Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-40465 | ||
Entity Registrant Name | Marqeta, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-4306690 | ||
Entity Address, Address Line One | 180 Grand Avenue | ||
Entity Address, Address Line Two | 6th Floor | ||
Entity Address, City or Town | Oakland | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94612 | ||
City Area Code | 888 | ||
Local Phone Number | 462-7738 | ||
Title of 12(b) Security | Class A common stock, $0.0001 par value per share | ||
Trading Symbol | MQ | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.6 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2023 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2022. | ||
Entity Central Index Key | 0001522540 | ||
Document Fiscal Year Focus | 2022 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 483,745,272 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 54,832,218 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Mateo, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,183,846 | $ 1,247,581 |
Restricted cash | 7,800 | 7,800 |
Marketable securities | 440,858 | 452,875 |
Accounts receivable, net | 15,569 | 13,187 |
Settlements receivable, net | 18,028 | 11,266 |
Network incentives receivable | 42,661 | 30,399 |
Prepaid expenses and other current assets | 38,007 | 35,617 |
Total current assets | 1,746,769 | 1,798,725 |
Property and equipment, net | 7,440 | 9,687 |
Operating lease right-of-use assets, net | 9,015 | 11,296 |
Equity method investment | 0 | 8,384 |
Other assets | 7,122 | 2,286 |
Total assets | 1,770,346 | 1,830,378 |
Current liabilities: | ||
Accounts payable | 3,798 | 2,693 |
Revenue share payable | 142,194 | 121,179 |
Accrued expenses and other current liabilities | 136,887 | 114,096 |
Total current liabilities | 282,879 | 237,968 |
Operating lease liabilities, net of current portion | 9,034 | 12,427 |
Other liabilities | 5,477 | 6,557 |
Total liabilities | 297,390 | 256,952 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 100,000,000 and 100,000,000 shares authorized, no shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 0 | 0 |
Common stock, $0.0001 par value: 1,500,000,000 and 1,500,000,000 Class A shares authorized, 486,530,334 and 421,792,153 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively. 600,000,000 and 600,000,000 Class B shares authorized, 54,833,765 and 119,591,365 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 53 | 54 |
Additional paid-in capital | 2,082,373 | 1,993,055 |
Accumulated other comprehensive loss | (7,237) | (2,230) |
Accumulated deficit | (602,233) | (417,453) |
Total stockholders’ equity | 1,472,956 | 1,573,426 |
Total liabilities and stockholders’ equity | $ 1,770,346 | $ 1,830,378 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parentheticals - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred Stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred Stock, shares issued (in shares) | 0 | |
Preferred Stock, shares outstanding (in shares) | 0 | |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 486,530,334 | 421,792,153 |
Common stock, shares, outstanding (in shares) | 486,530,334 | 421,792,153 |
Class B Common Stock | ||
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 54,833,765 | 119,591,365 |
Common stock, shares, outstanding (in shares) | 54,833,765 | 119,591,365 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net revenue | $ 748,206 | $ 517,175 | $ 290,292 |
Costs of revenue | 428,205 | 285,470 | 172,385 |
Gross profit | 320,001 | 231,705 | 117,907 |
Operating expenses: | |||
Compensation and benefits | 415,094 | 318,116 | 129,802 |
Technology | 52,361 | 33,637 | 13,239 |
Professional services | 23,479 | 18,443 | 7,188 |
Occupancy | 4,514 | 4,181 | 4,337 |
Depreciation and amortization | 3,853 | 3,534 | 3,498 |
Marketing and advertising | 3,995 | 2,284 | 1,670 |
Other operating expenses | 26,513 | 13,516 | 5,260 |
Total operating expenses | 529,809 | 393,711 | 164,994 |
Loss from operations | (209,808) | (162,006) | (47,087) |
Other income (expense), net | 24,926 | (2,563) | (521) |
Loss before income tax expense | (184,882) | (164,569) | (47,608) |
Income tax expense (benefit) | (102) | (640) | 87 |
Net loss | (184,780) | (163,929) | (47,695) |
Net loss attributable to common stockholders | (184,780) | (163,929) | (47,695) |
Other comprehensive income (loss), net of taxes: | |||
Change in foreign currency translation adjustment | (167) | (14) | (64) |
Change in unrealized gain (loss) on marketable securities | (4,840) | (2,241) | 43 |
Change in accumulated other comprehensive income (loss) | (5,007) | (2,255) | (21) |
Comprehensive loss | $ (189,787) | $ (166,184) | $ (47,716) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.34) | $ (0.45) | $ (0.39) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.34) | $ (0.45) | $ (0.39) |
Weighted-average shares used in computing net loss per share attributable to common stockholders - Basic (in shares) | 545,397,254 | 362,756,466 | 122,932,556 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - Diluted (in shares) | 545,397,254 | 362,756,466 | 122,932,556 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (184,780) | $ (163,929) | $ (47,695) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (loss) | Accumulated Deficit |
Redeemable Convertible Preferred Stock Beginning Balance (in shares) at Dec. 31, 2019 | 336,843,578 | |||||
Redeemable Convertible Preferred Stock Beginning Balance at Dec. 31, 2019 | $ 335,748 | |||||
Redeemable Convertible Preferred Stock | ||||||
Issuance of Series E-1 redeemable convertible preferred stock (in shares) | 20,989,756 | |||||
Issuance of Series E-1 redeemable convertible preferred stock | $ 166,942 | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | (5,988,994) | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ (809) | |||||
Redeemable Convertible Preferred Stock Ending Balance (in shares) at Dec. 31, 2020 | 351,844,340 | |||||
Redeemable Convertible Preferred Stock Ending Balance at Dec. 31, 2020 | $ 501,881 | |||||
Balance at the beginning of the period (in shares) at Dec. 31, 2019 | 118,430,031 | |||||
Balance at the beginning of the period at Dec. 31, 2019 | (198,406) | $ 12 | $ 7,365 | $ 46 | $ (205,829) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | 5,988,994 | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 809 | $ 1 | 808 | |||
Issuance of common stock upon exercise of vested options (in shares) | 5,236,999 | |||||
Issuance of common stock upon exercise of vested options | 2,472 | 2,472 | ||||
Repurchase of early exercised stock options (in shares) | (190,370) | |||||
Issuance of common stock net settlement of restricted stock units (in shares) | 847,184 | |||||
Vesting of early exercised stock options | 742 | 742 | ||||
Vesting of common stock warrants | 171 | 171 | ||||
Share-based compensation expense | 28,211 | 28,211 | ||||
Change in accumulated other comprehensive income (loss) | (21) | (21) | ||||
Net loss | (47,695) | (47,695) | ||||
Balance at the end of the period (in shares) at Dec. 31, 2020 | 130,312,838 | |||||
Balance at the end of the period at Dec. 31, 2020 | $ (213,717) | $ 13 | 39,769 | 25 | (253,524) | |
Redeemable Convertible Preferred Stock | ||||||
Deferred offering costs | $ 8,058 | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | (351,844,340) | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ (501,881) | |||||
Redeemable Convertible Preferred Stock Ending Balance (in shares) at Dec. 31, 2021 | 0 | |||||
Redeemable Convertible Preferred Stock Ending Balance at Dec. 31, 2021 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon Initial public offering, net of issuance costs (in shares) | 52,272,727 | |||||
Issuance of common stock upon initial public offering, net of issuance costs | 1,312,338 | $ 7 | 1,312,331 | |||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | 351,844,340 | |||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 501,881 | $ 34 | 501,847 | |||
Reclassification of redeemable convertible preferred stock warrant liabilities to common stock and additional paid-in capital upon initial public offering | 5,438 | 5,438 | ||||
Issuance of common stock upon exercise of vested options (in shares) | 4,277,344 | |||||
Issuance of common stock upon exercise of vested options | 4,969 | 4,969 | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 153,905 | |||||
Issuance of common stock under employee stock purchase plan | 3,201 | 3,201 | ||||
Repurchase of early exercised stock options (in shares) | (85,870) | |||||
Issuance of common stock net settlement of restricted stock units (in shares) | 1,736,212 | |||||
Issuance of common stock upon net settlement of restricted stock units | (23,552) | (23,552) | ||||
Issuance of common stock upon exercise of common stock warrants (in shares) | 872,022 | |||||
Issuance of common stock upon exercise of common stock warrants | 60 | |||||
Vesting of common stock warrants | 6,332 | 6,332 | ||||
Share-based compensation expense | 142,660 | 142,660 | ||||
Change in accumulated other comprehensive income (loss) | (2,255) | (2,255) | ||||
Net loss | (163,929) | (163,929) | ||||
Balance at the end of the period (in shares) at Dec. 31, 2021 | 541,383,518 | |||||
Balance at the end of the period at Dec. 31, 2021 | $ 1,573,426 | $ 54 | 1,993,055 | (2,230) | (417,453) | |
Redeemable Convertible Preferred Stock Ending Balance (in shares) at Dec. 31, 2022 | 0 | |||||
Redeemable Convertible Preferred Stock Ending Balance at Dec. 31, 2022 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of vested options (in shares) | 7,785,748 | |||||
Issuance of common stock upon exercise of vested options | 9,754 | 9,754 | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 683,485 | |||||
Issuance of common stock under employee stock purchase plan | 4,762 | 4,762 | ||||
Repurchase of early exercised stock options (in shares) | (45,958) | |||||
Issuance of common stock net settlement of restricted stock units (in shares) | 3,214,677 | |||||
Issuance of common stock upon net settlement of restricted stock units | (15,362) | (15,362) | ||||
Vesting of common stock warrants | 8,621 | 8,621 | ||||
Share-based compensation expense | $ 160,743 | 160,743 | ||||
Repurchase and retirement of common stock (in shares) | (11,700,000) | (11,657,371) | ||||
Repurchase and retirement of common stock | $ (79,201) | $ 1 | (79,200) | |||
Change in accumulated other comprehensive income (loss) | (5,007) | (5,007) | ||||
Net loss | (184,780) | (184,780) | ||||
Balance at the end of the period (in shares) at Dec. 31, 2022 | 541,364,099 | |||||
Balance at the end of the period at Dec. 31, 2022 | $ 1,472,956 | $ 53 | $ 2,082,373 | $ (7,237) | $ (602,233) |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - Parentheticals $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) $ / shares | |
Payments of stock issuance costs | $ | $ 2,708 |
Redeemable Convertible Preferred Stock | |
Share price (in dollars per share) | $ / shares | $ 8.34 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities: | |||
Net loss | $ (184,780) | $ (163,929) | $ (47,695) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 3,853 | 3,534 | 3,498 |
Share-based compensation expense | 160,743 | 142,660 | 28,211 |
Non-cash operating leases expense | 2,281 | 2,115 | 2,029 |
Amortization of premium on marketable securities | 277 | 1,162 | 543 |
Gain on sale of equity method investment | (17,889) | 0 | 0 |
Impairment of other financial instruments | 11,616 | 0 | 0 |
Other | 649 | 3,110 | 1,929 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,577) | (4,940) | (4,485) |
Settlements receivable | (6,762) | 1,601 | (2,961) |
Network incentives receivable | (12,262) | (10,377) | (9,400) |
Prepaid expenses and other assets | (8,621) | (7,742) | (2,481) |
Accounts payable | 254 | 190 | (839) |
Revenue share payable | 21,015 | 42,988 | 48,442 |
Accrued expenses and other liabilities | 22,257 | 49,372 | 34,997 |
Operating lease liabilities | (3,020) | (2,772) | (1,515) |
Net cash (used in) provided by operating activities | (12,966) | 56,972 | 50,273 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (2,319) | (2,743) | (2,375) |
Purchase of patents | (1,600) | 0 | 0 |
Purchases of marketable securities | (70,495) | (455,266) | (216,200) |
Sales of marketable securities | 0 | 0 | 71,981 |
Maturities of marketable securities | 77,400 | 148,888 | 89,032 |
Purchase of equity method investment and purchase option | 0 | (20,000) | 0 |
Sale of equity method investment | 25,732 | 0 | 0 |
Net cash provided by (used in) investing activities | 28,718 | (329,121) | (57,562) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriters’ discounts and commissions | 0 | 1,319,809 | 0 |
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | 0 | 0 | 166,942 |
Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options | 9,249 | 4,539 | 3,144 |
Proceeds from exercise of warrants | 0 | 60 | 0 |
Proceeds from shares issued in connection with employee stock purchase plan | 4,762 | 3,201 | 0 |
Taxes paid related to net share settlement of restricted stock units | (15,362) | (23,552) | 0 |
Repurchase of common stock | (78,136) | 0 | 0 |
Payment of deferred offering costs | 0 | (4,760) | (2,708) |
Net cash (used in) provided by financing activities | (79,487) | 1,299,297 | 167,378 |
(Decrease) Increase in cash, cash equivalents, and restricted cash | (63,735) | 1,027,148 | 160,089 |
Cash, cash equivalents, and restricted cash - Beginning of period | 1,255,381 | 228,233 | 68,144 |
Cash, cash equivalents, and restricted cash - End of period | $ 1,191,646 | $ 1,255,381 | $ 228,233 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (unaudited) - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Supplemental Disclosure of Non-cash Investing and Financing Activities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of cash, cash equivalents, and restricted cash | |||
Cash and cash equivalents | $ 1,183,846 | $ 1,247,581 | $ 220,433 |
Restricted cash | 7,800 | 7,800 | 7,800 |
Total cash, cash equivalents, and restricted cash | 1,191,646 | 1,255,381 | 228,233 |
Cash paid for interest | 0 | 0 | 0 |
Cash paid for income taxes | 84 | 201 | 109 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Purchase of property and equipment accrued and not yet paid | 563 | 1,190 | 159 |
Repurchase of common stock accrued and not yet paid | 1,065 | 0 | 0 |
Deferred offering costs not yet paid | 0 | 0 | 426 |
Conversion of redeemable convertible preferred stock to common stock | $ 0 | $ 0 | $ 809 |
Business Overview and Basis of
Business Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business Overview and Basis of Presentation | Business Overview and Basis of Presentation Marqeta, Inc., or the Company, creates digital payment technology for innovation leaders. The Company's modern card issuing platform places control over payment transactions into the hands of its customers, or customers, enabling them to develop modern state-of-the-art product experiences. The Company provides all of its customers issuer processor services and for most of its customers it also acts as a card program manager. The Company primarily earns revenue from processing payment card transactions for its customers. The Company was incorporated in the state of Delaware in 2010 and is headquartered in Oakland, California, with offices in the United States, United Kingdom, and Australia and legal entities in Singapore and Brazil as of December 31, 2022. Initial Public Offering In June 2021, the Company completed an initial public offering, or the IPO, in which the Company issued and sold 52,272,727 shares of its newly authorized Class A common stock, which included 6,818,181 shares that were offered and sold pursuant to the full exercise of the underwriters’ option to purchase additional shares at a price of $27.00 per share. The Company received aggregate net proceeds of $1.3 billion after deducting underwriting discounts and commissions of $91.6 million and offering costs of $7.5 million. Immediately prior to the completion of the IPO, the Company filed its Amended and Restated Certificate of Incorporation authorizing 1,500,000,000 shares of Class A common stock which entitles holders to one vote per share, 600,000,000 shares of Class B common stock which entitles holders to 10 votes per share, and 100,000,000 shares of undesignated preferred stock. All shares of common stock then outstanding were reclassified as Class B common stock and all redeemable convertible preferred stock then outstanding were converted into 351,844,340 shares of common stock on a one-for-one basis and reclassified into Class B common stock. In addition, 2,569,528 shares of common stock warrants were converted to an equivalent number of shares of Class B common stock warrants and 203,610 shares of convertible preferred stock warrants were converted to an equivalent number of shares of Class B common stock warrants. Basis of Presentation The accompanying consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with U.S. Generally Accepted Accounting Principles (GAAP). All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions relating to reported amounts of assets and liabilities, disclosure of contingent liabilities, and reported amounts of revenue and expenses. Significant estimates and assumptions relate to the fair value of equity awards and warrants, share-based compensation, the estimation of variable consideration in contracts with customers, the reserve for contract contingencies and processing errors, and the fair value of equity method investments and a purchase call option to acquire the remaining interest in the equity method investee. Actual results could differ materially from these estimates. Business Risks and Uncertainties The Company has incurred net losses since its inception. For the year ended December 31, 2022, the Company incurred a net loss of $184.8 million and had an accumulated deficit of $602.2 million as of December 31, 2022. The Company expects losses from operations to continue for the foreseeable future as it incurs costs and expenses related to creating new products for customers, acquiring new customers, developing its brand, expanding into new geographies and developing the existing platform infrastructure. The Company believes that its cash and cash equivalents of $1.2 billion and marketable securities of $440.9 million as of December 31, 2022 are sufficient to fund its operations through at least the next twelve months from the issuance of these financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company’s contracts with customers typically include two performance obligations: 1) providing access to the Company's payment processing platform and 2) providing card fulfillment services . Certain customer contracts require the Company to allocate the transaction price of the contract based on the relative stand-alone selling price of the performance obligations which are estimated using an analysis of the Company’s historical contract pricing and costs incurred to fulfill its services. The Company generates revenue from providing platform services and other services as described below. Platform Services The Company delivers an integrated payment processing platform to its customers. The Company’s primary performance obligation is to provide customers continuous access to the Company’s platform used to process all customers’ transactions as needed. This obligation includes authorizing, settling, clearing and reconciling all transactions under MxM and PxM arrangements and managing the interactions with the Issuing Banks and Card Networks on behalf of its customers under MxM arrangements. All these services are collectively considered a single performance obligation. The Company’s platform services revenue is primarily derived from Interchange Fees generated by customer card transactions and other transaction fees collected from customers. The Company accounts for these Interchange Fees as revenue earned from its customers because the Company controls the services before delivery to the customer. The Company’s platform services revenue consists of a stand-ready service of distinct transaction processing services that are substantially the same, with the same pattern of transfer to customers. As such, the stand-ready obligation is accounted for as a single performance obligation that is a series of distinct services whereby the variability of the transaction value is satisfied daily as the performance obligation is satisfied. The Company satisfies its performance obligation to provide platform services over time as customers have continuous access to the Company's platform and the Company stands-ready to process customer transactions throughout their term of access. The Company recognizes revenue when the underlying transactions are complete, and its performance obligation is satisfied. Transactions are considered complete when the Company has authorized the transaction, validated that the transaction has no errors and accepted and posted the data to its records. The Company allocates variable consideration to the distinct month in which the platform services are delivered. When pricing terms are not consistent throughout the entire term of the contract, the Company estimates variable consideration in its customer contracts primarily using the expected value method. The standard term of the customer contracts range from three As the Issuer Processor for its customers, the Company is the principal in providing the services under its contracts with customers. To deliver the services required by its customers, the Company contracts with Card Networks for transaction routing, reporting, and settlement services and with Issuing Banks for card issuing, Card Network sponsorship, and regulatory compliance approval services. The Company controls these integrated services before delivery to its customers; it is primarily responsible for the delivery of the services to customers, and it has discretion in vendor selection. As such, the Company records fees paid to the Issuing Banks and Card Networks as costs of revenue. The Company's contracts with customers include certain service level agreements which could require the Company to make payments to customers if service levels are not met. Any service level payment is recorded as a reduction to net revenue in the consolidated statements of operations and comprehensive loss. Historically, the Company did not capitalize material costs to acquire contracts. Revenue Share The Company’s contracts with customers typically include provisions under which the Company shares a portion of the Interchange Fees with its customers, referred to as Revenue Share. Revenue Share payments are incentives to customers to increase their processing volume on the Company’s platform, and is computed as a percentage of the Interchange Fees earned or processing volume and is paid to customers monthly. The Company records Revenue Share as a reduction to revenue in the consolidated statements of operations and comprehensive loss. The Company records the amount due to the customer as Revenue Share payable on the consolidated balance sheets. Other Services Revenue The Company earns revenue from customers through card fulfillment services. Card fulfillment fees are generally billed to customers upon ordering card inventory and recognized as revenue when the ordered cards are shipped to the customers. The Company offers certain customers the option to purchase physical cards at a discount. The Company has concluded that the discount does not constitute a future material right because the discount is within a range typically offered to the class of customers. Therefore, the Company accounts for the discount as a reduction to revenue when the Company delivers the ordered cards to the customers. Deferred Revenue Deferred revenue arises when customers are billed for services in advance of the Company's revenue recognition. The Company's deferred revenue is primarily due to undelivered card fulfillment services and variable consideration from customer contracts where pricing terms are not consistent throughout the entire term of the contract, non-refundable upfront setup fees that are billed at contract inception. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses if these options provide a material right to the customer and if so, they are considered performance obligations. This material right is valued by estimating the discount that will be redeemed by the customer during the optional renewal period. Reserve for Contract Contingencies and Processing Errors Customer contracts generally contain service level agreements that can result in performance penalties payable by the Company when contractually required service levels are not met or can result in payments by the Company for processing errors. As such, the Company records a reserve for estimated performance penalties and processing errors. When providing for these reserves, the Company considers factors such as its history of incurring performance penalties and processing errors, actual contractual penalty charge rates in customer contracts, and known or estimated processing errors. These reserves are included in accrued expenses and other current liabilities on the consolidated balance sheets and the provision for contract contingencies and processing errors is included as a reduction to net revenue on the consolidated statements of operations and comprehensive loss. Costs of Revenue Costs of revenue consist of Card Network costs, Issuing Bank costs, and card fulfillment costs. Card Network costs are generally equal to a specified percentage of the processing volume or a fixed amount per transaction processed through the respective Card Network. The Company incurs Card Network costs directly from contractual arrangements with the Card Networks that are passed entirely through Issuing Banks, or directly from the Card Networks. The Company's contracts with Card Networks and Issuing Banks typically have terms ranging from three to five years which may be renewed in one-year to two-year increments as agreed by both parties. Issuing Bank costs compensate Issuing Banks for issuing cards to the Company’s customers and sponsoring the Company’s card programs with the Card Networks and are generally equal to a specified percentage of the processing volume or a fixed amount per transaction, subject to monthly minimum amounts. Card fulfillment costs include physical cards, packaging, and other fulfillment costs. The Company has marketing and incentive arrangements with Card Networks that provide the Company with monetary incentives based on a percentage of the volume processed over the respective Card Network. Uncollected incentives are included in network incentives receivable on the consolidated balance sheets. The Company records these incentives as a reduction of costs of revenue on the consolidated statements of operations and comprehensive loss. Segment Information The Company operates as a single operating segment. The Company's chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, allocating resources and evaluating the Company's financial performance. For the years ended December 31, 2022, 2021, and 2020, revenue outside of the United States, based on the billing address of the customer, was not material. As of December 31, 2022 and December 31, 2021, long-lived assets located outside of the United States were not material. Foreign Currency The functional currency of the Company’s foreign subsidiary is its respective local currency. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss) within the consolidated balance sheets and the consolidated statements of redeemable convertible preferred stock and stockholders’ equity (deficit). Foreign currency transaction gains and losses are included in other income (expense), net in the consolidated statements of operations and comprehensive loss. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period, and equity balances are translated using historical exchange rates. Cash and Cash Equivalents The Company considers all highly liquid investments and investments with original maturities of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist primarily of bank deposit accounts and investments in money market funds. Restricted Cash Restricted cash consists of deposits with financial institutions that issue payment cards (credit, debit, or prepaid) either on their own behalf or on behalf of businesses that issue customized card products to their end users, or Issuing Banks, to provide the Issuing Bank collateral in the event that customers’ funds are not deposited at the Issuing Banks in time to settle customers’ transactions with the networks that provide the infrastructure for settlement and card payment information flows, or Card Networks. Restricted cash also includes cash used to secure a letter of credit for the Company’s lease of its office headquarters in Oakland, California. Marketable Securities The Company's marketable securities include U.S. treasury securities, U.S. agency securities, commercial paper, asset-backed securities, and corporate debt securities. The Company's marketable securities are accounted for as securities available-for-sale and are classified within current assets in the consolidated balance sheets as the Company may sell these securities at any time for use in its operations, even prior to maturity. The Company carries these marketable securities at fair value and periodically evaluates them for unrealized losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor’s ability to meet its payment obligations, and records an allowance on the consolidated balance sheets with a corresponding loss in other income (expense), net in the consolidated statements of operations and comprehensive loss when the impairment is incurred. Unrealized non-credit related losses and unrealized gains are recorded as a separate component in accumulated other comprehensive income (loss), a component of stockholders’ equity (deficit) until realized. The Company records any realized gains or losses on the sale of marketable securities in other income (expense), net in the consolidated statements of operations and comprehensive loss. Equity Investments and Purchase Options The Company applies the equity method of accounting for investments in other entities when the Company exercises significant influence, but no control. Under the equity method, the Company’s records its share of each entity’s profit or loss in other income (expense), net in the consolidated statements of operations and comprehensive loss on a one quarter lag when the most recent financial information of the investee becomes available. The Company periodically reviews investments accounted for under the equity method for impairment. Investments in other entities not accounted for under the equity method of accounting, including options to purchase these entities, are accounted for at cost less impairment, if applicable. Additionally, the value of these investments may be adjusted to fair value resulting from observable transactions for identical or similar investments. In 2021, the Company acquired a preferred equity interest in a private company that is accounted for under the equity method of accounting. Concurrent with this investment, the Company also acquired an option that gives the Company the right, but not the obligation, to purchase all of the remaining equity interests of the private company. The carrying amounts of the equity method investment and the option at December 31, 2021 were $8.4 million and $11.6 million, respectively. As of December 31, 2021, the option was reflected within prepaid expenses and other current assets in the consolidated balance sheets. The Company applied the measurement alternative to measure the option at cost, less any impairment. During the year ended December 31, 2022, the Company recorded an impairment of $11.6 million related to the option based on the Company’s decision not to exercise the option. During the year ended December 31, 2022, the Company sold its equity method investment in a private company. The carrying amount of this investment was $7.8 million as of the date of sale and the purchase price was $25.7 million. As a result, the Company recorded a gain of $17.9 million in the year ended December 31, 2022 in Other income (expense), net on the Consolidated Statement of Operations. Accounts Receivable Accounts receivable are recorded at invoiced amounts and do not earn interest. The Company estimates an allowance for accounts receivable based on its assessment of the collectability of accounts by considering its historical accounts receivable collection experience for each customer, the age of each outstanding invoice and an evaluation of current expected risk of credit loss based on current economic conditions and reasonable and supportable forecasts of future economic conditions over the life of the receivable. The Company assesses collectability on an individual basis when it identifies specific customers with collectability issues and by reviewing accounts receivable on an aggregated basis where similar characteristics exist. As of December 31, 2022 and 2021, the allowance for accounts receivable was $0.3 million and $0.2 million, respectively. Settlements Receivable Settlements receivable represent Interchange Fees earned on customers’ card transactions, net of pass through Card Network fees, and are due from Issuing Banks. Interchange Fees are typically received within one or two business days of the transaction date and are due from well-established Issuing Banks with no historical collections issue, mitigating the associated risk of collection. No allowance has been established. The Company does not generate revenue from Issuing Banks. Deferred Offering Costs Deferred offering costs consist primarily of accounting, legal, and other fees related to the IPO. Upon the completion of the IPO in June 2021, the deferred offering costs were reclassified to stockholders’ equity (deficit) and recorded net against the proceeds from the IPO. Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. The Company uses the straight-line method of depreciation and amortization. Estimated useful lives range from three to five years for purchased and internally developed software, computer equipment, and furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term, excluding renewal periods, or the estimated useful life of the leasehold improvement. Gains and losses realized on the sale or disposal of property and equipment are recognized or charged to other income (expense), net in the consolidated statements of operations and comprehensive loss. The Company evaluates the carrying value of property and equipment on an annual basis, or more frequently whenever circumstances indicate a long-lived asset may be impaired. When indicators of impairment exist, the Company estimates the future undiscounted cash flows attributable to such assets. In the event cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair value. During the years ended December 31, 2022 and 2021, the Company did not recognize any material impairment of long-lived assets. Fair Value Measurements Fair value is an exit price, representing the price that would be received to sell the financial asset or paid to transfer the financial liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy includes a three-level classification, which is based on whether the inputs to the valuation methodology used for measurement are observable: • Level 1 ‑ quoted prices in active markets for identical assets as of the reporting date; • Level 2 ‑ inputs other than Level 1 that are observable, either directly or indirectly; or • Level 3 ‑ unobservable inputs. When developing fair value measurements, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. In instances where the Company lacks observable inputs in the market to measure the fair value of an asset or liability, the Company may use unobservable inputs which requires greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets and liabilities are based primarily upon the Company’s own estimates, and the measurements reflect information and assumptions that management believes a market participant would use in pricing the asset or liability. The Company’s financial instruments consist of cash equivalents, marketable securities, accounts receivable, unbilled customers' receivable, settlements receivable, accounts payable, accrued liabilities, and prior to the IPO, redeemable convertible preferred stock warrant liabilities. Cash equivalents are stated at amortized cost, which approximates fair value at the balance sheet dates, due to the short period of time to maturity. Marketable securities are carried at fair value. Accounts receivable, unbilled customers' receivable, settlements receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. The redeemable convertible preferred stock warrant liabilities were carried at fair value. Advertising Costs The Company expenses advertising costs as they are incurred. Advertising expenses for the years ended December 31, 2022, 2021 and 2020, were $2.2 million, $1.7 million and $1.4 million, respectively. Research and Development Costs Research and development costs, which consist primarily of salaries, employees' benefits, share-based compensation, third-party hosting fees and software licenses were $108.3 million, $84.1 million, and $34.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Research and development costs are expensed as incurred and are included in compensation and benefits, and technology expenses in the consolidated statements of operations and comprehensive loss. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers the available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. If the Company determines that it is able to realize its deferred tax assets in the future in excess of the net recorded amount, the Company decreases the deferred tax asset valuation allowance, which reduces the income tax expense. Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense (benefit) in the consolidated statements of operations and comprehensive loss. Lease Obligations The Company measures lease liabilities based on the present value of the total lease payments not yet paid discounted based on the Company’s incremental borrowing rate, which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Company measures right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs the Company incurs and (iii) tenant incentives under the lease. The Company begins to recognize rent expense when the lessor makes the underlying asset available to the Company. For short-term leases, the Company records rent expense in the consolidated statements of operations and comprehensive loss on a straight-line basis over the lease term and records variable lease payments as incurred. The Company has no finance leases. In 2016, the Company entered into a lease agreement for its corporate headquarters in Oakland, California for 19,000 square feet of office space, which was subsequently amended resulting in a total of 63,000 square feet of office space being leased. The non-cancellable operating lease expires in February 2026 and includes options to extend the lease term, generally at the then-market rates. The Company excludes extension options that are not reasonably certain to be exercised from its lease terms. The Company’s lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. The Company is responsible for operating expenses that exceed the amount of base operating expenses as defined in the original lease agreement. Loss Contingencies The Company may be involved in various lawsuits, claims, and proceedings that arise in the ordinary course of business. The Company records a liability for these when it believes it is probable that it has incurred a loss, and the Company can reasonably estimate the loss. The Company regularly evaluates current information to determine whether it should adjust a recorded liability or record a new one. If a loss is reasonably possible and the loss or range of loss can be reasonably estimated, the Company discloses the possible loss in the accompanying notes to the consolidated financial statements. Significant judgment is required to determine both the probability and the estimated amount. See Note 7, "Commitments and Contingencies", for a full description of the Company's loss contingencies. Share-based Compensation Restricted Stock Units Commencing in 2020, the Company began granting restricted stock units, or RSUs, to employees. RSUs granted prior to April 1, 2021 vest upon the satisfaction of both a service condition and a liquidity condition. The service condition for these awards is satisfied over four years. On June 8, 2021, the Company completed its IPO and the liquidity condition for these awards was satisfied and the Company recognized a cumulative share-based compensation expense of $23.1 million associated with RSUs that had service-vested as of the IPO completion date. Subsequent to the IPO, the unamortized grant date fair value of these RSUs will be recorded as share-based compensation expense over the remaining service period. RSUs granted on or after April 1, 2021, vest upon the satisfaction of a service condition. In general, the service condition for these awards is satisfied over four years and the grant date fair value of these RSUs will be recorded as share-based compensation expense over the service period. The fair value of RSUs is based on the closing price of the Company’s Class A common stock on the grant date. Prior to the IPO, the fair value of RSUs was based on the fair value of the underlying common stock on the grant date as determined by the Company’s board of directors at each meeting in which RSU awards were approved. Stock Options The Company grants stock option awards to certain employees and directors. The Company estimates the fair value of stock option awards using the Black-Scholes option pricing model. The model requires management to make a number of assumptions, including the expected future volatility of the Company’s Class A common stock, expected term, risk-free interest rate, and expected dividends. The Company records the resulting expense in the consolidated statements of operations and comprehensive loss on a straight-line basis over the period for which the employee or director is required to perform services to vest in the award, which is generally four years. The Company accounts for forfeitures as they occur. Executive Chairman Long-Term Performance Award In April and May 2021, the Company’s board of directors granted the Company’s Executive Chairman and then-Chief Executive Officer equity incentive awards in the form of performance-based stock options, or collectively, the Executive Chairman Long-Term Performance Award, formerly known as the CEO Long-Term Performance Award. The Executive Chairman Long-Term Performance Award vests upon the satisfaction of a service condition and the achievement of certain stock price hurdles over a seven year performance period following the expiration of the lock-up period associated with the IPO. The stock price hurdle will be achieved if the average closing price of a share of the Company’s Class A common stock during any 90 consecutive trading day period during the performance period equals or exceeds the requisite stock price hurdle for the performance period. The grant date fair value of the Executive Chairman Long-Term Performance Award was estimated using a Monte Carlo simulation model that incorporated multiple stock price paths and probabilities that the Company stock price hurdles are met. The Company records the resulting expense in the consolidated statements of operations and comprehensive loss over the derived service period of each of the seven separate tranches using the accelerated attribution method. Employee Stock Purchase Plan In May 2021, the Company’s board of directors adopted, and its stockholders approved, the 2021 Employee Stock Purchase Plan, or the ESPP, which became effective in connection with the IPO. The ESPP authorizes the issuance of shares of the Company’s Class A common stock pursuant to purchase rights granted to employees. The fair value of purchase rights issued under the ESPP is estimated using the Black-Scholes option pricing model. The model requires management to make a number of assumptions, including the fair value of the Company’s common stock, expected volatility, expected term, risk-free interest rate, and expected dividends. The Company records the resulting expense in the consolidated statements of operations and comprehensive loss on a straight-line basis over the six-month offering period. Secondary Sales of Common Stock Prior to the completion of the IPO, certain economic interest holders acquired outstanding common stock from current or former employees for a purchase price greater than the Company's estimated fair value of its common stock at the time of the transactions. For such secondary sales of common stock, the Company recorded share-based compensation expense for the difference between the price paid and the estimated fair value on the date of the transaction. Net Loss Per Share Attributable to Common Stockholders The Company presents basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for participating securities. Prior to the completion of the IPO, all series of redeemable convertible preferred stock were considered participating securities. Immediately prior to the completion of the IPO, all shares of redeemable convertible preferred stock then outstanding were converted into shares of Class B common stock. The Company has not allocated net loss attributable to common stockholders to redeemable convertible preferred stock in any period presented because the holders of its redeemable convertible preferred stock were not contractually obligated to share in losses. The Company calculates basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share attributable to common stockholders gives effect to all potential shares of common stock, including common stock issuable upon conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants, stock options, RSUs and common stock warrants to the extent these are dilutive. Recently Adopted Accounting Pronouncements The JOBS Act allowed “emerging growth companies” to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Before December 31, 2021, the Company met the definition of an “emerging growth company” and has elected to use this extended transition period under the JOBS Act. The adoption date discussed below reflects this election. In June 2016, the FASB issued ASU No. 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 replaces the incurred loss model with the current expected credit loss, or CECL, model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table provides information about disaggregated revenue from customers: Year Ended December 31, 2022 2021 2020 Platform services revenue, net $ 725,629 $ 502,296 $ 283,305 Other services revenue 22,577 14,879 6,987 Total net revenue $ 748,206 $ 517,175 $ 290,292 Contract Balances The following table provides information about contract assets and deferred revenue: Contract balance Balance sheet line reference December 31, December 31, Contract assets - current Prepaid expenses and other current assets $ 621 $ 950 Contract assets - non-current Other assets 1,323 927 Total contract assets $ 1,944 $ 1,877 Deferred revenue - current Accrued expenses and other current liabilities $ 17,048 $ 19,060 Deferred revenue - non-current Other liabilities 4,202 6,107 Total deferred revenue $ 21,250 $ 25,167 Contract assets relate to the Company’s conditional right to consideration for the Company’s completed performance under the contract. Deferred revenue relates to payments received in advance of performance under the contract. Net revenue recognized during the years ended December 31, 2022 and 2021 that was included in the deferred revenue balances at the beginning of the respective periods was $13.8 million and $4.1 million, respectively. Remaining Performance Obligations The Company has performance obligations associated with commitments in customer contracts for future stand-ready obligations to process transactions throughout the contractual term. As of December 31, 2021, $4.2 million of the deferred revenue balance represent a material right for discounted revenue share rates provided to a customer as part of a contractual renewal option. As of December 31, 2022, the Company did not have a material right included in its deferred revenue balance. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Marketable Securities | Marketable Securities The amortized cost, unrealized gain (loss), and estimated fair value of the Company's investments in securities available for sale consisted of the following: December 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities U.S. treasury securities $ 384,951 $ — $ (6,949) $ 378,002 U.S. agency securities 29,012 47 — 29,059 Commercial paper 28,815 — — 28,815 Corporate debt securities 5,049 — (67) 4,982 Total marketable securities $ 447,827 $ 47 $ (7,016) $ 440,858 December 31, 2021 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities U.S. treasury securities $ 420,392 $ — $ (2,107) $ 418,285 Commercial paper 13,878 — — 13,878 Asset-backed securities 2,003 — (1) 2,002 Corporate debt securities 18,731 3 (24) 18,710 Total marketable securities $ 455,004 $ 3 $ (2,132) $ 452,875 The Company had thirteen and nineteen separate marketable securities in unrealized loss positions as of December 31, 2022 and 2021, respectively. The Company does not intend to sell any marketable securities that have an unrealized losses at December 31, 2022 and it is not more likely than not that the Company will be required to sell such securities before any anticipated recovery. There were no material realized gains or losses from marketable securities that were reclassified out of accumulated other comprehensive income for the year ended December 31, 2022. For marketable securities that have unrealized losses, the Company evaluated whether (i) the Company has the intention to sell any of these investments, (ii) it is not more likely than not that the Company will be required to sell any of these available-for-sale debt securities before recovery of the entire amortized cost basis and (iii) the decline in the fair value of the investment is due to credit or non-credit related factors. Based on this evaluation, the Company determined that for its marketable securities, there were no material credit or non-credit related impairments as of December 31, 2022. The Company did not identify any marketable securities that were other-than-temporarily impaired as of December 31, 2021. The following table summarizes the stated maturities of the Company’s marketable securities: December 31, 2022 December 31, 2021 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 447,827 $ 440,858 $ 64,914 $ 64,879 Due after one year through two years — — 390,090 387,996 Total $ 447,827 $ 440,858 $ 455,004 $ 452,875 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: December 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 462,459 $ — $ — $ 462,459 Marketable securities U.S. treasury securities 378,002 — — 378,002 U.S. agency securities — 29,059 — 29,059 Commercial paper — 28,815 — 28,815 Corporate debt securities — 4,982 — 4,982 Total assets $ 840,461 $ 62,856 $ — $ 903,317 December 31, 2021 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 1,213,543 $ — $ — $ 1,213,543 Marketable securities U.S. treasury securities 418,284 — — 418,284 Commercial paper — 13,878 — 13,878 Asset-backed securities — 2,002 — 2,002 Corporate debt securities — 18,711 — 18,711 Total assets $ 1,631,827 $ 34,591 $ — $ 1,666,418 The Company classifies money market funds, commercial paper, U.S. treasury securities, U.S. agency securities, asset-backed securities and corporate securities within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Immediately prior to the completion of the IPO in June 2021, the outstanding redeemable convertible preferred stock warrants were converted to Class B common stock warrants and the fair value of the liability as of that date was reclassified into the Company’s Class B common stock and additional paid-in capital. The fair value of the redeemable convertible preferred stock warrant liabilities was estimated using the following assumptions: June 9, Dividend yield 0.00% Expected volatility 49.93% Expected term (in years) 2.34 Risk-free interest rate 0.31% Fair value of Series B redeemable convertible preferred stock $27.00 The following table sets forth a summary of the changes in the fair value of the redeemable convertible preferred stock warrant liabilities: December 31, Balance, beginning of the period $ 2,517 Remeasurement of redeemable convertible preferred stock warrant liabilities 2,921 Reclassification of redeemable convertible preferred stock warrant liabilities to common stock and additional paid-in capital upon initial public offering (5,438) Balance, end of the period $ — There were no transfers of financial instruments between the fair value hierarchy levels during the years ended December 31, 2022 and 2021. |
Certain Balance Sheet Component
Certain Balance Sheet Components | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Certain Balance Sheet Components | Certain Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, December 31, Prepaid expenses $ 9,082 $ 6,492 Inventory 5,150 3,940 Prepaid hosting and data costs 6,443 2,455 Accrued interest receivable 3,983 392 Prepaid insurance 3,729 3,546 Card program deposits 2,128 2,167 Contract assets 621 950 Other financial instruments — 11,616 Other current assets 6,871 4,059 Prepaid expenses and other current assets $ 38,007 $ 35,617 Property and Equipment, net Property and equipment consisted of the following: December 31, December 31, Leasehold improvements $ 8,110 8,110 Computer equipment 9,115 8,581 Furniture and fixtures 2,542 2,459 Internally developed and purchased software 3,082 2,954 22,849 22,104 Accumulated depreciation and amortization (15,409) (12,417) Property and equipment, net $ 7,440 $ 9,687 Depreciation and amortization expense was $3.9 million, $3.5 million and $3.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company did not capitalize any internal-use software costs during the year ended December 31, 2022, because development costs meeting capitalization criteria were not material during the respective periods. The Company capitalized $1.6 million as internal-use software costs during the year ended December 31, 2021. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, December 31, Accrued costs of revenue $ 57,191 $ 41,339 Accrued compensation and benefits 41,268 32,954 Deferred revenue 17,048 19,060 Accrued tax liabilities 4,978 3,240 Accrued professional services 4,784 2,454 Operating lease liabilities, current portion 3,394 3,021 Reserve for contract contingencies and processing errors 2,494 3,386 Other accrued liabilities 5,730 8,642 Accrued expenses and other current liabilities $ 136,887 $ 114,096 Other Liabilities Other liabilities consisted of the following: December 31, December 31, Deferred revenue, net of current portion $ 4,202 $ 6,107 Other long-term liabilities 1,275 450 Other liabilities $ 5,477 $ 6,557 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company's operating lease costs are as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 3,372 $ 3,424 $ 3,514 Variable lease cost 439 212 534 Short-term lease cost 435 358 271 Total lease cost $ 4,246 $ 3,994 $ 4,319 The Company does not have any sublease income and the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The weighted average remaining operating lease term and the weighted average discount rate used in the calculation of the Company's lease assets and lease liabilities were as follows: December 31, December 31, Weighted average remaining operating lease term (in years) 3.1 4.1 Weighted average discount rate 7.7% 7.7% Maturities of operating lease liabilities by year are as follows as of December 31, 2022: 2023 4,239 2024 4,472 2025 4,599 2026 780 Total lease payments $ 14,090 Less imputed interest (1,662) Total operating lease liabilities $ 12,428 Supplemental cash flow information related to the Company's operating leases was as follows: Year Ended December 31, 2022 2021 2020 Cash paid for operating lease liabilities $ 4,112 $ 4,081 $ 3,192 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — $ 192 Letters of Credit In connection with the lease for its corporate headquarters office space, the Company is required to provide the landlord a letter of credit in the amount of $1.5 million. The Company has secured this letter of credit by depositing $1.5 million with the issuing financial institution, which deposit is classified as restricted cash in the consolidated balance sheets. Purchase Obligations As of December 31, 2022, the Company had non-cancellable purchase commitments with certain service providers and Issuing Banks of $221.7 million, payable over the next 5 years. These purchase obligations include $212.6 million related to minimum commitments as part of a cloud-computing service agreement. The remaining obligations are related to various service providers and Issuing Banks processing fees over the fixed, non-cancellable respective contract terms. Defined Contribution Plans The Company maintains defined contribution plans for eligible employees, including a 401(k) plan that covers substantially all of its U.S. based employees and to which the Company provides a matching contribution of 50% of the first 6% of compensation that an employee contributes. The matching contribution vests after one year of service. During the years ended December 31, 2022, 2021 and 2020, the Company contributed a total of $5.8 million, $3.1 million and $1.9 million to its defined contribution plans, respectively. Legal Contingencies 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. As of December 31, 2022 and 2021, there were no legal contingency matters, either individually or in aggregate, that would have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Given the unpredictable nature of legal proceedings, the Company bases its assessment on the information available at the time. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. Settlement of Payment Transactions Generally, customers deposit a certain amount of pre-funding into accounts maintained at Issuing Banks to settle their payment transactions. Such pre-funding amounts may only be used to settle customers’ payment transactions and are not considered assets of the Company. As such, the funds held in customers’ accounts at Issuing Banks are not reflected on the Company’s consolidated balance sheets. If a customer does not have sufficient funds to settle a transaction, the Company is liable to the Issuing Bank to settle the transaction and would therefore incur losses if such amounts cannot be subsequently recovered from the customer. Indemnifications In the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees to indemnify customers, Card Networks, Issuing Banks, vendors, lessors, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. With respect to Issuing Banks, the Company indemnifies the Issuing Bank for losses the Issuing Bank may incur for non-compliance with applicable law and regulation, if those losses resulted from the Company’s failure to perform under its program agreement with the Issuing Bank. In addition, the Company has entered into indemnification agreements with its directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements and there are no claims that the Company is aware of that could have a material effect on its consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows. The Company also includes service level commitments to its customers warranting certain levels of performance and permitting those customers to receive credits in the event the Company fails to meet those levels. |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company's operating lease costs are as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 3,372 $ 3,424 $ 3,514 Variable lease cost 439 212 534 Short-term lease cost 435 358 271 Total lease cost $ 4,246 $ 3,994 $ 4,319 The Company does not have any sublease income and the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The weighted average remaining operating lease term and the weighted average discount rate used in the calculation of the Company's lease assets and lease liabilities were as follows: December 31, December 31, Weighted average remaining operating lease term (in years) 3.1 4.1 Weighted average discount rate 7.7% 7.7% Maturities of operating lease liabilities by year are as follows as of December 31, 2022: 2023 4,239 2024 4,472 2025 4,599 2026 780 Total lease payments $ 14,090 Less imputed interest (1,662) Total operating lease liabilities $ 12,428 Supplemental cash flow information related to the Company's operating leases was as follows: Year Ended December 31, 2022 2021 2020 Cash paid for operating lease liabilities $ 4,112 $ 4,081 $ 3,192 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — $ 192 Letters of Credit In connection with the lease for its corporate headquarters office space, the Company is required to provide the landlord a letter of credit in the amount of $1.5 million. The Company has secured this letter of credit by depositing $1.5 million with the issuing financial institution, which deposit is classified as restricted cash in the consolidated balance sheets. Purchase Obligations As of December 31, 2022, the Company had non-cancellable purchase commitments with certain service providers and Issuing Banks of $221.7 million, payable over the next 5 years. These purchase obligations include $212.6 million related to minimum commitments as part of a cloud-computing service agreement. The remaining obligations are related to various service providers and Issuing Banks processing fees over the fixed, non-cancellable respective contract terms. Defined Contribution Plans The Company maintains defined contribution plans for eligible employees, including a 401(k) plan that covers substantially all of its U.S. based employees and to which the Company provides a matching contribution of 50% of the first 6% of compensation that an employee contributes. The matching contribution vests after one year of service. During the years ended December 31, 2022, 2021 and 2020, the Company contributed a total of $5.8 million, $3.1 million and $1.9 million to its defined contribution plans, respectively. Legal Contingencies 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. As of December 31, 2022 and 2021, there were no legal contingency matters, either individually or in aggregate, that would have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Given the unpredictable nature of legal proceedings, the Company bases its assessment on the information available at the time. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. Settlement of Payment Transactions Generally, customers deposit a certain amount of pre-funding into accounts maintained at Issuing Banks to settle their payment transactions. Such pre-funding amounts may only be used to settle customers’ payment transactions and are not considered assets of the Company. As such, the funds held in customers’ accounts at Issuing Banks are not reflected on the Company’s consolidated balance sheets. If a customer does not have sufficient funds to settle a transaction, the Company is liable to the Issuing Bank to settle the transaction and would therefore incur losses if such amounts cannot be subsequently recovered from the customer. Indemnifications In the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees to indemnify customers, Card Networks, Issuing Banks, vendors, lessors, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. With respect to Issuing Banks, the Company indemnifies the Issuing Bank for losses the Issuing Bank may incur for non-compliance with applicable law and regulation, if those losses resulted from the Company’s failure to perform under its program agreement with the Issuing Bank. In addition, the Company has entered into indemnification agreements with its directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements and there are no claims that the Company is aware of that could have a material effect on its consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows. The Company also includes service level commitments to its customers warranting certain levels of performance and permitting those customers to receive credits in the event the Company fails to meet those levels. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans The Company has granted share-based awards to employees, non-employee directors, and other service providers of the Company under the Amended and Restated 2011 Equity Incentive Plan (2011 Plan) and the 2021 Stock Option and Incentive Plan (2021 Plan), collectively, the Plans. The 2011 Plan was terminated in June 2021 in connection with the IPO but continues to govern the terms of outstanding awards that were granted prior to the IPO. Additionally, the Company offers an employee stock purchase plan (ESPP), which allows employees to purchase shares of common stock at 85% of the fair value of the Company’s Class A common stock on the first or last day of the offering period, whichever is lower. The offering periods are six months long and start in May and November of each year. The following table presents the share-based compensation expense recognized in the periods presented: Year Ended December 31, 2022 2021 2020 Restricted stock units $ 76,094 $ 59,652 $ — Stock options 28,816 31,231 10,895 Executive Chairman Long-Term Performance Award 53,214 38,189 — Employee Stock Purchase Plan 2,619 1,946 — Secondary sales of common stock — 11,642 17,316 Total $ 160,743 $ 142,660 $ 28,211 Restricted Stock Units On June 8, 2021, the Company completed its IPO and the liquidity condition for the RSUs granted prior to April 1, 2021 was satisfied and the Company recognized a cumulative $23.1 million of share-based compensation expense associated with RSUs that had service-vested as of the IPO completion date. Subsequent to the IPO, the unamortized grant date fair value of these RSUs is recorded as share-based compensation expense over the remaining service period. RSUs granted on or after April 1, 2021, vest upon the satisfaction of a service condition. The service condition for these awards is generally satisfied over four years. A summary of the Company's RSUs activity under the Plans was as follows: Number of Restricted Stock Units Weighted-average grant date fair value per share Balance as of December 31, 2020 4,430,336 $ 4.93 Granted 8,409,821 22.20 Vested (2,641,196) 10.12 Canceled and forfeited (1,197,012) 14.23 Balance as of December 31, 2021 9,001,949 $ 18.30 Granted 36,159,090 8.91 Vested (4,883,296) 13.99 Canceled and forfeited (6,131,197) 14.07 Balance as of December 31, 2022 34,146,546 $ 9.74 During the year ended December 31, 2022, share-based compensation expense recognized for RSUs was $76.1 million. As of December 31, 2022, unrecognized compensation costs related to unvested RSUs was $296.0 million. These costs are expected to be recognized over a weighted-average period of 3.3 years. Stock Options Under the 2011 Plan and the 2021 Plan, the exercise price of a stock option shall not be less than the fair market value per share of the Company’s Class A common stock on the date of grant (and not less than 110% of the fair market value per share of Class A common stock for grants to stockholders owning more than 10% of the total combined voting power of all classes of stock of the Company, or a 10% Stockholder). Options are exercisable over periods not to exceed ten years from the date of grant (five years for stock options granted to 10% Stockholders). A summary of the Company's stock option activity under the Plans was as follows: Number of Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1) Balance as of January 1, 2020 (2) 25,159,411 $ 0.92 8.74 $ 46,594 Granted 6,404,800 2.31 Exercised (6,084,183) 0.53 Canceled and forfeited (2,058,654) 1.50 Balance as of December 31, 2020 (2) 23,421,374 $ 1.35 8.33 $ 248,002 Granted 29,113,555 20.07 Exercised (4,277,344) 1.18 Canceled and forfeited (4,072,097) 5.58 Balance as of December 31, 2021 (2) 44,185,488 $ 13.31 8.46 $ 279,242 Granted 4,182,522 10.16 Exercised (7,785,748) 1.20 Canceled and forfeited (4,425,817) 6.60 Balance as of December 31, 2022 (2) 36,156,445 $ 16.37 7.67 $ 29,101 Vested as of December 31, 2022 7,389,512 $ 6.57 4.98 $ 24,410 (1) Intrinsic value based is calculated based on the difference between the exercise price of in-the-money-stock options and the fair value of the common stock as of the respective balance sheet dates. (2) The 2011 Plan allows for early exercise of stock options and these balances include all exercisable stock options regardless of vesting status. The weighted-average grant date fair value of options granted during the years ended December 31, 2022, 2021, and 2020, was $5.89, $12.10, and $1.81, per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021, and 2020, was $61.6 million, $83.0 million, and $32.8 million, respectively. The total grant-date fair value of options vested during the years ended December 31, 2022, 2021, and 2020, was $40.0 million, $17.6 million, and 10.7 million, respectively. As of December 31, 2022, aggregate unrecognized compensation costs related to unvested outstanding stock options, excluding the Executive Chairman Long-Term Performance Award, was $58.6 million. These costs are expected to be recognized over a weighted-average period of 2.4 years. The fair values of stock options granted were estimated using the Black-Scholes option pricing model and the following weighted-average assumptions: Year Ended December 31, 2022 2021 2020 Dividend yield 0.0% 0.0% 0.0% Expected volatility 61.52% 52.36% 48.11% Expected term (in years) 6.08 6.14 6.02 Risk-free interest rate 2.32% 1.00% 0.54% Prior to the completion of the IPO, the Company considered numerous objective and subjective factors to determine the fair value of the Company’s common stock including but not limited to (i) contemporaneous independent third-party valuations; (ii) observed secondary sales; (iii) rights, preferences, and privileges of redeemable convertible preferred stock relative to those of common stock; (iv) the Company’s actual operating and financial performance; (v) current business conditions and projections; (vi) the likelihood of achieving a liquidity event, such as an initial public offering or sale of the company, given prevailing market conditions; and (vii) precedent transactions involving the Company’s capital stock. Subsequent to the Company’s IPO, the Company uses the closing share price of its Class A common stock, which is traded on the Nasdaq Global Select Market to measure share-based compensation on the grant date. Executive Chairman Long-Term Performance Award In April and May 2021, the Company’s board of directors granted the Company’s Executive Chairman and then-Chief Executive Officer equity incentive awards in the form of performance-based stock options covering 19,740,923 and 47,267 shares of our Class B common stock with an exercise price of $21.49 and $23.40 per share, respectively, or collectively, the Executive Chairman Long-Term Performance Award, formerly known as the CEO Long-Term Performance Award. The Executive Chairman Long-Term Performance Award vests upon the satisfaction of a service condition and the achievement of certain stock price hurdles over a seven year performance period following the expiration of the lock-up period associated with the IPO. The stock price hurdle will be achieved if the average closing price of a share of our Class A common stock during any 90 consecutive trading day period during the performance period equals or exceeds the Company stock price hurdle set forth in the table below. The Executive Chairman Long-Term Performance Award is divided into seven equal tranches which vest upon the achievement of the following Company stock price hurdles: Tranche Company Stock Price Hurdle Number of Options Eligible to Vest 1 $67.50 2,826,884 2 $78.98 2,826,884 3 $92.40 2,826,884 4 $108.11 2,826,884 5 $126.49 2,826,884 6 $147.99 2,826,884 7 $173.15 2,826,884 Total 19,788,188 The grant date fair value of the Executive Chairman Long-Term Performance Award was estimated using a Monte Carlo simulation model that incorporated multiple stock price paths and probabilities that the Company stock price hurdles are met. The weighted-average grant date fair value of the seven tranches of the Executive Chairman Long-Term Performance Award was estimated to be $10.53 per option share. As of December 31, 2022, the aggregate unrecognized compensation cost of the Executive Chairman Long-Term Performance Award was $117.0 million, which is expected to be recognized over the remaining derived service period of 3.1 years. Secondary Sales of Common Stock Prior to the completion of the IPO, certain economic interest holders acquired outstanding common stock from current or former employees for a purchase price greater than the Company's estimated fair value at the time of the transactions. During the years ended 2021 and 2020, the Company recorded share-based compensation expense for the difference between the price paid and the estimated fair value on the date of the transaction of $11.6 million and $17.3 million, respectively. |
Stockholders_ Equity Transactio
Stockholders’ Equity Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity Transactions | Stockholders’ Equity Transactions Warrants to Purchase Common Stock In 2021 and 2020, the Company issued warrants to customers to purchase up to 1,150,000 and 750,000 shares of the Company’s common stock, respectively. These warrants vest based on certain performance conditions that include issuing a specific percentage of new cards on the Company’s platform over a defined measurement period and reaching certain annual transaction count thresholds over the contract term, respectively. All warrants have an exercise price of $0.01 per share. These warrants are classified as equity instruments and are treated as consideration payable to a customer. The grant date fair values of these warrants are recorded as a reduction to net revenue over the term of the respective customer contract based on the expected pattern of processing volume generated by the customer and the probability of vesting conditions being met. The aggregate fair values of the warrants issued in 2021 and 2020 were $26.4 million and $5.7 million respectively. As of December 31, 2022 and 2021, 695,637 and 300,504 warrants were vested, respectively. The Company recorded $7.3 million and $5.0 million as a reduction of net revenue related to these warrants during the years ended December 31, 2022 and 2021, respectively. Upon vesting, the fair value of the vested warrants are recorded into the Company’s additional paid-in capital. Timing differences caused by the pattern of processing volume generated by the customer over the term of the contract and the vesting schedules of the warrants can cause differences in the amount of grant date fair value that is credited to additional paid in capital upon vesting and the amount recorded as a reduction in net revenue during any particular reporting period. The fair values of the warrants were estimated using the Black-Scholes option pricing model and the following assumptions as of the grant date of each warrant: March 31, 2021 September 30, 2020 Dividend yield 0.0% 0.0% Expected volatility 50.0% 50.0% Contract term (in years) 4.0 5.0 Risk-free interest rate 0.6% 0.3% Share Repurchase Program On September 14, 2022, the Company’s Board of Directors authorized a share repurchase program of up to $100 million of the Company’s Class A common stock beginning September 15, 2022. Under the repurchase program, the Company was authorized to repurchase shares through open market purchases, in privately negotiated transactions or by other means, in accordance with applicable federal securities laws, including through trading plans under Rule 10b5-1 of the Securities and Exchange Act of 1934. The number of shares repurchased and the timing of purchases are based on general business and market conditions, and other factors, including legal requirements. The share repurchase program has no set expiration date. During the year ended December 31, 2022, the Company repurchased and subsequently retired 11.7 million shares for $79.2 million under the repurchase program, for an average price of $6.77. The total price of the shares repurchased and related transaction costs are reflected as a reduction to common stock and additional paid-in capital on the Company’s consolidated balance sheets. As of December 31, 2022, $20.8 million remained available for future share repurchases under this repurchase program. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is as follows: Year Ended December 31, 2022 2021 2020 Numerator Net loss attributable to Class A and Class B common stockholders $ (184,780) $ (163,929) $ (47,695) Denominator Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 545,397,254 362,756,466 122,932,556 Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.34) $ (0.45) $ (0.39) Basic net loss per share is the same as diluted net loss per share because the Company reported a net loss for the years ended December 31, 2022, 2021 and 2020. The liquidation, dividend and other rights, held by of Class A common stockholders and Class B common stockholders are identical, except with respect to voting. As the liquidation and dividend rights are identical for Class A common stock and Class B common stock, the undistributed earnings are allocated on a proportionate basis and the resulting loss per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis. The Company considered its proportionate share of the potentially dilutive shares issued by its equity method investee in its dilutive EPS calculation. All potentially dilutive shares of its equity method investee were excluded from the computation as they would have an anti-dilutive effect. Potentially dilutive securities that were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect were as follows: As of December 31, 2022 2021 2020 Redeemable convertible preferred stock, all series — — 351,844,340 Warrants to purchase redeemable convertible preferred stock — — 203,610 Warrants to purchase Class B common stock 1,900,000 1,900,000 1,419,528 Stock options outstanding, including early exercise of options 36,156,445 45,307,479 23,421,374 Unvested RSUs outstanding 34,146,546 9,001,949 4,430,336 Shares committed under the ESPP 408,831 211,118 — Stock options and RSUs available for future grants 60,892,581 61,893,427 7,683,069 Total 133,504,403 118,313,973 389,002,257 In addition, the Company committed up to 280,000 common stock shares for future issuance, or the equivalent in cash, to fund and support the Company’s social impact initiatives over the next seven years. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The components of loss before income taxes by tax jurisdiction were as follows: Year Ended December 31, 2022 2021 2020 United States $ (185,612) $ (165,160) $ (47,911) Foreign 730 591 303 Loss before income taxes $ (184,882) $ (164,569) $ (47,608) The components of income tax expense (benefit) were as follows: Year Ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ — State 353 38 18 Foreign 18 — 147 371 38 165 Deferred: Federal — — — State — — — Foreign (473) (678) (78) (473) (678) (78) Total: Federal — — — State 353 38 18 Foreign (455) (678) 69 Income tax expense (benefit) $ (102) $ (640) $ 87 The reconciliation of the Company's effective tax rate to the statutory federal rate is as follows: Year Ended December 31, 2022 2021 2020 Taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal effect 4.6 % 4.0 % 4.4 % Share-based compensation 3.9 % 4.5 % (8.5) % Section 162(m) limitation (13.8) % (8.3) % — % Other 1.4 % (0.3) % (0.1) % Change in valuation allowance (17.0) % (20.5) % (17.0) % Effective tax rate 0.1 % 0.4 % (0.2) % Deferred tax assets and liabilities consist of the following: December 31 2022 2021 Deferred tax assets: Federal and state net operating losses $ 33,497 $ 41,418 Research and development credits 77 77 Property and equipment 205 (47) Accruals and other 20,884 16,173 Share-based compensation 14,490 7,124 R&D capitalization expenditures 23,404 — Reserve for contract contingencies and processing errors 614 818 Deferred revenue 6,011 3,132 Lease liability 3,061 3,730 Total deferred tax assets 102,243 72,425 Less valuation allowance (98,816) (68,847) Total deferred tax assets, net of valuation allowance 3,427 3,578 Deferred tax liabilities: Right-of-use asset (2,220) (2,728) Total deferred tax liabilities (2,220) (2,728) Net deferred tax assets $ 1,207 $ 850 In accordance with ASC 740 and based on all available evidence on a jurisdictional basis, the Company believes that it is more likely than not that its U.S. deferred tax assets will not be utilized and has recorded a full valuation allowance against its net deferred tax assets in the U.S. jurisdiction. The Company assesses on a periodic basis the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income or losses and expectations and risks associated with estimates of future taxable income in assessing the need for the valuation allowance. If it is not more likely than not that the Company expects to recover its deferred tax assets, the Company will increase its provision for taxes by recording a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. The available negative evidence at December 31, 2022 and 2021 included historical and projected future operating losses. As a result, the Company concluded that an additional valuation allowance of $30.0 million and $32.4 million was required to reflect the change in its deferred tax assets prior to valuation allowance during 2022 and 2021, respectively. As of December 31, 2022 and 2021, the Company considered it more likely than not that substantially all of its deferred tax assets would not be realized. The Tax Cuts and Jobs Act of 2017 (TCJA) requires taxpayers to capitalize and amortize research and development (R&D) expenditures under Section 174 for tax years beginning after December 31, 2021. This became effective for the Company during the year ending December 31, 2022, and resulted in the capitalization of R&D costs of $23.4 million. The Company will amortize these costs for tax purposes over 5 years for R&D performed in the US and over 15 years for R&D performed outside of the US. As of December 31, 2022, the Company had net operating loss carryforwards of approximately $130.0 million and $85.3 million for federal and state tax purposes, respectively. Of the Company's federal net operating loss carryforwards as of December 31, 2022, $121.5 million can be carried forward indefinitely but is limited to 80% of taxable income. If not utilized, the federal and state net operating carryforwards will begin to expire in 2036 and 2025, respectively. In addition, the Company has research and development tax credit carryforwards of approximately $0.2 million for federal income tax purposes. If not utilized, the federal research and development tax credit carryforwards will begin to expire in 2031. The California state research credit can be carried forward indefinitely. Under Section 382 of the Internal Revenue Code of 1986, as amended , the Company's ability to utilize net operating loss carryforwards or other tax attributes in any taxable year may be limited if the Company has experienced an ownership change. As of December 31, 2022, the Company has concluded that it has experienced ownership changes since inception and that its utilization of net operating loss carryforwards will be subject to annual limitations. However, it is not expected that the annual limitations will result in the expiration of tax attribute carryforwards prior to utilization. The Company files federal and various state tax returns in the U.S., as well as tax returns in the U.K and Australia. Due to tax attribute carryforward still being utilized, the Company's federal and state returns remain open for examination since inception. The Company made an accounting policy election to provide for the Global Intangible Low-Taxed Income (GILTI) tax expense in the year the tax is incurred as a period cost. The Company elected and applied the tax law ordering approach when considering GILTI as part of its valuation allowance. The Company did not have any material unrecognized tax benefits in 2022, 2021, and 2020. The Company did not incur any interest expenses or penalties or have outstanding liabilities on the balance sheets associated with unrecognized tax benefits for the year ended December 31, 2022. The Company does not expect any significant increases or decreases to its unrecognized benefits within the next twelve months. |
Concentration of Risks and Sign
Concentration of Risks and Significant Customers | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risks and Significant Customers | Concentration Risks and Significant Customers Financial instruments that potentially expose the Company to concentration of credit risk consist of cash and cash equivalents, marketable securities, accounts receivable and unbilled customers' receivable, or collectively, customers' receivables, and settlements receivable. Cash on deposit with financial institutions may, at times, exceed federally insured limits. Management believes that these financial institutions are financially sound and, accordingly, minimal credit risk exists. Cash and cash equivalents as of December 31, 2022 and December 31, 2021 included $0.5 billion and $1.2 billion, respectively, of investments in three money market mutual funds which invest primarily in U.S. treasury securities and U.S. agency securities. As of December 31, 2022, marketable securities were $440.9 million, and there was no concentration of securities of the same issuer with an aggregate fair value greater than 5% of this total balance, except for U.S. Treasuries and U.S. Agency Securities, which amounted to $407.1 million, or 92% of the marketable securities. All debt securities within the Company's marketable securities portfolio are investment grade. As of December 31, 2021, marketable securities were $452.9 million, and there was no concentration of securities of the same issuer with an aggregate fair value greater than 5% of the total balance, except for U.S. Treasuries, which amounted to $418.3 million, or 92% of the marketable securities. A significant portion of the Company's payment transactions is settled through one Issuing Bank, Sutton Bank. For the years ended December 31, 2022, 2021 and 2020, 82%, 90% and 96% of Total Processing Volume, which is the total dollar amount of payments processed through the Company’s platform, net of returns and chargebacks, was settled through Sutton Bank, respectively. For each significant customer, net revenue as a percentage of total net revenue and customers' receivables as a percentage of total customers' receivables are as follows: Percent of Net Revenue 2022 2021 2020 Customer A 71% 69% 70% Percent of Customers' Receivables as of December 31, 2022 2021 Customer B 18% * Customer C * 20% Customer D * 13% * Less than 10% |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company may enter into transactions with related parties. The Company had an equity method investment in a private company, which was a related party up until the investment was sold in October 2022. During the years ended December 31, 2022 and 2021, the Company earned net revenue of $2.7 million and $2.8 million from the private company, respectively. The Company had $4.1 million in revenue share payable to this private company as of December 31, 2021. Prior to the completion of the IPO, DFS Services LLC, a holder of more than 5% of the Company's outstanding capital stock, was a related party. During the years ended December 31, 2021 and 2020, the Company incurred $30.4 million and $14.4 million in Card Network fees, net, recorded within costs of revenue, to PULSE Network LLC, an entity affiliated with DFS Services LLC. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 3, 2023, the Company acquired Power Finance Inc. (Power Finance) for a purchase price of $221.9 million in cash, approximately one-third of which is payable over a two-year period subject to certain conditions. The purchase price does not include potential future earn-out amounts tied to additional performance-based goals to be achieved within the next 12 months with a maximum payout of up to $53.1 million. Power Finance’s cloud-native platform offers credit card program management services for companies creating new credit card programs. This acquisition is expected to allow the Company’s customers to launch a wide range of credit products and constructs. The Company is currently finalizing the accounting for this transaction and expects to complete the preliminary allocation of purchase consideration to the assets acquired and liabilities assumed by the end of the first quarter of 2023 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with U.S. Generally Accepted Accounting Principles (GAAP). All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions relating to reported amounts of assets and liabilities, disclosure of contingent liabilities, and reported amounts of revenue and expenses. Significant estimates and assumptions relate to the fair value of equity awards and warrants, share-based compensation, the estimation of variable consideration in contracts with customers, the reserve for contract contingencies and processing errors, and the fair value of equity method investments and a purchase call option to acquire the remaining interest in the equity method investee. Actual results could differ materially from these estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company’s contracts with customers typically include two performance obligations: 1) providing access to the Company's payment processing platform and 2) providing card fulfillment services . Certain customer contracts require the Company to allocate the transaction price of the contract based on the relative stand-alone selling price of the performance obligations which are estimated using an analysis of the Company’s historical contract pricing and costs incurred to fulfill its services. The Company generates revenue from providing platform services and other services as described below. Platform Services The Company delivers an integrated payment processing platform to its customers. The Company’s primary performance obligation is to provide customers continuous access to the Company’s platform used to process all customers’ transactions as needed. This obligation includes authorizing, settling, clearing and reconciling all transactions under MxM and PxM arrangements and managing the interactions with the Issuing Banks and Card Networks on behalf of its customers under MxM arrangements. All these services are collectively considered a single performance obligation. The Company’s platform services revenue is primarily derived from Interchange Fees generated by customer card transactions and other transaction fees collected from customers. The Company accounts for these Interchange Fees as revenue earned from its customers because the Company controls the services before delivery to the customer. The Company’s platform services revenue consists of a stand-ready service of distinct transaction processing services that are substantially the same, with the same pattern of transfer to customers. As such, the stand-ready obligation is accounted for as a single performance obligation that is a series of distinct services whereby the variability of the transaction value is satisfied daily as the performance obligation is satisfied. The Company satisfies its performance obligation to provide platform services over time as customers have continuous access to the Company's platform and the Company stands-ready to process customer transactions throughout their term of access. The Company recognizes revenue when the underlying transactions are complete, and its performance obligation is satisfied. Transactions are considered complete when the Company has authorized the transaction, validated that the transaction has no errors and accepted and posted the data to its records. The Company allocates variable consideration to the distinct month in which the platform services are delivered. When pricing terms are not consistent throughout the entire term of the contract, the Company estimates variable consideration in its customer contracts primarily using the expected value method. The standard term of the customer contracts range from three As the Issuer Processor for its customers, the Company is the principal in providing the services under its contracts with customers. To deliver the services required by its customers, the Company contracts with Card Networks for transaction routing, reporting, and settlement services and with Issuing Banks for card issuing, Card Network sponsorship, and regulatory compliance approval services. The Company controls these integrated services before delivery to its customers; it is primarily responsible for the delivery of the services to customers, and it has discretion in vendor selection. As such, the Company records fees paid to the Issuing Banks and Card Networks as costs of revenue. The Company's contracts with customers include certain service level agreements which could require the Company to make payments to customers if service levels are not met. Any service level payment is recorded as a reduction to net revenue in the consolidated statements of operations and comprehensive loss. Historically, the Company did not capitalize material costs to acquire contracts. Revenue Share The Company’s contracts with customers typically include provisions under which the Company shares a portion of the Interchange Fees with its customers, referred to as Revenue Share. Revenue Share payments are incentives to customers to increase their processing volume on the Company’s platform, and is computed as a percentage of the Interchange Fees earned or processing volume and is paid to customers monthly. The Company records Revenue Share as a reduction to revenue in the consolidated statements of operations and comprehensive loss. The Company records the amount due to the customer as Revenue Share payable on the consolidated balance sheets. Other Services Revenue The Company earns revenue from customers through card fulfillment services. Card fulfillment fees are generally billed to customers upon ordering card inventory and recognized as revenue when the ordered cards are shipped to the customers. The Company offers certain customers the option to purchase physical cards at a discount. The Company has concluded that the discount does not constitute a future material right because the discount is within a range typically offered to the class of customers. Therefore, the Company accounts for the discount as a reduction to revenue when the Company delivers the ordered cards to the customers. |
Deferred Revenue | Deferred Revenue Deferred revenue arises when customers are billed for services in advance of the Company's revenue recognition. The Company's deferred revenue is primarily due to undelivered card fulfillment services and variable consideration from customer contracts where pricing terms are not consistent throughout the entire term of the contract, non-refundable upfront setup fees that are billed at contract inception. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses if these options provide a material right to the customer and if so, they are considered performance obligations. This material right is valued by estimating the discount that will be redeemed by the customer during the optional renewal period. |
Reserve for Contract Contingencies and Processing Errors | Reserve for Contract Contingencies and Processing Errors Customer contracts generally contain service level agreements that can result in performance penalties payable by the Company when contractually required service levels are not met or can result in payments by the Company for processing errors. As such, the Company records a reserve for estimated performance penalties and processing errors. When providing for these reserves, the Company considers factors such as its history of incurring performance penalties and processing errors, actual contractual penalty charge rates in customer contracts, and known or estimated processing errors. These reserves are included in accrued expenses and other current liabilities on the consolidated balance sheets and the provision for contract contingencies and processing errors is included as a reduction to net revenue on the consolidated statements of operations and comprehensive loss. |
Cost of Revenue | Costs of Revenue Costs of revenue consist of Card Network costs, Issuing Bank costs, and card fulfillment costs. Card Network costs are generally equal to a specified percentage of the processing volume or a fixed amount per transaction processed through the respective Card Network. The Company incurs Card Network costs directly from contractual arrangements with the Card Networks that are passed entirely through Issuing Banks, or directly from the Card Networks. The Company's contracts with Card Networks and Issuing Banks typically have terms ranging from three to five years which may be renewed in one-year to two-year increments as agreed by both parties. Issuing Bank costs compensate Issuing Banks for issuing cards to the Company’s customers and sponsoring the Company’s card programs with the Card Networks and are generally equal to a specified percentage of the processing volume or a fixed amount per transaction, |
Segment Information | Segment Information The Company operates as a single operating segment. The Company's chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, allocating resources and evaluating the Company's financial performance. |
Foreign Currency | Foreign Currency The functional currency of the Company’s foreign subsidiary is its respective local currency. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss) within the consolidated balance sheets and the consolidated statements of redeemable convertible preferred stock and stockholders’ equity (deficit). Foreign currency transaction gains and losses are included in other income (expense), net in the consolidated statements of operations and comprehensive loss. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period, and equity balances are translated using historical exchange rates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments and investments with original maturities of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist primarily of bank deposit accounts and investments in money market funds. |
Restricted Cash | Restricted Cash Restricted cash consists of deposits with financial institutions that issue payment cards (credit, debit, or prepaid) either on their own behalf or on behalf of businesses that issue customized card products to their end users, or Issuing Banks, to provide the Issuing Bank collateral in the event that customers’ funds are not deposited at the Issuing Banks in time to settle customers’ transactions with the networks that provide the infrastructure for settlement and card payment information flows, or Card Networks. Restricted cash also includes cash used to secure a letter of credit for the Company’s lease of its office headquarters in Oakland, California. |
Marketable Securities | Marketable Securities The Company's marketable securities include U.S. treasury securities, U.S. agency securities, commercial paper, asset-backed securities, and corporate debt securities. The Company's marketable securities are accounted for as securities available-for-sale and are classified within current assets in the consolidated balance sheets as the Company may sell these securities at any time for use in its operations, even prior to maturity. The Company carries these marketable securities at fair value and periodically evaluates them for unrealized losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor’s ability to meet its payment obligations, and records an allowance on the consolidated balance sheets with a corresponding loss in other income (expense), net in the consolidated statements of operations and comprehensive loss when the impairment is incurred. Unrealized non-credit related losses and unrealized gains are recorded as a separate component in accumulated other comprehensive income (loss), a component of stockholders’ equity (deficit) until realized. The Company records any realized gains or losses on the sale of marketable securities in other income (expense), net in the consolidated statements of operations and comprehensive loss. |
Equity investments and purchase options | Equity Investments and Purchase Options The Company applies the equity method of accounting for investments in other entities when the Company exercises significant influence, but no control. Under the equity method, the Company’s records its share of each entity’s profit or loss in other income (expense), net in the consolidated statements of operations and comprehensive loss on a one quarter lag when the most recent financial information of the investee becomes available. The Company periodically reviews investments accounted for under the equity method for impairment. Investments in other entities not accounted for under the equity method of accounting, including options to purchase these entities, are accounted for at cost less impairment, if applicable. Additionally, the value of these investments may be adjusted to fair value resulting from observable transactions for identical or similar investments. In 2021, the Company acquired a preferred equity interest in a private company that is accounted for under the equity method of accounting. Concurrent with this investment, the Company also acquired an option that gives the Company the right, but not the obligation, to purchase all of the remaining equity interests of the private company. The carrying amounts of the equity method investment and the option at December 31, 2021 were $8.4 million and $11.6 million, respectively. As of December 31, 2021, the option was reflected within prepaid expenses and other current assets in the consolidated balance sheets. The Company applied the measurement alternative to measure the option at cost, less any impairment. During the year ended December 31, 2022, the Company recorded an impairment of $11.6 million related to the option based on the Company’s decision not to exercise the option. During the year ended December 31, 2022, the Company sold its equity method investment in a private company. The carrying amount of this investment was $7.8 million as of the date of sale and the purchase price was $25.7 million. As a result, the Company recorded a gain of $17.9 million in the year ended December 31, 2022 in Other income (expense), net on the Consolidated Statement of Operations. |
Accounts Receivable | Accounts ReceivableAccounts receivable are recorded at invoiced amounts and do not earn interest. The Company estimates an allowance for accounts receivable based on its assessment of the collectability of accounts by considering its historical accounts receivable collection experience for each customer, the age of each outstanding invoice and an evaluation of current expected risk of credit loss based on current economic conditions and reasonable and supportable forecasts of future economic conditions over the life of the receivable. The Company assesses collectability on an individual basis when it identifies specific customers with collectability issues and by reviewing accounts receivable on an aggregated basis where similar characteristics exist. |
Settlements Receivable | Settlements Receivable Settlements receivable represent Interchange Fees earned on customers’ card transactions, net of pass through Card Network fees, and are due from Issuing Banks. Interchange Fees are typically received within one or two business days of the transaction date and are due from well-established Issuing Banks with no historical collections issue, mitigating the associated risk of collection. No allowance has been established. The Company does not generate revenue from Issuing Banks. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs consist primarily of accounting, legal, and other fees related to the IPO. Upon the completion of the IPO in June 2021, the deferred offering costs were reclassified to stockholders’ equity (deficit) and recorded net against the proceeds from the IPO. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. The Company uses the straight-line method of depreciation and amortization. Estimated useful lives range from three to five years for purchased and internally developed software, computer equipment, and furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term, excluding renewal periods, or the estimated useful life of the leasehold improvement. Gains and losses realized on the sale or disposal of property and equipment are recognized or charged to other income (expense), net in the consolidated statements of operations and comprehensive loss. The Company evaluates the carrying value of property and equipment on an annual basis, or more frequently whenever circumstances indicate a long-lived asset may be impaired. When indicators of impairment exist, the Company estimates the future undiscounted cash flows attributable to such assets. In the event cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair value. During the years ended December 31, 2022 and 2021, the Company did not recognize any material impairment of long-lived assets. |
Fair Value Measurement | Fair Value Measurements Fair value is an exit price, representing the price that would be received to sell the financial asset or paid to transfer the financial liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy includes a three-level classification, which is based on whether the inputs to the valuation methodology used for measurement are observable: • Level 1 ‑ quoted prices in active markets for identical assets as of the reporting date; • Level 2 ‑ inputs other than Level 1 that are observable, either directly or indirectly; or • Level 3 ‑ unobservable inputs. When developing fair value measurements, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. In instances where the Company lacks observable inputs in the market to measure the fair value of an asset or liability, the Company may use unobservable inputs which requires greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets and liabilities are based primarily upon the Company’s own estimates, and the measurements reflect information and assumptions that management believes a market participant would use in pricing the asset or liability. The Company’s financial instruments consist of cash equivalents, marketable securities, accounts receivable, unbilled customers' receivable, settlements receivable, accounts payable, accrued liabilities, and prior to the IPO, redeemable convertible preferred stock warrant liabilities. Cash equivalents are stated at amortized cost, which approximates fair value at the balance sheet dates, due to the short period of time to maturity. Marketable securities are carried at fair value. Accounts receivable, unbilled customers' receivable, settlements receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment |
Advertising Costs | Advertising CostsThe Company expenses advertising costs as they are incurred. |
Research and Development Costs | Research and Development Costs Research and development costs, which consist primarily of salaries, employees' benefits, share-based compensation, third-party hosting fees and software licenses were $108.3 million, $84.1 million, and $34.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Research and development costs are expensed as incurred and are included in compensation and benefits, and technology expenses in the consolidated statements of operations and comprehensive loss. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers the available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. If the Company determines that it is able to realize its deferred tax assets in the future in excess of the net recorded amount, the Company decreases the deferred tax asset valuation allowance, which reduces the income tax expense. Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense (benefit) in the consolidated statements of operations and comprehensive loss. |
Lease Obligations | Lease Obligations The Company measures lease liabilities based on the present value of the total lease payments not yet paid discounted based on the Company’s incremental borrowing rate, which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Company measures right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs the Company incurs and (iii) tenant incentives under the lease. The Company begins to recognize rent expense when the lessor makes the underlying asset available to the Company. For short-term leases, the Company records rent expense in the consolidated statements of operations and comprehensive loss on a straight-line basis over the lease term and records variable lease payments as incurred. The Company has no finance leases. |
Loss Contingencies | Loss Contingencies The Company may be involved in various lawsuits, claims, and proceedings that arise in the ordinary course of business. The Company records a liability for these when it believes it is probable that it has incurred a loss, and the Company can reasonably estimate the loss. The Company regularly evaluates current information to determine whether it should adjust a recorded liability or record a new one. If a loss is reasonably possible and the loss or range of loss can be reasonably estimated, the Company discloses the possible loss in the accompanying notes to the consolidated financial statements. Significant judgment is required to determine both the probability and the estimated amount. See Note 7, "Commitments and Contingencies", for a full description of the Company's loss contingencies. |
Share-based Compensation | Share-based Compensation Restricted Stock Units Commencing in 2020, the Company began granting restricted stock units, or RSUs, to employees. RSUs granted prior to April 1, 2021 vest upon the satisfaction of both a service condition and a liquidity condition. The service condition for these awards is satisfied over four years. On June 8, 2021, the Company completed its IPO and the liquidity condition for these awards was satisfied and the Company recognized a cumulative share-based compensation expense of $23.1 million associated with RSUs that had service-vested as of the IPO completion date. Subsequent to the IPO, the unamortized grant date fair value of these RSUs will be recorded as share-based compensation expense over the remaining service period. RSUs granted on or after April 1, 2021, vest upon the satisfaction of a service condition. In general, the service condition for these awards is satisfied over four years and the grant date fair value of these RSUs will be recorded as share-based compensation expense over the service period. The fair value of RSUs is based on the closing price of the Company’s Class A common stock on the grant date. Prior to the IPO, the fair value of RSUs was based on the fair value of the underlying common stock on the grant date as determined by the Company’s board of directors at each meeting in which RSU awards were approved. Stock Options The Company grants stock option awards to certain employees and directors. The Company estimates the fair value of stock option awards using the Black-Scholes option pricing model. The model requires management to make a number of assumptions, including the expected future volatility of the Company’s Class A common stock, expected term, risk-free interest rate, and expected dividends. The Company records the resulting expense in the consolidated statements of operations and comprehensive loss on a straight-line basis over the period for which the employee or director is required to perform services to vest in the award, which is generally four years. The Company accounts for forfeitures as they occur. Executive Chairman Long-Term Performance Award In April and May 2021, the Company’s board of directors granted the Company’s Executive Chairman and then-Chief Executive Officer equity incentive awards in the form of performance-based stock options, or collectively, the Executive Chairman Long-Term Performance Award, formerly known as the CEO Long-Term Performance Award. The Executive Chairman Long-Term Performance Award vests upon the satisfaction of a service condition and the achievement of certain stock price hurdles over a seven year performance period following the expiration of the lock-up period associated with the IPO. The stock price hurdle will be achieved if the average closing price of a share of the Company’s Class A common stock during any 90 consecutive trading day period during the performance period equals or exceeds the requisite stock price hurdle for the performance period. The grant date fair value of the Executive Chairman Long-Term Performance Award was estimated using a Monte Carlo simulation model that incorporated multiple stock price paths and probabilities that the Company stock price hurdles are met. The Company records the resulting expense in the consolidated statements of operations and comprehensive loss over the derived service period of each of the seven separate tranches using the accelerated attribution method. Employee Stock Purchase Plan In May 2021, the Company’s board of directors adopted, and its stockholders approved, the 2021 Employee Stock Purchase Plan, or the ESPP, which became effective in connection with the IPO. The ESPP authorizes the issuance of shares of the Company’s Class A common stock pursuant to purchase rights granted to employees. The fair value of purchase rights issued under the ESPP is estimated using the Black-Scholes option pricing model. The model requires management to make a number of assumptions, including the fair value of the Company’s common stock, expected volatility, expected term, risk-free interest rate, and expected dividends. The Company records the resulting expense in the consolidated statements of operations and comprehensive loss on a straight-line basis over the six-month offering period. Secondary Sales of Common Stock Prior to the completion of the IPO, certain economic interest holders acquired outstanding common stock from current or former employees for a purchase price greater than the Company's estimated fair value of its common stock at the time of the transactions. For such secondary sales of common stock, the Company recorded share-based compensation expense for the difference between the price paid and the estimated fair value on the date of the transaction. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The Company presents basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for participating securities. Prior to the completion of the IPO, all series of redeemable convertible preferred stock were considered participating securities. Immediately prior to the completion of the IPO, all shares of redeemable convertible preferred stock then outstanding were converted into shares of Class B common stock. The Company has not allocated net loss attributable to common stockholders to redeemable convertible preferred stock in any period presented because the holders of its redeemable convertible preferred stock were not contractually obligated to share in losses. The Company calculates basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share attributable to common stockholders gives effect to all potential shares of common stock, including common stock issuable upon conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants, stock options, RSUs and common stock warrants to the extent these are dilutive. |
New Accounting Standards Adopted Not Yet Adopted | Recently Adopted Accounting Pronouncements The JOBS Act allowed “emerging growth companies” to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Before December 31, 2021, the Company met the definition of an “emerging growth company” and has elected to use this extended transition period under the JOBS Act. The adoption date discussed below reflects this election. In June 2016, the FASB issued ASU No. 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 replaces the incurred loss model with the current expected credit loss, or CECL, model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The CECL model requires a company to estimate credit losses expected over the life of the financial assets based on historical experience, current conditions and reasonable and supportable forecasts. The Company adopted this new guidance as of December 31, 2022 upon the loss of “emerging growth company” status, with an effective date of January 1, 2022, using a modified retrospective approach. The adoption did not have a material impact on the balances reported in the Company’s consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Information about Disaggregation of Revenue from Customers | Disaggregation of Revenue The following table provides information about disaggregated revenue from customers: Year Ended December 31, 2022 2021 2020 Platform services revenue, net $ 725,629 $ 502,296 $ 283,305 Other services revenue 22,577 14,879 6,987 Total net revenue $ 748,206 $ 517,175 $ 290,292 |
Schedule of Contract Balances for Contract Assets and Deferred Revenue | Contract Balances The following table provides information about contract assets and deferred revenue: Contract balance Balance sheet line reference December 31, December 31, Contract assets - current Prepaid expenses and other current assets $ 621 $ 950 Contract assets - non-current Other assets 1,323 927 Total contract assets $ 1,944 $ 1,877 Deferred revenue - current Accrued expenses and other current liabilities $ 17,048 $ 19,060 Deferred revenue - non-current Other liabilities 4,202 6,107 Total deferred revenue $ 21,250 $ 25,167 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Schedule of Marketable Securities | The amortized cost, unrealized gain (loss), and estimated fair value of the Company's investments in securities available for sale consisted of the following: December 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities U.S. treasury securities $ 384,951 $ — $ (6,949) $ 378,002 U.S. agency securities 29,012 47 — 29,059 Commercial paper 28,815 — — 28,815 Corporate debt securities 5,049 — (67) 4,982 Total marketable securities $ 447,827 $ 47 $ (7,016) $ 440,858 December 31, 2021 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities U.S. treasury securities $ 420,392 $ — $ (2,107) $ 418,285 Commercial paper 13,878 — — 13,878 Asset-backed securities 2,003 — (1) 2,002 Corporate debt securities 18,731 3 (24) 18,710 Total marketable securities $ 455,004 $ 3 $ (2,132) $ 452,875 |
Schedule of Available-for-sale Securities Reconciliation | The following table summarizes the stated maturities of the Company’s marketable securities: December 31, 2022 December 31, 2021 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 447,827 $ 440,858 $ 64,914 $ 64,879 Due after one year through two years — — 390,090 387,996 Total $ 447,827 $ 440,858 $ 455,004 $ 452,875 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities at Fair Value | The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: December 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 462,459 $ — $ — $ 462,459 Marketable securities U.S. treasury securities 378,002 — — 378,002 U.S. agency securities — 29,059 — 29,059 Commercial paper — 28,815 — 28,815 Corporate debt securities — 4,982 — 4,982 Total assets $ 840,461 $ 62,856 $ — $ 903,317 December 31, 2021 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 1,213,543 $ — $ — $ 1,213,543 Marketable securities U.S. treasury securities 418,284 — — 418,284 Commercial paper — 13,878 — 13,878 Asset-backed securities — 2,002 — 2,002 Corporate debt securities — 18,711 — 18,711 Total assets $ 1,631,827 $ 34,591 $ — $ 1,666,418 |
Schedule of Fair Value Assumptions | The fair value of the redeemable convertible preferred stock warrant liabilities was estimated using the following assumptions: June 9, Dividend yield 0.00% Expected volatility 49.93% Expected term (in years) 2.34 Risk-free interest rate 0.31% Fair value of Series B redeemable convertible preferred stock $27.00 |
Summary of Changes in Fair Value | The following table sets forth a summary of the changes in the fair value of the redeemable convertible preferred stock warrant liabilities: December 31, Balance, beginning of the period $ 2,517 Remeasurement of redeemable convertible preferred stock warrant liabilities 2,921 Reclassification of redeemable convertible preferred stock warrant liabilities to common stock and additional paid-in capital upon initial public offering (5,438) Balance, end of the period $ — |
Certain Balance Sheet Compone_2
Certain Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, December 31, Prepaid expenses $ 9,082 $ 6,492 Inventory 5,150 3,940 Prepaid hosting and data costs 6,443 2,455 Accrued interest receivable 3,983 392 Prepaid insurance 3,729 3,546 Card program deposits 2,128 2,167 Contract assets 621 950 Other financial instruments — 11,616 Other current assets 6,871 4,059 Prepaid expenses and other current assets $ 38,007 $ 35,617 |
Property and Equipment, net | Property and Equipment, net Property and equipment consisted of the following: December 31, December 31, Leasehold improvements $ 8,110 8,110 Computer equipment 9,115 8,581 Furniture and fixtures 2,542 2,459 Internally developed and purchased software 3,082 2,954 22,849 22,104 Accumulated depreciation and amortization (15,409) (12,417) Property and equipment, net $ 7,440 $ 9,687 |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, December 31, Accrued costs of revenue $ 57,191 $ 41,339 Accrued compensation and benefits 41,268 32,954 Deferred revenue 17,048 19,060 Accrued tax liabilities 4,978 3,240 Accrued professional services 4,784 2,454 Operating lease liabilities, current portion 3,394 3,021 Reserve for contract contingencies and processing errors 2,494 3,386 Other accrued liabilities 5,730 8,642 Accrued expenses and other current liabilities $ 136,887 $ 114,096 |
Other Liabilities | Other Liabilities Other liabilities consisted of the following: December 31, December 31, Deferred revenue, net of current portion $ 4,202 $ 6,107 Other long-term liabilities 1,275 450 Other liabilities $ 5,477 $ 6,557 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components lease costs | The Company's operating lease costs are as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 3,372 $ 3,424 $ 3,514 Variable lease cost 439 212 534 Short-term lease cost 435 358 271 Total lease cost $ 4,246 $ 3,994 $ 4,319 The weighted average remaining operating lease term and the weighted average discount rate used in the calculation of the Company's lease assets and lease liabilities were as follows: December 31, December 31, Weighted average remaining operating lease term (in years) 3.1 4.1 Weighted average discount rate 7.7% 7.7% Supplemental cash flow information related to the Company's operating leases was as follows: Year Ended December 31, 2022 2021 2020 Cash paid for operating lease liabilities $ 4,112 $ 4,081 $ 3,192 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — $ 192 |
Future minimum lease payments | Maturities of operating lease liabilities by year are as follows as of December 31, 2022: 2023 4,239 2024 4,472 2025 4,599 2026 780 Total lease payments $ 14,090 Less imputed interest (1,662) Total operating lease liabilities $ 12,428 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of Share-based Compensation Expense | The following table presents the share-based compensation expense recognized in the periods presented: Year Ended December 31, 2022 2021 2020 Restricted stock units $ 76,094 $ 59,652 $ — Stock options 28,816 31,231 10,895 Executive Chairman Long-Term Performance Award 53,214 38,189 — Employee Stock Purchase Plan 2,619 1,946 — Secondary sales of common stock — 11,642 17,316 Total $ 160,743 $ 142,660 $ 28,211 A summary of the Company's RSUs activity under the Plans was as follows: Number of Restricted Stock Units Weighted-average grant date fair value per share Balance as of December 31, 2020 4,430,336 $ 4.93 Granted 8,409,821 22.20 Vested (2,641,196) 10.12 Canceled and forfeited (1,197,012) 14.23 Balance as of December 31, 2021 9,001,949 $ 18.30 Granted 36,159,090 8.91 Vested (4,883,296) 13.99 Canceled and forfeited (6,131,197) 14.07 Balance as of December 31, 2022 34,146,546 $ 9.74 A summary of the Company's stock option activity under the Plans was as follows: Number of Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1) Balance as of January 1, 2020 (2) 25,159,411 $ 0.92 8.74 $ 46,594 Granted 6,404,800 2.31 Exercised (6,084,183) 0.53 Canceled and forfeited (2,058,654) 1.50 Balance as of December 31, 2020 (2) 23,421,374 $ 1.35 8.33 $ 248,002 Granted 29,113,555 20.07 Exercised (4,277,344) 1.18 Canceled and forfeited (4,072,097) 5.58 Balance as of December 31, 2021 (2) 44,185,488 $ 13.31 8.46 $ 279,242 Granted 4,182,522 10.16 Exercised (7,785,748) 1.20 Canceled and forfeited (4,425,817) 6.60 Balance as of December 31, 2022 (2) 36,156,445 $ 16.37 7.67 $ 29,101 Vested as of December 31, 2022 7,389,512 $ 6.57 4.98 $ 24,410 (1) Intrinsic value based is calculated based on the difference between the exercise price of in-the-money-stock options and the fair value of the common stock as of the respective balance sheet dates. (2) The 2011 Plan allows for early exercise of stock options and these balances include all exercisable stock options regardless of vesting status. The Executive Chairman Long-Term Performance Award is divided into seven equal tranches which vest upon the achievement of the following Company stock price hurdles: Tranche Company Stock Price Hurdle Number of Options Eligible to Vest 1 $67.50 2,826,884 2 $78.98 2,826,884 3 $92.40 2,826,884 4 $108.11 2,826,884 5 $126.49 2,826,884 6 $147.99 2,826,884 7 $173.15 2,826,884 Total 19,788,188 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair values of stock options granted were estimated using the Black-Scholes option pricing model and the following weighted-average assumptions: Year Ended December 31, 2022 2021 2020 Dividend yield 0.0% 0.0% 0.0% Expected volatility 61.52% 52.36% 48.11% Expected term (in years) 6.08 6.14 6.02 Risk-free interest rate 2.32% 1.00% 0.54% |
Stockholders_ Equity Transact_2
Stockholders’ Equity Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Fair Value of Warrants Using Black-Scholes Options Pricing Model | The fair values of the warrants were estimated using the Black-Scholes option pricing model and the following assumptions as of the grant date of each warrant: March 31, 2021 September 30, 2020 Dividend yield 0.0% 0.0% Expected volatility 50.0% 50.0% Contract term (in years) 4.0 5.0 Risk-free interest rate 0.6% 0.3% |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net loss per share attributable to common stockholders is as follows: Year Ended December 31, 2022 2021 2020 Numerator Net loss attributable to Class A and Class B common stockholders $ (184,780) $ (163,929) $ (47,695) Denominator Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 545,397,254 362,756,466 122,932,556 Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.34) $ (0.45) $ (0.39) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Potentially dilutive securities that were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect were as follows: As of December 31, 2022 2021 2020 Redeemable convertible preferred stock, all series — — 351,844,340 Warrants to purchase redeemable convertible preferred stock — — 203,610 Warrants to purchase Class B common stock 1,900,000 1,900,000 1,419,528 Stock options outstanding, including early exercise of options 36,156,445 45,307,479 23,421,374 Unvested RSUs outstanding 34,146,546 9,001,949 4,430,336 Shares committed under the ESPP 408,831 211,118 — Stock options and RSUs available for future grants 60,892,581 61,893,427 7,683,069 Total 133,504,403 118,313,973 389,002,257 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The components of loss before income taxes by tax jurisdiction were as follows: Year Ended December 31, 2022 2021 2020 United States $ (185,612) $ (165,160) $ (47,911) Foreign 730 591 303 Loss before income taxes $ (184,882) $ (164,569) $ (47,608) |
Schedule of Significant Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows: Year Ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ — State 353 38 18 Foreign 18 — 147 371 38 165 Deferred: Federal — — — State — — — Foreign (473) (678) (78) (473) (678) (78) Total: Federal — — — State 353 38 18 Foreign (455) (678) 69 Income tax expense (benefit) $ (102) $ (640) $ 87 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the Company's effective tax rate to the statutory federal rate is as follows: Year Ended December 31, 2022 2021 2020 Taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal effect 4.6 % 4.0 % 4.4 % Share-based compensation 3.9 % 4.5 % (8.5) % Section 162(m) limitation (13.8) % (8.3) % — % Other 1.4 % (0.3) % (0.1) % Change in valuation allowance (17.0) % (20.5) % (17.0) % Effective tax rate 0.1 % 0.4 % (0.2) % |
Schedule of Components of Deferred Taxes | Deferred tax assets and liabilities consist of the following: December 31 2022 2021 Deferred tax assets: Federal and state net operating losses $ 33,497 $ 41,418 Research and development credits 77 77 Property and equipment 205 (47) Accruals and other 20,884 16,173 Share-based compensation 14,490 7,124 R&D capitalization expenditures 23,404 — Reserve for contract contingencies and processing errors 614 818 Deferred revenue 6,011 3,132 Lease liability 3,061 3,730 Total deferred tax assets 102,243 72,425 Less valuation allowance (98,816) (68,847) Total deferred tax assets, net of valuation allowance 3,427 3,578 Deferred tax liabilities: Right-of-use asset (2,220) (2,728) Total deferred tax liabilities (2,220) (2,728) Net deferred tax assets $ 1,207 $ 850 |
Concentration of Risks and Si_2
Concentration of Risks and Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | For each significant customer, net revenue as a percentage of total net revenue and customers' receivables as a percentage of total customers' receivables are as follows: Percent of Net Revenue 2022 2021 2020 Customer A 71% 69% 70% Percent of Customers' Receivables as of December 31, 2022 2021 Customer B 18% * Customer C * 20% Customer D * 13% * Less than 10% |
Business Overview and Basis o_2
Business Overview and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2021 vote shares | Jun. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Jun. 30, 2022 shares | |
Initial Public Offering | ||||||
Proceeds from initial public offering, net of underwriters’ discounts and commissions | $ 0 | $ 1,319,809 | $ 0 | |||
Payments of stock issuance costs | $ 0 | $ 4,760 | 2,708 | |||
Preferred Stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | ||||
Business Risks and Uncertainties | ||||||
Net loss | $ 184,780 | $ 163,929 | 47,695 | |||
Accumulated deficit | 602,233 | 417,453 | ||||
Cash and cash equivalents | 1,183,846 | $ 1,247,581 | $ 220,433 | |||
Marketable securities | $ 440,900 | |||||
Class A Common Stock | ||||||
Initial Public Offering | ||||||
Common stock, shares authorized (in shares) | shares | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |||
Number of vote (votes per share) | vote | 1 | |||||
Class B Common Stock | ||||||
Initial Public Offering | ||||||
Common stock, shares authorized (in shares) | shares | 600,000,000 | 600,000,000 | 600,000,000 | |||
Number of vote (votes per share) | vote | 10 | |||||
Convertible preferred stock, shares, number of shares issued upon conversion (in shares) | shares | 203,610 | 351,844,340 | ||||
Preferred stock, convertible, conversion ratio | 1 | |||||
Number of common stock warrants converted to Class B common stock warrants (in shares) | shares | 2,569,528 | |||||
Preferred Stock | ||||||
Initial Public Offering | ||||||
Preferred Stock, shares authorized (in shares) | shares | 100,000,000 | |||||
IPO | Class A Common Stock | ||||||
Initial Public Offering | ||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 52,272,727 | |||||
Share price (in dollars per share) | $ / shares | $ 27 | |||||
Proceeds from initial public offering, net of underwriters’ discounts and commissions | $ 1,300,000 | |||||
Payments for commissions and discounts | 91,600 | |||||
Payments of stock issuance costs | $ 7,500 | |||||
Over-Allotment Option | Class A Common Stock | ||||||
Initial Public Offering | ||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 6,818,181 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) sqft in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 08, 2021 USD ($) | Dec. 31, 2022 USD ($) sqft segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2016 sqft | |
Accounting Policies and Supplemental Information [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Equity method investment | $ 0 | $ 8,384 | |||
Option to purchase | 0 | 11,616 | |||
Impairment of equity method investments options | 11,600 | ||||
Carrying value | 7,800 | ||||
Purchase price | 25,732 | 0 | $ 0 | ||
Gain on disposal | 17,889 | 0 | 0 | ||
Allowance for doubtful accounts receivable | (300) | (200) | |||
Impairment of long-lived assets | 0 | 0 | |||
Advertising costs | $ 2,200 | 1,700 | 1,400 | ||
Operating lease, number of square feet | sqft | 63 | 19 | |||
Share-based compensation expense | $ 160,743 | $ 142,660 | 28,211 | ||
Revenue from Contract with Customer, Standard Contract Automatic Renewal, Term | 1 year | ||||
Minimum | |||||
Accounting Policies and Supplemental Information [Line Items] | |||||
Estimated useful lives | three | ||||
Revenue from Contract with Customer, Standard Contract Term | 3 years | ||||
Maximum | |||||
Accounting Policies and Supplemental Information [Line Items] | |||||
Revenue from Contract with Customer, Standard Contract Term | 5 years | ||||
Maximum | Software, Computer Equipment, and Furniture and Fixtures | |||||
Accounting Policies and Supplemental Information [Line Items] | |||||
Estimated useful lives | five years | ||||
Connexpay, LLC | |||||
Accounting Policies and Supplemental Information [Line Items] | |||||
Equity method investment | $ 8,400 | ||||
Option to purchase | $ 11,600 | ||||
Restricted Stock Units with a Service and Liquidity Condition | |||||
Accounting Policies and Supplemental Information [Line Items] | |||||
Service condition satisfaction period (in years) | 4 years | ||||
Share-based compensation expense | $ 23,100 | ||||
Award vesting period (in years) | 4 years | ||||
Stock options | |||||
Accounting Policies and Supplemental Information [Line Items] | |||||
Service condition satisfaction period (in years) | 4 years | ||||
Stock options | Chief Executive Officer | |||||
Accounting Policies and Supplemental Information [Line Items] | |||||
Share-based compensation expense | $ 28,816 | $ 31,231 | 10,895 | ||
Award vesting period (in years) | 7 years | ||||
Compensation and Benefits and Technology Expenses | |||||
Accounting Policies and Supplemental Information [Line Items] | |||||
Research and development costs | $ 108,300 | $ 84,100 | $ 34,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 748,206 | $ 517,175 | $ 290,292 |
Platform services revenue, net | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 725,629 | 502,296 | 283,305 |
Other services revenue | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 22,577 | $ 14,879 | $ 6,987 |
Revenue - Contract Assets and D
Revenue - Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Contract assets - current | $ 621 | $ 950 |
Total contract assets | 1,944 | 1,877 |
Deferred revenue | 17,048 | 19,060 |
Deferred revenue - non-current | 4,202 | 6,107 |
Total deferred revenue | 21,250 | 25,167 |
Prepaid expenses and other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets - current | 621 | 950 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets - non-current | 1,323 | 927 |
Accrued expenses and other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 17,048 | 19,060 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue - non-current | $ 4,202 | $ 6,107 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized during the period | $ (13.8) | $ (4.1) |
Remaining performance obligation, optional exemption, amount | $ 0 | $ 4.2 |
Marketable Securities - Unreali
Marketable Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 447,827 | $ 455,004 |
Unrealized Gain | 47 | 3 |
Unrealized Loss | (7,016) | (2,132) |
Marketable securities | 440,858 | 452,875 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 384,951 | 420,392 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (6,949) | (2,107) |
Marketable securities | 378,002 | 418,285 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29,012 | |
Unrealized Gain | 47 | |
Unrealized Loss | 0 | |
Marketable securities | 29,059 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,815 | 13,878 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Marketable securities | 28,815 | 13,878 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,003 | |
Unrealized Gain | 0 | |
Unrealized Loss | (1) | |
Marketable securities | 2,002 | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,049 | 18,731 |
Unrealized Gain | 0 | 3 |
Unrealized Loss | (67) | (24) |
Marketable securities | $ 4,982 | $ 18,710 |
Marketable Securities - Narrati
Marketable Securities - Narrative (Details) - investment | Dec. 31, 2022 | Dec. 31, 2021 |
Investments [Abstract] | ||
Number of positions in unrealized loss positions | 13 | 19 |
Marketable Securities - Stated
Marketable Securities - Stated Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due within one year | $ 447,827 | $ 64,914 |
Due after one year through two years | 0 | 390,090 |
Amortized Cost | 447,827 | 455,004 |
Estimated Fair Value | ||
Due within one year | 440,858 | 64,879 |
Due after one year through two years | 0 | 387,996 |
Estimated Fair Value | $ 440,858 | $ 452,875 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Marketable securities | $ 440,858 | $ 452,875 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Total assets | 903,317 | 1,666,418 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets | ||
Money market funds | 462,459 | 1,213,543 |
Fair Value, Measurements, Recurring | U.S. treasury securities | ||
Assets | ||
Marketable securities | 378,002 | 418,284 |
Fair Value, Measurements, Recurring | U.S. agency securities | ||
Assets | ||
Marketable securities | 29,059 | |
Fair Value, Measurements, Recurring | Commercial paper | ||
Assets | ||
Marketable securities | 28,815 | 13,878 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Assets | ||
Marketable securities | 2,002 | |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Assets | ||
Marketable securities | 4,982 | 18,711 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Total assets | 840,461 | 1,631,827 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets | ||
Money market funds | 462,459 | 1,213,543 |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury securities | ||
Assets | ||
Marketable securities | 378,002 | 418,284 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency securities | ||
Assets | ||
Marketable securities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Assets | ||
Marketable securities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt securities | ||
Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total assets | 62,856 | 34,591 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets | ||
Money market funds | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. treasury securities | ||
Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency securities | ||
Assets | ||
Marketable securities | 29,059 | |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Assets | ||
Marketable securities | 28,815 | 13,878 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Assets | ||
Marketable securities | 2,002 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | ||
Assets | ||
Marketable securities | 4,982 | 18,711 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Assets | ||
Money market funds | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. treasury securities | ||
Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. agency securities | ||
Assets | ||
Marketable securities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Assets | ||
Marketable securities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt securities | ||
Assets | ||
Marketable securities | $ 0 | $ 0 |
Fair Value Measurements - Rec_2
Fair Value Measurements - Recurring Fair Value Measurements, Unobservable Input Reconciliation (Details) | Dec. 31, 2022 $ / shares |
Dividend yield | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement input (in dollars per share, or percent) | 0 |
Expected volatility | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement input (in dollars per share, or percent) | 0.4993 |
Expected term (in years) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Warrant term (in years) | 2 years 4 months 2 days |
Risk-free interest rate | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement input (in dollars per share, or percent) | 0.0031 |
Fair value of Series B redeemable convertible preferred stock | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement input (in dollars per share, or percent) | 27 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value of Redeemable Convertible Preferred Stock (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Changed in Fair Value of Redeemable Convertible Preferred Stock Warrant Liabilities: | |
Balance, beginning of the period | $ 2,517 |
Remeasurement of redeemable convertible preferred stock warrant liabilities | 2,921 |
Reclassification of redeemable convertible preferred stock warrant liabilities to common stock and additional paid-in capital upon initial public offering | (5,438) |
Balance, end of the period | $ 0 |
Fair Value Recurring Basis Unobservable Input Reconciliation Liability Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Remeasurement of redeemable convertible preferred stock warrant liabilities |
Certain Balance Sheet Compone_3
Certain Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 9,082 | $ 6,492 |
Inventory | 5,150 | 3,940 |
Prepaid hosting and data costs | 6,443 | 2,455 |
Accrued interest receivable | 3,983 | 392 |
Prepaid insurance | 3,729 | 3,546 |
Card program deposits | 2,128 | 2,167 |
Contract assets | 621 | 950 |
Other financial instruments | 0 | 11,616 |
Other current assets | 6,871 | 4,059 |
Prepaid expenses and other current assets | $ 38,007 | $ 35,617 |
Certain Balance Sheet Compone_4
Certain Balance Sheet Components - Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 22,849 | $ 22,104 | |
Accumulated depreciation and amortization | (15,409) | (12,417) | |
Property and equipment, net | 7,440 | 9,687 | |
Depreciation and amortization | 3,853 | 3,534 | $ 3,498 |
Capitalized internal-use software costs | 0 | 1,600 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,110 | 8,110 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 9,115 | 8,581 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,542 | 2,459 | |
Internally developed and purchased software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,082 | $ 2,954 |
Certain Balance Sheet Compone_5
Certain Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued costs of revenue | $ 57,191 | $ 41,339 |
Accrued compensation and benefits | 41,268 | 32,954 |
Deferred revenue | 17,048 | 19,060 |
Accrued tax liabilities | 4,978 | 3,240 |
Accrued professional services | 4,784 | 2,454 |
Operating lease liabilities, current portion | 3,394 | 3,021 |
Reserve for contract contingencies and processing errors | 2,494 | 3,386 |
Other accrued liabilities | 5,730 | 8,642 |
Accrued expenses and other current liabilities | $ 136,887 | $ 114,096 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Certain Balance Sheet Compone_6
Certain Balance Sheet Components - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred revenue, net of current portion | $ 4,202 | $ 6,107 |
Other long-term liabilities | 1,275 | 450 |
Other liabilities | $ 5,477 | $ 6,557 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease cost | $ 3,372 | $ 3,424 | $ 3,514 |
Variable lease cost | 439 | 212 | 534 |
Short-term lease cost | 435 | 358 | 271 |
Total lease cost | $ 4,246 | $ 3,994 | $ 4,319 |
Commitments and Contingencies_2
Commitments and Contingencies - Weighted Average Lease Term and Weighted Average Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted average remaining operating lease term (in years) | 3 years 1 month 6 days | 4 years 1 month 6 days |
Weighted average discount rate | 7.70% | 7.70% |
Commitments and Contingencies_3
Commitments and Contingencies - Lease Maturity Schedule (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 4,239 |
2024 | 4,472 |
2025 | 4,599 |
2026 | 780 |
Total lease payments | 14,090 |
Less imputed interest | (1,662) |
Total operating lease liabilities | $ 12,428 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities |
Commitments and Contingencies_4
Commitments and Contingencies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Cash paid for operating lease liabilities | $ 4,112 | $ 4,081 | $ 3,192 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 0 | $ 192 |
Commitments and Contingencies_5
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantor Obligations | |||
Purchase commitment | $ 221.7 | ||
Purchase commitment period | 5 years | ||
Company matching contribution, percent | 50% | ||
Employer matching contribution, percent of employees' gross pay | 6% | ||
Requisite service period (in years) | 1 year | ||
Employer contribution amount | $ 5.8 | $ 3.1 | $ 1.9 |
Cloud Computing Service Agreement | |||
Guarantor Obligations | |||
Purchase commitment | 212.6 | ||
Letter of Credit | |||
Guarantor Obligations | |||
Letters of credit, amount | 1.5 | ||
Letter of Credit | Restricted Cash | |||
Guarantor Obligations | |||
Deposit assets | $ 1.5 |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 160,743 | $ 142,660 | $ 28,211 |
Restricted Stock Units (RSUs) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 76,094 | 59,652 | 0 |
Stock options | Chief Executive Officer | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 28,816 | 31,231 | 10,895 |
Executive Chairman Long-Term Performance Award | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 53,214 | 38,189 | 0 |
Employee Stock Purchase Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 2,619 | 1,946 | 0 |
Secondary sales of common stock | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 0 | $ 11,642 | $ 17,316 |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jun. 08, 2021 | May 31, 2021 | May 30, 2021 | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 160,743 | $ 142,660 | $ 28,211 | ||||
Weighted average grant date fair value (in dollars per share) | $ 5.89 | $ 12.10 | $ 1.81 | ||||
Total intrinsic value of options exercised | $ 61,600 | $ 83,000 | $ 32,800 | ||||
Grants in period, grant date intrinsic value | $ 40,000 | 17,600 | 10,700 | ||||
Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Weighted average grant date fair value (in dollars per share) | $ 10.53 | ||||||
Executive Chairman Long-Term Performance Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 53,214 | 38,189 | 0 | ||||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 2 years 4 months 24 days | ||||||
Compensation costs related to unvested outstanding stock options | $ 58,600 | ||||||
Executive Chairman Long-Term Performance Award | 2011 Plan | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Purchase price of common stock, percent | 85% | ||||||
Restricted Stock Units with Service Condition | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 23,100 | ||||||
Award vesting period (in years) | 4 years | ||||||
Unvested RSUs outstanding | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 76,094 | $ 59,652 | $ 0 | ||||
CEO Long-term performance awards | $ 296,000 | ||||||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 3 years 3 months 18 days | ||||||
Stock options outstanding, including early exercise of options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 4,182,522 | 29,113,555 | 6,404,800 | ||||
Granted (in dollars per share) | $ 10.16 | $ 20.07 | $ 2.31 | ||||
Stock options outstanding, including early exercise of options | 2011 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Fair market value of one share of common stock threshold | 110% | ||||||
Stock options outstanding, including early exercise of options | 2011 Plan | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Fair market value of one share of common stock threshold | 110% | ||||||
Combined voting power of stockholder, 10% Stockholder | 10% | ||||||
Expiration period (in years) | 10 years | ||||||
Stock options, 10% Stockholders | 2011 Plan | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Combined voting power of stockholder, 10% Stockholder | 10% | ||||||
Expiration period (in years) | 5 years | ||||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 3 years 1 month 6 days | ||||||
Stock options | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 28,816 | $ 31,231 | $ 10,895 | ||||
Award vesting period (in years) | 7 years | ||||||
Granted (in shares) | 47,267 | 19,740,923 | |||||
Granted (in dollars per share) | $ 23.40 | $ 21.49 | |||||
Expected cost to be recognized over remaining derived service period | $ 117,000 | ||||||
Secondary sales of common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 0 | $ 11,642 | $ 17,316 |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Restricted Stock Units | ||
Balance at beginning of the period (in shares) | 9,001,949 | 4,430,336 |
Granted (in shares) | 36,159,090 | 8,409,821 |
Vested (in shares) | (4,883,296) | (2,641,196) |
Canceled and forfeited (in shares) | (6,131,197) | (1,197,012) |
Balance at the end of the period (in shares) | 34,146,546 | 9,001,949 |
Weighted-average grant date fair value per share | ||
Balance at the beginning of the period (in dollars per share) | $ 18.30 | $ 4.93 |
Grant (in dollars per share) | 8.91 | 22.20 |
Vested (in dollars per share) | 13.99 | 10.12 |
Canceled and forfeited (in dollars per share) | 14.07 | 14.23 |
Balance at the end of the period (in dollars per share) | $ 9.74 | $ 18.30 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Stock Option Activity Under Stock Incentive Plan (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | ||||
Balance at the beginning of the period (in shares) | 44,185,488 | 23,421,374 | 25,159,411 | |
Granted (in shares) | 4,182,522 | 29,113,555 | 6,404,800 | |
Exercised (in shares) | (7,785,748) | (4,277,344) | (6,084,183) | |
Canceled and forfeited (in shares) | (4,425,817) | (4,072,097) | (2,058,654) | |
Balance at the end of the period (in shares) | 36,156,445 | 44,185,488 | 23,421,374 | 25,159,411 |
Weighted-Average Exercise Price per Share | ||||
Balance at the beginning of the period (in dollars per share) | $ 13.31 | $ 1.35 | $ 0.92 | |
Granted (in dollars per share) | 10.16 | 20.07 | 2.31 | |
Exercised (in dollars per share) | 1.20 | 1.18 | 0.53 | |
Canceled and forfeited (in dollars per share) | 6.60 | 5.58 | 1.50 | |
Balance at the end of the period (in dollars per share) | $ 16.37 | $ 13.31 | $ 1.35 | $ 0.92 |
Option Activity, Additional Disclosures | ||||
Options outstanding, weighted average remaining contractual life (in years) | 7 years 8 months 1 day | 8 years 5 months 15 days | 8 years 3 months 29 days | 8 years 8 months 26 days |
Options outstanding, aggregate intrinsic value (in USD) | $ 29,101 | $ 279,242 | $ 248,002 | $ 46,594 |
Options vested as of December 31, 2022, number of options (in shares) | 7,389,512 | |||
Options vested as of December 31, 2022, exercise price per share (in dollars per share) | $ 6.57 | |||
Options vested, weighted average remaining contractual life (in years) | 4 years 11 months 23 days | |||
Options vested, as of December 3 2022, aggregate intrinsic value (in USD) | $ 24,410 |
Stock Incentive Plans - Weighte
Stock Incentive Plans - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Dividend yield | 0% | 0% | 0% |
Expected volatility | 61.52% | 52.36% | 48.11% |
Expected term (in years) | 6 years 29 days | 6 years 1 month 20 days | 6 years 7 days |
Risk-free interest rate | 2.32% | 1% | 0.54% |
Stock Incentive Plans - CEO Per
Stock Incentive Plans - CEO Performance Awards (Details) - Stock options - Chief Executive Officer | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of options eligible to vest (in shares) | 19,788,188 |
Tranche 1 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company stock price hurdle (in dollars per share) | $ / shares | $ 67.50 |
Number of options eligible to vest (in shares) | 2,826,884 |
Tranche 2 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company stock price hurdle (in dollars per share) | $ / shares | $ 78.98 |
Number of options eligible to vest (in shares) | 2,826,884 |
Tranche 3 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company stock price hurdle (in dollars per share) | $ / shares | $ 92.40 |
Number of options eligible to vest (in shares) | 2,826,884 |
Tranche 4 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company stock price hurdle (in dollars per share) | $ / shares | $ 108.11 |
Number of options eligible to vest (in shares) | 2,826,884 |
Tranche 5 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company stock price hurdle (in dollars per share) | $ / shares | $ 126.49 |
Number of options eligible to vest (in shares) | 2,826,884 |
Tranche 6 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company stock price hurdle (in dollars per share) | $ / shares | $ 147.99 |
Number of options eligible to vest (in shares) | 2,826,884 |
Tranche 7 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company stock price hurdle (in dollars per share) | $ / shares | $ 173.15 |
Number of options eligible to vest (in shares) | 2,826,884 |
Stockholders_ Equity Transact_3
Stockholders’ Equity Transactions - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 14, 2022 | Dec. 31, 2020 | |
Class of Warrant or Right [Line Items] | ||||
Stock repurchase program, authorized amount | $ 100,000,000 | |||
Shares repurchased, average price per share (in usd per share) | $ 6.77 | |||
Repurchase of early exercised stock options (in shares) | 11,700,000 | |||
Repurchase of early exercised stock options (in shares) | $ 79,201,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 20,800,000 | |||
Common Stock Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Number of securities called by each warrant (in shares) | 1,150,000 | 750,000 | ||
Exercise price of warrants (in dollars per share) | $ 0.01 | |||
Redeemable convertible preferred stock warrant liabilities | $ 26,400,000 | $ 5,700,000 | ||
Vested warrants outstanding (in shares) | 695,637 | 300,504 | ||
Class of warrant or right, reduction to net revenues in the period | $ (7,300,000) | $ 5,000,000 |
Stockholders_ Equity Transact_4
Stockholders’ Equity Transactions - Measurement Inputs (Details) | Dec. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2020 |
Dividend yield | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0 | ||
Expected volatility | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0.4993 | ||
Risk-free interest rate | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0.0031 | ||
March 2021 Common Stock Warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrant term (in years) | 4 years | ||
March 2021 Common Stock Warrants | Dividend yield | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0 | ||
March 2021 Common Stock Warrants | Expected volatility | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0.500 | ||
March 2021 Common Stock Warrants | Risk-free interest rate | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0.006 | ||
September 2020 Common Stock Warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrant term (in years) | 5 years | ||
September 2020 Common Stock Warrants | Dividend yield | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0 | ||
September 2020 Common Stock Warrants | Expected volatility | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0.500 | ||
September 2020 Common Stock Warrants | Risk-free interest rate | |||
Class of Warrant or Right [Line Items] | |||
Measurement input (percent) | 0.003 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (184,780) | $ (163,929) | $ (47,695) |
Net loss attributable to common stockholders | $ (184,780) | $ (163,929) | $ (47,695) |
Weighted-average shares used in computing net loss per share attributable to common stockholders - Diluted (in shares) | 545,397,254 | 362,756,466 | 122,932,556 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - Basic (in shares) | 545,397,254 | 362,756,466 | 122,932,556 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.34) | $ (0.45) | $ (0.39) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.34) | $ (0.45) | $ (0.39) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 133,504,403 | 118,313,973 | 389,002,257 |
Company social impact initiatives period (in years) | 7 years | ||
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares reserved for future issuance (in shares) | 280,000 | ||
Redeemable Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0 | 351,844,340 |
Warrants to purchase redeemable convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0 | 203,610 |
Warrants to purchase Class B common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,900,000 | 1,900,000 | 1,419,528 |
Stock options outstanding, including early exercise of options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 36,156,445 | 45,307,479 | 23,421,374 |
Unvested RSUs outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 34,146,546 | 9,001,949 | 4,430,336 |
Shares committed under the ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 408,831 | 211,118 | 0 |
Stock options and RSUs available for future grants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 60,892,581 | 61,893,427 | 7,683,069 |
Income Tax - Components of Inco
Income Tax - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (185,612) | $ (165,160) | $ (47,911) |
Foreign | 730 | 591 | 303 |
Loss before income tax expense | $ (184,882) | $ (164,569) | $ (47,608) |
Income Tax - Significant Compon
Income Tax - Significant Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 353 | 38 | 18 |
Foreign | 18 | 0 | 147 |
Current | 371 | 38 | 165 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (473) | (678) | (78) |
Deferred | (473) | (678) | (78) |
Total: | |||
Federal | 0 | 0 | 0 |
State | 353 | 38 | 18 |
Foreign | (455) | (678) | 69 |
Income tax expense (benefit) | $ (102) | $ (640) | $ 87 |
Income Tax - Effective Income T
Income Tax - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Taxes at federal statutory rate | 21% | 21% | 21% |
State taxes, net of federal effect | 4.60% | 4% | 4.40% |
Share-based compensation | 3.90% | 4.50% | (8.50%) |
Section 162(m) limitation | (13.80%) | (8.30%) | 0% |
Other | 1.40% | (0.30%) | (0.10%) |
Change in valuation allowance | (17.00%) | (20.50%) | (17.00%) |
Effective tax rate | 0.10% | 0.40% | (0.20%) |
Income Tax - Components of Defe
Income Tax - Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Federal and state net operating losses | $ 33,497 | $ 41,418 |
Research and development credits | 77 | 77 |
Property and equipment | 205 | |
Property and equipment | (47) | |
Accruals and other | 20,884 | 16,173 |
Share-based compensation | 14,490 | 7,124 |
R&D capitalization expenditures | 23,404 | 0 |
Reserve for contract contingencies and processing errors | 614 | 818 |
Deferred revenue | 6,011 | 3,132 |
Lease liability | 3,061 | 3,730 |
Total deferred tax assets | 102,243 | 72,425 |
Less valuation allowance | (98,816) | (68,847) |
Total deferred tax assets, net of valuation allowance | 3,427 | 3,578 |
Deferred tax liabilities | ||
Right-of-use asset | (2,220) | (2,728) |
Total deferred tax liabilities | (2,220) | (2,728) |
Net deferred tax assets | $ 1,207 | $ 850 |
Income Tax - Narrative (Details
Income Tax - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||
Additional valuation allowance | $ 30,000 | $ 32,400 | |
R&D capitalization expenditures | 23,404 | 0 | |
Federal and state net operating losses | 33,497 | 41,418 | |
Unrecognized tax benefits | 0 | $ 0 | $ 0 |
Income tax penalties and interest expense | 0 | ||
Research Tax Credit Carryforward | Internal Revenue Service (IRS) | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward | 200 | ||
Domestic Tax Authority | |||
Tax Credit Carryforward [Line Items] | |||
Federal and state net operating losses | 130,000 | ||
Operating loss carryforwards, carried forward indefinitely | $ 121,500 | ||
Domestic Tax Authority | Research Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
R&D amortization period (in years) | 5 years | ||
Foreign Tax Authority | Research Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
R&D amortization period (in years) | 15 years | ||
State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Federal and state net operating losses | $ 85,300 |
Concentration of Risks and Si_3
Concentration of Risks and Significant Customers (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 1,183,846 | $ 1,247,581 | $ 220,433 |
Marketable securities | 440,858 | 452,875 | |
Credit Concentration Risk | Investments | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 500,000 | 1,200,000 | |
Number of investments | investment | 3 | ||
Credit Concentration Risk | Debt Securities, Available-For-Sale | |||
Concentration Risk [Line Items] | |||
Marketable securities | $ 407,100 | $ 418,300 | |
Credit Concentration Risk | Debt Securities, Available-For-Sale | Marketable Securities | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 92% | 92% | |
Credit Concentration Risk | Accounts Receivable | Sutton Bank | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 82% | 90% | 96% |
Customer Concentration Risk | Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18% | ||
Customer Concentration Risk | Accounts Receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20% | ||
Customer Concentration Risk | Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13% | ||
Customer Concentration Risk | Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 71% | 69% | 70% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2021 | |
Connexpay, LLC | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 2.7 | $ 2.8 | ||
Due to related party | 4.1 | |||
DFS Services LLC | DFS Services LLC | DFS Services LLC | ||||
Related Party Transaction [Line Items] | ||||
Ownership interest by related party | 5% | |||
PULSE Network LLC | Card Network Fees, Net | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related parties | $ 30.4 | $ 14.4 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||
Purchase commitment period | 5 years | |
Power Finance, Inc. | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Purchase price in cash | $ 221.9 | |
Purchase commitment period | 2 years | |
Business combination, contingent consideration, performance-based goals within the next 12 months | $ 53.1 |