss of $0.4 million that the Company recorded in its condensed statement of operations for the three and nine months ended September 30, 2021. The fair value of the SAFE notes was determined in interim periods during 2021 using unobservable inputs. In valuing the SAFE notes, the Company used a Monte Carlo simulation to forecast a range of probability-weighted settlement paths in combination with income, market, and cost-based valuation approaches. The settlement paths used probabilities ranging from 5% to 65%. The Company used a discount rate of approximately 30% to adjust the probability-weighted settlement paths to their present value. An increase in the discount rate would decrease the fair value of the instrument, and an increase in probabilities of certain settlement paths would increase the fair value of the instrument. On November 10, 2021, in connection with the IPO, the SAFE notes automatically converted into 722,860 shares of Class A common stock.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock. In connection with the IPO, the Amended and Restated Certificate of Incorporation provided for a dual class common stock structure, all outstanding shares of the Company’s common stock converted into an equivalent number of shares of its Class B common stock, and all shares of the convertible preferred stock then outstanding automatically converted into 3,359,195 shares of Class B common stock. The Class B common stock on the Company’s condensed balance sheets presented is representative of its common stock prior to the inception of the dual class structure. Subsequent to the IPO, the Company has two classes of common stock, Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except for voting, transfer, and conversion rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes and is convertible at any time into one share of Class A common stock. The Company had reserved shares of common stock for future issuance as follows: September 30, December 31, 2011 Equity Incentive Plan Options outstanding 11,467,319 13,506,662 Shares available for future grants — — 2021 Equity Incentive Plan Options outstanding 1,514,880 1,433,520 Restricted stock units outstanding 2,238,357 18,750 Shares available for future grants 3,374,907 3,880,274 2021 Employee Stock Purchase Plan Shares available for future purchases 1,275,925 956,800 Total 19,871,388 19,796,006

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Equity Incentive Plan 2021 Equity Incentive Plan. In October 2021, The Company’s Board of Directors and stockholders adopted the 2021 Equity Incentive Plan (the “2021 Plan”) and it was approved by stockholders in October 2021. The 2021 Plan replaced the 2011 Equity Incentive Plan (the “2011 Plan”). However, awards outstanding under the 2011 Plan will continue to be governed by their existing terms. The 2021 Plan has the features described below. Share Reserve. The number of shares of common stock available for issuance under the 2021 Plan equals the sum of 5,262,500 shares plus up to approximately 13,719,000 shares subject to awards granted under the 2011 Plan that expire, forfeit or are repurchased following the effective date of the 2021 Plan. The number of shares reserved for issuance under the 2021 Plan will be increased automatically on the first business day of each of the Company’s fiscal years, commencing in 2022 and ending in 2031, by a number equal to the lowest of (i) 4,784,100 shares, (ii) 5% of the shares of common stock outstanding on the last business day of the prior fiscal year; or (iii) the number of shares determined by the Board of Directors. During the nine months ended September 30, 2022 the Company increased the number of shares reserved under the 2021 Plan by 1,519,241 pursuant to this evergreen provision. In general, to the extent that any awards under the 2021 Plan are forfeited, terminate, expire or lapse without the issuance of shares, or if the Company reacquires the shares subject to awards granted under the 2021 Plan, those shares will again become available for issuance under the 2021 Plan, as will shares applied to pay the exercise or purchase price of an award or to satisfy tax withholding obligations related to any award. Stock Options Stock Options. Stock options granted under the Company’s equity plans generally vest based on continued service over four years and expire ten years from the date of grant. A summary of equity award activity under the Company’s equity plans and related information is as follows (in thousands, except share, price and year data): Shares Outstanding Weighted- Weighted- Aggregate Balance as of December 31, 2021 3,880,274 14,940,182 $ 5.19 6.69 $ 182,843 Shares authorized 1,519,241 Options granted (109,800) 109,800 13.29 Options exercised — (1,609,789) 2.14 Options cancelled 457,994 (457,994) 6.75 RSU award activity, net of shares withheld for taxes (2,372,802) — Balance as of September 30, 2022 3,374,907 12,982,199 $ 5.58 6.20 $ 23,426 Vested and exercisable as of September 30, 2022 8,644,827 $ 2.98 5.01 $ 21,087 The weighted-average grant-date fair value of options granted w as $6.26 and $5.39 during the nine months ended September 30, 2022 and 2021, respectively. The intrinsic value of options exercised for the nine months ended September 30, 2022 and 2021 was $9.1 million and $4.8 million, respectively. Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of the Company’s common stock at the time of exercise. The aggregate grant-date fair value of options vested was $8.0 million and $2.5 million during the nine months ended September 30, 2022 and 2021, respectively. The following table summarizes the Black-Scholes option pricing model weighted-average assumptions used in estimating the fair value of stock options granted to employees during the nine months ended September 30, 2022 and 2021 , respectively, and the three months ended September 30, 2021 . No stock options were granted during the three months ended September 30, 2022. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Expected term (in years) - 6.0 6.0 6.0 Expected volatility — % 48.8 % 49.0 % 49.1 % Risk-free interest rate — % 0.93 % 1.20 % 1.05 % Expected dividend yield — % — % — % — % Expected term. For stock options considered to be “plain vanilla” options, the Company estimates the expected term based on the simplified method, which is essentially the weighted average of the vesting period and contractual term, as the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. Expected volatility. The Company performed an analysis using the average volatility of a peer group of representative public companies with sufficient trading history over the expected term to develop an expected volatility assumption. Risk-free interest rate. Based upon quoted market yields for the United States Treasury debt securities for a term consistent with the expected life of the awards in effect at the time of grant. Expected dividend yield. Because the Company has never paid and has no intention to pay cash dividends on common stock, the expected dividend yield is zero. Fair value of underlying common stock. Prior to the IPO, because the Company’s common stock was not yet publicly traded, the Company estimated the fair value of common stock. The Board of Directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock at each meeting in which awards were approved. The factors considered include, but were not limited to: (i) the results of contemporaneous independent third-party valuations of the Company’s common stock; (ii) the prices, rights, preferences, and privileges of the Company’s convertible preferred stock relative to those of its common stock; (iii) the lack of marketability of the Company’s common stock; (iv) actual operating and financial results; (v) current business conditions and projections; (vi) the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company, given prevailing market conditions; and (vii) precedent transactions involving the Company’s shares. Restricted Stock Units (“RSUs”) During November 2021, in connection with the IPO, the Company granted its first RSUs under the 2021 Plan to certain of its non-employee directors. During the nine months ended September 30, 2022 , the Company began granting more RSUs than options to its employees and non-employee directors. All RSUs granted have service-based vesting conditions. RSUs granted under the 2021 Equity Incentive Plan generally vest based on continued service over a three four RSU activity for the nine months ended September 30, 2022 was as follows: Shares Weighted-average grant date fair value per share Unvested balance as of December 31, 2021 18,750 $ 22.04 Granted 2,501,543 $ 8.45 Vested (175,492) $ 9.67 Forfeited (106,444) $ 11.01 Unvested balance as of September 30, 2022 2,238,357 $ 8.35 ESPP In October 2021, the Company’s Board of Directors adopted the 2021 Employee Stock Purchase Plan (“ESPP”), which became effective on the date of the IPO. The ESPP initially reserved and authorized the issuance of up to a total of 956,800 shares of Class A common stock to participating employees. During the nine months ended September 30, 2022 , the Company increased the number of shares reserved under the ESPP by 607,696 pursuant to its evergreen provision. The initial offering period commenced in November 2021 and the first purchase date occurred in May 2022. Under the Company’s ESPP, eligible employees may authorize payroll deductions of up to 50% of their eligible compensation, subject to IRS limitations, during prescribed offering periods to purchase shares of the Company’s Class A common stock at a price per share equal to 85% of the lesser of (1) the stock price at the employee’s first participation in the offering period or (2) the fair market value of the Company’s common stock on the purchase date. A participant may participate in only one offering period at a time, and a new offering period generally begins each May 20th and November 20th. Each offering period is generally 24 months and consists of four exercise dates (each, generally six months following the start of the offering period or the preceding exercise date, as the case may be). If the fair market value of the Company’s Class A common stock is less on a given exercise date than on the date of grant, employee participation in that offering period ends and participants are automatically re-enrolled in the next new offering period. The ESPP shall terminate automatically 20 years after its effective date, unless the ESPP is extended by the Board of Directors and the extension is approved within 12 months by a vote of the stockholders of the Company. As of September 30, 2022, 288,571 shares of Class A common stock have been purchased under the ESPP. The fair value of the purchase rights under the ESPP was estima ted using the Black-Scholes option pricing model with a similar methodology for determining inputs as the Company’s stock options, as described above. The Company recorded stock-based compensation expense under this plan of $0.7 million and $2.0 million f or the three and nine months ended September 30, 2022 , respectively . As of September 30, 2022, the total unrecognized stock-based compensation expense related to the ESPP was $3.8 million and is expected to be recognized over a weighted average period of 2 years. As of September 30, 2022, $1.3 million had been withheld on behalf of employees, respectively. The following table summarizes the Black-Scholes option pricing model assumptions used in estimating the fair value of the stock purchase rights under the ESPP during the three and nine months ended September 30, 2022, respectively. Three Months Ended September 30, Nine Months Ended 2022 2022 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Expected volatility 45% - 68% 45% - 68% Risk-free interest rate 0.10% - 2.60% 0.10% - 2.60% Expected dividend yield — % — % Stock-Based Compensation Expense Stock-based compensation expense included in the condensed statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 353 $ 139 $ 977 $ 333 Research and development 1,828 466 5,066 1,377 Sales and marketing 1,539 489 3,906 1,057 General and administrative 1,110 354 3,062 844 Total stock-based compensation expense $ 4,830 $ 1,448 $ 13,011 $ 3,611 During the nine months ended September 30, 2022 and 2021, the Company capitalize d $1.8 million and $0.3 million, respectively, of stock-based compensation for the development of internal-use software. As of September 30, 2022, total compensation cost related to stock options and RSUs not yet vested was $23.7 million and $17.3 million, respectively , which will be recognized over a weighted-average period of approximately 3 years for both stock options and RSUs. During March 2022, the Company’s Compensation Committee approved a new bonus plan for its employees. The bonus plan is contingent upon the achievement of annual corporate performance targets. If these performance targets are met during 2022, employees will be paid out under the plan in RSUs in 2023. As a result, the Company recognized $0.7 million and $1.7 million in stock-based compensation during the three and nine months ended September 30, 2022, respectively, based on progress made towards these performance targets. During the three and nine months ended September 30, 2021, the Company’s Board of Directors approved modifications to extend the exercise period of vested options for certain terminated employees by the earlier of five years from the employee’s termination date or the option expiration date. The modification was effective upon the Board’s approvals. As a result, the Company recognized an incremental $0.1 million in stock-based compensation during the three and nine months ended September 30, 2021. There were no such modifications during the three and nine months ended September 30, 2022.

Net Loss per Share Attributable

Net Loss per Share Attributable to Common Stockholders	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Net Loss per Share Attributable to Common Stockholders	Net Loss per Share Attributable to Common Stockholders The Company computes net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights of the holders of the Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net losses. Prior to the IPO, the Company’s participating securities also included convertible preferred stock. The holders of convertible preferred stock did not have a contractual obligation to share in the Company’s losses, and as a result, net losses were not allocated to these participating securities. Subsequent to the IPO, the Company considers its convertible preferred stock to be participating securities. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The diluted net loss per share attributable to commo n stockholders is computed by giving effect to all potentially dilutive common stock equivalents during the period. For purposes of this calculation, the Company’s convertible preferred stock, stock options, share purchase rights pursuant to the Company’s ESPP, and unv ested restricted stock are considered to be potential common stock equivalents, but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive. The shares issued in the IPO, the shares issued pursuant to the exercise by the underwriters of an option to purchase additional shares, and the shares of Class A and Class B common stock issued upon conversion of the SAFE notes and outstanding shares of convertible preferred stock, respectively, are included in the table below. For illustration purposes, Class B common stock in the table below for the 2021 periods presented represents the Company’s common stock prior the adoption of the dual class structure in connection with the IPO. The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in thousands, except share and per share amounts) (in thousands, except share and per share amounts) Class A Class B Class A Class B Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ (5,865) $ (6,935) N/A $ (5,993) $ (14,185) $ (22,720) N/A $ (12,099) Denominator for basic and diluted net loss per share: Weighted-average shares used in computing net loss per share attributable to common stockholders – basic and diluted 14,659,262 17,335,129 N/A 18,936,698 12,009,620 19,235,449 N/A 18,775,908 Net loss per share attributable to common stockholders – basic and diluted $ (0.40) $ (0.40) N/A $ (0.32) $ (1.18) $ (1.18) N/A $ (0.64) Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been antidilutive. The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented are as follows: September 30, 2022 2021 Convertible preferred stock — 3,359,195 RSUs 2,238,357 — Stock options 12,982,199 13,818,295 Shares issuable pursuant to the ESPP 300,785 — Total 15,521,341 17,177,490

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is subject to U.S. federal and state income taxes as a corporation. The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The effective tax rate for the three and nine months ended September 30, 2022 and 2021 was zero as the Company has incurred continuous operating losses. The Company recorded an income tax benefit of less than $0.1 million during the nine months ended September 30, 2022. The Company recorded a $0.1 million provision for income taxes during the nine months ended September 30, 2021, which included an immaterial out of period correction of $0.2 million related to the limitation of the net operating loss (“NOLs”) as of December 31, 2020. The charge represents the limitation of post-2017 federal NOLs which are limited to 80% beginning in years after December 31, 2020.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 28, 2022 . In management’s opinion, these unaudited condensed financial statements have been prepared on the same basis as its annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of September 30, 2022, results of operations for the three and nine months ended September 30, 2022 and 2021, cash flows for the nine months ended September 30, 2022 and 2021, and stockholders' equity (deficit) for the three and nine months ended September 30, 2022 and 2021. The results of operations for the three and nine months ended September 30, 2022 and 2021 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period.
Segment Information	Segment Information The Company has a single operating and reportable segment. In reaching this conclusion, management considers the definition of the chief operating decision maker (“CODM”), how the business is defined by the CODM, the nature of the information provided to the CODM and how that information is used to make operating decisions, allocate resources, and assess performance. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on an aggregated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Such estimates and assumptions include the costs to be capitalized as intern al-use software and their useful life, the useful lives of other long-lived assets, impairment considerations for long-lived assets, the determination of the incremental borrowing rate for lease agreements, expected lease term, lease and non-lease component allocation, estim ates related to variable consideration, valuation of the Company’s common stock prior to its initial public offering in November 2021 (the “IPO”), stock options, and Employee Stock Purchase Plan (“ESPP”) and accounting for taxes, including estimates for sales tax and VAT liability, deferred tax assets, valuation allowance and uncertain tax positions. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Future actual results could differ materially from these estimates.
Concentrations	Concentrations Vendors. The Company acquires infrastructure equipment from third-party vendors. Vendors may have limited sources of equipment and supplies, which may expose the Company to potential supply and service disruptions that could harm the Company’s busine ss. Two vendors represented an aggregate 25% of total cash disbursements during the three months ended September 30, 2022, while two vendors represented an aggregate 23% of total cash disbursements during the three months ended September 30, 2021. Two vendors represented an aggregate 26% of total cash disbursements during the nine months ended September 30, 2022, while two vendors represented an aggregate 25% of total cash disbursements during the nine months ended September 30, 2021. Two vendors represented an aggregate 29% o f the accounts payable balance as of September 30, 2022, while three vendors represented 40% of the accounts p ayable balance as of December 31, 2021. Revenue. The Company derives substantially all of its revenue from the services operating on its Backblaze Storage Cloud platform: its Backblaze B2 Cloud Storage (“Backblaze B2”) and Backblaze Computer Backup (“Computer Backup”) offerings. The potential for severe impact to the Company’s business could result if the Company was unable to operate its platform or serve customers through its platform for an extended period of time.
Accounting Pronouncements Recently and Not Yet Adopted	Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , or (“ASC 842”), and since that date, has issued several ASUs to further clarify certain aspects of ASU 2016-02 and provide entities with practical expedients that may be elected upon adoption. The Company adopted the new standard beginning January 1, 2022 using the modified retrospective approach, electing the optional transition approach of not adjusting the comparative period financial statements for the impact of adoption. The Company elected the package of practical expedients permitted under the transition guidance, which allows the Company to carryforward its historical lease classification, its assessment on whether a contract is or contains a lease, and its initial direct costs for any leases that existed prior to adoption of the new standard. In accordance with ASC 842, the Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets, and corresponding lease liabilities, are recognized at the commencement date based on the present value of remaining lease payments over the lease term, which, for the Company, include primarily fixed payments. As a majority of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available as of the commencement date. For leases existing at adoption, the Company elected to use the remaining lease term and remaining minimum lease payments in calculating the incremental borrowing rate for all existing leases. The discount rate used is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company has elected the short-term lease practical expedient for all asset classes, which allows the lessee to not apply the recognition requirements of ASC 842 to short-term leases (leases with original terms of 12 months or less and that do not include a purchase option that the lessee is reasonably certain to exercise). The Company has elected the practical expedient to combine lease and non-lease components for all of its leases, with the exception of its colocation lease agreement asset class. The adoption of the new standard on January 1, 2022 resulted in the recognition of approximately $5.2 million and $5.6 million of operating lease ROU assets and operating lease liabilities on the Company's condensed balance sheets, respectively, with the ROU asset on an existing lease being offset by an existing ASC 420 obligation of approximately $0.4 million. The Company noted no material impact on its condensed financial statements with respect to its finance leases as a result of its ASC 842 adoption. See Note 10 to these condensed financial state ments. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires a financial asset measured at an amortized cost basis to be presented at the net amount expected to be collected, with further clarifications made more recently. For trade receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities are required to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for the Company for its fiscal year beginning January 1, 2023 and interim periods within that fiscal year. The Company is currently evaluating the impact of the adoption of this guidance on its financial statements.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents the Company’s revenue disaggregated by timing of revenue recognition (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Consumption-based arrangements (B2 Cloud Storage) $ 8,825 $ 5,977 $ 23,553 $ 16,026 Subscription-based arrangements (Computer Backup) 13,065 11,163 38,168 32,219 Physical Media 161 180 508 537 Total revenue $ 22,051 $ 17,320 $ 62,229 $ 48,782
Revenue by Geographic Area	Revenue by geographic area, based on the location of the Company’s customers, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 15,802 $ 12,435 $ 44,636 $ 35,083 Other 6,249 4,885 17,593 13,699 Total $ 22,051 $ 17,320 $ 62,229 $ 48,782

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Held-to-maturity	Amortized Cost Gross Unrealized Fair Value Net Carrying Value Gains Losses As of September 30, 2022 (In Thousands) Investments Commercial paper $ 52,626 $ — $ (198) $ 52,428 $ 52,626 Total investments $ 52,626 $ — $ (198) $ 52,428 $ 52,626 As of September 30, 2022 Amortized Cost Fair Value (In Thousands) Within one year $ 52,626 $ 52,428 After one year through five years — — After 5 years through 10 years — — After 10 years — — Total investments $ 52,626 $ 52,428
Unrealized Gain (Loss) on Investments	For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows: Less than 12 Months Total # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses As of September 30, 2022 (Dollars In Thousands) Investments Commercial paper 9 $ 52,428 $ (198) 9 $ 52,428 $ (198) Total 9 $ 52,428 $ (198) 9 $ 52,428 $ (198)

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Prepaid Expense and Other Assets, Current [Abstract]
Schedule of Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Unbilled accounts receivable $ 1,473 $ 1,220 Prepaid expenses 1,365 2,403 Prepaid subscriptions 1,255 730 Prepaid Physical Media hardware 274 378 Capitalized commissions 353 345 Receivable from payment processor 516 289 Other 1,137 565 Total prepaid expenses and other current assets $ 6,373 $ 5,930

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment, net consisted of the following (in thousands): September 30, December 31, Data center equipment $ 26,639 $ 25,338 Leased and financed data center equipment 64,204 50,419 Machinery and equipment 10,947 7,803 Computer equipment 2,454 1,631 Leasehold improvements 966 956 Construction-in-progress 526 — Total property and equipment 105,736 86,147 Less: accumulated depreciation (55,922) (43,079) Total property and equipment, net $ 49,814 $ 43,068

Capitalized_Software, Net (Tabl

Capitalized Software, Net (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Capitalized software, net consisted of the following (in thousands): September 30, December 31, Developed software $ 20,133 $ 12,535 General and administrative software 144 144 Total capitalized internal-use software 20,277 12,679 Less: accumulated amortization (6,629) (5,042) Total capitalized internal-use software, net $ 13,648 $ 7,637
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of September 30, 2022, future amortization expense is expected to be as follows (in thousands): Year Ending December 31, Remainder of 2022 $ 658 2023 3,389 2024 3,155 2025 2,700 2026 2,247 Thereafter 1,499 Total $ 13,648

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation $ 2,872 $ 1,159 ESPP Withholding 1,271 489 Accrued expenses 1,842 1,646 Accrued sales tax 412 1,209 Accrued value-added tax ("VAT") liability 1,262 2,511 Other 285 606 Accrued expenses and other current liabilities $ 7,944 $ 7,620

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Finance Lease, Liability, Fiscal Year Maturity	The future minimum commitments for these finance leases and lease financing obligations as of September 30, 2022 were as follows (in thousands): Year Ending December 31, Finance leases Lease financing obligations Total Remainder of 2022 $ 5,174 $ 346 $ 5,520 2023 18,394 1,385 19,779 2024 11,038 1,240 12,278 2025 2,841 521 3,362 2026 — — — Thereafter — — — Total future minimum lease and financing commitments 37,447 3,492 40,939 Less imputed interest (3,734) (428) (4,162) Total liability $ 33,713 $ 3,064 $ 36,777
Schedule of Future Minimum Lease Payments for Capital Leases	Prior to the ASC 842 adoption, the future minimum commitments for these finance leases and lease financing obligations as of December 31, 2021 were as follows (in thousands): Year Ending December 31, 2022 $ 16,765 2023 14,123 2024 6,707 2025 617 2026 — Thereafter — Total future minimum lease and financing commitments 38,212 Less imputed interest (4,964) Total liability $ 33,248
Schedule Of Future Minimum Lease Payments For Sale Leaseback Leases	Prior to the ASC 842 adoption, as of December 31, 2021, the future minimum payments related to the lease financing obligations consisted of the following (in thousands): Year Ending December 31, 2022 $ 1,385 2023 1,385 2024 1,240 2025 387 2026 — Thereafter — Total future minimum financing payments $ 4,397
Lessee, Operating Lease, Liability, Maturity	The future minimum commitments for these operating leases as of September 30, 2022 were as follows (in thousands), which excludes amounts allocated to services under operating lease agreements that are considered non-lease components: Year Ending December 31, Remainder of 2022 $ 618 2023 1,901 2024 833 2025 379 2026 352 Thereafter 1,465 Total future minimum operating lease commitments 5,548 Less imputed interest (628) Total liability $ 4,920 Prior to the ASC 842 adoption, the future minimum commitments for these operating leases as of December 31, 2021 were as follows (in thousands), which also include minimum payments for services under operating lease agreements: Year Ending December 31, 2022 $ 4,896 2023 4,351 2024 3,098 2025 1,327 2026 1,363 Thereafter 5,977 Total $ 21,012

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Schedule of Shares Reserved for Future Issuance	The Company had reserved shares of common stock for future issuance as follows: September 30, December 31, 2011 Equity Incentive Plan Options outstanding 11,467,319 13,506,662 Shares available for future grants — — 2021 Equity Incentive Plan Options outstanding 1,514,880 1,433,520 Restricted stock units outstanding 2,238,357 18,750 Shares available for future grants 3,374,907 3,880,274 2021 Employee Stock Purchase Plan Shares available for future purchases 1,275,925 956,800 Total 19,871,388 19,796,006

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	A summary of equity award activity under the Company’s equity plans and related information is as follows (in thousands, except share, price and year data): Shares Outstanding Weighted- Weighted- Aggregate Balance as of December 31, 2021 3,880,274 14,940,182 $ 5.19 6.69 $ 182,843 Shares authorized 1,519,241 Options granted (109,800) 109,800 13.29 Options exercised — (1,609,789) 2.14 Options cancelled 457,994 (457,994) 6.75 RSU award activity, net of shares withheld for taxes (2,372,802) — Balance as of September 30, 2022 3,374,907 12,982,199 $ 5.58 6.20 $ 23,426 Vested and exercisable as of September 30, 2022 8,644,827 $ 2.98 5.01 $ 21,087
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	RSU activity for the nine months ended September 30, 2022 was as follows: Shares Weighted-average grant date fair value per share Unvested balance as of December 31, 2021 18,750 $ 22.04 Granted 2,501,543 $ 8.45 Vested (175,492) $ 9.67 Forfeited (106,444) $ 11.01 Unvested balance as of September 30, 2022 2,238,357 $ 8.35
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following table summarizes the Black-Scholes option pricing model weighted-average assumptions used in estimating the fair value of stock options granted to employees during the nine months ended September 30, 2022 and 2021 , respectively, and the three months ended September 30, 2021 . No stock options were granted during the three months ended September 30, 2022. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Expected term (in years) - 6.0 6.0 6.0 Expected volatility — % 48.8 % 49.0 % 49.1 % Risk-free interest rate — % 0.93 % 1.20 % 1.05 % Expected dividend yield — % — % — % — % Three Months Ended September 30, Nine Months Ended 2022 2022 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Expected volatility 45% - 68% 45% - 68% Risk-free interest rate 0.10% - 2.60% 0.10% - 2.60% Expected dividend yield — % — %
Share-based Payment Arrangement, Expensed and Capitalized, Amount	Stock-based compensation expense included in the condensed statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 353 $ 139 $ 977 $ 333 Research and development 1,828 466 5,066 1,377 Sales and marketing 1,539 489 3,906 1,057 General and administrative 1,110 354 3,062 844 Total stock-based compensation expense $ 4,830 $ 1,448 $ 13,011 $ 3,611

Net Loss per Share Attributab_2

Net Loss per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Basic and Diluted	The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in thousands, except share and per share amounts) (in thousands, except share and per share amounts) Class A Class B Class A Class B Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ (5,865) $ (6,935) N/A $ (5,993) $ (14,185) $ (22,720) N/A $ (12,099) Denominator for basic and diluted net loss per share: Weighted-average shares used in computing net loss per share attributable to common stockholders – basic and diluted 14,659,262 17,335,129 N/A 18,936,698 12,009,620 19,235,449 N/A 18,775,908 Net loss per share attributable to common stockholders – basic and diluted $ (0.40) $ (0.40) N/A $ (0.32) $ (1.18) $ (1.18) N/A $ (0.64)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented are as follows: September 30, 2022 2021 Convertible preferred stock — 3,359,195 RSUs 2,238,357 — Stock options 12,982,199 13,818,295 Shares issuable pursuant to the ESPP 300,785 — Total 15,521,341 17,177,490

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021	Dec. 31, 2021 USD ($)
Concentration Risk [Line Items]
Number of operating segments | segment			1
Number of reporting units | segment			1
Operating lease right-of-use assets	$ 4,753		$ 4,753		$ 0
Total liability	4,920		4,920
Exit or disposal cost obligations	400		400
ASU 2016-02
Concentration Risk [Line Items]
Operating lease right-of-use assets	5,200		5,200
Total liability	$ 5,600		$ 5,600
Supplier Concentration Risk | Cash Disbursements | Two Vendors
Concentration Risk [Line Items]
Concentration risk, percentage	25%	23%	26%	25%
Supplier Concentration Risk | Accounts Payable | Two Vendors
Concentration Risk [Line Items]
Concentration risk, percentage			29%
Supplier Concentration Risk | Accounts Payable | Three Vendors
Concentration Risk [Line Items]
Concentration risk, percentage					40%

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Amortization of deferred contract costs	$ 200	$ 200	$ 700	$ 600
Capitalized contract cost	400		400		$ 400
Deferred revenue	25,500		25,500		24,900
Contract with customer, liability, revenue recognized	9,200	$ 7,600	19,300	$ 15,600
Deferred revenue, current	$ 22,705		$ 22,705		$ 21,722

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 22,051	$ 17,320	$ 62,229	$ 48,782
United States
Disaggregation of Revenue [Line Items]
Revenue	15,802	12,435	44,636	35,083
Other
Disaggregation of Revenue [Line Items]
Revenue	6,249	4,885	17,593	13,699
Consumption-based arrangements (B2 Cloud Storage)
Disaggregation of Revenue [Line Items]
Revenue	8,825	5,977	23,553	16,026
Subscription-based arrangements (Computer Backup)
Disaggregation of Revenue [Line Items]
Revenue	13,065	11,163	38,168	32,219
Physical Media
Disaggregation of Revenue [Line Items]
Revenue	$ 161	$ 180	$ 508	$ 537

Investments - Fair Values and G

Investments - Fair Values and Gross Unrealized Gains and Losses on Investments (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Investments, amortized cost	$ 52,626
Investments, gross unrealized gains	0
Investments, gross unrealized losses	(198)
Investments, fair value	52,428
Investments, net carrying value	52,626
Commercial paper
Schedule of Held-to-maturity Securities [Line Items]
Investments, amortized cost	52,626
Investments, gross unrealized gains	0
Investments, gross unrealized losses	(198)
Investments, fair value	52,428
Investments, net carrying value	$ 52,626

Investments - Scheduled Maturit

Investments - Scheduled Maturities (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Amortized Cost
Within one year	$ 52,626
After one year through five years	0
After 5 years through 10 years	0
After 10 years	0
Total investments	52,626
Fair Value
Within one year	52,428
After one year through five years	0
After 5 years through 10 years	0
After 10 years	0
Total investments	$ 52,428

Investments - Narrative (Detail

Investments - Narrative (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Investments, Debt and Equity Securities [Abstract]
Investments, gross unrealized losses	$ (198)

Investments - Aging of Unrealiz

Investments - Aging of Unrealized Losses (Details) $ in Thousands	Sep. 30, 2022 USD ($) security
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]
Less than 12 months, number of securities | security	9
Less than 12 months, fair value	$ 52,428
Less than 12 months, unrealized losses	$ (198)
Total number of securities | security	9
Total fair value	$ 52,428
Total unrealized losses	$ (198)
Commercial paper
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]
Less than 12 months, number of securities | security	9
Less than 12 months, fair value	$ 52,428
Less than 12 months, unrealized losses	$ (198)
Total number of securities | security	9
Total fair value	$ 52,428
Total unrealized losses	$ (198)

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Restricted cash - included in prepaid expenses and other current assets	$ 169	$ 169
Restricted cash, non-current	$ 2,544	$ 0	$ 0

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Prepaid Expense and Other Assets, Current [Abstract]
Unbilled accounts receivable	$ 1,473	$ 1,220
Prepaid expenses	1,365	2,403
Prepaid subscriptions	1,255	730
Prepaid Physical Media hardware	274	378
Capitalized commissions	353	345
Receivable from payment processor	516	289
Other	1,137	565
Prepaid expenses and other current assets	$ 6,373	$ 5,930

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 105,736	$ 86,147
Less: accumulated depreciation	(55,922)	(43,079)
Property and equipment, net	49,814	43,068
Data center equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	26,639	25,338
Leased and financed data center equipment
Property, Plant and Equipment [Line Items]
Leased and financed data center equipment	64,204	50,419
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	10,947	7,803
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,454	1,631
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	966	956
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 526	$ 0

Property and Equipment, Net - N

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 4,800	$ 3,600	$ 13,100	$ 10,800
Finance lease, liability	33,713		33,713
Gain (Loss) on disposition of property, plant, and equipment (less than)	0		0
Equipment
Property, Plant and Equipment [Line Items]
Accumulated amortization	22,300		22,300		$ 13,500
Carrying value of equipment under capital lease agreements and collateralized financing obligations	41,900		41,900
Finance lease, liability					$ 36,900
Hard Drives
Property, Plant and Equipment [Line Items]
Gain (Loss) on disposition of property, plant, and equipment (less than)	$ 100		$ 100

Capitalized_Software, Net - Cap

Capitalized Software, Net - Capitalized Internal Use Software (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Total capitalized internal-use software	$ 20,277	$ 12,679
Less: accumulated amortization	(6,629)	(5,042)
Total capitalized internal-use software, net	13,648	7,637
Developed software
Finite-Lived Intangible Assets [Line Items]
Total capitalized internal-use software	20,133	12,535
General and administrative software
Finite-Lived Intangible Assets [Line Items]
Total capitalized internal-use software	$ 144	$ 144

Capitalized_Software, Net - Nar

Capitalized Software, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized computer software, amortization	$ 0.6	$ 0.4	$ 1.6	$ 1.2

Capitalized_Software, Net - Fut

Capitalized Software, Net - Future Amortization Expense (Details) - Capitalized Computer Software $ in Thousands	Sep. 30, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Remainder of 2022	$ 658
2023	3,389
2024	3,155
2025	2,700
2026	2,247
Thereafter	1,499
Total	$ 13,648

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued compensation	$ 2,872	$ 1,159
ESPP Withholding	1,271	489
Accrued expenses	1,842	1,646
Accrued sales tax	412	1,209
Accrued value-added tax (“VAT”) liability	1,262	2,511
Other	285	606
Accrued expenses and other current liabilities	$ 7,944	$ 7,620

Commitment and Contingencies -

Commitment and Contingencies - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 15, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) arrangement
Other Commitments [Line Items]
Finance lease, weighted average remaining lease term		1 year 11 months 26 days		1 year 11 months 26 days
Finance lease, weighted average discount rate (in percent)		10.40%		10.40%
Depreciation expense		$ 3,500	$ 3,000	$ 9,700	$ 8,900
Finance lease cost		4,100		11,400
Finance Lease, cost, interest expense		900		2,500
Lease financing obligation		300		1,000
Lease financing obligation, interest expense		$ 100		300
Interest paid on finance lease and lease financing obligations				$ 2,800
Number of sale-leaseback arrangements | arrangement						4
Proceeds from sale leaseback transaction						$ 4,300
Operating lease, weighted average remaining lease term		4 years 7 months 6 days		4 years 7 months 6 days
Operating lease, weighted average discount rate (in percent)		4.70%		4.70%
Rental expense		$ 1,900	900	$ 4,700	2,800
Operating Lease cost		2,300		5,800
Lessee, operating lease, lease not yet commenced, undiscounted amount		$ 12,700		$ 12,700
Lessee, operating lease, lease not yet commenced, term of contract		7 years		7 years
Purchase obligation, to be paid, remainder of fiscal year		$ 4,300		$ 4,300
Purchase obligation, to be paid, year one		1,900		1,900
Plan contributions		400	$ 300	1,200	$ 800
Accrued value-added tax (“VAT”) liability		1,262		1,262		2,511
Accrual for sales tax payable		400		400		$ 1,200
SAFE Agreement Investors
Other Commitments [Line Items]
Refund sought by SAFE Agreement investors	$ 10,000
Cost of revenue
Other Commitments [Line Items]
Rental expense		$ 1,400		$ 3,600
Minimum
Other Commitments [Line Items]
Capital leases, agreement term				3 years
Maximum
Other Commitments [Line Items]
Capital leases, agreement term				4 years

Commitment and Contingencies _2

Commitment and Contingencies - Future Minimum Commitments for Finance Leases and Lease Financing Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finance leases
Remainder of 2022	$ 5,174
2023	18,394
2024	11,038
2025	2,841
2026	0
Thereafter	0
Total future minimum lease and financing commitments	37,447
Less imputed interest	(3,734)
Total liability	33,713
Lease financing obligations
Remainder of 2022	346	$ 1,385
2023	1,385	1,385
2024	1,240	1,240
2025	521	387
2026	0
Thereafter	0	0
Total future minimum lease and financing commitments	3,492
Less imputed interest	(428)
Total liability	3,064	$ 4,397
Total
Remainder of 2022	5,520
2023	19,779
2024	12,278
2025	3,362
2026	0
Thereafter	0
Total future minimum lease and financing commitments	40,939
Less imputed interest	(4,162)
Total liability	$ 36,777

Commitment and Contingencies _3

Commitment and Contingencies - Future Minimum Capital Lease Payments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2022	$ 16,765
2023	14,123
2024	6,707
2025	617
2026	0
Thereafter	0
Total future minimum lease and financing commitments	38,212
Less imputed interest	(4,964)
Total liability	$ 33,248

Commitment and Contingencies _4

Commitment and Contingencies - Future Minimum Sale Leaseback Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract]
Remainder of 2022	$ 346	$ 1,385
2023	1,385	1,385
2024	1,240	1,240
2025	521	387
2026	0
Thereafter	0	0
Total liability	$ 3,064	$ 4,397

Commitment and Contingencies _5

Commitment and Contingencies - Future Minimum Commitments for Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Lessee, operating lease, liability, to be paid, remainder of fiscal year	$ 618	$ 4,896
Lessee, operating lease, liability, to be paid, year one	1,901	4,351
Lessee, operating lease, liability, to be paid, year two	833	3,098
Lessee, operating lease, liability, to be paid, year three	379	1,327
Lessee, operating lease, liability, to be paid, year four	352	1,363
Lessee, operating lease, liability, to be paid, due after year four	1,465	5,977
Total future minimum operating lease commitments	5,548	$ 21,012
Less imputed interest	(628)
Total liability	$ 4,920

Debt (Details)

Debt (Details)			1 Months Ended		3 Months Ended		9 Months Ended
	Nov. 10, 2021 shares	Apr. 22, 2020 USD ($)	Oct. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Apr. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Aug. 31, 2021 USD ($)
Debt Instrument [Line Items]
Restricted cash, non-current					$ 2,544,000	$ 0	$ 2,544,000	$ 0		$ 0
Gain on extinguishment of debt					0	0	0	2,299,000
Unrealized loss on SAFE					0	$ 359,000	0	359,000
Paycheck Protection Program, CARES Act
Debt Instrument [Line Items]
Proceeds from PPP		$ 2,300,000
Interest rate, stated percentage (in percent)		1%
Gain on extinguishment of debt				$ 2,300,000
SAFE Notes | Common Class A
Debt Instrument [Line Items]
Conversion of convertible debt (in shares) | shares	722,860
SAFE Notes | Convertible Debt
Debt Instrument [Line Items]
Debt instrument, face amount											$ 10,000,000
Unrealized loss on SAFE								$ 400,000
SAFE Notes | Convertible Debt | Minimum | Fair Value, Inputs, Level 3
Debt Instrument [Line Items]
Long-term debt, measurement input										0.05
SAFE Notes | Convertible Debt | Maximum | Fair Value, Inputs, Level 3
Debt Instrument [Line Items]
Long-term debt, measurement input										0.65
SAFE Notes | Convertible Debt | Maximum | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate
Debt Instrument [Line Items]
Long-term debt, measurement input										0.30
Revolving Credit Facility | City National Bank Revolving Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 9,500,000						$ 30,000,000
Outstanding balance					2,500,000		2,500,000
Outstanding amount available to be borrowed					$ 27,500,000		$ 27,500,000
Weighted average interest rate (in percent)					4.70%		4.70%
Revolving Credit Facility | City National Bank Revolving Credit Agreement | Line of Credit | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate			2.75%
Revolving Credit Facility | City National Bank Revolving Credit Agreement | Line of Credit | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate			3%

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details)	Sep. 30, 2022 vote	Nov. 10, 2021 shares
Common Class B
Class of Stock [Line Items]
Conversion of convertible preferred stock (in shares) | shares		3,359,195
Votes per share of common stock	1
Common Class A
Class of Stock [Line Items]
Votes per share of common stock	10

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares	Sep. 30, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common stock reserved for future issuance (in shares)	19,871,388	19,796,006
2011 Equity Incentive Plan
Class of Stock [Line Items]
Common stock reserved for future issuance (in shares)	0	0
2011 Equity Incentive Plan | Options outstanding
Class of Stock [Line Items]
Common stock reserved for future issuance (in shares)	11,467,319	13,506,662
2021 Equity Incentive Plan
Class of Stock [Line Items]
Common stock reserved for future issuance (in shares)	3,374,907	3,880,274
2021 Equity Incentive Plan | Options outstanding
Class of Stock [Line Items]
Common stock reserved for future issuance (in shares)	1,514,880	1,433,520
2021 Equity Incentive Plan | Restricted stock units outstanding
Class of Stock [Line Items]
Common stock reserved for future issuance (in shares)	2,238,357	18,750
2021 Employee Stock Purchase Plan
Class of Stock [Line Items]
Common stock reserved for future issuance (in shares)	1,275,925	956,800

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 31, 2021 exerciseDate shares	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares	Dec. 31, 2021 USD ($) shares
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares authorized (in shares) | shares						1,519,241
Weighted-average grant-date fair value of options granted (USD per share) | $ / shares				$ 6.26	$ 5.39
Intrinsic value of options exercised				$ 9,100	$ 4,800
Aggregate grant-date fair value of options vested				$ 8,000	$ 2,500
Expected dividend yield (in percent)			0%	0%	0%
Stock-based compensation expense		$ 4,830	$ 1,448	$ 13,011	$ 3,611
Cost not yet recognized for stock options, amount		23,700		23,700
ESPP Withholding		$ 1,271		1,271		$ 489
Stock-based compensation included in capitalized software				$ 1,808	271
Options outstanding
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Expected dividend yield (in percent)		0%		0%
Cost not yet recognized, period for recognition				3 years
Options outstanding | Terminated Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense			$ 100		$ 100
Terminated employee exercise period			5 years		5 years
Restricted stock units outstanding
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Cost not yet recognized for restricted stock units, amount		$ 17,300		$ 17,300
Cost not yet recognized, period for recognition				3 years
2021 Equity Incentive Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares authorized (in shares) | shares	5,262,500
Number of additional shares authorized (in shares) | shares	13,719,000			1,519,241
Minimum annual additional number of shares authorized (in shares) | shares	4,784,100
Minimum annual additional number of shares authorized, common stock outstanding (in percent)	5%
2021 Equity Incentive Plan | Restricted stock units outstanding | Minimum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award vesting period				3 years
2021 Equity Incentive Plan | Restricted stock units outstanding | Maximum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award vesting period				4 years
2021 Equity Incentive Plan | Employee Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares authorized (in shares) | shares	956,800
Number of additional shares authorized (in shares) | shares				607,696
Award expiration period	20 years
Maximum employee eligible compensation (in percent)	50%
Purchase price of common stock, percent of market price (in percent)	85%
Duration of offering period	24 months
Number of offering period exercise dates | exerciseDate	4
Duration of offering period exercise date	6 months
Number of shares purchased (in shares) | shares				288,571
Stock-based compensation expense		700		$ 2,000
Cost not yet recognized for stock options, amount		3,800		$ 3,800
Cost not yet recognized, period for recognition				2 years
2011 Equity Incentive Plan | Options outstanding
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award vesting period				4 years
Award expiration period				10 years
2022 Employee Bonus Plan | Employee Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		$ 700		$ 1,700

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Equity Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Shares available for grant
Balance as of beginning of period (in shares)		3,880,274
Number of shares authorized (in shares)			1,519,241
Options granted (in shares)		(109,800)
Options exercised (in shares)		0
Options cancelled (in shares)		457,994
Balance as of end of period (in shares)	3,374,907	3,374,907	3,880,274
Outstanding Stock Options
Balance as of beginning of period (in shares)		14,940,182
Options granted (in shares)	0	109,800
Options exercised (in shares)		(1,609,789)
Options cancelled (in shares)		(457,994)
Balance as of end of period (in shares)	12,982,199	12,982,199	14,940,182
Vested and exercisable, end of period (in shares)	8,644,827	8,644,827
Weighted-average exercise Price
Balance as of beginning of period (USD per share)		$ 5.19
Options granted (USD per share)		13.29
Options exercised (USD per share)		2.14
Options cancelled (USD per share)		6.75
Balance as of end of period (USD per share)	$ 5.58	5.58	$ 5.19
Vested and exercisable, end of period (USD per share)	$ 2.98	$ 2.98
Additional Disclosures
Options outstanding, Weighted-average remaining contractual life (years)		6 years 2 months 12 days	6 years 8 months 8 days
Vested and exercisable, Weighted-average remaining contractual life, end of period (years)		5 years 3 days
Options outstanding, Aggregate intrinsic value	$ 23,426	$ 23,426	$ 182,843
Vested and exercisable, Aggregate intrinsic value, end of period	$ 21,087	$ 21,087
Restricted stock units outstanding
Shares available for grant
Net RSU award activity, net of shares withheld for taxes (in shares)		(2,372,802)

Stock-Based Compensation - Valu

Stock-Based Compensation - Valuation Assumptions for Stock Options (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-Based Payment Arrangement [Abstract]
Expected term (in years)	6 years	6 years	6 years
Volatility (in percent)	48.80%	49%	49.10%
Risk free interest rate (in percent)	0.93%	1.20%	1.05%
Expected dividend yield (in percent)	0%	0%	0%

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units outstanding	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Shares
Balance, beginning of period (in shares) | shares	18,750
Granted (in shares) | shares	2,501,543
Vested (in shares) | shares	(175,492)
Forfeited (in shares) | shares	(106,444)
Balance, end of period (in shares) | shares	2,238,357
Weighted-average grant date fair value per share
Balance, beginning of period (in dollars per share) | $ / shares	$ 22.04
Granted (in dollars per share) | $ / shares	8.45
Vested (in dollars per share) | $ / shares	9.67
Forfeited (in dollars per share) | $ / shares	11.01
Balance, end of period (in dollars per share) | $ / shares	$ 8.35

Stock-Based Compensation - Empl

Stock-Based Compensation - Employee Stock Purchase Plan (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		6 years	6 years	6 years
Volatility (in percent)		48.80%	49%	49.10%
Risk free interest rate (in percent)		0.93%	1.20%	1.05%
Expected dividend yield (in percent)		0%	0%	0%
Options outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield (in percent)	0%		0%
Minimum | Options outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months		6 months
Volatility (in percent)	45%		45%
Risk free interest rate (in percent)	0.10%		0.10%
Maximum | Options outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years		2 years
Volatility (in percent)	68%		68%
Risk free interest rate (in percent)	2.60%		2.60%

Stock-Based Compensation - Clas

Stock-Based Compensation - Classification of Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 4,830	$ 1,448	$ 13,011	$ 3,611
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	353	139	977	333
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,828	466	5,066	1,377
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,539	489	3,906	1,057
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,110	$ 354	$ 3,062	$ 844

Net Loss per Share Attributab_3

Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net loss attributable to common stockholders	$ (12,800)	$ (5,993)	$ (36,905)	$ (12,099)
Denominator for basic and diluted net loss per share:
Weighted average shares used in computing net loss per share, basic (in shares)	31,994,391	18,936,698	31,245,069	18,775,908
Weighted average shares used in computing net loss per share, diluted (in shares)	31,994,391	18,936,698	31,245,069	18,775,908
Net loss per share, basic (USD per share)	$ (0.40)	$ (0.32)	$ (1.18)	$ (0.64)
Net loss per share, diluted (USD per share)	$ (0.40)	$ (0.32)	$ (1.18)	$ (0.64)
Common Class A
Numerator:
Net loss attributable to common stockholders	$ (5,865)		$ (14,185)
Denominator for basic and diluted net loss per share:
Weighted average shares used in computing net loss per share, basic (in shares)	14,659,262		12,009,620
Weighted average shares used in computing net loss per share, diluted (in shares)	14,659,262		12,009,620
Net loss per share, basic (USD per share)	$ (0.40)		$ (1.18)
Net loss per share, diluted (USD per share)	$ (0.40)		$ (1.18)
Common Class B
Numerator:
Net loss attributable to common stockholders	$ (6,935)	$ (5,993)	$ (22,720)	$ (12,099)
Denominator for basic and diluted net loss per share:
Weighted average shares used in computing net loss per share, basic (in shares)	17,335,129	18,936,698	19,235,449	18,775,908
Weighted average shares used in computing net loss per share, diluted (in shares)	17,335,129	18,936,698	19,235,449	18,775,908
Net loss per share, basic (USD per share)	$ (0.40)	$ (0.32)	$ (1.18)	$ (0.64)
Net loss per share, diluted (USD per share)	$ (0.40)	$ (0.32)	$ (1.18)	$ (0.64)

Net Loss per Share Attributab_4

Net Loss per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Common Share [Line Items]
Antidilutive securities (in shares)	15,521,341	17,177,490
Convertible preferred stock
Earnings Per Common Share [Line Items]
Antidilutive securities (in shares)	0	3,359,195
Restricted stock units outstanding
Earnings Per Common Share [Line Items]
Antidilutive securities (in shares)	2,238,357	0
Options outstanding
Earnings Per Common Share [Line Items]
Antidilutive securities (in shares)	12,982,199	13,818,295
Shares issuable pursuant to the ESPP
Earnings Per Common Share [Line Items]
Antidilutive securities (in shares)	300,785	0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	0%	0%	0%	0%
Income tax (benefit) provision	$ 0	$ 0	$ (69)	$ 136
Tax adjustment				$ 200