Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
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, 2023 | ||
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 | 877 | ||
Local Phone Number | 962-7738 | ||
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 | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.3 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2024 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, 2023. | ||
Entity Central Index Key | 0001522540 | ||
Document Fiscal Year Focus | 2023 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 461,562,862 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 52,248,249 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 980,972 | $ 1,183,846 |
Restricted cash | 8,500 | 7,800 |
Short-term investments | 268,724 | 440,858 |
Accounts receivable, net | 19,540 | 15,569 |
Settlements receivable, net | 29,922 | 18,028 |
Network incentives receivable | 53,807 | 42,661 |
Prepaid expenses and other current assets | 27,233 | 38,007 |
Total current assets | 1,388,698 | 1,746,769 |
Operating lease right-of-use assets, net | 6,488 | 9,015 |
Property and equipment, net | 18,764 | 7,440 |
Intangible assets, net | 35,631 | 0 |
Goodwill | 123,523 | 0 |
Other assets | 16,587 | 7,122 |
Total assets | 1,589,691 | 1,770,346 |
Current liabilities: | ||
Accounts payable | 1,420 | 3,798 |
Revenue share payable | 173,645 | 142,194 |
Accrued expenses and other current liabilities | 161,514 | 136,887 |
Total current liabilities | 336,579 | 282,879 |
Operating lease liabilities, net of current portion | 5,126 | 9,034 |
Other liabilities | 4,591 | 5,477 |
Total liabilities | 346,296 | 297,390 |
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, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock, $0.0001 par value: 1,500,000,000 and 1,500,000,000 Class A shares authorized, 465,985,131 and 486,530,334 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively. 600,000,000 and 600,000,000 Class B shares authorized, 54,357,844 and 54,833,765 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively | 52 | 53 |
Additional paid-in capital | 2,067,776 | 2,082,373 |
Accumulated other comprehensive income (loss) | 762 | (7,237) |
Accumulated deficit | (825,195) | (602,233) |
Total stockholders’ equity | 1,243,395 | 1,472,956 |
Total liabilities and stockholders’ equity | $ 1,589,691 | $ 1,770,346 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parentheticals - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 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) | 465,985,131 | 486,530,334 |
Common stock, shares, outstanding (in shares) | 465,985,131 | 486,530,334 |
Class B Common Stock | ||
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 54,357,844 | 54,833,765 |
Common stock, shares, outstanding (in shares) | 54,357,844 | 54,833,765 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net revenue | $ 676,171 | $ 748,206 | $ 517,175 |
Costs of revenue | 346,657 | 428,205 | 285,470 |
Gross profit | 329,514 | 320,001 | 231,705 |
Operating expenses: | |||
Compensation and benefits | 499,595 | 415,094 | 318,116 |
Technology | 55,612 | 52,361 | 33,637 |
Professional services | 21,679 | 23,479 | 18,443 |
Occupancy | 4,361 | 4,514 | 4,181 |
Depreciation and amortization | 10,741 | 3,853 | 3,534 |
Marketing and advertising | 2,566 | 3,995 | 2,284 |
Other operating expenses | 17,975 | 26,513 | 13,516 |
Total operating expenses | 612,529 | 529,809 | 393,711 |
Loss from operations | (283,015) | (209,808) | (162,006) |
Other income (expense), net | 52,440 | 24,926 | (2,563) |
Loss before income tax expense | (230,575) | (184,882) | (164,569) |
Income tax benefit | (7,613) | (102) | (640) |
Net loss | (222,962) | (184,780) | (163,929) |
Net loss attributable to common stockholders, basic | (222,962) | (184,780) | (163,929) |
Net loss attributable to common stockholders, diluted | (222,962) | (184,780) | (163,929) |
Other comprehensive income (loss), net of taxes: | |||
Change in foreign currency translation adjustment | (40) | (167) | (14) |
Net change in unrealized gain (loss) on short-term investments | 8,039 | (4,840) | (2,241) |
Net other comprehensive income (loss) | 7,999 | (5,007) | (2,255) |
Comprehensive loss | $ (214,963) | $ (189,787) | $ (166,184) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.42) | $ (0.34) | $ (0.45) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.42) | $ (0.34) | $ (0.45) |
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares) | 532,540,175 | 545,397,254 | 362,756,466 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares) | 532,540,175 | 545,397,254 | 362,756,466 |
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, 2020 | 351,844,340 | |||||
Redeemable Convertible Preferred Stock Beginning Balance at Dec. 31, 2020 | $ 501,881 | |||||
Redeemable Convertible Preferred Stock | ||||||
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 | |||||
Balance at the beginning of the period (in shares) at Dec. 31, 2020 | 130,312,838 | |||||
Balance at the beginning of the period at Dec. 31, 2020 | $ (213,717) | $ 13 | $ 39,769 | $ 25 | $ (253,524) | |
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 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 | 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 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) | (11,657,371) | |||||
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) | |
Redeemable Convertible Preferred Stock Ending Balance (in shares) at Dec. 31, 2023 | 0 | |||||
Redeemable Convertible Preferred Stock Ending Balance at Dec. 31, 2023 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of vested options (in shares) | 3,353,103 | |||||
Issuance of common stock upon exercise of options | 5,399 | $ 1 | 5,398 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 792,140 | |||||
Issuance of common stock under employee stock purchase plan | 3,066 | 3,066 | ||||
Repurchase of early exercised stock options (in shares) | (2,625) | |||||
Issuance of common stock net settlement of restricted stock units (in shares) | 9,347,171 | |||||
Issuance of common stock upon net settlement of restricted stock units | (26,661) | $ 1 | (26,662) | |||
Issuance of common stock upon exercise of common stock warrants | 0 | |||||
Vesting of common stock warrants | 8,715 | 8,715 | ||||
Share-based compensation expense | 185,231 | 185,231 | ||||
Repurchase and retirement of common stock (in shares) | (34,510,913) | |||||
Repurchase and retirement of common stock | (190,348) | $ (3) | (190,345) | |||
Change in accumulated other comprehensive income (loss) | 7,999 | 7,999 | ||||
Net loss | (222,962) | (222,962) | ||||
Balance at the end of the period (in shares) at Dec. 31, 2023 | 520,342,975 | |||||
Balance at the end of the period at Dec. 31, 2023 | $ 1,243,395 | $ 52 | $ 2,067,776 | $ 762 | $ (825,195) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities: | |||
Net loss | $ (222,962) | $ (184,780) | $ (163,929) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 10,741 | 3,853 | 3,534 |
Share-based compensation expense | 180,739 | 160,743 | 142,660 |
Non-cash operating leases expense | 2,527 | 2,281 | 2,115 |
Non-cash postcombination compensation expense | 32,430 | 0 | 0 |
Amortization of premium on short-term investments | (4,495) | 277 | 1,162 |
Gain on sale of equity method investment | 0 | (17,889) | 0 |
Impairment of other financial instruments | 0 | 11,616 | 0 |
Other | 736 | 649 | 3,110 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (4,556) | (2,577) | (4,940) |
Settlements receivable | (11,894) | (6,762) | 1,601 |
Network incentives receivable | (11,146) | (12,262) | (10,377) |
Prepaid expenses and other assets | 7,900 | (8,621) | (7,742) |
Accounts payable | (1,956) | 254 | 190 |
Revenue share payable | 31,451 | 21,015 | 42,988 |
Accrued expenses and other liabilities | 14,983 | 22,257 | 49,372 |
Operating lease liabilities | (3,394) | (3,020) | (2,772) |
Net cash provided by (used in) operating activities | 21,104 | (12,966) | 56,972 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (762) | (2,319) | (2,743) |
Capitalization of internal-use software | (11,889) | 0 | 0 |
Business combination, net of cash acquired | (135,777) | 0 | 0 |
Purchase of patents | 0 | (1,600) | 0 |
Purchases of short-term investments | (892,430) | (70,495) | (455,266) |
Sales of short-term investments | 577,934 | 0 | 0 |
Maturities of short-term investments | 501,534 | 77,400 | 148,888 |
Realized gain/loss on investments | (94) | 0 | 0 |
Purchase of equity method investment and purchase option | 0 | 0 | (20,000) |
Sale of equity method investment | 0 | 25,732 | 0 |
Net cash provided by (used in) investing activities | 38,516 | 28,718 | (329,121) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriters’ discounts and commissions | 0 | 0 | 1,319,809 |
Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options | 5,289 | 9,249 | 4,539 |
Payment of contingent consideration | (53,067) | 0 | |
Proceeds from exercise of warrants | 0 | 0 | 60 |
Proceeds from shares issued in connection with employee stock purchase plan | 3,066 | 4,762 | 3,201 |
Taxes paid related to net share settlement of restricted stock units | (26,662) | (15,362) | (23,552) |
Repurchase of common stock | (190,420) | (78,136) | 0 |
Payment of deferred offering costs | 0 | 0 | (4,760) |
Net cash (used in) provided by financing activities | (261,794) | (79,487) | 1,299,297 |
(Decrease) Increase in cash, cash equivalents, and restricted cash | (202,174) | (63,735) | 1,027,148 |
Cash, cash equivalents, and restricted cash - Beginning of period | 1,191,646 | 1,255,381 | 228,233 |
Cash, cash equivalents, and restricted cash - End of period | 989,472 | 1,191,646 | 1,255,381 |
Reconciliation of cash, cash equivalents, and restricted cash | |||
Cash and cash equivalents | 980,972 | 1,183,846 | 1,247,581 |
Restricted cash | 8,500 | 7,800 | 7,800 |
Total cash, cash equivalents, and restricted cash | 989,472 | 1,191,646 | 1,255,381 |
Supplemental disclosures of cash flow information: | |||
Cash paid for operating lease liabilities | 4,239 | 4,112 | 4,081 |
Cash paid for interest | 0 | 0 | 0 |
Cash paid for income taxes | 430 | 84 | 201 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Purchase of property and equipment accrued and not yet paid | 113 | 563 | 1,190 |
Share-based compensation capitalized to internal-use software | 4,492 | 0 | 0 |
Repurchase of common stock accrued and not yet paid | 991 | 1,065 | 0 |
Vesting of early exercised stock options | $ 0 | $ 298 | $ 0 |
Business Overview and Basis of
Business Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Business Overview and Basis of Presentation | Business Overview and Basis of Presentation Marqeta, Inc., (“the Company”) creates digital payment technology for innovation leaders. The Company's modern card issuing platform empowers its customers to create customized and innovative payment card programs, giving them the configurability and flexibility to build better payment 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 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 legal entities in Australia, Brazil, Canada, Poland, and Singapore as of December 31, 2023. Initial Public Offering In June 2021, the Company completed an initial public offering (“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 in conformity with GAAP requires management to make various 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 include, but are not limited to, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, the estimation of contingent liabilities, 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 valuation of income taxes. 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, 2023, the Company incurred a net loss of $223.0 million and had an accumulated deficit of $825.2 million as of December 31, 2023. 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 $981.0 million and short-term investments of $268.7 million as of December 31, 2023 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, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Segment Information The Company operates as a single operating segment and reporting unit. 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, 2023, 2022, and 2021, net revenue outside of the United States, based on the billing address of the customer, was not material. As of December 31, 2023 and December 31, 2022, long-lived assets located outside of the United States were not material. Business Combinations The Company allocates the purchase consideration for acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations and Comprehensive Loss. Acquisition-related expenses and postcombination integration and employee compensation costs are recognized separately from the business combination and are expensed as incurred. Cash and Cash Equivalents Cash and cash equivalents consist primarily of bank deposit accounts and investments in money market funds and certain U.S. treasury bills. 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. Restricted Cash Restricted cash consists of deposits with 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 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. Issuing Banks are financial institutions that issue payment cards (credit, debit, or prepaid) either on their own behalf or on behalf of a business. Card Networks are networks that provide the infrastructure for settlement and card payment information flows. Short-term Investments The Company's short-term investments include U.S. treasury securities, U.S. agency securities, commercial paper, asset-backed securities, and corporate debt securities. The Company's short-term investments are classified as available-for-sale and are recorded 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 short-term investments 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 short-term investments in Other income (expense), net in the Consolidated Statements of Operations and Comprehensive Loss. Accounts Receivable Accounts receivable are recorded at the invoiced amount, net of an allowance for credit losses 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, 2023 and 2022, the allowance for accounts receivable was $0.3 million and $0.3 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 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. 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. 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 over the estimated useful lives of the assets; generally three The Company capitalizes internal and external direct costs incurred related to obtaining or developing internal-use software. Costs incurred during the application development stage are capitalized and are amortized using the straight-line method over the estimated useful lives of the software, generally three years commencing on the first day of the month following when the software is ready for its intended use. Costs related to planning and other preliminary project activities and post-implementation activities are expensed as incurred. The depreciation and amortization of property and equipment is recorded within Depreciation and amortization expense on the Consolidated Statements of Operations and Comprehensive Loss. Goodwill The excess purchase price over the fair value of identifiable net assets acquired is recorded as goodwill. Goodwill amounts are not amortized. Intangible Assets Intangible assets with finite lives are carried at acquisition cost less accumulated amortization and are amortized over their estimated useful lives on a straight-line basis. The amortization of these assets is recorded within Depreciation and amortization expense on the Consolidated Statements of Operations and Comprehensive Loss. Impairment Impairment testing for goodwill is performed annually in the fourth quarter or more frequently whenever events or changes in circumstances indicate its carrying value may not be recoverable. Such testing is performed at the reporting unit level. Management has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company also has the option to bypass the qualitative assessment and perform the quantitative assessment. The Company reviews the valuation of long-lived assets, including property and equipment and finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future undiscounted cash flow the asset is expected to generate. Based on management's assessment, the Company did not recognize any material impairment losses on its goodwill, finite-lived intangible assets or other long-lived assets during the periods presented herein. 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 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 gave the Company the right, but not the obligation, to purchase all of the remaining equity interests of the private company. 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 within Other income (expense), net on the Consolidated Statement of Operations and Comprehensive Loss 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 and Comprehensive Loss. 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. 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. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include the transfer of multiple services. The Company’s contracts with customers typically include multiple performance obligations: 1) providing access to the Company's payment processing platform, 2) providing managed services or 3) providing card fulfillment services . The Company accounts for individual services as a separate performance obligation if they are distinct because the service is separately identifiable from other items in the arrangement and a customer can benefit from the good or service on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. 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 based on prices at which the Company separately sells each service or 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. Additionally, for certain customer arrangements, the performance obligations also include managing the interactions with Card Networks and/or the Issuing Banks on behalf of its customers or other managed services, including dispute management, fraud scoring, and cardholder support services. The Company’s platform services revenue is derived from Interchange Fees generated by customer card transactions. The Company accounts for these Interchange Fees as revenue earned from its customers for performance obligations where the Company controls the services before delivery to the customer. The Company’s platform services revenue also includes processing and other transaction fees from transactions that are based on either a percentage of processing volume or a fee per transaction basis. The Company’s platform services revenue primarily consists of stand-ready obligations which are satisfied over time and are accounted for as a series of distinct services that are substantially the same and have the same pattern of transfer to customers. The Company recognizes revenue when the promised services are complete, and its performance obligations are satisfied. Platform services 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 period 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 ranges from three For net revenue generated from customer arrangements that involve third parties, the Company determines whether it has promised to provide the specified service itself (as principal) or to arrange for the specified service to be provided by another party (as an agent). This determination depends on the facts and circumstance of each arrangement, and in some instances, involves significant judgment. In order to deliver an integrated payment processing platform to its customers, the Company works with Issuing Banks and Card Networks in various capacities. The Company is considered the principal in customer arrangements where the Company controls the services performed by the Issuing Banks and Card Networks before delivery of the promised services 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 within the Consolidated Statements of Operations and Comprehensive Loss. In instances where the Company is considered an agent in providing services to the customer, fees for services paid to Issuing Banks and Card Networks, if any, are recorded within Net Revenue such that Net Revenue in the Consolidated Statements of Operations and Comprehensive Loss reflects the net amount of consideration that the Company retains. Revenue Share The Company’s contracts with customers typically include provisions under which the Company shares a portion of the Interchange Fees as consideration payable to 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 net 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. Contract Assets and Deferred Revenue Contract assets, reported within Prepaid expenses and other current assets or within Other Assets in the Consolidated Balance Sheets, are primarily from upfront payments provided to certain customers and variable consideration from customer contracts where pricing terms are not consistent throughout the entire term of the contract. Deferred revenue, reported within Accrued expenses and other current liabilities or Other liabilities in the Consolidated Balance Sheets, arises when customers pay for services in advance of the Company's revenue recognition. The Company's deferred revenue is primarily due to undelivered card fulfillment services, variable consideration from customer contracts where pricing terms are not consistent throughout the entire term of the contract, and 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 for customer arrangements where the Company is the principal in providing services to the customer and excludes depreciation and amortization, which is reported separately within the Consolidated Statements of Operations and Comprehensive Loss. Card Network costs are mostly 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. 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 in customer arrangements where the Company is the principal. The Company's contracts with Card Networks and Issuing Banks typically have terms ranging from three Advertising Costs The Company expenses advertising costs as they are incurred. Advertising expenses for the years ended December 31, 2023, 2022 and 2021, were $1.5 million, $2.2 million and $1.7 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 $148.0 million, $108.3 million, and $84.1 million for the years ended December 31, 2023, 2022 and 2021, 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. Share-based Compensation The primary types of share-based compensation utilized by the Company are restricted share units (“RSUs”) and stock options and the use of the employee stock purchase plan (“ESPP”). The Company determines compensation expense associated with RSUs based on the estimated fair value of its common stock on the date of grant. The compensation expense associated with stock options is determined based on the estimated grant date fair value using the Black-Scholes option pricing model. The Company generally recognizes compensation expense using a straight-line amortization method over the respective vesting period. The Company accounts for forfeitures as they occur. 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. Restructuring Restructuring costs stem from employee related severance charges and include both cash and non-cash compensation. The Company generally recognizes restructuring costs upon communication of the plan to the identified employees or when payments are probable and amounts are estimable, depending on the region an employee works. Restructuring liabilities are classified in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. 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 benefit in the Consolidated Statements of Operations and Comprehensive Loss. 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. 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. 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 ‑ Inputs are 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 pricing inputs in the market. 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, short-term investments, accounts 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. Short-term investments are carried at fair value. Accounts 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. Foreign Currency The functional currency of the Company’s foreign subsidiaries is its respective local currency. For these foreign entities, the Company translates the financial statements into U.S. dollars using average exchange rates for the period for income statement amounts and using end-of-period exchange rates for assets and liabilities. There translation adjustments 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. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application i |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Platform services revenue, net $ 654,553 $ 725,629 $ 502,296 Other services revenue 21,618 22,577 14,879 Total net revenue $ 676,171 $ 748,206 $ 517,175 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 $ 1,461 $ 621 Contract assets - non-current Other assets 9,397 1,323 Total contract assets $ 10,858 $ 1,944 Deferred revenue - current Accrued expenses and other current liabilities $ 11,829 $ 17,048 Deferred revenue - non-current Other liabilities 4,071 4,202 Total deferred revenue $ 15,900 $ 21,250 Net revenue recognized during the years ended December 31, 2023 and 2022 that was included in the deferred revenue balances at the beginning of the respective periods was $12.0 million and $13.8 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, 2023 and 2022, the Company did not have a material right included in its deferred revenue balance. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On February 3, 2023, the Company acquired all outstanding stock of Power Finance Inc. (“Power Finance”) for a base cash purchase price of $221.9 million. The purchase price does not include a $53.1 million contingent consideration tied to performance-based goals which were expected to be achieved within 12 months from the date of acquisition. The Company determined the acquisition-date fair value of the contingent consideration liability, based on the likelihood of payment related to the contingent earn-out clauses, as part of the consideration transferred. Power Finance’s cloud-based platform offers credit card program management services for companies creating new credit card programs. The acquisition of Power Finance will accelerate the Company’s credit product capabilities and allow the Company’s customers to launch a wide range of credit products and constructs. The following table summarizes the components of the purchase consideration transferred (in thousands): Base purchase price less contingent consideration $ 221,933 Less: postcombination cash, non-cash expense and other purchase adjustments 118,447 Plus: cash acquired on acquisition date 7,089 Total purchase consideration, excluding contingent consideration 110,575 Contingent consideration 53,067 Purchase consideration $ 163,642 Of the $117.6 million postcombination compensation excluded from purchase consideration, approximately $32.4 million was recognized as non-cash postcombination compensation cost at closing as a result of the vesting provisions of the employee replacement awards on the acquisition date. The remaining $85.1 million is subject to continuous employment and will be recognized as postcombination cash compensation cost over a weighted-average period of 2.2 years. Postcombination expense recognized was $36.4 million for the year ended December 31, 2023 and is included within Compensation and benefits in the Consolidated Statements of Operations and Comprehensive Loss. The assets acquired and liabilities assumed were recorded at fair value as of the acquisition date. The final $163.6 million purchase consideration was attributed to $41.0 million of developed technology intangible assets (to be amortized over an estimated useful life of 7.0 years), $8.0 million of deferred tax liabilities, and $7.1 million of net assets acquired, with the $123.5 million excess of purchase consideration over the fair value of assets acquired and liabilities assumed recorded as goodwill. The fair value of the developed technology intangible assets was estimated using the multi-period excess earnings method (“MPEEM”), a form of the income approach. The principle behind this method is that the value of the intangible asset is equal to the present value of the after-tax cash flows attributable to the intangible asset. The Company applied judgment which involved the use of certain assumptions with respect of the revenue and EBITDA forecasts, obsolescence rate, and discount rate. The goodwill recognized was primarily attributable to the expected synergies from integrating Power Finance’s technology into the Company’s platform. Goodwill was not considered deductible for tax purposes. The financial results of Power Finance are included in the Company’s Consolidated Financial Statements from the date of acquisition. Separate operating results and pro forma results of operations for Power Finance have not been presented as the effect of this acquisition was not material to the Company’s financial results. Acquisition-related third-party transaction costs were $3.3 million for the year ended December 31, 2023 and are included in Professional services in the Consolidated Statements of Operations and Comprehensive Loss. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill consisted of the following: Balance as of December 31, 2022 $ — Goodwill from acquisition of Power Finance, Inc. 123,000 Measurement period adjustments 523 Balance as of December 31, 2023 $ 123,523 Intangibles Assets, net Intangible assets consisted of the following as of the dates presented: December 31, December 31, Developed technology $ 41,000 $ — Accumulated amortization (5,369) — Intangibles, net $ 35,631 $ — The amortization period for developed technology intangible assets is 7 years. Amortization expense for developed technology was $5.4 million for year ended December 31, 2023. Expected future amortization expense for intangible assets was as follows as of December 31, 2023: 2024 $ 5,857 2025 5,857 2026 5,857 2027 5,857 2028 5,857 Thereafter 6,345 Total expected future amortization expense for intangible assets $ 35,631 |
Short-term Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Short-term Investments | Short-term Investments During 2023, the Company renamed the Marketable securities financial statement line item to Short-term investments in the Consolidated Balances Sheets to more accurately align with the Company’s current investment portfolio. The amortized cost, unrealized gain (loss), and estimated fair value of the Company's short-term investments consisted of the following: December 31, 2023 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Short-term Investments U.S. treasury securities $ 239,297 $ 970 $ (11) $ 240,256 U.S. agency securities 15,000 — (7) 14,993 Asset-backed securities 10,438 62 — 10,500 Corporate debt securities 2,981 — (6) 2,975 Total short-term investments $ 267,716 $ 1,032 $ (24) $ 268,724 December 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Short-term Investments 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 short-term investments $ 447,827 $ 47 $ (7,016) $ 440,858 The Company had four and thirteen separate short-term investments in unrealized loss positions as of December 31, 2023 and 2022, respectively. The Company does not intend to sell any short-term investments that have an unrealized losses at December 31, 2023, and it is not more likely than not that the Company will be required to sell such securities before any anticipated recovery of the entire amortized cost basis. There were no material realized gains or losses from short-term investments that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2023 and 2022. For short-term investments 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 short-term investments, there were no material credit or non-credit related impairments as of December 31, 2023 and 2022. The following table summarizes the stated maturities of the Company’s short-term investments: December 31, 2023 December 31, 2022 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 90,438 $ 90,533 $ 447,827 $ 440,858 Due after one year through five years 177,278 178,191 — — Total $ 267,716 $ 268,724 $ 447,827 $ 440,858 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 627,983 $ — $ — $ 627,983 U.S. treasury bills 230,602 — — 230,602 Short-term investments U.S. treasury securities 240,256 — — 240,256 U.S. agency securities — 14,993 — 14,993 Asset-backed securities — 10,500 — 10,500 Corporate debt securities — 2,975 — 2,975 Total assets $ 1,098,841 $ 28,468 $ — $ 1,127,309 December 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 462,459 $ — $ — $ 462,459 Short-term investments 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 The Company classifies money market funds, U.S. treasury bills, commercial paper, U.S. treasury securities, U.S. agency securities, asset-backed securities and corporate debt 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. There were no transfers of financial instruments between the fair value hierarchy levels during the years ended December 31, 2023 and 2022. |
Certain Balance Sheet Component
Certain Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
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 $ 6,342 $ 9,082 Inventory 4,309 5,150 Prepaid hosting and data costs 5,815 6,443 Accrued interest receivable 4,457 3,983 Prepaid insurance 2,678 3,729 Card program deposits 128 2,128 Contract assets 1,461 621 Other current assets 2,043 6,871 Prepaid expenses and other current assets $ 27,233 $ 38,007 Property and Equipment, net Property and equipment consisted of the following: December 31, December 31, Leasehold improvements $ 8,110 8,110 Computer equipment 8,885 9,115 Furniture and fixtures 2,597 2,542 Internally developed and purchased software 19,324 3,082 38,916 22,849 Accumulated depreciation and amortization (20,152) (15,409) Property and equipment, net $ 18,764 $ 7,440 Depreciation and amortization expense related to property and equipment was $10.7 million, $3.9 million and $3.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company capitalized $16.4 million as internal-use software development costs during the year ended December 31, 2023. Internal-use software development costs during the year ended December 31, 2022 were not material. Other Assets Other assets consisted of the following: December 31, December 31, Contract assets, noncurrent $ 9,397 $ 1,323 Deferred tax assets 495 1,207 Other noncurrent assets 6,695 4,592 Other assets $ 16,587 $ 7,122 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, December 31, Accrued costs of revenue $ 73,645 $ 57,191 Accrued compensation and benefits 42,095 41,268 Deferred revenue 11,829 17,048 Due to Issuing Banks 7,892 — Accrued tax liabilities 4,929 4,978 Accrued professional services 4,559 4,784 Operating lease liabilities, current portion 3,908 3,394 Reserve for contract contingencies and processing errors 3,754 2,494 Other accrued liabilities 8,903 5,730 Accrued expenses and other current liabilities $ 161,514 $ 136,887 Other Liabilities Other liabilities consisted of the following: December 31, December 31, Deferred revenue, net of current portion $ 4,071 $ 4,202 Other long-term liabilities 520 1,275 Other liabilities $ 4,591 $ 5,477 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 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. The Company's operating lease costs are as follows: Year Ended December 31, 2023 2022 2021 Operating lease cost $ 3,372 $ 3,372 $ 3,424 Variable lease cost 490 439 212 Short-term lease cost 247 435 358 Total lease cost $ 4,109 $ 4,246 $ 3,994 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) 2.1 3.1 Weighted average discount rate 7.7% 7.7% Maturities of operating lease liabilities by year are as follows as of December 31, 2023: 2024 4,472 2025 4,599 2026 780 Total lease payments $ 9,851 Less imputed interest (817) Total operating lease liabilities $ 9,034 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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, 2023, the Company had non-cancellable purchase commitments with certain service providers and Issuing Banks of $187.4 million, payable over the next 3 years. These purchase obligations include $174.6 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 During the years ended December 31, 2023, 2022 and 2021, the Company contributed a total of $5.5 million, $5.8 million and $3.1 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, 2023 and 2022, 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. At December 31, 2023, we had $7.0 million in Restricted cash which included a deposit held at an Issuing Bank to provide the Issuing Bank collateral in the event that our customers' funds are not deposited at the Issuing Bank in time to settle our customers' transactions with the Card Networks. 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 has received requests for indemnification from time to time and may indemnify 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, 2023 | |
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” and, together with the 2011 Plan, 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 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 within the following line items in the Consolidated Statement of Operations and Comprehensive Loss and Consolidated Balance Sheet in the periods presented: Year Ended December 31, 2023 2022 2021 Restricted stock units $ 99,648 $ 76,094 $ 59,652 Stock options 26,323 28,816 31,231 Executive Chairman Long-Term Performance Award 53,214 53,214 38,189 Employee Stock Purchase Plan 1,554 2,619 1,946 Secondary sales of common stock — — 11,642 Share-based compensation recorded within Compensation and benefits 180,739 160,743 142,660 Property and equipment (capitalized internal-use software) 4,492 — — Total share-based compensation expense $ 185,231 $ 160,743 $ 142,660 Restricted Stock Units Restricted Stock Units 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 three 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. 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, 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 Granted 31,060,513 4.62 Vested (14,128,901) 8.47 Canceled and forfeited (12,901,086) 7.98 Balance as of December 31, 2023 38,177,072 $ 6.64 As of December 31, 2023, unrecognized compensation costs related to unvested RSUs was $231.4 million. These costs are expected to be recognized over a weighted-average period of 2.5 years. Stock Options Under the Plans, the exercise price of a stock option shall not be less than the fair market value per share of the Company’s common stock on the date of grant (and not less than 110% of the fair market value per share of 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 incentive stock options granted to 10% stockholders). A summary of the Company's stock option activity under the Plans is 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, 2021 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 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 36,156,445 $ 16.37 7.67 $ 29,101 Granted 6,080,148 5.35 Exercised (3,353,103) 1.58 Canceled and forfeited (2,212,852) 13.24 Balance as of December 31, 2023 36,670,638 $ 16.09 7.45 $ 24,481 Exercisable as of December 31, 2023 (2) 10,677,680 $ 11.62 7.12 $ 17,426 Vested as of December 31, 2023 8,355,940 $ 10.12 6.84 $ 15,917 (1) Intrinsic value 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. Accordingly, options granted under this plan are included as exercisable stock options regardless of vesting status. The weighted-average grant date fair value of options granted during the years ended December 31, 2023, 2022, and 2021, was $3.52, $5.89, and $12.10, per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2023, 2022, and 2021, was $12.2 million, $61.6 million, and $83.0 million, respectively. The total grant-date fair value of options vested during the years ended December 31, 2023, 2022, and 2021, was $61.8 million, $40.0 million, and $17.6 million, respectively. As of December 31, 2023, aggregate unrecognized compensation costs related to unvested outstanding stock options, excluding the Executive Chairman Long-Term Performance Award, was $43.3 million. These costs are expected to be recognized over a weighted-average period of 2.1 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, 2023 2022 2021 Dividend yield 0.0% 0.0% 0.0% Expected volatility 70.78% 61.52% 52.36% Expected term (in years) 6.04 6.08 6.14 Risk-free interest rate 3.78% 2.32% 1.00% 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 the Company’s Class B common stock with an exercise price of $21.49 and $23.40 per share, respectively, (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 Company’s IPO in 2021. 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 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 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, 2023, the aggregate unrecognized compensation cost of the Executive Chairman Long-Term Performance Award was $63.8 million, which is expected to be recognized over the remaining derived service period of 2.1 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 2021, 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. |
Stockholders_ Equity Transactio
Stockholders’ Equity Transactions | 12 Months Ended |
Dec. 31, 2023 | |
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. As of December 31, 2023 and 2022, 1,101,262 and 695,637 warrants were vested, respectively. The Company recorded $5.5 million and $7.3 million as a reduction of net revenue related to these warrants during the years ended December 31, 2023 and 2022, 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. Share Repurchase Programs 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 (“2022 Share Repurchase Program”). 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, as amended (the “Exchange Act”). 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 2022 Share Repurchase Program has no set expiration date; however, repurchases under the program were complete as of March 31, 2023. During the year ended December 31, 2023, the Company repurchased and subsequently retired 3.2 million shares for $21.0 million under the 2022 Share Repurchase Program, for an average price of $6.46. During the year ended December 31, 2022, the Company repurchased and subsequently retired 11.7 million shares for $79.2 million under the 2022 Share Repurchase Program, for an average price of $6.77. On May 8, 2023, the Company’s board of directors authorized a share repurchase program of up to $200 million of the Company’s Class A common stock (“2023 Share Repurchase Program”). Under the 2023 Share Repurchase Program, the Company is 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 Exchange Act. 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 2023 Share Repurchase Program has no set expiration date. During the year ended December 31, 2023, the Company repurchased and subsequently retired 31.3 million shares for $169.4 million under the 2023 Share Repurchase Program, for an average price of $5.41. As of December 31, 2023, $32.2 million remained available for future share repurchases under the 2023 Share Repurchase Program. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the second quarter of 2023, the Company approved a restructuring plan (the “Restructuring Plan”) intended to reduce operating expenses and improve profitability by reducing the Company’s workforce. The net restructuring charges incurred in connection with the Restructuring Plan was approximately $8.7 million, which was completed as of December 31, 2023. The Company recorded $8.7 million in restructuring charges during the year ended December 31, 2023, which consisted of $14.6 million primarily related to one-time severance and benefit payments, as well as a net reduction of stock-based compensation of $2.9 million related to the vesting of certain equity awards and the forfeiture of certain equity awards which are accounted for as occurred. Additionally, the Company reduced previously accrued bonuses for impacted employees of $2.9 million due to the terms of the Restructuring Plan. These costs were included in Compensation and benefits in the Consolidated Statements of Operations and Comprehensive Loss. The following table summarizes the Company’s restructuring liability that was included in Accrued expenses and other current liabilities on the Consolidated Balance Sheet: Balance as of December 31, 2022 $ — Restructuring charges 14,588 Cash payments (14,588) Balance as of December 31, 2023 $ — |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Numerator Net loss attributable to Class A and Class B common stockholders $ (222,962) $ (184,780) $ (163,929) Denominator Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 532,540,175 545,397,254 362,756,466 Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.42) $ (0.34) $ (0.45) 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, 2023, 2022 and 2021 respectively. The rights, including the liquidation and dividend rights, of the holders of Class A common stock and Class B common stock 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. 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, 2023 2022 2021 Warrants to purchase Class B common stock 1,900,000 1,900,000 1,900,000 Stock options outstanding, including early exercise of options 36,670,638 36,156,445 45,307,479 Unvested RSUs outstanding 38,177,072 34,146,546 9,001,949 Shares committed under the ESPP 253,317 408,831 211,118 Stock options and RSUs available for future grants 70,722,895 60,892,581 61,893,427 Total 147,723,922 133,504,403 118,313,973 |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 United States $ (231,790) $ (185,612) $ (165,160) Foreign 1,215 730 591 Loss before income tax expense $ (230,575) $ (184,882) $ (164,569) The components of income tax expense (benefit) were as follows: Year Ended December 31, 2023 2022 2021 Current: Federal $ — $ — $ — State 83 353 38 Foreign (139) 18 — (56) 371 38 Deferred: Federal (6,347) — — State (2,025) — — Foreign 815 (473) (678) (7,557) (473) (678) Total: Federal (6,347) — — State (1,942) 353 38 Foreign 676 (455) (678) Income tax benefit $ (7,613) $ (102) $ (640) The reconciliation of the Company's effective tax rate to the statutory federal rate is as follows: Year Ended December 31, 2023 2022 2021 Taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal effect 6.5 % 4.6 % 4.0 % Share-based compensation (3.1) % 3.9 % 4.5 % Executive compensation (11.0) % (13.8) % (8.3) % Research and development credits 17.0 % — % — % Change in uncertain tax positions (4.2) % — % — % Mergers and acquisitions 3.5 % — % — % Nondeductible compensation (7.4) % — % — % Other (1.6) % 1.4 % (0.3) % Change in valuation allowance (17.4) % (17.0) % (20.5) % Effective tax rate 3.3 % 0.1 % 0.4 % Deferred tax assets and liabilities consist of the following: December 31 2023 2022 Deferred tax assets: Federal and state net operating losses $ 50,498 $ 33,497 Research and development credits 27,729 77 Property and equipment 586 205 Accruals and other 9,016 20,884 Share-based compensation 10,484 14,490 Research and development capitalization expenditures 36,743 23,404 Reserve for contract contingencies and processing errors 951 614 Deferred revenue 1,018 6,011 Lease liability 2,288 3,061 Total deferred tax assets 139,313 102,243 Less valuation allowance (128,150) (98,816) Total deferred tax assets, net of valuation allowance 11,163 3,427 Deferred tax liabilities: Intangibles (9,025) — Right-of-use asset (1,643) (2,220) Total deferred tax liabilities (10,668) (2,220) Net deferred tax assets $ 495 $ 1,207 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, 2023 and 2022 included historical and projected future operating losses. As a result, the Company concluded that an additional valuation allowance of $29.3 million and $30.0 million was required to reflect the change in its deferred tax assets prior to valuation allowance during 2023 and 2022, respectively. As of December 31, 2023 and 2022, 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 research and development (R&D) expenditures incurred under Section 174 for tax years beginning after December 31, 2021, to be capitalized and amortized ratably over 5 years for domestic research and 15 years for international research. The mandatory capitalization requirement had no material impact to the Company’s 2023 income tax provision due to the Company’s tax attributes carryover and full valuation allowance position. As of December 31, 2023, the Company had net operating loss carryforwards of approximately $194.8 million and $153.1 million for federal and state tax purposes, respectively. Of the Company's federal net operating loss carryforwards as of December 31, 2023, $158.7 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 2033 and 2025, respectively. In addition, the Company had research and development tax credit carryforwards of approximately $27.9 million for federal income tax purposes and $11.3 million for California 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, 2023, the Company has concluded that it has experienced ownership changes since inception and that its utilization of net operating loss carryforwards and other tax attributes will be subject to annual limitations. The Company files federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. To the extent the Company has tax attributes carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the federal, state, or foreign tax authorities to the extent utilized in a future period. 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 recognizes tax benefits from uncertain tax positions only if the Company believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company makes adjustments to the reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. A reconciliation of the total amounts of unrecognized tax benefits was as follows: Year Ended December 31, 2023 2022 2021 Beginning balance $ — $ — $ — Reductions of tax positions taken during previous years — — — Additions based on uncertain tax positions related to the current period 3,238 — — Additions based on uncertain tax positions related to the prior periods 6,562 — — Ending balance $ 9,800 $ — $ — The Company’s policy is to include interest and penalties related to unrecognized tax benefits within our tax provision for income taxes. The Company did not accrue any interest or penalties during the year ended December 31, 2023. The Company had $9.8 million of gross unrecognized tax benefits as of December 31, 2023, which would not affect its effective tax rate if recognized due to the Company’s valuation allowance. The Company expects no 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, 2023 | |
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, short-term investments, and accounts receivable. Cash on deposit with financial institutions may exceed federally insured limits. Cash and cash equivalents as of December 31, 2023 and December 31, 2022 included $628.0 million and $462.5 million, respectively, of investments managed by two financial institutions, which invest primarily in securities issued by the U.S. Government or U.S. Government agencies. As of December 31, 2023, short-term investments were $268.7 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 $255.2 million, or 95% of the short-term investments. As of December 31, 2023, all debt securities within the Company's portfolio are investment grade. As of December 31, 2022, short-term investments were $440.9 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 $407.1 million, or 92% of the short-term investments. As of December 31, 2022, all debt securities within the Company's portfolio are investment grade. A significant portion of the Company's payment transactions is settled through one Issuing Bank, Sutton Bank. For the years ended December 31, 2023, 2022 and 2021, 76%, 82% and 90% of Total Processing Volume was settled through Sutton Bank, respectively. A significant portion of the Company's revenue and accounts receivable is derived from a single customer. 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 2023 2022 2021 Customer A 68% 71% 69% Percent of Customers' Receivables as of December 31, 2023 2022 Customer B 11% 18% |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
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. 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 year ended December 31, 2021, the Company incurred $30.4 million in Card Network fees, net, recorded within Costs of revenue in the Consolidated Statements of Operations and Comprehensive Loss, to PULSE Network LLC, an entity affiliated with DFS Services LLC. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net loss | $ (222,962) | $ (184,780) | $ (163,929) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Martha Cummings [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During our last fiscal quarter, on December 12, 2023, Martha Cummings, a member of our board of directors, adopted a “Rule 10b5-1 trading arrangement” as defined in Regulation S-K Item 408 providing for the sale from time to time of an aggregate of up to 340,241 shares of our Class A Common Stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until April 8, 2025, or earlier if all transactions under the trading arrangement are completed, but in no case earlier than one year or later than two years from December 12, 2023. | |
Name | Martha Cummings | |
Title | board of directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Termination Date | April 8, 2025 | |
Arrangement Duration | 483 days | |
Aggregate Available | 340,241 | 340,241 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make various 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 include, but are not limited to, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, the estimation of contingent liabilities, 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 valuation of income taxes. Actual results could differ materially from these estimates. |
Segment Information | Segment Information The Company operates as a single operating segment and reporting unit. 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. |
Business Combinations | Business Combinations The Company allocates the purchase consideration for acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations and Comprehensive Loss. Acquisition-related expenses and postcombination integration and employee compensation costs are recognized separately from the business combination and are expensed as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash |
Short-term Investments | Short-term Investments The Company's short-term investments include U.S. treasury securities, U.S. agency securities, commercial paper, asset-backed securities, and corporate debt securities. The Company's short-term investments are classified as available-for-sale and are recorded 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 short-term investments 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 short-term investments in Other income (expense), net in the Consolidated Statements of Operations and Comprehensive Loss. |
Accounts Receivable | Accounts Receivable |
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 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. |
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. |
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 over the estimated useful lives of the assets; generally three The Company capitalizes internal and external direct costs incurred related to obtaining or developing internal-use software. Costs incurred during the application development stage are capitalized and are amortized using the straight-line method over the estimated useful lives of the software, generally three years commencing on the first day of the month following when the software is ready for its intended use. Costs related to planning and other preliminary project activities and post-implementation activities are expensed as incurred. |
Goodwill and Impairment | Goodwill The excess purchase price over the fair value of identifiable net assets acquired is recorded as goodwill. Goodwill amounts are not amortized. Impairment Impairment testing for goodwill is performed annually in the fourth quarter or more frequently whenever events or changes in circumstances indicate its carrying value may not be recoverable. Such testing is performed at the reporting unit level. Management has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company also has the option to bypass the qualitative assessment and perform the quantitative assessment. The Company reviews the valuation of long-lived assets, including property and equipment and finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future undiscounted cash flow the asset is expected to generate. Based on management's assessment, the Company did not recognize any material impairment losses on its goodwill, finite-lived intangible assets or other long-lived assets during the periods presented herein. |
Intangible Assets | Intangible Assets Intangible assets with finite lives are carried at acquisition cost less accumulated amortization and are amortized over their estimated useful lives on a straight-line basis. The amortization of these assets is recorded within Depreciation and amortization expense on 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 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 gave the Company the right, but not the obligation, to purchase all of the remaining equity interests of the private company. 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 within Other income (expense), net on the Consolidated Statement of Operations and Comprehensive Loss 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 and Comprehensive Loss. |
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. |
Revenue Recognition and Contract Assets and Deferred Revenue | 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. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include the transfer of multiple services. The Company’s contracts with customers typically include multiple performance obligations: 1) providing access to the Company's payment processing platform, 2) providing managed services or 3) providing card fulfillment services . The Company accounts for individual services as a separate performance obligation if they are distinct because the service is separately identifiable from other items in the arrangement and a customer can benefit from the good or service on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. 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 based on prices at which the Company separately sells each service or 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. Additionally, for certain customer arrangements, the performance obligations also include managing the interactions with Card Networks and/or the Issuing Banks on behalf of its customers or other managed services, including dispute management, fraud scoring, and cardholder support services. The Company’s platform services revenue is derived from Interchange Fees generated by customer card transactions. The Company accounts for these Interchange Fees as revenue earned from its customers for performance obligations where the Company controls the services before delivery to the customer. The Company’s platform services revenue also includes processing and other transaction fees from transactions that are based on either a percentage of processing volume or a fee per transaction basis. The Company’s platform services revenue primarily consists of stand-ready obligations which are satisfied over time and are accounted for as a series of distinct services that are substantially the same and have the same pattern of transfer to customers. The Company recognizes revenue when the promised services are complete, and its performance obligations are satisfied. Platform services 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 period 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 ranges from three For net revenue generated from customer arrangements that involve third parties, the Company determines whether it has promised to provide the specified service itself (as principal) or to arrange for the specified service to be provided by another party (as an agent). This determination depends on the facts and circumstance of each arrangement, and in some instances, involves significant judgment. In order to deliver an integrated payment processing platform to its customers, the Company works with Issuing Banks and Card Networks in various capacities. The Company is considered the principal in customer arrangements where the Company controls the services performed by the Issuing Banks and Card Networks before delivery of the promised services 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 within the Consolidated Statements of Operations and Comprehensive Loss. In instances where the Company is considered an agent in providing services to the customer, fees for services paid to Issuing Banks and Card Networks, if any, are recorded within Net Revenue such that Net Revenue in the Consolidated Statements of Operations and Comprehensive Loss reflects the net amount of consideration that the Company retains. Revenue Share The Company’s contracts with customers typically include provisions under which the Company shares a portion of the Interchange Fees as consideration payable to 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 net 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. Contract Assets and Deferred Revenue Contract assets, reported within Prepaid expenses and other current assets or within Other Assets in the Consolidated Balance Sheets, are primarily from upfront payments provided to certain customers and variable consideration from customer contracts where pricing terms are not consistent throughout the entire term of the contract. Deferred revenue, reported within Accrued expenses and other current liabilities or Other liabilities in the Consolidated Balance Sheets, arises when customers pay for services in advance of the Company's revenue recognition. The Company's deferred revenue is primarily due to undelivered card fulfillment services, variable consideration from customer contracts where pricing terms are not consistent throughout the entire term of the contract, and 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 for customer arrangements where the Company is the principal in providing services to the customer and excludes depreciation and amortization, which is reported separately within the Consolidated Statements of Operations and Comprehensive Loss. Card Network costs are mostly 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. 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 in customer arrangements where the Company is the principal. The Company's contracts with Card Networks and Issuing Banks typically have terms ranging from three |
Advertising Costs | Advertising Costs |
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 $148.0 million, $108.3 million, and $84.1 million for the years ended December 31, 2023, 2022 and 2021, 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. |
Share-based Compensation | Share-based Compensation The primary types of share-based compensation utilized by the Company are restricted share units (“RSUs”) and stock options and the use of the employee stock purchase plan (“ESPP”). The Company determines compensation expense associated with RSUs based on the estimated fair value of its common stock on the date of grant. The compensation expense associated with stock options is determined based on the estimated grant date fair value using the Black-Scholes option pricing model. The Company generally recognizes compensation expense using a straight-line amortization method over the respective vesting period. The Company accounts for forfeitures as they occur. |
Defined Contribution Plans | Defined Contribution Plans |
Restructuring | Restructuring Restructuring costs stem from employee related severance charges and include both cash and non-cash compensation. The Company generally recognizes restructuring costs upon communication of the plan to the identified employees or when payments are probable and amounts are estimable, depending on the region an employee works. Restructuring liabilities are classified in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. |
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 benefit in the Consolidated Statements of Operations and Comprehensive Loss. |
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. |
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. |
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 ‑ Inputs are 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 pricing inputs in the market. 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, short-term investments, accounts 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. Short-term investments are carried at fair value. Accounts 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. |
Foreign Currency | Foreign Currency |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on the consolidated financial statements and related disclosures. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Platform services revenue, net $ 654,553 $ 725,629 $ 502,296 Other services revenue 21,618 22,577 14,879 Total net revenue $ 676,171 $ 748,206 $ 517,175 |
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 $ 1,461 $ 621 Contract assets - non-current Other assets 9,397 1,323 Total contract assets $ 10,858 $ 1,944 Deferred revenue - current Accrued expenses and other current liabilities $ 11,829 $ 17,048 Deferred revenue - non-current Other liabilities 4,071 4,202 Total deferred revenue $ 15,900 $ 21,250 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the components of the purchase consideration transferred (in thousands): Base purchase price less contingent consideration $ 221,933 Less: postcombination cash, non-cash expense and other purchase adjustments 118,447 Plus: cash acquired on acquisition date 7,089 Total purchase consideration, excluding contingent consideration 110,575 Contingent consideration 53,067 Purchase consideration $ 163,642 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill consisted of the following: Balance as of December 31, 2022 $ — Goodwill from acquisition of Power Finance, Inc. 123,000 Measurement period adjustments 523 Balance as of December 31, 2023 $ 123,523 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following as of the dates presented: December 31, December 31, Developed technology $ 41,000 $ — Accumulated amortization (5,369) — Intangibles, net $ 35,631 $ — |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Expected future amortization expense for intangible assets was as follows as of December 31, 2023: 2024 $ 5,857 2025 5,857 2026 5,857 2027 5,857 2028 5,857 Thereafter 6,345 Total expected future amortization expense for intangible assets $ 35,631 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Schedule of Marketable Securities | The amortized cost, unrealized gain (loss), and estimated fair value of the Company's short-term investments consisted of the following: December 31, 2023 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Short-term Investments U.S. treasury securities $ 239,297 $ 970 $ (11) $ 240,256 U.S. agency securities 15,000 — (7) 14,993 Asset-backed securities 10,438 62 — 10,500 Corporate debt securities 2,981 — (6) 2,975 Total short-term investments $ 267,716 $ 1,032 $ (24) $ 268,724 December 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Short-term Investments 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 short-term investments $ 447,827 $ 47 $ (7,016) $ 440,858 |
Schedule of Available-for-sale Securities Reconciliation | The following table summarizes the stated maturities of the Company’s short-term investments: December 31, 2023 December 31, 2022 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 90,438 $ 90,533 $ 447,827 $ 440,858 Due after one year through five years 177,278 178,191 — — Total $ 267,716 $ 268,724 $ 447,827 $ 440,858 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 627,983 $ — $ — $ 627,983 U.S. treasury bills 230,602 — — 230,602 Short-term investments U.S. treasury securities 240,256 — — 240,256 U.S. agency securities — 14,993 — 14,993 Asset-backed securities — 10,500 — 10,500 Corporate debt securities — 2,975 — 2,975 Total assets $ 1,098,841 $ 28,468 $ — $ 1,127,309 December 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 462,459 $ — $ — $ 462,459 Short-term investments 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 |
Certain Balance Sheet Compone_2
Certain Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of 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 $ 6,342 $ 9,082 Inventory 4,309 5,150 Prepaid hosting and data costs 5,815 6,443 Accrued interest receivable 4,457 3,983 Prepaid insurance 2,678 3,729 Card program deposits 128 2,128 Contract assets 1,461 621 Other current assets 2,043 6,871 Prepaid expenses and other current assets $ 27,233 $ 38,007 |
Schedule of 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 8,885 9,115 Furniture and fixtures 2,597 2,542 Internally developed and purchased software 19,324 3,082 38,916 22,849 Accumulated depreciation and amortization (20,152) (15,409) Property and equipment, net $ 18,764 $ 7,440 |
Schedule of Other Assets | Other assets consisted of the following: December 31, December 31, Contract assets, noncurrent $ 9,397 $ 1,323 Deferred tax assets 495 1,207 Other noncurrent assets 6,695 4,592 Other assets $ 16,587 $ 7,122 |
Schedule of 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 $ 73,645 $ 57,191 Accrued compensation and benefits 42,095 41,268 Deferred revenue 11,829 17,048 Due to Issuing Banks 7,892 — Accrued tax liabilities 4,929 4,978 Accrued professional services 4,559 4,784 Operating lease liabilities, current portion 3,908 3,394 Reserve for contract contingencies and processing errors 3,754 2,494 Other accrued liabilities 8,903 5,730 Accrued expenses and other current liabilities $ 161,514 $ 136,887 |
Schedule of Other Liabilities | Other Liabilities Other liabilities consisted of the following: December 31, December 31, Deferred revenue, net of current portion $ 4,071 $ 4,202 Other long-term liabilities 520 1,275 Other liabilities $ 4,591 $ 5,477 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components Lease Costs | The Company's operating lease costs are as follows: Year Ended December 31, 2023 2022 2021 Operating lease cost $ 3,372 $ 3,372 $ 3,424 Variable lease cost 490 439 212 Short-term lease cost 247 435 358 Total lease cost $ 4,109 $ 4,246 $ 3,994 |
Schedule of Future Minimum Lease Payments | 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) 2.1 3.1 Weighted average discount rate 7.7% 7.7% Maturities of operating lease liabilities by year are as follows as of December 31, 2023: 2024 4,472 2025 4,599 2026 780 Total lease payments $ 9,851 Less imputed interest (817) Total operating lease liabilities $ 9,034 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense Recognized in the Period | The following table presents the share-based compensation expense recognized within the following line items in the Consolidated Statement of Operations and Comprehensive Loss and Consolidated Balance Sheet in the periods presented: Year Ended December 31, 2023 2022 2021 Restricted stock units $ 99,648 $ 76,094 $ 59,652 Stock options 26,323 28,816 31,231 Executive Chairman Long-Term Performance Award 53,214 53,214 38,189 Employee Stock Purchase Plan 1,554 2,619 1,946 Secondary sales of common stock — — 11,642 Share-based compensation recorded within Compensation and benefits 180,739 160,743 142,660 Property and equipment (capitalized internal-use software) 4,492 — — Total share-based compensation expense $ 185,231 $ 160,743 $ 142,660 |
Schedule of RSU Activity Under the Plans | 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, 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 Granted 31,060,513 4.62 Vested (14,128,901) 8.47 Canceled and forfeited (12,901,086) 7.98 Balance as of December 31, 2023 38,177,072 $ 6.64 A summary of the Company's stock option activity under the Plans is 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, 2021 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 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 36,156,445 $ 16.37 7.67 $ 29,101 Granted 6,080,148 5.35 Exercised (3,353,103) 1.58 Canceled and forfeited (2,212,852) 13.24 Balance as of December 31, 2023 36,670,638 $ 16.09 7.45 $ 24,481 Exercisable as of December 31, 2023 (2) 10,677,680 $ 11.62 7.12 $ 17,426 Vested as of December 31, 2023 8,355,940 $ 10.12 6.84 $ 15,917 (1) Intrinsic value 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. Accordingly, options granted under this plan are included as 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 |
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, 2023 2022 2021 Dividend yield 0.0% 0.0% 0.0% Expected volatility 70.78% 61.52% 52.36% Expected term (in years) 6.04 6.08 6.14 Risk-free interest rate 3.78% 2.32% 1.00% |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Liability | The following table summarizes the Company’s restructuring liability that was included in Accrued expenses and other current liabilities on the Consolidated Balance Sheet: Balance as of December 31, 2022 $ — Restructuring charges 14,588 Cash payments (14,588) Balance as of December 31, 2023 $ — |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Numerator Net loss attributable to Class A and Class B common stockholders $ (222,962) $ (184,780) $ (163,929) Denominator Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 532,540,175 545,397,254 362,756,466 Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.42) $ (0.34) $ (0.45) |
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, 2023 2022 2021 Warrants to purchase Class B common stock 1,900,000 1,900,000 1,900,000 Stock options outstanding, including early exercise of options 36,670,638 36,156,445 45,307,479 Unvested RSUs outstanding 38,177,072 34,146,546 9,001,949 Shares committed under the ESPP 253,317 408,831 211,118 Stock options and RSUs available for future grants 70,722,895 60,892,581 61,893,427 Total 147,723,922 133,504,403 118,313,973 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss Before Income Taxes | The components of loss before income taxes by tax jurisdiction were as follows: Year Ended December 31, 2023 2022 2021 United States $ (231,790) $ (185,612) $ (165,160) Foreign 1,215 730 591 Loss before income tax expense $ (230,575) $ (184,882) $ (164,569) |
Schedule of Significant Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows: Year Ended December 31, 2023 2022 2021 Current: Federal $ — $ — $ — State 83 353 38 Foreign (139) 18 — (56) 371 38 Deferred: Federal (6,347) — — State (2,025) — — Foreign 815 (473) (678) (7,557) (473) (678) Total: Federal (6,347) — — State (1,942) 353 38 Foreign 676 (455) (678) Income tax benefit $ (7,613) $ (102) $ (640) |
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, 2023 2022 2021 Taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal effect 6.5 % 4.6 % 4.0 % Share-based compensation (3.1) % 3.9 % 4.5 % Executive compensation (11.0) % (13.8) % (8.3) % Research and development credits 17.0 % — % — % Change in uncertain tax positions (4.2) % — % — % Mergers and acquisitions 3.5 % — % — % Nondeductible compensation (7.4) % — % — % Other (1.6) % 1.4 % (0.3) % Change in valuation allowance (17.4) % (17.0) % (20.5) % Effective tax rate 3.3 % 0.1 % 0.4 % |
Schedule of Components of Deferred Taxes | Deferred tax assets and liabilities consist of the following: December 31 2023 2022 Deferred tax assets: Federal and state net operating losses $ 50,498 $ 33,497 Research and development credits 27,729 77 Property and equipment 586 205 Accruals and other 9,016 20,884 Share-based compensation 10,484 14,490 Research and development capitalization expenditures 36,743 23,404 Reserve for contract contingencies and processing errors 951 614 Deferred revenue 1,018 6,011 Lease liability 2,288 3,061 Total deferred tax assets 139,313 102,243 Less valuation allowance (128,150) (98,816) Total deferred tax assets, net of valuation allowance 11,163 3,427 Deferred tax liabilities: Intangibles (9,025) — Right-of-use asset (1,643) (2,220) Total deferred tax liabilities (10,668) (2,220) Net deferred tax assets $ 495 $ 1,207 |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | A reconciliation of the total amounts of unrecognized tax benefits was as follows: Year Ended December 31, 2023 2022 2021 Beginning balance $ — $ — $ — Reductions of tax positions taken during previous years — — — Additions based on uncertain tax positions related to the current period 3,238 — — Additions based on uncertain tax positions related to the prior periods 6,562 — — Ending balance $ 9,800 $ — $ — |
Concentration of Risks and Si_2
Concentration of Risks and Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 2021 Customer A 68% 71% 69% Percent of Customers' Receivables as of December 31, 2023 2022 Customer B 11% 18% |
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, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | |
Initial Public Offering | |||||
Proceeds from initial public offering, net of underwriters’ discounts and commissions | $ 0 | $ 0 | $ 1,319,809 | ||
Payments of stock issuance costs | $ 0 | $ 0 | 4,760 | ||
Preferred Stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | |||
Business Risks and Uncertainties | |||||
Net loss | $ 222,962 | $ 184,780 | 163,929 | ||
Accumulated deficit | 825,195 | 602,233 | |||
Cash and cash equivalents | 980,972 | $ 1,183,846 | $ 1,247,581 | ||
Short-term investments | $ 268,700 | ||||
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) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounting Policies and Supplemental Information [Line Items] | |||
Number of operating segments | segment | 1 | ||
Allowance for doubtful accounts receivable | $ (300) | $ (300) | |
Impairment of equity method investments options | 11,600 | ||
Carrying value | 7,800 | ||
Sale of equity method investment | 0 | 25,732 | $ 0 |
Gain on disposal | $ 0 | 17,889 | 0 |
Revenue from contract with customer, standard contract automatic renewal, term | 1 year | ||
Advertising costs | $ 1,500 | 2,200 | 1,700 |
Company matching contribution, percent | 50% | ||
Employer matching contribution, percent of employees' gross pay | 6% | ||
Requisite service period (in years) | 1 year | ||
Compensation and Benefits and Technology Expenses | |||
Accounting Policies and Supplemental Information [Line Items] | |||
Research and development costs | $ 148,000 | $ 108,300 | $ 84,100 |
Minimum | |||
Accounting Policies and Supplemental Information [Line Items] | |||
Revenue from contract with customer, standard contract term | 3 years | ||
Revenue from contract with customer, card network, term | 3 years | ||
Revenue from contract with customer, card network renewal, term | 1 year | ||
Minimum | Computer Equipment, and Furniture and Fixtures | |||
Accounting Policies and Supplemental Information [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | |||
Accounting Policies and Supplemental Information [Line Items] | |||
Revenue from contract with customer, standard contract term | 5 years | ||
Revenue from contract with customer, card network, term | 5 years | ||
Revenue from contract with customer, card network renewal, term | 2 years | ||
Maximum | Computer Equipment, and Furniture and Fixtures | |||
Accounting Policies and Supplemental Information [Line Items] | |||
Property, plant and equipment, useful life | 5 years |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total net revenue | $ 676,171 | $ 748,206 | $ 517,175 |
Platform services revenue, net | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 654,553 | 725,629 | 502,296 |
Other services revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | $ 21,618 | $ 22,577 | $ 14,879 |
Revenue - Contract Assets and D
Revenue - Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Contract assets - current | $ 1,461 | $ 621 |
Contract assets - non-current | 9,397 | 1,323 |
Total contract assets | 10,858 | 1,944 |
Deferred revenue | 11,829 | 17,048 |
Deferred revenue - non-current | 4,071 | 4,202 |
Total deferred revenue | 15,900 | 21,250 |
Prepaid expenses and other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets - current | 1,461 | 621 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets - non-current | 9,397 | 1,323 |
Accrued expenses and other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 11,829 | 17,048 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue - non-current | $ 4,071 | $ 4,202 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized during the period | $ (12) | $ (13.8) |
Remaining performance obligation, optional exemption, amount | $ 0 | $ 0 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Goodwill | $ 123,523 | $ 0 | ||
Power Finance, Inc. | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Cash purchase price | $ 221,933 | |||
Contingent consideration liability | 53,100 | $ 53,100 | ||
Postcombination compensation | (117,600) | 36,400 | ||
Non-cash postcombination compensation | 32,400 | |||
Postcombination cash combination liability, subject to continuous employment | $ 85,100 | |||
Postcombination cash combination liability, subject to continuous employment, weighted average (in years) | 2 years 2 months 12 days | |||
Fair value of total consideration | $ 163,600 | |||
Other intangible assets | $ 41,000 | |||
Estimated useful life (in years) | 7 years | |||
Deferred tax liabilities | $ 8,000 | |||
Net assets acquired | 7,100 | |||
Goodwill | $ 123,500 | |||
Acquisition related costs | $ 3,300 |
Business Combination - Componen
Business Combination - Components of Preliminary Purchase Consideration (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Purchase consideration | $ 135,777 | $ 0 | $ 0 | |
Power Finance, Inc. | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Base purchase price less contingent consideration | $ 221,933 | |||
Less: postcombination cash, non-cash expense and other purchase adjustments | 118,447 | |||
Plus: cash acquired on acquisition date | 7,089 | |||
Total purchase consideration, excluding contingent consideration | 110,575 | |||
Contingent consideration | 53,067 | |||
Purchase consideration | $ 163,642 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2022 | $ 0 |
Goodwill from acquisition of Power Finance, Inc. | 123,000 |
Measurement period adjustments | 523 |
Balance as of December 31, 2023 | $ 123,523 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Developed technology | $ 41,000 | $ 0 |
Accumulated amortization | (5,369) | 0 |
Intangibles, net | $ 35,631 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - Developed Technology Rights $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Finite-Lived Intangible Assets | |
Amortization period (in years) | 7 years |
Amortization | $ 5.4 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 5,857 | |
2025 | 5,857 | |
2026 | 5,857 | |
2027 | 5,857 | |
2028 | 5,857 | |
Thereafter | 6,345 | |
Intangibles, net | $ 35,631 | $ 0 |
Short-term Investments - Unreal
Short-term Investments - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 267,716 | $ 447,827 |
Unrealized Gain | 1,032 | 47 |
Unrealized Loss | (24) | (7,016) |
Estimated Fair Value | 268,724 | 440,858 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 239,297 | 384,951 |
Unrealized Gain | 970 | 0 |
Unrealized Loss | (11) | (6,949) |
Estimated Fair Value | 240,256 | 378,002 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,000 | 29,012 |
Unrealized Gain | 0 | 47 |
Unrealized Loss | (7) | 0 |
Estimated Fair Value | 14,993 | 29,059 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,815 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Estimated Fair Value | 28,815 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,438 | |
Unrealized Gain | 62 | |
Unrealized Loss | 0 | |
Estimated Fair Value | 10,500 | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,981 | 5,049 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (6) | (67) |
Estimated Fair Value | $ 2,975 | $ 4,982 |
Short-term Investments - Narrat
Short-term Investments - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) investment | Dec. 31, 2022 USD ($) investment | |
Investments [Abstract] | ||
Number of positions in unrealized loss positions | investment | 4 | 13 |
Realized gains or losses reclassified out of accumulated other comprehensive loss | $ | $ 0 | $ 0 |
Short-term Investments - Stated
Short-term Investments - Stated Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due within one year | $ 90,438 | $ 447,827 |
Due after one year through five years | 177,278 | 0 |
Amortized Cost | 267,716 | 447,827 |
Estimated Fair Value | ||
Due within one year | 90,533 | 440,858 |
Due after one year through five years | 178,191 | 0 |
Estimated Fair Value | $ 268,724 | $ 440,858 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Short-term investments | $ 268,724 | $ 440,858 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Total assets | 1,127,309 | 903,317 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets | ||
Money market funds | 627,983 | 462,459 |
Fair Value, Measurements, Recurring | U.S. treasury bills | ||
Assets | ||
Money market funds | 230,602 | |
Fair Value, Measurements, Recurring | U.S. treasury securities | ||
Assets | ||
Short-term investments | 240,256 | 378,002 |
Fair Value, Measurements, Recurring | U.S. agency securities | ||
Assets | ||
Short-term investments | 14,993 | 29,059 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Assets | ||
Short-term investments | 28,815 | |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Assets | ||
Short-term investments | 10,500 | |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Assets | ||
Short-term investments | 2,975 | 4,982 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Total assets | 1,098,841 | 840,461 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets | ||
Money market funds | 627,983 | 462,459 |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury bills | ||
Assets | ||
Money market funds | 230,602 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. treasury securities | ||
Assets | ||
Short-term investments | 240,256 | 378,002 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Assets | ||
Short-term investments | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Assets | ||
Short-term investments | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total assets | 28,468 | 62,856 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets | ||
Money market funds | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. treasury bills | ||
Assets | ||
Money market funds | 0 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. treasury securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency securities | ||
Assets | ||
Short-term investments | 14,993 | 29,059 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Assets | ||
Short-term investments | 28,815 | |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Assets | ||
Short-term investments | 10,500 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | ||
Assets | ||
Short-term investments | 2,975 | 4,982 |
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 bills | ||
Assets | ||
Money market funds | 0 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. treasury securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. agency securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Assets | ||
Short-term investments | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Assets | ||
Short-term investments | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt securities | ||
Assets | ||
Short-term investments | $ 0 | $ 0 |
Certain Balance Sheet Compone_3
Certain Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 6,342 | $ 9,082 |
Inventory | 4,309 | 5,150 |
Prepaid hosting and data costs | 5,815 | 6,443 |
Accrued interest receivable | 4,457 | 3,983 |
Prepaid insurance | 2,678 | 3,729 |
Card program deposits | 128 | 2,128 |
Contract assets | 1,461 | 621 |
Other current assets | 2,043 | 6,871 |
Prepaid expenses and other current assets | $ 27,233 | $ 38,007 |
Certain Balance Sheet Compone_4
Certain Balance Sheet Components - Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 38,916 | $ 22,849 | |
Accumulated depreciation and amortization | (20,152) | (15,409) | |
Property and equipment, net | 18,764 | 7,440 | |
Depreciation and amortization | 10,741 | 3,853 | $ 3,534 |
Capitalized internal-use software costs | 16,400 | 0 | |
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 | 8,885 | 9,115 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,597 | 2,542 | |
Internally developed and purchased software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 19,324 | 3,082 | |
Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 10,700 | $ 3,900 | $ 3,500 |
Certain Balance Sheet Compone_5
Certain Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contract assets, noncurrent | $ 9,397 | $ 1,323 |
Deferred tax assets | 495 | 1,207 |
Other noncurrent assets | 6,695 | 4,592 |
Other assets | $ 16,587 | $ 7,122 |
Certain Balance Sheet Compone_6
Certain Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued costs of revenue | $ 73,645 | $ 57,191 |
Accrued compensation and benefits | 42,095 | 41,268 |
Deferred revenue | 11,829 | 17,048 |
Due to Issuing Banks | 7,892 | 0 |
Accrued tax liabilities | 4,929 | 4,978 |
Accrued professional services | 4,559 | 4,784 |
Operating lease liabilities, current portion | 3,908 | 3,394 |
Reserve for contract contingencies and processing errors | 3,754 | 2,494 |
Other accrued liabilities | 8,903 | 5,730 |
Accrued expenses and other current liabilities | $ 161,514 | $ 136,887 |
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_7
Certain Balance Sheet Components - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred revenue, net of current portion | $ 4,071 | $ 4,202 |
Other long-term liabilities | 520 | 1,275 |
Other liabilities | $ 4,591 | $ 5,477 |
Leases - Narrative (Details)
Leases - Narrative (Details) - ft² ft² in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2016 | |
Leases [Abstract] | ||
Operating lease, number of square feet | 63 | 19 |
Leases - Schedule of Components
Leases - Schedule of Components Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 3,372 | $ 3,372 | $ 3,424 |
Variable lease cost | 490 | 439 | 212 |
Short-term lease cost | 247 | 435 | 358 |
Total lease cost | $ 4,109 | $ 4,246 | $ 3,994 |
Leases - Weighted Average Lease
Leases - Weighted Average Lease Term and Weighted Average Discount Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average remaining operating lease term (in years) | 2 years 1 month 6 days | 3 years 1 month 6 days |
Weighted average discount rate | 7.70% | 7.70% |
Leases - Lease Maturity Schedul
Leases - Lease Maturity Schedule (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 4,472 |
2025 | 4,599 |
2026 | 780 |
Total lease payments | 9,851 |
Less imputed interest | (817) |
Total operating lease liabilities | $ 9,034 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Guarantor Obligations | |||
Purchase commitment | $ 187.4 | ||
Purchase commitment period | 3 years | ||
Employer contribution amount | $ 5.5 | $ 5.8 | $ 3.1 |
Restricted cash | 7 | ||
Cloud Computing Service Agreement | |||
Guarantor Obligations | |||
Purchase commitment | 174.6 | ||
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 - Narrati
Stock Incentive Plans - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jun. 08, 2021 USD ($) | May 31, 2021 $ / shares | May 30, 2021 shares | Apr. 30, 2021 $ / shares shares | Dec. 31, 2023 USD ($) numberOfTranche day $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 180,739 | $ 160,743 | $ 142,660 | ||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 3.52 | $ 5.89 | $ 12.10 | ||||
Total intrinsic value of options exercised | $ 12,200 | $ 61,600 | $ 83,000 | ||||
Grants in period, grant date intrinsic value | $ 61,800 | 40,000 | 17,600 | ||||
Consecutive trading day | day | 90 | ||||||
Number of tranches | numberOfTranche | 7 | ||||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 26,323 | 28,816 | 31,231 | ||||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 2 years 1 month 6 days | ||||||
Compensation costs related to unvested outstanding stock options | $ 43,300 | ||||||
Stock options | 2011 and 2021 Stock Option and Incentive 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 | |||||||
Award vesting period (in years) | 4 years | ||||||
Share-based compensation expense | $ 23,100 | ||||||
Restricted Stock Units with Service Condition | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Award vesting period (in years) | 3 years | ||||||
Restricted Stock Units with Service Condition | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Award vesting period (in years) | 4 years | ||||||
Unvested RSUs outstanding | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 99,648 | $ 76,094 | $ 59,652 | ||||
CEO Long-term performance awards | $ 231,400 | ||||||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 2 years 6 months | ||||||
Stock options outstanding, including early exercise of options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | shares | 6,080,148 | 4,182,522 | 29,113,555 | ||||
Granted (in dollars per share) | $ / shares | $ 5.35 | $ 10.16 | $ 20.07 | ||||
Stock options outstanding, including early exercise of options | 2011 and 2021 Stock Option and Incentive 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 and 2021 Stock Option and Incentive 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 and 2021 Stock Option and Incentive 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 | ||||||
Executive Chairman Long-Term Performance Award | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Award vesting period (in years) | 7 years | ||||||
Share-based compensation expense | $ 53,214 | $ 53,214 | $ 38,189 | ||||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 2 years 1 month 6 days | ||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 10.53 | ||||||
Granted (in shares) | shares | 47,267 | 19,740,923 | |||||
Granted (in dollars per share) | $ / shares | $ 23.40 | $ 21.49 | |||||
Expected cost to be recognized over remaining derived service period | $ 63,800 | ||||||
Secondary sales of common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation expense | $ 0 | $ 0 | $ 11,642 |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation recorded within Compensation and benefits | $ 180,739 | $ 160,743 | $ 142,660 |
Property and equipment (capitalized internal-use software) | 4,492 | 0 | 0 |
Total share-based compensation expense | 185,231 | 160,743 | 142,660 |
Restricted stock units | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation recorded within Compensation and benefits | 99,648 | 76,094 | 59,652 |
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation recorded within Compensation and benefits | 26,323 | 28,816 | 31,231 |
Executive Chairman Long-Term Performance Award | Chief Executive Officer | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation recorded within Compensation and benefits | 53,214 | 53,214 | 38,189 |
Employee Stock Purchase Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation recorded within Compensation and benefits | 1,554 | 2,619 | 1,946 |
Secondary sales of common stock | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation recorded within Compensation and benefits | $ 0 | $ 0 | $ 11,642 |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted Stock Units (Details) - Restricted stock units - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Restricted Stock Units | ||
Balance at beginning of the period (in shares) | 34,146,546 | 9,001,949 |
Granted (in shares) | 31,060,513 | 36,159,090 |
Vested (in shares) | (14,128,901) | (4,883,296) |
Canceled and forfeited (in shares) | (12,901,086) | (6,131,197) |
Balance at the end of the period (in shares) | 38,177,072 | 34,146,546 |
Weighted-average grant date fair value per share | ||
Balance at the beginning of the period (in dollars per share) | $ 9.74 | $ 18.30 |
Grant (in dollars per share) | 4.62 | 8.91 |
Vested (in dollars per share) | 8.47 | 13.99 |
Canceled and forfeited (in dollars per share) | 7.98 | 14.07 |
Balance at the end of the period (in dollars per share) | $ 6.64 | $ 9.74 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options | ||||
Balance at the beginning of the period (in shares) | 36,156,445 | 44,185,488 | 23,421,374 | |
Granted (in shares) | 6,080,148 | 4,182,522 | 29,113,555 | |
Exercised (in shares) | (3,353,103) | (7,785,748) | (4,277,344) | |
Canceled and forfeited (in shares) | (2,212,852) | (4,425,817) | (4,072,097) | |
Balance at the end of the period (in shares) | 36,670,638 | 36,156,445 | 44,185,488 | 23,421,374 |
Number of options, Exercisable | 10,677,680 | |||
Weighted-Average Exercise Price per Share | ||||
Balance at the beginning of the period (in dollars per share) | $ 16.37 | $ 13.31 | $ 1.35 | |
Granted (in dollars per share) | 5.35 | 10.16 | 20.07 | |
Exercised (in dollars per share) | 1.58 | 1.20 | 1.18 | |
Canceled and forfeited (in dollars per share) | 13.24 | 6.60 | 5.58 | |
Balance at the end of the period (in dollars per share) | 16.09 | $ 16.37 | $ 13.31 | $ 1.35 |
Exercisable, Weighted-Average Exercise Price, Per Share (in dollars per share) | $ 11.62 | |||
Option Activity, Additional Disclosures | ||||
Options outstanding, weighted average remaining contractual life (in years) | 7 years 5 months 12 days | 7 years 8 months 1 day | 8 years 5 months 15 days | 8 years 3 months 29 days |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 7 years 1 month 13 days | |||
Options outstanding, aggregate intrinsic value (in USD) | $ 24,481 | $ 29,101 | $ 279,242 | $ 248,002 |
Exercisable, Aggregate Intrinsic Value | $ 17,426 | |||
Options vested as of December 31, 2022, number of options (in shares) | 8,355,940 | |||
Options vested as of December 31, 2022, exercise price per share (in dollars per share) | $ 10.12 | |||
Options vested, weighted average remaining contractual life (in years) | 6 years 10 months 2 days | |||
Options vested, as of December 3 2022, aggregate intrinsic value (in USD) | $ 15,917 |
Stock Incentive Plans - Weighte
Stock Incentive Plans - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Dividend yield | 0% | 0% | 0% |
Expected volatility | 70.78% | 61.52% | 52.36% |
Expected term (in years) | 6 years 14 days | 6 years 29 days | 6 years 1 month 20 days |
Risk-free interest rate | 3.78% | 2.32% | 1% |
Stock Incentive Plans - CEO Per
Stock Incentive Plans - CEO Performance Awards (Details) - Executive Chairman Long-Term Performance Award - Chief Executive Officer | 12 Months Ended |
Dec. 31, 2023 $ / 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_2
Stockholders’ Equity Transactions - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | May 08, 2023 | Sep. 14, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Warrant or Right [Line Items] | ||||||
Repurchase of early exercised stock options (in shares) | $ 190,348,000 | $ 79,201,000 | ||||
Additional Paid-in Capital | ||||||
Class of Warrant or Right [Line Items] | ||||||
Repurchase of early exercised stock options (in shares) | $ 190,345,000 | $ 79,200,000 | ||||
2022 Share Repurchase Program | ||||||
Class of Warrant or Right [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 100,000,000 | |||||
Repurchase of early exercised stock options (in shares) | 3,200,000 | 11,700,000 | ||||
Shares repurchased, average price per share (in usd per share) | $ 6.46 | $ 6.77 | ||||
2022 Share Repurchase Program | Additional Paid-in Capital | ||||||
Class of Warrant or Right [Line Items] | ||||||
Repurchase of early exercised stock options (in shares) | $ 21,000,000 | $ 79,200,000 | ||||
2023 Share Repurchase Program | ||||||
Class of Warrant or Right [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 200,000,000 | |||||
Repurchase of early exercised stock options (in shares) | 31,300,000 | |||||
Repurchase of early exercised stock options (in shares) | $ 169,400,000 | |||||
Shares repurchased, average price per share (in usd per share) | $ 5.41 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 32,200,000 | |||||
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 | $ 0.01 | ||||
Vested warrants outstanding (in shares) | 1,101,262 | 695,637 | ||||
Class of warrant or right, reduction to net revenues in the period | $ (5,500,000) | $ 7,300,000 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring expense | $ 8,700 |
Restructuring charges | 14,588 |
Net reduction of stock-based compensation | 2,900 |
Restructuring reserve, accrual adjustment | $ 2,900 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring liability beginning balance | $ 0 |
Restructuring charges | 14,588 |
Cash payments | (14,588) |
Restructuring liability ending balance | $ 0 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator [Abstract] | |||
Net loss attributable to Class A and Class B common stockholders, basic | $ (222,962) | $ (184,780) | $ (163,929) |
Net loss attributable to Class A and Class B common stockholders, diluted | $ (222,962) | $ (184,780) | $ (163,929) |
Denominator [Abstract] | |||
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 532,540,175 | 545,397,254 | 362,756,466 |
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 532,540,175 | 545,397,254 | 362,756,466 |
Net loss per share attributable to Class A and Class B common stockholders, basic (in dollars per share) | $ (0.42) | $ (0.34) | $ (0.45) |
Net loss per share attributable to Class A and Class B common stockholders, diluted (in dollars per share) | $ (0.42) | $ (0.34) | $ (0.45) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 147,723,922 | 133,504,403 | 118,313,973 |
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 | 1,900,000 |
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) | 36,670,638 | 36,156,445 | 45,307,479 |
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) | 38,177,072 | 34,146,546 | 9,001,949 |
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) | 253,317 | 408,831 | 211,118 |
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) | 70,722,895 | 60,892,581 | 61,893,427 |
Income Tax - Components of Inco
Income Tax - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (231,790) | $ (185,612) | $ (165,160) |
Foreign | 1,215 | 730 | 591 |
Loss before income tax expense | $ (230,575) | $ (184,882) | $ (164,569) |
Income Tax - Significant Compon
Income Tax - Significant Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 83 | 353 | 38 |
Foreign | (139) | 18 | 0 |
Current | (56) | 371 | 38 |
Deferred: | |||
Federal | (6,347) | 0 | 0 |
State | (2,025) | 0 | 0 |
Foreign | 815 | (473) | (678) |
Deferred | (7,557) | (473) | (678) |
Total: | |||
Federal | (6,347) | 0 | 0 |
State | (1,942) | 353 | 38 |
Foreign | 676 | (455) | (678) |
Income tax benefit | $ (7,613) | $ (102) | $ (640) |
Income Tax - Effective Income T
Income Tax - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Taxes at federal statutory rate | 21% | 21% | 21% |
State taxes, net of federal effect | 6.50% | 4.60% | 4% |
Share-based compensation | (3.10%) | 3.90% | 4.50% |
Executive compensation | (0.110) | (0.138) | (0.083) |
Research and development credits | 17% | 0% | 0% |
Change in uncertain tax positions | (4.20%) | 0% | 0% |
Mergers and acquisitions | 3.50% | 0% | 0% |
Other permanent items | (7.40%) | 0% | 0% |
Other | (1.60%) | 1.40% | (0.30%) |
Change in valuation allowance | (17.40%) | (17.00%) | (20.50%) |
Effective tax rate | 3.30% | 0.10% | 0.40% |
Income Tax - Components of Defe
Income Tax - Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Federal and state net operating losses | $ 50,498 | $ 33,497 |
Research and development credits | 27,729 | 77 |
Property and equipment | 586 | 205 |
Accruals and other | 9,016 | 20,884 |
Share-based compensation | 10,484 | 14,490 |
Research and development capitalization expenditures | 36,743 | 23,404 |
Reserve for contract contingencies and processing errors | 951 | 614 |
Deferred revenue | 1,018 | 6,011 |
Lease liability | 2,288 | 3,061 |
Total deferred tax assets | 139,313 | 102,243 |
Less valuation allowance | (128,150) | (98,816) |
Total deferred tax assets, net of valuation allowance | 11,163 | 3,427 |
Deferred tax liabilities | ||
Intangibles | (9,025) | 0 |
Right-of-use asset | (1,643) | (2,220) |
Total deferred tax liabilities | (10,668) | (2,220) |
Net deferred tax assets | $ 495 | $ 1,207 |
Income Tax - Narrative (Details
Income Tax - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | ||||
Additional valuation allowance | $ 29,300 | $ 30,000 | ||
Federal and state net operating losses | 50,498 | 33,497 | ||
Income tax penalties and interest expense | 0 | |||
Unrecognized tax benefits | 9,800 | $ 0 | $ 0 | $ 0 |
Domestic Tax Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal and state net operating losses | 194,800 | |||
Operating loss carryforwards, carried forward indefinitely | $ 158,700 | |||
Domestic Tax Authority | Research Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
R&D amortization period (in years) | 5 years | |||
Domestic Tax Authority | Research Tax Credit Carryforward | Internal Revenue Service (IRS) | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | $ 27,900 | |||
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 | $ 153,100 | |||
State and Local Jurisdiction | Research Tax Credit Carryforward | California Franchise Tax Board | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | $ 11,300 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the beginning and ending amount of gross unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 0 | $ 0 | $ 0 |
Reductions of tax positions taken during previous years | 0 | 0 | 0 |
Additions based on uncertain tax positions related to the current period | 3,238 | 0 | 0 |
Additions based on uncertain tax positions related to the prior periods | 6,562 | 0 | 0 |
Ending balance | $ 9,800 | $ 0 | $ 0 |
Concentration of Risks and Si_3
Concentration of Risks and Significant Customers (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) investment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 980,972 | $ 1,183,846 | $ 1,247,581 |
Short-term investments | 268,724 | 440,858 | |
Investments | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 628,000 | 462,500 | |
Number of investments | investment | 2 | ||
Debt Securities, Available-For-Sale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Short-term investments | $ 255,200 | $ 407,100 | |
Debt Securities, Available-For-Sale | Credit Concentration Risk | Marketable Securities | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 95% | 92% | |
Accounts Receivable | Credit Concentration Risk | Sutton Bank | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 76% | 82% | 90% |
Accounts Receivable | Customer Concentration Risk | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11% | 18% | |
Revenue | Customer Concentration Risk | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 68% | 71% | 69% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2021 | |
Connexpay, LLC | |||
Related Party Transaction [Line Items] | |||
Revenues | $ 2.7 | $ 2.8 | |
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] | |||
Related party transaction amount | $ 30.4 |