Sprout Social (SPT) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001517375
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		46,880,569
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		7,780,268

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 68,561	$ 107,114
Marketable securities	105,194	69,821
Accounts receivable, net of allowances of $1,620 and $1,298 at June 30, 2022 and December 31, 2021, respectively	24,864	25,483
Deferred commissions	16,631	13,915
Prepaid expenses and other assets	8,534	6,199
Total current assets	223,784	222,532
Marketable securities, noncurrent	7,931	0
Property and equipment, net	12,369	12,854
Deferred commissions, net of current portion	16,211	14,402
Operating lease, right-of-use assets	10,170	9,459
Goodwill	2,299	2,299
Intangible assets, net	2,524	3,045
Other assets, net	59	126
Total assets	275,347	264,717
Current liabilities
Accounts payable	6,771	2,888
Deferred revenue	80,056	69,220
Operating lease liabilities	3,344	2,693
Accrued wages and payroll related benefits	10,794	12,556
Accrued expenses and other	13,081	11,072
Total current liabilities	114,046	98,429
Deferred revenue, net of current portion	185	132
Operating lease liabilities, net of current portion	20,053	20,946
Total liabilities	134,284	119,507
Commitments and contingencies (Note 6)
Stockholders’ equity
Additional paid-in capital	373,519	351,774
Treasury stock, at cost	(32,037)	(30,824)
Accumulated other comprehensive loss	(314)	0
Accumulated deficit	(200,110)	(175,745)
Total stockholders’ equity	141,063	145,210
Total liabilities and stockholders’ equity	275,347	264,717
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, 2022	Dec. 31, 2021
Allowance for doubtful accounts	$ 1,620	$ 1,298
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)	49,556,162	48,663,781
Common stock, shares outstanding (in shares)	46,717,544	45,844,325
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)	8,123,080	8,516,390
Common stock, shares outstanding (in shares)	7,916,136	8,309,446

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue
Total revenue	$ 61,432	$ 44,685	$ 118,861	$ 85,503
Cost of revenue
Total cost of revenue	15,140	11,155	29,131	21,152
Gross profit	46,292	33,530	89,730	64,351
Operating expenses
Research and development	15,374	9,008	28,439	17,280
Sales and marketing	30,350	19,822	55,962	37,975
General and administrative	15,101	10,012	29,471	20,627
Total operating expenses	60,825	38,842	113,872	75,882
Loss from operations	(14,533)	(5,312)	(24,142)	(11,531)
Interest expense	(28)	(77)	(99)	(149)
Interest income	321	65	444	117
Other (expense) income, net	(290)	(55)	(398)	(174)
Loss before income taxes	(14,530)	(5,379)	(24,195)	(11,737)
Income tax expense	80	63	170	72
Net loss	$ (14,610)	$ (5,442)	$ (24,365)	$ (11,809)
Net loss per share attributable to common shareholders, basic and diluted (in dollars per share)	$ (0.27)	$ (0.10)	$ (0.45)	$ (0.22)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted (in shares)	54,502,809	53,684,325	54,356,817	53,557,340
Subscription
Revenue
Total revenue	$ 60,732	$ 44,180	$ 117,512	$ 84,535
Cost of revenue
Total cost of revenue	14,876	10,930	28,633	20,635
Professional services and other
Revenue
Total revenue	700	505	1,349	968
Cost of revenue
Total cost of revenue	$ 264	$ 225	$ 498	$ 517

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net loss	$ (14,610)	$ (5,442)	$ (24,365)	$ (11,809)
Net unrealized loss on available-for-sale securities, net of tax	(154)	0	(314)	0
Comprehensive loss	$ (14,764)	$ (5,442)	$ (24,679)	$ (11,809)

Condensed Consolidated Statem_3

Condensed Consolidated Statements Stockholders Equity (Unaudited) - USD ($) $ in Thousands	Total	Voting Common Stock	Additional Paid-in Capital	Treasury Stock	AOCI Attributable to Parent	Accumulated Deficit
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)
Beginning balance (in shares) at Dec. 31, 2021		54,153,771		3,026,400
Beginning balance at Dec. 31, 2021	145,210	$ 5	351,774	$ (30,824)		(175,745)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		38,545
Exercise of stock options	14		14
Stock-based compensation expense	21,056		21,056
Issuance of common stock from equity award settlement (in shares)		427,695
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)				19,162
Taxes paid related to net share settlement of equity awards	(1,213)			$ (1,213)
Stock Issued During Period, Value, Employee Stock Purchase Plan	675		675
Stock Issued During Period, Shares, Employee Stock Purchase Plans		13,669
Proceeds from disgorgement of stockholder short-swing profits	0
Other Comprehensive Income (Loss), Net of Tax	(314)				$ (314)
Net loss	(24,365)					(24,365)
Ending balance (in shares) at Jun. 30, 2022		54,633,680		3,045,562
Ending balance at Jun. 30, 2022	$ 141,063	$ 5	373,519	$ (32,037)	(314)	(200,110)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Document Period End Date	Jun. 30, 2022
Beginning balance (in shares) at Mar. 31, 2022		54,407,191		3,040,265
Beginning balance at Mar. 31, 2022	$ 142,754	$ 5	360,172	$ (31,763)	(160)	(185,500)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		25,000
Exercise of stock options	8		8
Stock-based compensation expense	12,664		12,664
Issuance of common stock from equity award settlement (in shares)		187,820
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)				5,297
Taxes paid related to net share settlement of equity awards	(274)			$ (274)
Stock Issued During Period, Value, Employee Stock Purchase Plan	675		675
Stock Issued During Period, Shares, Employee Stock Purchase Plans		13,669
Other Comprehensive Income (Loss), Net of Tax	(154)				(154)
Net loss	(14,610)					(14,610)
Ending balance (in shares) at Jun. 30, 2022		54,633,680		3,045,562
Ending balance at Jun. 30, 2022	$ 141,063	$ 5	$ 373,519	$ (32,037)	$ (314)	$ (200,110)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net loss	$ (24,365)	$ (11,809)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation of property and equipment	1,399	1,476
Amortization of line of credit issuance costs	30	93
Amortization of premium on marketable securities	143	303
Amortization of acquired intangible assets	521	521
Amortization of deferred commissions	8,467	5,439
Amortization of right-of-use operating lease asset	368	342
Stock-based compensation expense	21,056	9,353
Provision for accounts receivable allowances	623	87
Changes in operating assets and liabilities
Accounts receivable	(4)	958
Prepaid expenses and other current assets	(2,275)	2,850
Deferred commissions	(12,991)	(9,531)
Accounts payable and accrued expenses	4,128	(1,987)
Deferred revenue	10,889	10,782
Lease liabilities	(1,320)	(902)
Net cash provided by operating activities	6,669	7,975
Cash flows from investing activities
Purchases of property and equipment	(913)	(466)
Purchases of marketable securities	(106,832)	(63,172)
Proceeds from maturity of marketable securities	63,070	49,010
Net cash used in investing activities	(44,675)	(14,628)
Cash flows from financing activities
Payments for line of credit issuance costs	(23)	(124)
Proceeds from exercise of stock options	14	29
Proceeds from employee stock purchase plans	675	0
Proceeds from disgorgement of stockholder short-swing profits	0	1,664
Employee taxes paid related to the net share settlement of stock-based awards	(1,213)	(1,174)
Net cash (used in) provided by financing activities	(547)	395
Net decrease in cash and cash equivalents	(38,553)	(6,258)
Cash and cash equivalents
Beginning of period	107,114	114,515
End of period	68,561	108,257
Supplemental noncash disclosures
Operating lease liability arising from operating ROU asset obtained	1,079	0
Balance of property and equipment in accounts payable	$ 53	$ 0

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
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, 2021, 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, 2021 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, 2021, filed with the SEC on February 23, 2022. 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 3, 2022, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. The Company’s estimates and judgments include, but are not limited 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, 2021 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 23, 2022. There have been no significant changes to these policies during the six months ended June 30, 2022.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2022
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, 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, 2022 and 2021 that was included in deferred revenue at the beginning of each period was $36.2 million and $24.0 million, respectively. The amount of revenue recognized during the six months ended June 30, 2022 and 2021 that was included in deferred revenue at the beginning of each period was $51.6 million and $31.9 million, respectively. As of June 30, 2022, including amounts already invoiced and amounts contracted but not yet invoiced, $127.6 million of revenue is expected to be recognized from remaining performance obligations, of which 82% is expected to be recognized in the next 12 months, with the remainder thereafter.

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2022
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 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 v c 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 Company entered into a new lease agreement for an office in Dublin, Ireland, with an expected total future commitment of $1.1 million and lease commencement date of July 2022. The lease has an expected expiration date of June 2024. For accounting purposes under ASC 842, the lease commenced on June 30, 2022, resulting in the recording of a $1.1 million right-of-use operating lease asset and operating lease liability. The following table provides a summary of operating lease assets and liabilities as of June 30, 2022 (in thousands): Assets Operating lease right-of-use assets $ 10,170 Liabilities Operating lease liabilities 3,344 Operating lease liabilities, non-current 20,053 Total operating lease liabilities $ 23,397 The following table provides information about leases on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease expense $ 503 $ 503 $ 1,006 $ 1,002 Variable lease expense 866 839 1,733 1,678 Within the condensed consolidated statements of operations, operating and variable lease expense are recorded in General and administrative expenses. Cash payments related to operating leases for the six months ended June 30, 2022 and June 30, 2021 were $3.7 million and $3.2 million, respectively. As of June 30, 2022, the weighted-average remaining lease term is 6.3 years and the weighted-average discount rate is 5.5%. Remaining maturities of operating lease liabilities as of June 30, 2022 are as follows (in thousands): Years ending December 31, 2022 $ 2,254 2023 4,584 2024 4,394 2025 4,205 2026 4,298 Thereafter 7,994 Total future minimum lease payments $ 27,729 Less: imputed interest (4,332) Total operating lease liabilities $ 23,397

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
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, 2022, the Company recognized an immaterial provision related to foreign income taxes.

Incentive Stock Plan

Incentive Stock Plan	6 Months Ended
	Jun. 30, 2022
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 as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Cost of revenue $ 766 $ 234 $ 1,214 $ 418 Research and development 3,060 937 4,785 1,654 Sales and marketing 5,959 2,725 10,177 4,477 General and administrative 2,879 1,548 4,880 2,804 Total stock-based compensation $ 12,664 $ 5,444 $ 21,056 $ 9,353

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations The Company has non-cancellable minimum guaranteed purchase commitments for primarily data and services. Material contractual commitments as of June 30, 2022 that are not disclosed elsewhere are as follows (in thousands): Years ending December 31, 2022 $ 14,782 2023 16,694 2024 1,489 2025 176 2026 — Thereafter — Total contract commitments $ 33,141 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, 2022. 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, 2022.

Segment and Geographic Data

Segment and Geographic Data	6 Months Ended
	Jun. 30, 2022
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, 2022 and December 31, 2021, 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 28% and 29% for the six months ended June 30, 2022 and 2021, respectively. Revenue by geographical region is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Americas $ 48,285 $ 35,032 $ 93,515 $ 67,110 EMEA 10,275 7,355 19,729 13,955 Asia Pacific 2,872 2,298 5,617 4,438 Total $ 61,432 $ 44,685 $ 118,861 $ 85,503

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2022
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 for 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, 2022 2021 2022 2021 Net loss attributable to common shareholders $ (14,610) $ (5,442) $ (24,365) $ (11,809) Weighted average common shares outstanding 54,502,809 53,684,325 54,356,817 53,557,340 Net loss per share, basic and diluted $ (0.27) $ (0.10) $ (0.45) $ (0.22) 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, 2022 2021 Stock options outstanding 59,510 105,510 RSUs 2,697,798 1,992,113 Total potentially dilutive shares 2,757,308 2,097,623

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
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, 2022 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 17,664 $ — $ 17,664 Commercial paper — 52,442 — 52,442 U.S. Treasury securities — 30,376 — 30,376 Asset-backed securities — 12,643 — 12,643 Total assets $ — $ 113,125 $ — $ 113,125 December 31, 2021 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 26,274 $ — $ 26,274 Commercial paper — 33,481 — 33,481 Asset-backed securities — $ 10,066 $ — 10,066 Total assets $ — $ 69,821 $ — $ 69,821 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. For the periods presented, the Company held investment-grade marketable securities which were accounted for as available-for-sale securities. As of June 30, 2022 and December 31, 2021, 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 in the periods presented. The following table classifies our marketable securities by contractual maturity (in thousands): June 30, 2022 December 31, 2021 Due in one year or less 105,194 69,821 Due after one year and within two years 7,931 — Total 113,125 69,821

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
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, 2021, 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, 2021 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 3, 2022, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. The Company’s estimates and judgments include, but are not limited to, the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for
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, 2022
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, 2022 (in thousands): Assets Operating lease right-of-use assets $ 10,170 Liabilities Operating lease liabilities 3,344 Operating lease liabilities, non-current 20,053 Total operating lease liabilities $ 23,397
Schedule of lease cost	The following table provides information about leases on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease expense $ 503 $ 503 $ 1,006 $ 1,002 Variable lease expense 866 839 1,733 1,678
Schedule of remaining maturities of operating lease liabilities	Remaining maturities of operating lease liabilities as of June 30, 2022 are as follows (in thousands): Years ending December 31, 2022 $ 2,254 2023 4,584 2024 4,394 2025 4,205 2026 4,298 Thereafter 7,994 Total future minimum lease payments $ 27,729 Less: imputed interest (4,332) Total operating lease liabilities $ 23,397

Incentive Stock Plan (Tables)

Incentive Stock Plan (Tables)	6 Months Ended
	Jun. 30, 2022
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 as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Cost of revenue $ 766 $ 234 $ 1,214 $ 418 Research and development 3,060 937 4,785 1,654 Sales and marketing 5,959 2,725 10,177 4,477 General and administrative 2,879 1,548 4,880 2,804 Total stock-based compensation $ 12,664 $ 5,444 $ 21,056 $ 9,353

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of contractual commitments	Material contractual commitments as of June 30, 2022 that are not disclosed elsewhere are as follows (in thousands): Years ending December 31, 2022 $ 14,782 2023 16,694 2024 1,489 2025 176 2026 — Thereafter — Total contract commitments $ 33,141

Segment and Geographic Data (Ta

Segment and Geographic Data (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 2021 2022 2021 Americas $ 48,285 $ 35,032 $ 93,515 $ 67,110 EMEA 10,275 7,355 19,729 13,955 Asia Pacific 2,872 2,298 5,617 4,438 Total $ 61,432 $ 44,685 $ 118,861 $ 85,503

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 2021 2022 2021 Net loss attributable to common shareholders $ (14,610) $ (5,442) $ (24,365) $ (11,809) Weighted average common shares outstanding 54,502,809 53,684,325 54,356,817 53,557,340 Net loss per share, basic and diluted $ (0.27) $ (0.10) $ (0.45) $ (0.22)
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, 2022 2021 Stock options outstanding 59,510 105,510 RSUs 2,697,798 1,992,113 Total potentially dilutive shares 2,757,308 2,097,623

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 17,664 $ — $ 17,664 Commercial paper — 52,442 — 52,442 U.S. Treasury securities — 30,376 — 30,376 Asset-backed securities — 12,643 — 12,643 Total assets $ — $ 113,125 $ — $ 113,125 December 31, 2021 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 26,274 $ — $ 26,274 Commercial paper — 33,481 — 33,481 Asset-backed securities — $ 10,066 $ — 10,066 Total assets $ — $ 69,821 $ — $ 69,821
Investments Classified by Contractual Maturity Date	The following table classifies our marketable securities by contractual maturity (in thousands): June 30, 2022 December 31, 2021 Due in one year or less 105,194 69,821 Due after one year and within two years 7,931 — Total 113,125 69,821

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized previously deferred	$ 36.2	$ 24	$ 51.6	$ 31.9
Revenue expected to be recognized	$ 127.6		$ 127.6
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	82%		82%
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, 2022	Jun. 30, 2021	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use assets	$ 10,170		$ 9,459
Operating lease liability	23,397
Payments related to operating leases	$ 3,700	$ 3,200
Weighted-average remaining lease term	6 years 3 months 18 days
Weighted-average discount rate	5.50%
Ireland Lease
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use assets	$ 1,100
Operating lease liability	1,100
Operating Lease Expected Future Commitment	1,100
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, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease, right-of-use assets	$ 10,170	$ 9,459
Operating lease liabilities	3,344	2,693
Operating lease liabilities, net of current portion	20,053	$ 20,946
Total operating lease liabilities	$ 23,397

Operating Leases - Lease cost (

Operating Leases - Lease cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Operating lease expense	$ 503	$ 503	$ 1,006	$ 1,002
Variable lease expense	$ 866	$ 839	$ 1,733	$ 1,678

Operating Leases - Remaining ma

Operating Leases - Remaining maturities of operating lease liabilities (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Leases [Abstract]
2022	$ 2,254
2023	4,584
2024	4,394
2025	4,205
2026	4,298
Thereafter	7,994
Total future minimum lease payments	27,729
Less: imputed interest	(4,332)
Total operating lease liabilities	$ 23,397

Incentive Stock Plan (Details)

Incentive Stock Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 12,664	$ 5,444	$ 21,056	$ 9,353
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	766	234	1,214	418
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	3,060	937	4,785	1,654
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	5,959	2,725	10,177	4,477
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 2,879	$ 1,548	$ 4,880	$ 2,804

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 14,782
2023	16,694
2024	1,489
2025	176
2026	0
Thereafter	0
Total contract commitments	$ 33,141

Segment and Geographic Data (De

Segment and Geographic Data (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			1
Disaggregation of Revenue [Line Items]
Total revenue	$ 61,432	$ 44,685	$ 118,861	$ 85,503
Americas
Disaggregation of Revenue [Line Items]
Total revenue	48,285	35,032	93,515	67,110
EMEA
Disaggregation of Revenue [Line Items]
Total revenue	10,275	7,355	19,729	13,955
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,872	$ 2,298	$ 5,617	$ 4,438
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Outside of the United States
Disaggregation of Revenue [Line Items]
Concentration risk percentage			28%	29%

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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net loss attributable to common shareholders	$ (14,610)	$ (5,442)	$ (24,365)	$ (11,809)
Weighted average common shares outstanding (in shares)	54,502,809	53,684,325	54,356,817	53,557,340
Net loss per share, basic and diluted (in dollars per share)	$ (0.27)	$ (0.10)	$ (0.45)	$ (0.22)

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, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	2,757,308	2,097,623
Stock options outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	59,510	105,510
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	2,697,798	1,992,113

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 113,125	$ 69,821
Marketable securities, noncurrent	7,931	0
Marketable securities	105,194	69,821
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	113,125	69,821
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	17,664	26,274
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	17,664	26,274
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	52,442	33,481
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	52,442	33,481
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	30,376
U.S. Treasury securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0
U.S. Treasury securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	30,376
U.S. Treasury securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	12,643	10,066
Asset-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Asset-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	12,643	10,066
Asset-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 0	$ 0