Sprout Social (SPT) 10-Q 4 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Aug. 02, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-39156
Entity Registrant Name	SPROUT SOCIAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-2404165
Entity Address, Address Line One	131 South Dearborn St.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60603
City Area Code	(866)
Local Phone Number	878-3231
Title of 12(b) Security	Class A Common Stock, $0.0001 par value per share
Trading Symbol	SPT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001517375
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		45,075,300
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		8,773,622

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 108,257	$ 114,515
Marketable securities	63,224	49,364
Accounts receivable, net of allowances of $978 and $1,428 at June 30, 2021 and December 31, 2020, respectively	16,133	17,178
Deferred commissions	10,650	8,622
Prepaid expenses and other assets	6,846	9,651
Total current assets	205,110	199,330
Property and equipment, net	13,912	14,925
Deferred commissions, net of current portion	10,822	8,757
Operating lease, right-of-use assets	9,790	10,132
Goodwill	2,299	2,299
Intangible assets, net	3,567	4,088
Other assets, net	125	138
Total assets	245,625	239,669
Current liabilities
Accounts payable	549	1,543
Deferred revenue	54,373	43,407
Operating lease liabilities	2,572	2,155
Accrued wages and payroll related benefits	7,839	9,885
Accrued expenses and other	7,640	6,587
Total current liabilities	72,973	63,577
Deferred revenue, net of current portion	171	355
Operating lease liabilities, net of current portion	22,319	23,638
Total liabilities	95,463	87,570
Commitments and contingencies (Note 6)
Stockholders’ equity
Additional paid-in capital	339,389	328,343
Treasury stock, at cost	(30,380)	(29,206)
Accumulated deficit	(158,852)	(147,043)
Total stockholders’ equity	150,162	152,099
Total liabilities and stockholders’ equity	245,625	239,669
Class A common stock
Stockholders’ equity
Common stock	4	4
Class B common stock
Stockholders’ equity
Common stock	$ 1	$ 1

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Allowance for doubtful accounts	$ 978	$ 1,428
Class A common stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized value (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	47,764,447	46,698,354
Common stock, shares outstanding (in shares)	44,948,652	43,898,850
Class B common stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized value (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	9,062,566	9,574,566
Common stock, shares outstanding (in shares)	8,855,622	9,367,622

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue
Total revenue	$ 44,685	$ 31,402	$ 85,503	$ 61,937
Cost of revenue
Total cost of revenue	11,155	8,320	21,152	16,528
Gross profit	33,530	23,082	64,351	45,409
Operating expenses
Research and development	9,008	7,712	17,280	14,993
Sales and marketing	19,822	14,184	37,975	28,078
General and administrative	10,012	9,528	20,627	21,624
Total operating expenses	38,842	31,424	75,882	64,695
Loss from operations	(5,312)	(8,342)	(11,531)	(19,286)
Interest expense	(77)	(96)	(149)	(191)
Interest income	65	53	117	513
Other (expense) income, net	(55)	101	(174)	203
Loss before income taxes	(5,379)	(8,284)	(11,737)	(18,761)
Income tax expense	63	18	72	21
Net loss	(5,442)	(8,302)	(11,809)	(18,782)
Comprehensive loss	$ (5,442)	$ (8,302)	$ (11,809)	$ (18,782)
Net loss per share attributable to common shareholders, basic and diluted (in dollars per share)	$ (0.10)	$ (0.16)	$ (0.22)	$ (0.37)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted (in shares)	53,684,325	50,527,432	53,557,340	50,263,061
Subscription
Revenue
Total revenue	$ 44,180	$ 31,190	$ 84,535	$ 61,519
Cost of revenue
Total cost of revenue	10,930	8,178	20,635	16,264
Professional services and other
Revenue
Total revenue	505	212	968	418
Cost of revenue
Total cost of revenue	$ 225	$ 142	$ 517	$ 264

Condensed Consolidated Statem_2

Condensed Consolidated Statements Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Over-Allotment Option	Voting Common Stock	Voting Common StockOver-Allotment Option	Additional Paid-in Capital	Additional Paid-in CapitalOver-Allotment Option	Treasury Stock	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2019			48,844,998				2,673,805
Beginning balance at Dec. 31, 2019	$ 128,130		$ 5		$ 263,943		$ (20,430)	$ (115,388)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)			708,086
Exercise of stock options	280				280
Stock-based compensation expense	6,003				6,003
Issuance of common stock from equity award settlement (in shares)			679,910
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)							270,732
Taxes paid related to net share settlement of equity awards	(6,335)						$ (6,335)
Proceeds from disgorgement of stockholder short-swing profits	0
Issuance of common stock, net of underwriters' discounts, commissions and offering costs (in shares)				629,603
Issuance of common stock, net of underwriters' discounts, commissions and offering costs		$ 9,738				$ 9,738
Exercise of warrants (in shares)			26,960				8,345
Exercise of warrants	0				140		$ (140)
Net loss	(18,782)							(18,782)
Ending balance (in shares) at Jun. 30, 2020			50,889,557				2,952,882
Ending balance at Jun. 30, 2020	119,034		$ 5		280,104		$ (26,905)	(134,170)
Beginning balance (in shares) at Mar. 31, 2020			50,349,964				2,841,959
Beginning balance at Mar. 31, 2020	127,970		$ 5		277,485		$ (23,652)	(125,868)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)			364,404
Exercise of stock options	138				138
Stock-based compensation expense	2,481				2,481
Issuance of common stock from equity award settlement (in shares)			175,189
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)							110,923
Taxes paid related to net share settlement of equity awards	(3,253)						$ (3,253)
Net loss	(8,302)							(8,302)
Ending balance (in shares) at Jun. 30, 2020			50,889,557				2,952,882
Ending balance at Jun. 30, 2020	119,034		$ 5		280,104		$ (26,905)	(134,170)
Beginning balance (in shares) at Dec. 31, 2020			53,266,472				3,006,448
Beginning balance at Dec. 31, 2020	152,099		$ 5		328,343		$ (29,206)	(147,043)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)			55,500
Exercise of stock options	29				29
Stock-based compensation expense	9,353				9,353
Issuance of common stock from equity award settlement (in shares)			482,302
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)							16,291
Taxes paid related to net share settlement of equity awards	(1,174)						$ (1,174)
Proceeds from disgorgement of stockholder short-swing profits	1,664				1,664
Net loss	(11,809)							(11,809)
Ending balance (in shares) at Jun. 30, 2021			53,804,274				3,022,739
Ending balance at Jun. 30, 2021	150,162		$ 5		339,389		$ (30,380)	(158,852)
Beginning balance (in shares) at Mar. 31, 2021			53,543,383				3,019,078
Beginning balance at Mar. 31, 2021	150,409		$ 5		333,939		$ (30,125)	(153,410)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)			20,000
Exercise of stock options	6				6
Stock-based compensation expense	5,444				5,444
Issuance of common stock from equity award settlement (in shares)			240,891
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)							3,661
Taxes paid related to net share settlement of equity awards	(255)						$ (255)
Net loss	(5,442)							(5,442)
Ending balance (in shares) at Jun. 30, 2021			53,804,274				3,022,739
Ending balance at Jun. 30, 2021	$ 150,162		$ 5		$ 339,389		$ (30,380)	$ (158,852)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net loss	$ (11,809)	$ (18,782)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation of property and equipment	1,476	1,434
Amortization of line of credit issuance costs	93	118
Amortization of premium on marketable securities	303	51
Amortization of acquired intangible assets	521	713
Amortization of deferred commissions	5,439	3,414
Amortization of right-of-use operating lease asset	342	687
Stock-based compensation expense	9,353	6,003
Provision for accounts receivable allowances	87	1,340
Changes in operating assets and liabilities
Accounts receivable	958	(4,330)
Prepaid expenses and other current assets	2,850	807
Deferred commissions	(9,531)	(5,417)
Accounts payable and accrued expenses	(1,987)	942
Deferred revenue	10,782	5,690
Lease liabilities	(902)	(1,215)
Net cash provided by (used in) operating activities	7,975	(8,545)
Cash flows from investing activities
Purchases of property and equipment	(466)	(808)
Purchases of marketable securities	(63,172)	(49,722)
Proceeds from maturity of marketable securities	49,010	0
Net cash (used in) investing activities	(14,628)	(50,530)
Cash flows from financing activities
Proceeds from underwriters' purchase of over-allotment shares, related to the Company's initial public offering, net of underwriters’ discounts and commissions	0	9,954
Payments for line of credit issuance costs	(124)	(126)
Proceeds from exercise of stock options	29	280
Proceeds from disgorgement of stockholder short-swing profits	1,664	0
Employee taxes paid related to the net share settlement of stock-based awards	(1,174)	(6,335)
Payments of deferred offering costs	0	(216)
Net cash provided by financing activities	395	3,557
Net (decrease) in cash and cash equivalents	(6,258)	(55,518)
Cash and cash equivalents
Beginning of period	114,515	135,310
End of period	108,257	79,792
Supplemental noncash disclosures
Operating lease liability arising from operating ROU asset obtained	0	5,417
Property and equipment acquired under lease incentives	0	101
Noncash exercise of stock warrants	0	140
Balance of property and equipment in accounts payable	$ 0	$ 551

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Sprout Social, Inc. (“Sprout Social” or the “Company”), a Delaware corporation, began operating on April 21, 2010 to design, develop and operate a web-based comprehensive social media management tool enabling companies to manage and measure their online presence. Customers access their accounts online via a web-based interface or a mobile application. Some customers also purchase the Company’s professional services, which primarily consist of consulting and training services. The Company’s fiscal year end is December 31. The Company’s customers are primarily located throughout the United States, and a portion of customers are located in foreign countries. The Company is headquartered in Chicago, Illinois. Principles of Consolidation and Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Company has prepared the unaudited condensed consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2020, and these unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full year or any future period. The consolidated balance sheet as of December 31, 2020 included herein was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain disclosures required by GAAP on an annual basis. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 24, 2021. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances, including but not limited to the potential impacts arising from the COVID-19 pandemic. As the extent and duration of the impact of the COVID-19 pandemic remains uncertain, the Company’s estimates and judgments may evolve as conditions change. The Company is not aware of any events or circumstances that would require an update to its estimates and judgments or a revision of the carrying value of its assets or liabilities as of August 4, 2021, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. The Company’s most significant estimates and judgments are those related to the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for credit losses, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 1, “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements as of and for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 24, 2021. There have been no significant changes to these policies during the six months ended June 30, 2021. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which simplifies certain aspects of accounting for income taxes. The guidance is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company adopted the ASU as of January 1, 2021, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region in Note 7 and based on the subscription versus professional services and other classification on the condensed consolidated statements of operations and comprehensive loss, as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Deferred Revenue Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancelable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size. The amount of revenue recognized during the three months ended June 30, 2021 and 2020 that was included in deferred revenue at the beginning of each period was $24.0 million and $16.4 million, respectively. The amount of revenue recognized during the six months ended June 30, 2021 and 2020 that was included in deferred revenue at the beginning of each period was $31.9 million and $22.3 million, respectively. As of June 30, 2021, including amounts already invoiced and amounts contracted but not yet invoiced, $81.2 million of revenue is expected to be recognized from remaining performance obligations, of which 84% is expected to be recognized in the next 12 months, with the remainder thereafter.

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Operating Leases	Operating Leases The Company has operating lease agreements for offices in Chicago, Illinois, and Seattle, Washington. The Chicago lease expires in January 2028 and the Seattle lease expired in July 2020. In January 2020, the Company entered a new lease agreement for an office in Seattle and this lease commenced in September 2020 and expires in January 2031. The Company’s existing operating leases require escalating monthly rental payments ranging from $72,000 to $280,000. Under the terms of the lease agreements, the Company is also responsible for its proportionate share of taxes and operating costs, which are treated as variable lease costs. The Company’s operating leases typically contain options to extend or terminate the term of the lease. The Company currently does not include any options to extend leases in its lease terms as it is not reasonably certain to exercise them. As such, it has recorded lease obligations only through the initial optional termination dates above. The following table provides a summary of operating lease assets and liabilities as of June 30, 2021 (in thousands): Assets Operating lease right-of-use assets $ 9,790 Liabilities Operating lease liabilities 2,572 Operating lease liabilities, non-current 22,319 Total operating lease liabilities $ 24,891 The following table provides information about leases on the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Operating lease expense $ 503 $ 733 $ 1,002 $ 1,407 Variable lease expense 839 806 1,678 1,582 Sublease income — 102 — 203 Within the condensed consolidated statements of operations and comprehensive loss, operating and variable lease expense are recorded in General and administrative expenses and sublease income is recorded in Other (expense) income, net. Cash payments related to operating leases were $3.2 million for each of the six months ended June 30, 2021 and June 30, 2020. As of June 30, 2021, the weighted-average remaining lease term is 7.5 years and the weighted-average discount rate is 5.6%. Remaining maturities of operating lease liabilities as of June 30, 2021 are as follows (in thousands): Years ending December 31, 2021 $ 1,927 2022 3,930 2023 4,021 2024 4,112 2025 4,205 Thereafter 12,294 Total future minimum lease payments $ 30,489 Less: imputed interest (5,598) Total operating lease liabilities $ 24,891

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for interim periods is generally determined using an estimate of the Company’s annual effective tax rate, excluding jurisdictions for which no tax benefit can be recognized due to valuation allowances. The Company’s effective tax rate generally differs from the U.S. federal statutory rate primarily due to a valuation allowance related to the Company’s federal and state deferred tax assets. The Company accounts for Global Intangible Low–Taxed Income (“GILTI”) as a current-period expense when incurred. Therefore, the Company has not recorded deferred taxes for basis differences expected to reverse in the future periods. There has historically been no federal or state provision for income taxes because the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. For the six months ended June 30, 2021, the Company recognized an immaterial provision related to foreign income taxes.

Incentive Stock Plan

Incentive Stock Plan	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Incentive Stock Plan	Incentive Stock Plan Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Cost of revenue $ 234 $ 169 $ 418 $ 464 Research and development 937 450 1,654 934 Sales and marketing 2,725 697 4,477 1,166 General and administrative 1,548 1,165 2,804 3,439 Total stock-based compensation $ 5,444 $ 2,481 $ 9,353 $ 6,003

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations The Company has non-cancellable minimum guaranteed purchase commitments for data and services. Contractual commitments as of June 30, 2021 are as follows (in thousands): Years ending December 31, 2021 $ 10,243 2022 27,495 2023 15,222 2024 — 2025 — Thereafter — Total contract commitments $ 52,960 Legal Matters From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. There were no material such matters as of and for the period ended June 30, 2021. Indemnification In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with third parties, including vendors, customers, investors and the Company’s directors and officers. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred. 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. There were no material obligations under such indemnification agreements as of and for the period ended June 30, 2021.

Segment and Geographic Data

Segment and Geographic Data	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Segment and Geographic Data	Segment and Geographic Data The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information for purposes of making operating decisions, assessing financial performance and allocating resources. The Company’s CODM evaluates financial information on a consolidated basis. As the Company operates as one operating segment, all required segment financial information is found in the condensed consolidated financial statements. Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of June 30, 2021 and December 31, 2020, there were no significant long-lived assets held by entities outside of the United States. Revenue by geographical region is determined by location of the Company’s customers. Revenue from customers outside of the United States was approximately 29% and 28% for the six months ended June 30, 2021 and 2020, respectively. Revenue by geographical region is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Americas $ 35,032 $ 24,592 $ 67,110 $ 48,392 EMEA 7,355 5,048 13,955 10,059 Asia Pacific 2,298 1,762 4,438 3,486 Total $ 44,685 $ 31,402 $ 85,503 $ 61,937

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of outstanding shares of common stock each period. Diluted net loss per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options, restricted stock units, and restricted stock awards. Because the Company incurred net losses each period, the basic and diluted calculations are the same. Basic and diluted net loss per share are the same for each class of common stock, as both Class A and Class B stockholders are entitled to the same liquidation and dividend rights. The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss attributable to common shareholders $ (5,442) $ (8,302) $ (11,809) $ (18,782) Weighted average common shares outstanding 53,684,325 50,527,432 53,557,340 50,263,061 Net loss per share, basic and diluted $ (0.10) $ (0.16) $ (0.22) $ (0.37) The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive. June 30, 2021 2020 Stock options outstanding 105,510 416,081 RSUs 1,992,113 2,155,006 Total potentially dilutive shares 2,097,623 2,571,087

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsThe Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity. The following tables present information about the Company’s financial assets that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands): June 30, 2021 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 27,246 $ — $ 27,246 Commercial paper — 35,978 — 35,978 U.S. Treasury securities — — — — Total assets $ — $ 63,224 $ — $ 63,224 December 31, 2020 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 22,810 $ — $ 22,810 Commercial paper — 16,477 — 16,477 U.S. Treasury securities — 10,077 — 10,077 Total assets $ — $ 49,364 $ — $ 49,364 Marketable securities are classified within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market. The carrying amounts of certain financial instruments, including cash held in banks, cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short-term maturities and are excluded from the fair value tables above. As of June 30, 2021 and December 31, 2020, the Company held investment-grade marketable securities that had maturities within one year and were accounted for as available-for-sale securities. There was not a significant difference between the amortized cost and fair value of these securities. The gross unrealized gains and losses associated with these securities were immaterial for the periods presented.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsDuring the quarter ended March 31, 2021, the Company received $1.7 million in cash for the disgorgement of stockholder short-swing profits under Section 16(b) of the Exchange Act. The amount was recorded as an increase to additional paid-in capital on the condensed consolidated balance sheet.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsThe Company has evaluated subsequent events after the balance sheet date through August 4, 2021, the date the financial statements were issued. Management has determined that no events or transactions have occurred subsequent to the balance sheet date that require disclosure in the financial statements.

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The unaudited condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Company has prepared the unaudited condensed consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2020, and these unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full year or any future period. The consolidated balance sheet as of December 31, 2020 included herein was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain disclosures required by GAAP on an annual basis. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.
Principles of Consolidation	All significant intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances, including but not limited to the potential impacts arising from the COVID-19 pandemic. As the extent and duration of the impact of the COVID-19 pandemic remains uncertain, the Company’s estimates and judgments may evolve as conditions change. The Company is not aware of any events or circumstances that would require an update to its estimates and judgments or a revision of the carrying value of its assets or liabilities as of August 4, 2021, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. The Company’s most significant estimates and judgments are those related to the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which simplifies certain aspects of accounting for income taxes. The guidance is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company adopted the ASU as of January 1, 2021, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements.
Deferred Revenue	Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancelable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size.

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Summary of operating lease assets and liabilities	The following table provides a summary of operating lease assets and liabilities as of June 30, 2021 (in thousands): Assets Operating lease right-of-use assets $ 9,790 Liabilities Operating lease liabilities 2,572 Operating lease liabilities, non-current 22,319 Total operating lease liabilities $ 24,891
Schedule of lease cost	The following table provides information about leases on the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Operating lease expense $ 503 $ 733 $ 1,002 $ 1,407 Variable lease expense 839 806 1,678 1,582 Sublease income — 102 — 203
Schedule of remaining maturities of operating lease liabilities	Remaining maturities of operating lease liabilities as of June 30, 2021 are as follows (in thousands): Years ending December 31, 2021 $ 1,927 2022 3,930 2023 4,021 2024 4,112 2025 4,205 Thereafter 12,294 Total future minimum lease payments $ 30,489 Less: imputed interest (5,598) Total operating lease liabilities $ 24,891

Incentive Stock Plan (Tables)

Incentive Stock Plan (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of stock-based compensation expense	Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Cost of revenue $ 234 $ 169 $ 418 $ 464 Research and development 937 450 1,654 934 Sales and marketing 2,725 697 4,477 1,166 General and administrative 1,548 1,165 2,804 3,439 Total stock-based compensation $ 5,444 $ 2,481 $ 9,353 $ 6,003

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of contractual commitments	Contractual commitments as of June 30, 2021 are as follows (in thousands): Years ending December 31, 2021 $ 10,243 2022 27,495 2023 15,222 2024 — 2025 — Thereafter — Total contract commitments $ 52,960

Segment and Geographic Data (Ta

Segment and Geographic Data (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Schedule of revenue by geographical region	Revenue by geographical region is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Americas $ 35,032 $ 24,592 $ 67,110 $ 48,392 EMEA 7,355 5,048 13,955 10,059 Asia Pacific 2,298 1,762 4,438 3,486 Total $ 44,685 $ 31,402 $ 85,503 $ 61,937

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of basic and diluted net loss per share	The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss attributable to common shareholders $ (5,442) $ (8,302) $ (11,809) $ (18,782) Weighted average common shares outstanding 53,684,325 50,527,432 53,557,340 50,263,061 Net loss per share, basic and diluted $ (0.10) $ (0.16) $ (0.22) $ (0.37)
Schedule of shares excluded from the calculation of diluted net loss per share	The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive. June 30, 2021 2020 Stock options outstanding 105,510 416,081 RSUs 1,992,113 2,155,006 Total potentially dilutive shares 2,097,623 2,571,087

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of financial assets measured at fair value	The following tables present information about the Company’s financial assets that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands): June 30, 2021 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 27,246 $ — $ 27,246 Commercial paper — 35,978 — 35,978 U.S. Treasury securities — — — — Total assets $ — $ 63,224 $ — $ 63,224 December 31, 2020 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 22,810 $ — $ 22,810 Commercial paper — 16,477 — 16,477 U.S. Treasury securities — 10,077 — 10,077 Total assets $ — $ 49,364 $ — $ 49,364

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue recognized previously deferred	$ 24	$ 16.4	$ 31.9	$ 22.3
Revenue expected to be recognized	$ 81.2		$ 81.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized, percentage	84.00%		84.00%
Revenue, remaining performance obligation, period	12 months		12 months

Operating Leases - Narrative (D

Operating Leases - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use assets	$ 9,790		$ 10,132
Operating lease liability	24,891
Payments related to operating leases	$ 3,200	$ 3,200
Weighted-average remaining lease term	7 years 6 months
Weighted-average discount rate	5.60%
Minimum
Lessee, Lease, Description [Line Items]
Monthly rental payments	$ 72
Maximum
Lessee, Lease, Description [Line Items]
Monthly rental payments	$ 280

Operating Leases - Summary of o

Operating Leases - Summary of operating lease assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease, right-of-use assets	$ 9,790	$ 10,132
Operating lease liabilities	2,572	2,155
Operating lease liabilities, net of current portion	22,319	$ 23,638
Total operating lease liabilities	$ 24,891

Operating Leases - Lease cost (

Operating Leases - Lease cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease expense	$ 503	$ 733	$ 1,002	$ 1,407
Variable lease expense	839	806	1,678	1,582
Sublease income	$ 0	$ 102	$ 0	$ 203

Operating Leases - Remaining ma

Operating Leases - Remaining maturities of operating lease liabilities (Details) $ in Thousands	Jun. 30, 2021USD ($)
Leases [Abstract]
2021	$ 1,927
2022	3,930
2023	4,021
2024	4,112
2025	4,205
Thereafter	12,294
Total future minimum lease payments	30,489
Less: imputed interest	(5,598)
Total operating lease liabilities	$ 24,891

Incentive Stock Plan (Details)

Incentive Stock Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 5,444	$ 2,481	$ 9,353	$ 6,003
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	234	169	418	464
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	937	450	1,654	934
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,725	697	4,477	1,166
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 1,548	$ 1,165	$ 2,804	$ 3,439

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 10,243
2022	27,495
2023	15,222
2024	0
2025	0
Thereafter	0
Total contract commitments	$ 52,960

Segment and Geographic Data (De

Segment and Geographic Data (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)segment	Jun. 30, 2020USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			1
Disaggregation of Revenue [Line Items]
Total revenue	$ 44,685	$ 31,402	$ 85,503	$ 61,937
Americas
Disaggregation of Revenue [Line Items]
Total revenue	35,032	24,592	67,110	48,392
EMEA
Disaggregation of Revenue [Line Items]
Total revenue	7,355	5,048	13,955	10,059
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,298	$ 1,762	$ 4,438	$ 3,486
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Outside of the United States
Disaggregation of Revenue [Line Items]
Concentration risk percentage			29.00%	28.00%

Net Loss per Share - Basic and

Net Loss per Share - Basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net loss attributable to common shareholders	$ (5,442)	$ (8,302)	$ (11,809)	$ (18,782)
Weighted average common shares outstanding (in shares)	53,684,325	50,527,432	53,557,340	50,263,061
Net loss per share, basic and diluted (in dollars per share)	$ (0.10)	$ (0.16)	$ (0.22)	$ (0.37)
Comprehensive loss	$ (5,442)	$ (8,302)	$ (11,809)	$ (18,782)

Net Loss per Share - Shares exc

Net Loss per Share - Shares excluded from the calculation of diluted net loss per share (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	2,097,623	2,571,087
Stock options outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	105,510	416,081
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	1,992,113	2,155,006

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 63,224	$ 49,364
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	63,224	49,364
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	27,246	22,810
Corporate bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Corporate bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	27,246	22,810
Corporate bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	35,978	16,477
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	35,978	16,477
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	10,077
U.S. Treasury securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
U.S. Treasury securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	10,077
U.S. Treasury securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 0	$ 0

Related Party Disclosures (Deta

Related Party Disclosures (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Related Party Transactions [Abstract]
Proceeds from disgorgement of stockholder short-swing profits	$ 1,664	$ 0