Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40806 | |
Entity Registrant Name | Freshworks Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 2950 S Delaware Street | |
Entity Address, Address Line Two | Suite 201 | |
Entity Address, City or Town | San Mateo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94403 | |
Entity Tax Identification Number | 33-1218825 | |
City Area Code | 650 | |
Local Phone Number | 513-0514 | |
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | |
Trading Symbol | FRSH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001544522 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 145,388,463 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 140,903,130 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 590,107 | $ 747,861 |
Marketable securities | 584,015 | 575,679 |
Accounts receivable, net of allowance of $5,678 and $6,030 | 55,415 | 51,756 |
Deferred contract acquisition costs | 17,012 | 14,640 |
Prepaid expenses and other current assets | 38,036 | 31,440 |
Total current assets | 1,284,585 | 1,421,376 |
Property and equipment, net | 23,339 | 21,478 |
Operating lease right-of-use assets | 28,639 | |
Deferred contract acquisition costs, noncurrent | 16,580 | 15,007 |
Intangible assets, net | 855 | 1,894 |
Goodwill | 6,181 | 6,181 |
Deferred tax assets | 5,589 | 6,284 |
Other assets | 12,520 | 10,592 |
Total assets | 1,378,288 | 1,482,812 |
Current liabilities: | ||
Accounts payable | 6,291 | 6,321 |
Accrued liabilities | 59,087 | 55,829 |
Deferred revenue | 182,795 | 160,173 |
Income tax payable | 161 | 1,023 |
Total current liabilities | 248,334 | 223,346 |
Operating lease liabilities, non-current | 25,517 | |
Other liabilities | 24,827 | 21,427 |
Total liabilities | 298,678 | 244,773 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred Stock, value | 0 | 0 |
Additional paid-in capital | 4,475,669 | 4,509,724 |
Accumulated other comprehensive loss | (6,309) | (747) |
Accumulated deficit | (3,389,753) | (3,270,941) |
Total stockholders' equity | 1,079,610 | 1,238,039 |
Total liabilities and stockholders' equity | 1,378,288 | 1,482,812 |
Class A Common Stock | ||
Stockholders' equity: | ||
Common stock, value | 1 | 0 |
Class B Common Stock | ||
Stockholders' equity: | ||
Common stock, value | $ 2 | $ 3 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance for credit loss, current | $ 5,678 | $ 6,030 |
Preferred stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 125,413,749 | 50,554,821 |
Common stock, outstanding (in shares) | 125,413,749 | 50,554,821 |
Class B Common Stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, issued (in shares) | 160,144,746 | 222,739,562 |
Common stock, outstanding (in shares) | 160,144,746 | 222,739,562 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 121,432 | $ 88,341 | $ 236,069 | $ 168,928 |
Cost of revenue | 24,042 | 18,703 | 46,437 | 35,396 |
Gross profit | 97,390 | 69,638 | 189,632 | 133,532 |
Operating expense: | ||||
Research and development | 34,297 | 18,895 | 65,014 | 34,290 |
Sales and marketing | 90,038 | 48,862 | 161,504 | 91,370 |
General and administrative | 40,407 | 8,320 | 77,590 | 16,026 |
Total operating expenses | 164,742 | 76,077 | 304,108 | 141,686 |
Loss from operations | (67,352) | (6,439) | (114,476) | (8,154) |
Interest and other (expense) income, net | (242) | 132 | 360 | 505 |
Loss before income taxes | (67,594) | (6,307) | (114,116) | (7,649) |
Provision for income taxes | 2,159 | 1,122 | 4,696 | 2,195 |
Net loss | (69,753) | (7,429) | (118,812) | (9,844) |
Accretion of redeemable convertible preferred stock | 0 | 597,955 | 0 | 381,824 |
Net income (loss) available to common stockholders, basic, total | (69,753) | (605,384) | (118,812) | (391,668) |
Net income (loss) available to common stockholders, diluted, total | $ (69,753) | $ (605,384) | $ (118,812) | $ (391,668) |
Net loss per share attributable to Class A and Class B common stockholders - basic (in dollars per share) | $ (0.24) | $ (7.79) | $ (0.42) | $ (5.04) |
Net loss per share attributable to Class A and Class B common stockholders - diluted (in dollars per share) | $ (0.24) | $ (7.79) | $ (0.42) | $ (5.04) |
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares) | 284,761 | 77,753 | 281,492 | 77,724 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares) | 284,761 | 77,753 | 281,492 | 77,724 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (69,753) | $ (7,429) | $ (118,812) | $ (9,844) |
Other comprehensive loss: | ||||
Unrealized loss on marketable securities | (1,956) | (165) | (5,562) | (413) |
Comprehensive loss | $ (71,709) | $ (7,594) | $ (124,374) | $ (10,257) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 153,938,000 | ||||
Beginning balance at Dec. 31, 2020 | $ 2,895,096 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 153,938,000 | ||||
Ending balance at Jun. 30, 2021 | $ 3,276,920 | ||||
Beginning balance (in shares) at Dec. 31, 2020 | 77,619,000 | ||||
Beginning balance at Dec. 31, 2020 | (2,696,741) | $ 1 | $ 0 | $ 411 | $ (2,697,153) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | 381,824 | ||||
Accretion of redeemable convertible preferred stock | (381,824) | (31) | (381,793) | ||
Issuance of common stock upon exercise of stock options (in shares) | 137,000 | ||||
Issuance of common stock upon exercise of stock options | 31 | 31 | |||
Unrealized loss on marketable securities | (413) | (413) | |||
Net loss | (9,844) | (9,844) | |||
Ending balance (in shares) at Jun. 30, 2021 | 77,756,000 | ||||
Ending balance at Jun. 30, 2021 | $ (3,088,791) | $ 1 | 0 | (2) | (3,088,790) |
Beginning balance (in shares) at Mar. 31, 2021 | 153,938,000 | ||||
Beginning balance at Mar. 31, 2021 | $ 2,678,965 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 153,938,000 | ||||
Ending balance at Jun. 30, 2021 | $ 3,276,920 | ||||
Beginning balance (in shares) at Mar. 31, 2021 | 77,750,000 | ||||
Beginning balance at Mar. 31, 2021 | (2,483,252) | $ 1 | 75,603 | 163 | (2,559,019) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | 597,955 | ||||
Accretion of redeemable convertible preferred stock | (597,955) | (75,613) | (522,342) | ||
Issuance of common stock upon exercise of stock options (in shares) | 6,000 | ||||
Issuance of common stock upon exercise of stock options | 10 | 10 | |||
Unrealized loss on marketable securities | (165) | (165) | |||
Net loss | (7,429) | (7,429) | |||
Ending balance (in shares) at Jun. 30, 2021 | 77,756,000 | ||||
Ending balance at Jun. 30, 2021 | $ (3,088,791) | $ 1 | 0 | (2) | (3,088,790) |
Beginning balance (in shares) at Dec. 31, 2021 | 0 | ||||
Beginning balance at Dec. 31, 2021 | $ 0 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 0 | ||||
Ending balance at Jun. 30, 2022 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2021 | 273,294,000 | ||||
Beginning balance at Dec. 31, 2021 | 1,238,039 | $ 3 | 4,509,724 | (747) | (3,270,941) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 355,000 | ||||
Issuance of common stock upon exercise of stock options | 103 | 103 | |||
Restricted stock issued net of shares withheld for taxes (in shares) | 11,399,000 | ||||
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes | $ (139,100) | (139,100) | |||
Issuance of common stock under employee stock purchase plan, net of shares withheld for taxes (in shares) | 510,093 | 510,000 | |||
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes | $ 6,959 | 6,959 | |||
Stock-based compensation | 97,983 | 97,983 | |||
Unrealized loss on marketable securities | (5,562) | (5,562) | |||
Net loss | (118,812) | (118,812) | |||
Ending balance (in shares) at Jun. 30, 2022 | 285,558,000 | ||||
Ending balance at Jun. 30, 2022 | $ 1,079,610 | $ 3 | 4,475,669 | (6,309) | (3,389,753) |
Beginning balance (in shares) at Mar. 31, 2022 | 0 | ||||
Beginning balance at Mar. 31, 2022 | $ 0 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 0 | ||||
Ending balance at Jun. 30, 2022 | $ 0 | ||||
Beginning balance (in shares) at Mar. 31, 2022 | 283,070,000 | ||||
Beginning balance at Mar. 31, 2022 | 1,111,218 | $ 3 | 4,435,568 | (4,353) | (3,320,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 242,000 | ||||
Issuance of common stock upon exercise of stock options | 74 | 74 | |||
Restricted stock issued net of shares withheld for taxes (in shares) | 1,736,000 | ||||
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes | (18,290) | (18,290) | |||
Issuance of common stock under employee stock purchase plan, net of shares withheld for taxes (in shares) | 510,000 | ||||
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes | 6,959 | 6,959 | |||
Stock-based compensation | 51,358 | 51,358 | |||
Unrealized loss on marketable securities | (1,956) | (1,956) | |||
Net loss | (69,753) | (69,753) | |||
Ending balance (in shares) at Jun. 30, 2022 | 285,558,000 | ||||
Ending balance at Jun. 30, 2022 | $ 1,079,610 | $ 3 | $ 4,475,669 | $ (6,309) | $ (3,389,753) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows Operating Activities: | ||||
Net loss | $ (69,753) | $ (7,429) | $ (118,812) | $ (9,844) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 5,779 | 6,418 | ||
Amortization of deferred contract acquisition costs | 4,421 | 3,010 | 8,696 | 5,669 |
Non-cash lease expense | 2,896 | |||
Stock-based compensation | 96,760 | 0 | ||
Premium amortization on marketable securities | 1,097 | 795 | ||
Change in fair value of equity securities | (85) | (65) | ||
Deferred income taxes | 309 | 0 | ||
Other | 1,195 | 50 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (3,824) | (6,110) | ||
Deferred contract acquisition costs | (12,641) | (11,000) | ||
Prepaid expenses and other assets | (8,445) | (1,860) | ||
Accounts payable | 454 | 3,971 | ||
Accrued and other liabilities | 3,206 | (5,676) | ||
Deferred revenue | 22,623 | 26,314 | ||
Operating lease liabilities | (4,677) | |||
Net cash (used in) provided by operating activities | (5,469) | 8,662 | ||
Cash Flows from Investing Activities: | ||||
Purchases of property and equipment | (3,381) | (2,786) | ||
Proceeds from sale of property and equipment | 83 | 557 | ||
Capitalized internal-use software | (2,722) | (2,177) | ||
Purchases of marketable securities | (288,200) | (110,840) | ||
Sales of marketable securities | 92,786 | 34,755 | ||
Maturities and redemptions of marketable securities | 180,570 | 81,804 | ||
Net cash (used in) provided by investing activities | (20,864) | 1,313 | ||
Cash Flows from Financing Activities: | ||||
Proceeds from issuance of common stock under employee stock purchase plan, net | 7,011 | 0 | ||
Proceeds from exercise of stock options | 96 | 31 | ||
Payment of withholding taxes on net share settlement of equity awards | (138,349) | 0 | ||
Payment of deferred offering costs | (109) | (2,405) | ||
Net cash used in financing activities | (131,351) | (2,374) | ||
Net (decrease) increase in cash, cash equivalents and restricted cash | (157,684) | 7,601 | ||
Cash, cash equivalents and restricted cash, beginning of period | 747,864 | 98,331 | ||
Cash, cash equivalents and restricted cash, end of period | 590,180 | 105,932 | 590,180 | 105,932 |
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets: | ||||
Cash and cash equivalents | 590,107 | 104,796 | 590,107 | 104,796 |
Restricted cash included in prepaid expenses and other current assets | 46 | 114 | 46 | 114 |
Restricted cash included in other assets | 27 | 1,022 | 27 | 1,022 |
Total cash, cash equivalents and restricted cash | 590,180 | 105,932 | 590,180 | 105,932 |
Supplemental cash flow information: | ||||
Cash paid for taxes | 5,318 | 3,728 | ||
Non-cash investing and financing activities: | ||||
Operating lease right-of-use assets obtained in exchange for operating lease obligations | 1,895 | 7,219 | 0 | |
Stock-based compensation capitalized as internal-use software | 1,223 | 0 | 1,223 | 0 |
Deferred offering costs | 0 | 1,279 | ||
Accretion of redeemable convertible preferred stock | $ 0 | $ 597,955 | $ 0 | $ 381,824 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | Business, Basis of Presentation and Summary of Significant Accounting Policies Description of business Freshworks Inc. (Freshworks, or the Company) is a software development company that provides modern software-as-a-service (SaaS) products that are designed with the user in mind. The Company was incorporated in Delaware in 2010 and is headquartered in San Mateo, California. In September 2021, the Company completed its initial public offering (IPO), in which it issued and sold 31,350,000 shares of its newly authorized Class A common stock at $36.00 per share. The Company received proceeds of approximately $1.1 billion from the IPO, net of underwriters’ discounts and offering expenses. Upon completion of the IPO, certain shares of Class B common stock then outstanding (excluding shares of Class B common stock issued upon conversion and reclassification of the redeemable convertible preferred stock described below) were automatically converted to Class A common stock on a one-to-one basis, unless an option to remain as Class B common stock was elected by the holder. In addition, all shares of redeemable convertible preferred stock then outstanding were converted into 153,937,730 shares of common stock on a one-to-one basis and then reclassified into Class B common stock. Upon the Company's IPO, the liquidity event condition was met for all restricted stock units (RSUs). RSUs that had already met the service condition at that date were entitled to one share of Class B common stock for each vested RSU. In September 2021, the Company also completed a 10-for-one forward stock split of the Company's authorized, issued and outstanding stock. All share and per share information included in the accompanying condensed consolidated financial statements and notes thereto have been adjusted on a retrospective basis to reflect the stock split. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Consolidated Financial Statement s The accompanying condensed consolidated balance sheet as of June 30, 2022, the condensed consolidated statements of operations, of comprehensive loss, of cash flows, and of redeemable convertible preferred stock and stockholders’ equity (deficit) for the three and six months ended June 30, 2022 and 2021, and the related notes to such condensed consolidated financial statements are unaudited. These unaudited condensed consolidated financial statements are presented in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2022 and its results of operations and cash flows for the three and six months ended June 30, 2022 and 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 23, 2022. Use of Estimates The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the following: • determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations; • allowance for doubtful accounts; • expected benefit period of deferred contract acquisition costs; • capitalization of internal-use software development costs; • fair value of acquired intangible assets and goodwill; • useful lives of long-lived assets; • valuation of deferred tax assets; • valuation of employee defined benefit plan; • fair value of share-based awards, including performance-based awards; and • incremental borrowing rate used for operating leases. Risk and Uncertainties The COVID-19 pandemic has already had an adverse effect on the global economy and the ultimate societal and economic impact thereof still remains uncertain. Additionally, inflationary pressures, significant volatility in the global markets and geopolitical conflicts have also led to further economic disruption. These macroeconomic uncertainties could adversely affect demand for the Company’s products and services, lead to longer sales cycles, reduce the value or duration of subscriptions, negatively impact collections of accounts receivable, reduce expected spending from new customers, cause some of the existing customers to go out of business, and affect contraction or attrition rates of the Company’s customers, all of which could adversely affect the Company’s business, results of operations, and financial condition. The Company is not aware of any specific event or circumstances related to the pandemic, or other events that would require it to update estimates or judgments or adjust the carrying value of its assets or liabilities. Actual results could differ from those estimates and any such differences may be material to the consolidated financial statements. Concentrations of Risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. The Company’s cash and cash equivalents and marketable securities are generally held with large financial institutions and are in excess of the federally insured limits provided on such deposits. In addition, the Company has cash and cash equivalents held in international bank accounts, which are denominated primarily in Euros, British Pounds, and Indian Rupees. There were no customers that individually exceeded 10% of the Company’s revenue for the three and six months ended June 30, 2022 and 2021 or that represented 10% or more of the Company’s consolidated accounts receivable balance as of June 30, 2022. The Company primarily relies upon its third-party cloud infrastructure partner, Amazon Web Services, to serve customers and operate certain aspects of its services. Any disruption of this cloud infrastructure partner would impact the Company's operations and its business could be adversely impacted. Significant Accounting Policies The Company's significant accounting policies are described in the Annual Report on Form 10-K for the year ended December 31, 2021. There have been no significant changes to these policies that have had a material impact on the condensed consolidated financial statements and the related notes for the three and six months ended June 30, 2022, with the exception of the adoption of Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) as described below. See also Recently Adopted Accounting Pronouncements for more detail on the adoption. Leases The Company leases office space under operating leases with expiration dates through 2031. The Company determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use (ROU) assets on its condensed consolidated balance sheets at the lease commencement date. Lease liabilities are measured based on the present value of the total lease payments not yet paid, discounted based on either the rate implicit in the lease or the Company's incremental borrowing rate (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), whichever is more readily determinable. Lease liabilities due within 12 months are included within accrued liabilities on the Company's condensed consolidated balance sheets. The incremental borrowing rate is based on an estimate of the Company's expected unsecured borrowing rate for its notes, adjusted for tenor and collateralized security features. ROU assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the lease commencement date, (ii) initial direct costs incurred, and (iii) tenant incentives received, incurred or payable under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to the Company. The Company does not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components. For short-term leases, the Company records rent expense in its condensed consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred. Recent Accounting Pronouncements New accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) under its Accounting Standards Codification (ASC) or ASU and adopted by the Company as of the specified effective date. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on their balance sheets as ROU assets with corresponding lease liabilities and eliminates certain real estate-specific provisions. The Company adopted this standard effective January 1, 2022 on a modified retrospective basis, and as such, results in comparative periods were not restated. As a result of the adoption, the Company recognized operating ROU assets of $24.3 million and operating lease liabilities of $28.8 million in its condensed consolidated balance sheets on the adoption date. The Company has elected certain available practical expedients, which allow it to forego the reassessments of (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. The Company has also elected to combine lease and non-lease components for commercial lease arrangements. Additionally, the Company elected not to recognize operating ROU assets and the associated operating lease liabilities for leases with a term of 12 months or less from the lease commencement date. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets by requiring an allowance to be recorded as an offset to the amortized cost of such assets. The standard primarily impacts the amortized cost of the Company's available-for-sale debt securities. The Company adopted this standard on January 1, 2022 using the modified retrospective approach, which did not result in a material impact on its condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The standard eliminates certain exceptions related to the approach for intraperiod tax allocation and the methodology for calculating income taxes in an interim period. The standard also simplifies aspects of accounting for franchise taxes and enacted changes in tax or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis for goodwill. The Company adopted this standard effective January 1, 2022, which did not result in a material impact on its condensed consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 will become effective for the Company on January 1, 2023, to be applied prospectively to business combinations occurring on or after the effective date of the ASU, with early adoption permitted. The Company adopted this standard effective January 1, 2022, which did not result in a material impact on its condensed consolidated financial statements. |
Revenue From Contracts with Cus
Revenue From Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts with Customers | Revenue From Contracts with Customers Revenue The Company derives revenue from subscription fees and related professional services. The Company sells subscriptions for its cloud-based solutions directly to customers and indirectly through channel partners through arrangements that are non-cancelable and non-refundable. The Company’s subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. The Company records revenue net of sales or value-added taxes. Disaggregation of Revenue The following table summarizes revenue by the Company’s service offerings (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Subscription services $ 118,393 $ 85,693 $ 229,790 $ 163,515 Professional services 3,039 2,648 6,279 5,413 Total revenue $ 121,432 $ 88,341 $ 236,069 $ 168,928 See Note 12 for revenue by geographic location. Deferred Revenue and Remaining Performance Obligations Deferred revenue consists of customer billings in advance of revenue being recognized from the Company’s subscription and professional services arrangements. Revenue recognized during the three months ended June 30, 2022 and 2021 from amounts included in deferred revenue at the beginning of these periods was $80.3 million and $56.0 million, respectively. Revenue recognized during the six months ended June 30, 2022 and 2021 from amounts included in deferred revenue at the beginning of these periods was $118.2 million and $76.7 million, respectively. The aggregate balance of remaining performance obligations as of June 30, 2022 was $266.8 million. The Company expects to recognize $207.5 million of the balance as revenue in the next 12 months and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Deferred Contract Acquisition Costs The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of the period $ 30,972 $ 20,404 $ 29,647 $ 18,273 Add: Contract costs capitalized during the period 7,041 6,210 12,641 11,000 Less: Amortization of contract costs during the period (4,421) (3,010) (8,696) (5,669) Balance at end of the period $ 33,592 $ 23,604 $ 33,592 $ 23,604 |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities Cash equivalents and available-for-sale debt securities consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 306,917 $ — $ — $ 306,917 U.S. treasury securities 44,963 — (10) 44,953 U.S. government agency securities 172,992 — (56) 172,936 Corporate debt securities 11,988 — — 11,988 Total cash equivalents 536,860 — (66) 536,794 Debt securities: U.S. treasury securities 371,776 6 (3,714) 368,068 U.S. government agency securities 124,725 23 (1,676) 123,072 Corporate debt securities 93,757 — (882) 92,875 Total debt securities 590,258 29 (6,272) 584,015 Total cash equivalents and debt securities $ 1,127,118 $ 29 $ (6,338) $ 1,120,809 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 684,485 $ — $ — $ 684,485 U.S. treasury securities 22,000 — — 22,000 U.S. government agency securities 4,286 — (1) 4,285 Corporate debt securities 15,998 — — 15,998 Total cash equivalents 726,769 — (1) 726,768 Debt securities: U.S. treasury securities 442,715 2 (432) 442,285 U.S. government agency securities 75,725 — (159) 75,566 Corporate debt securities 54,335 17 (175) 54,177 Total debt securities 572,775 19 (766) 572,028 Total cash equivalents and debt securities $ 1,299,544 $ 19 $ (767) $ 1,298,796 As of June 30, 2022 and December 31, 2021, the securities in a continuous unrealized loss position for 12 months or longer were not material. The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands): June 30, 2022 Amortized Cost Fair Value Due within one year $ 433,496 $ 429,867 Due after one year but within five years 156,762 154,148 Total $ 590,258 $ 584,015 Accrued interest receivable of $1.6 million was classified in prepaid expenses and other current assets in the condensed consolidated balance sheet of as June 30, 2022. In addition to available-for-sale debt securities, marketable securities also include term bond mutual funds, which are measured at fair value. As of June 30, 2022, there were no investments in term bond mutual funds. As of December 31, 2021, the fair value of the term bond mutual funds was $3.7 million. The change in fair value of the term bond mutual funds is recorded in interest and other income, net in the condensed consolidated statements of operations. The realized and unrealized gains recognized in the condensed consolidated statements of operations for the term bond mutual funds were not material during the three and six months ended June 30, 2022 and 2021. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 —Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 —Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly. Level 3 —Inputs that are unobservable. Money market funds and U.S. treasury securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models. The Company did not have any assets or liabilities subject to fair value remeasurement on a nonrecurring basis as of June 30, 2022 and December 31, 2021. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Fair Value Measured Using Level 1 Level 2 Total Financial assets: Cash equivalents: Money market funds $ 306,917 $ — $ 306,917 U.S. treasury securities 44,953 — 44,953 U.S. government agency securities — 172,936 172,936 Corporate debt securities — 11,988 11,988 Marketable securities: U.S. treasury securities 368,068 — 368,068 U.S. government agency securities — 123,072 123,072 Corporate debt securities — 92,875 92,875 Total financial assets $ 719,938 $ 400,871 $ 1,120,809 December 31, 2021 Fair Value Measured Using Level 1 Level 2 Total Financial assets: Cash equivalents: Money market funds $ 684,485 $ — $ 684,485 U.S. treasury securities 22,000 — 22,000 U.S. government agency securities — 4,285 4,285 Corporate debt securities — 15,998 15,998 Marketable securities: U.S. treasury securities 442,285 — 442,285 U.S. government agency securities — 75,566 75,566 Corporate debt securities — 54,177 54,177 Term bond mutual funds — 3,651 3,651 Total financial assets $ 1,148,770 $ 153,677 $ 1,302,447 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, net The following table summarizes property and equipment, net as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Computers $ 14,588 $ 13,041 Capitalized internal-use software 17,395 14,178 Office equipment 3,478 3,375 Furniture and fixtures 8,599 8,395 Motor vehicles 1,274 1,421 Leasehold improvements 4,297 4,274 Construction in progress 1,476 — Total property and equipment 51,107 44,684 Less: accumulated depreciation and amortization (27,768) (23,206) Property and equipment, net $ 23,339 $ 21,478 Capitalization of costs associated with internal-use software were $2.6 million and $1.2 million for the three months ended June 30, 2022 and 2021, respectively; and $3.9 million and $2.2 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 and December 31, 2021, the net carrying value of capitalized internal-use software was $10.1 million and $8.3 million, respectively. Depreciation and amortization expense was $2.4 million and $2.2 million for the three months ended June 30, 2022 and 2021, respectively; and $4.7 million and $4.3 million for the six months ended June 30, 2022 and 2021, respectively. Accrued Liabilities The following table summarizes accrued liabilities as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Accrued compensation $ 17,785 $ 17,261 Accrued third-party cloud infrastructure expenses 2,597 2,785 Accrued reseller commissions 6,361 5,870 Accrued advertising and marketing expenses 8,954 6,022 Advanced payments from customers 3,362 3,260 Accrued taxes 7,044 10,777 Operating lease liabilities, current 5,859 — Contributions withheld for employee stock purchase plan 1,683 4,211 Other accrued expenses 5,442 5,643 Total accrued liabilities $ 59,087 $ 55,829 |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, NetAcquired intangible assets consist of developed technology and customer relationships and are amortized on a straight-line basis over their estimated useful lives. The following tables summarize acquired intangible assets as of June 30, 2022 and December 31, 2021: June 30, 2022 Gross Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life (amounts in thousands) (in years) Developed technology $ 10,496 $ (9,987) $ 509 0.7 Customer relationships 1,600 (1,254) 346 0.9 Total $ 12,096 $ (11,241) $ 855 December 31, 2021 Gross Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life (amounts in thousands) (in years) Developed technology $ 10,496 $ (9,147) $ 1,349 0.9 Customer relationships 1,600 (1,055) 545 1.4 Total $ 12,096 $ (10,202) $ 1,894 Amortization of acquired intangible assets is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Developed technology: Cost of revenue $ 315 $ 980 $ 840 $ 1,949 Customer relationships: Sales and marketing 100 99 199 198 Total amortization expense $ 415 $ 1,079 $ 1,039 $ 2,147 As of June 30, 2022, expected future amortization expense related to acquired intangible assets is as follows (in thousands): Year Ending December 31, Amortization Expense 2022 (remaining six months) 552 2023 303 Total future amortization $ 855 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily for office space. The leases have remaining lease terms of one The following table presents various components of the lease costs (in thousands): Operating Leases Three months ended June 30, 2022 Six months ended June 30, 2022 Operating lease cost $ 2,104 $ 3,879 Short-term lease cost 342 657 Variable lease cost 769 1,438 Rent expense for operating leases recognized prior to our adoption of Topic 842 for the three and six months ended June 30, 2021 was $2.4 million and $4.9 million, respectively. The weighted-average remaining term of the Company's operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows: Lease Term and Discount Rate June 30, 2022 Weighted-average remaining lease term (in years) 5.2 Weighted-average discount rate 7.5 % The following table presents supplemental information arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of the operating lease liabilities, and as such, are excluded from the amounts below (in thousands): Supplemental Cash Flow Information: Three months ended June 30, 2022 Six months ended June 30, 2022 Cash payments included in the measurement of operating lease liabilities $ 1,550 $ 4,274 Operating ROU assets obtained in exchange for lease obligations 1,895 7,219 As of June 30, 2022, maturities of the operating lease liabilities are as follows (in thousands): Year Ending December 31: Operating Leases 2022 (remaining 6 months) $ 3,803 2023 8,406 2024 7,593 2025 6,753 2026 4,448 Thereafter 8,292 Total lease payments 39,295 Less: imputed interest (7,919) Present value of operating lease liabilities $ 31,376 As of June 30, 2022, future payments related to signed leases that have not yet commenced, excluded from the table above, are not material. Future minimum lease payments under non-cancelable operating leases of December 31, 2021 were as follows (in thousands): Year Ending December 31: Operating Leases 2022 $ 6,954 2023 6,790 2024 6,642 2025 5,976 2026 3,579 Thereafter 4,304 Total minimum future payments $ 34,245 |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Other Contractual Commitments The Company's other contractual commitments primarily consist of third-party cloud infrastructure agreements and service subscription purchase arrangements used to support operations at the enterprise level. As of June 30, 2022, other contractual commitments totaling $123.2 million remain outstanding under these agreements though 2025. Litigation and Loss Contingencies From time to time, the Company may be subject to other legal proceedings, claims, investigations, and government inquiries (collectively, Legal Proceedings) in the ordinary course of business. It may receive claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. There are no currently pending legal proceedings that the Company believes will have a material adverse impact on the business or condensed consolidated financial statements. Indemnifications In the ordinary course of business, the Company enters into contractual arrangements under which the Company agrees to provide indemnification of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including losses arising out of intellectual property infringement claims made by third parties, if the Company has violated applicable laws, if the Company is negligent or commits acts of willful misconduct, and other liabilities with respect to its products and services and its business. In these circumstances, payment is typically conditional on the other party making a claim pursuant to the procedures specified in the particular contract. The Company also indemnifies certain of its officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, the Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in its condensed consolidated financial statements. |
Stockholders' Equity and Stock
Stockholders' Equity and Stock Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments | Stockholders' Equity and Stock-Based Compensation Equity Compensation Plans In August 2021, the board of directors (the Board) adopted the 2021 Equity Incentive Plan (the 2021 Plan) and the 2021 Employee Stock Purchase Plan (ESPP), effective upon the Company's initial public offering (IPO). Pursuant to the 2021 Plan, the Board may grant incentive stock options to purchase shares of the Company’s common stock, non-statutory stock options to purchase shares of the Company’s common stock, stock appreciation rights, restricted stock, RSUs, performance awards (PRSUs) and other awards. The ESPP enables eligible employees to purchase the Company's Class A common stock. Both the 2021 Plan and ESPP include an automatic increase to their shares reserve on January 1 of each year as set forth in the respective plan documents. Shares of common stock reserved for future issuance were as follows (in thousands): June 30, 2022 2011 Stock Plan: Options and RSUs outstanding 27,923 2021 Equity Incentive Plan: RSUs outstanding 8,749 Shares reserved for future award issuances 50,412 2021 Employee Stock Purchase Plan 8,698 Total shares of common stock reserved for issuance 95,782 2021 Employee Stock Purchase Plan Under the ESPP, the price at which Class A common stock is purchased is equal to 85% of the fair market value of a share of the Company’s Class A common stock on the first day of the offering period or the applicable purchase date, whichever is lower. The fair market value of common stock will generally be the closing sales price on the determination date. The ESPP provides an offering period of 24 months, with four purchase periods that are generally six months long and begin on May 15 and November 15 of each year, except for the first purchase period, which began upon the completion of the IPO in September 2021 and ended on May 13, 2022. The Company issued 510,093 shares under the ESPP in the six months ended June 30, 2022, net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the US, with a weighted average purchase price of $13.76 and aggregate net proceeds of $7.0 million. The ESPP also includes a reset provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date. The reset provision under the ESPP was triggered on May 13, 2022, resulting in a new 24-month offering period that began on May 16, 2022. The reset is considered a modification in accordance with ASC 718, Stock Based Compensation , with the modification charge recognized on a straight-line basis over the new offering period. The modification did not have a material effect on the Company's stock-based compensation expense during the three and six months ended June 30, 2022. During the three and six months ended June 30, 2022, the Company recognized $4.0 million and $7.2 million of stock-based compensation expense related to the ESPP, respectively. Determination of Fair Value of the ESPP The Company estimates the fair value of the ESPP using the Black-Scholes option-pricing model, which requires certain complex valuation assumption inputs such as expected term, expected stock price volatility, risk-free interest rate, and dividend yield. The fair value of each of the four purchase periods is estimated separately. The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period: Valuation Assumption Inputs Three and Six Months Ended June 30, 2022 Expected term (in years) 0.5 - 2.0 Stock price volatility 55.8% - 84.5% Risk-free interest rate 1.54% - 2.58% Dividend yield —% Expected term —The expected term is estimated based on the exercise term of the ESPP, which is the length of time from the grant date to the date on which the stock is purchased by the employees. Stock price volatility —Since the Company's common stock lacks sufficient trading history, the stock price volatility over the expected term ranging from one Risk-free interest rate —The risk-free interest rate is based on the yield of the U.S. Treasury debt securities commensurate with the expected term of the ESPP. Dividend yield —Since the Company has never paid and has no intention to pay cash dividends on its common stock, the dividend yield is zero. Fair value of underlying stock —The fair value of Company's common stock underlying the ESPP is determined by the closing market price of its Class A common stock on the grant date, which was May 16, 2022. Stock Options Stock options are granted with an exercise price equal to the stock’s fair market value at the date of grant, have 10-year contractual terms, and vest over a four-year period. As of June 30, 2022, 976,634 stock options were outstanding and exercisable with an aggregate intrinsic value of $12.6 million. All stock options are fully vested and exercisable and have a weighted-average exercise price of $0.27 per share. Aggregate intrinsic value represents the difference between the exercise price and the per share fair value of the Company's common stock as of the end of the period, multiplied by the number of stock options outstanding and exercisable. Restricted Stock Units RSUs are granted at fair market value at the date of the grant and vest over a four-year period. RSU activity, which includes PRSUs, during the six months ended June 30, 2022 is as follows: Share Information: Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands, except per share data) Unvested, as of December 31, 2021 47,830 $ 14.47 Granted 8,519 $ 18.76 Vested (19,030) $ 7.83 Forfeited (1,603) $ 16.15 Unvested, as of June 30, 2022 35,716 $ 18.95 During the three and six months ended June 30, 2022, total shares that vested were 2.8 million and 19.0 million, of which 1.0 million shares and 7.6 million shares were withheld for tax withholding requirements, respectively. On February 14, 2022, the final lock-up period following the IPO expired, and the Company issued an aggregate of 9.3 million shares of its common stock, net of shares withheld for taxes, as settlement of all RSUs that had met the time-based service condition. Total cash paid related to the withholding taxes on net share settlement of equity awards amounted to $18.4 million and $138.3 million during the three and six months ended June 30, 2022, respectively. Performance-Based Awards In May 2019, the Board approved a grant of 166,390 shares of PRSUs to the Company’s CEO. The vesting of these PRSUs is contingent upon the satisfaction of certain milestones. The revenue-related milestone and the liquidity event condition were met prior to December 31, 2021. As of June 30, 2022, the time-based vesting was the only condition yet to be satisfied over the remaining requisite service period, and the number of shares to vest subject to this condition is insignificant. In September 2021, the Board approved a grant of 6,000,000 PRSUs to the Company's CEO with a time-based service condition beginning January 1, 2022, and a market condition involving five separate stock price targets ranging from $70.00 to $200.00 per share for each of the five vesting tranches (CEO Performance Award). These stock price targets will be measured based on the average closing price over a consecutive 60-trading day period, beginning on the first trading day after the expiration of the final lock-up period in February 2022. The vesting of the CEO Performance Award is contingent upon the completion of the requisite service through January 1, 2029 and the achievement of the specified stock price target in each tranche on or before January 1, 2029. The stock price targets are not required to be achieved within the service period of each tranche, and accordingly, multiple tranches can vest at the same date if the specified stock price targets are achieved after December 31, 2025. The CEO Performance Award had a total grant date fair value of $131.0 million. The fair value of the CEO Performance Award was determined at grant date by using the Monte Carlo simulation model, which requires certain complex valuation assumption inputs such as measurement period, expected stock price volatility, risk-free interest rate and dividend yield. For the three and six months ended June 30, 2022, the Company recognized $7.0 million and $13.9 million, respectively, of stock-based compensation expense associated with the CEO Performance Award described above which were recorded in general and administrative expense. Stock-Based Compensation Total stock-based compensation expense recorded for the three and six months ended June 30, 2022 and 2021 was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ 1,914 $ — $ 3,440 $ — Research and development 7,819 — 16,128 — Sales and marketing 15,033 — 27,569 — General and administrative (1) 25,369 — 49,623 — Stock-based compensation, net of amounts capitalized 50,135 — 96,760 — Capitalized stock-based compensation 1,223 — 1,223 — Total stock-based compensation expense $ 51,358 $ — $ 97,983 $ — (1) For the three and six months ended June 30, 2022, general and administrative expense includes $13.9 million and $27.7 million of stock-based compensation expense associated with RSUs and PRSUs primarily granted to the CEO in September 2021, respectively. As of June 30, 2022, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data): June 30, 2022 Unrecognized Stock-Based Compensation Weighted-Average Period to Recognize Expense RSUs and PRSUs $ 616,893 3.2 ESPP 14,658 1.1 Total unrecognized stock-based compensation expense $ 631,551 |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share attributable to common stockholders is computed by dividing the net loss by the number of weighted-average outstanding common shares. Diluted net loss per share attributable to common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. The Company considers its redeemable convertible preferred stock, stock options and restricted stock units as potential common stock equivalents, but excluded them from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2022 and 2021, as their effect was antidilutive. The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders, are the same for both Class A and Class B common stock on both an individual and combined basis. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ (69,753) $ (7,429) $ (118,812) $ (9,844) Accretion of redeemable convertible preferred stock — (597,955) — (381,824) Net loss attributable to Class A and Class B common stockholders - basic and diluted $ (69,753) $ (605,384) $ (118,812) $ (391,668) Denominator: Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted 284,761 77,753 281,492 77,724 Net loss per share attributable to Class A and Class B common stockholders - basic and diluted $ (0.24) $ (7.79) $ (0.42) $ (5.04) The following table summarizes the potential common equivalents that were excluded from the computation of diluted net loss per share attributable to Class A and Class B common stockholders for the periods presented (in thousands): Three and Six Months Ended June 30, 2022 2021 Redeemable convertible preferred stock — 153,938 RSUs and PRSUs 35,716 45,751 Stock options 977 1,759 ESPP 151 — Total 36,844 201,448 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company's quarterly tax provision and estimates of its annual effective tax rate are estimates due to several factors, including changes in pre-tax income (or loss), the mix of jurisdictions to which such income relates, discrete items (such as excess tax benefits from stock-based compensation) in the period offset with our valuation allowance. The provision for income taxes was $2.2 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively; and $4.7 million and $2.2 million for the six months ended June 30, 2022 and 2021, respectively. The increase in the provision for income taxes in the three and six months ended June 30, 2022 was $1.1 million and $2.5 million, respectively, which was primarily attributable to higher tax expense from profitable foreign jurisdictions. |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table summarizes revenue by geographic location (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 North America $ 52,117 $ 37,568 $ 100,890 $ 71,707 Europe, Middle East and Africa 47,878 37,349 93,383 71,129 Asia Pacific 18,240 11,578 35,719 22,427 Other 3,197 1,846 6,077 3,665 Total revenue $ 121,432 $ 88,341 $ 236,069 $ 168,928 The following table summarizes long-lived assets by geographic information (in thousands): June 30, 2022 December 31, 2021 North America $ 21,870 $ 13,780 Europe, Middle East and Africa 2,942 578 Asia Pacific 27,166 9,015 Total long-lived assets $ 51,978 $ 23,373 |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Consolidated Financial Statement s The accompanying condensed consolidated balance sheet as of June 30, 2022, the condensed consolidated statements of operations, of comprehensive loss, of cash flows, and of redeemable convertible preferred stock and stockholders’ equity (deficit) for the three and six months ended June 30, 2022 and 2021, and the related notes to such condensed consolidated financial statements are unaudited. These unaudited condensed consolidated financial statements are presented in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2022 and its results of operations and cash flows for the three and six months ended June 30, 2022 and 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the following: • determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations; • allowance for doubtful accounts; • expected benefit period of deferred contract acquisition costs; • capitalization of internal-use software development costs; • fair value of acquired intangible assets and goodwill; • useful lives of long-lived assets; • valuation of deferred tax assets; • valuation of employee defined benefit plan; • fair value of share-based awards, including performance-based awards; and • incremental borrowing rate used for operating leases. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. The Company’s cash and cash equivalents and marketable securities are generally held with large financial institutions and are in excess of the federally insured limits provided on such deposits. In addition, the Company has cash and cash equivalents held in international bank accounts, which are denominated primarily in Euros, British Pounds, and Indian Rupees. There were no customers that individually exceeded 10% of the Company’s revenue for the three and six months ended June 30, 2022 and 2021 or that represented 10% or more of the Company’s consolidated accounts receivable balance as of June 30, 2022. |
Leases | Leases The Company leases office space under operating leases with expiration dates through 2031. The Company determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use (ROU) assets on its condensed consolidated balance sheets at the lease commencement date. Lease liabilities are measured based on the present value of the total lease payments not yet paid, discounted based on either the rate implicit in the lease or the Company's incremental borrowing rate (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), whichever is more readily determinable. Lease liabilities due within 12 months are included within accrued liabilities on the Company's condensed consolidated balance sheets. The incremental borrowing rate is based on an estimate of the Company's expected unsecured borrowing rate for its notes, adjusted for tenor and collateralized security features. ROU assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the lease commencement date, (ii) initial direct costs incurred, and (iii) tenant incentives received, incurred or payable under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to the Company. The Company does not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components. For short-term leases, the Company records rent expense in its condensed consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) under its Accounting Standards Codification (ASC) or ASU and adopted by the Company as of the specified effective date. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on their balance sheets as ROU assets with corresponding lease liabilities and eliminates certain real estate-specific provisions. The Company adopted this standard effective January 1, 2022 on a modified retrospective basis, and as such, results in comparative periods were not restated. As a result of the adoption, the Company recognized operating ROU assets of $24.3 million and operating lease liabilities of $28.8 million in its condensed consolidated balance sheets on the adoption date. The Company has elected certain available practical expedients, which allow it to forego the reassessments of (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. The Company has also elected to combine lease and non-lease components for commercial lease arrangements. Additionally, the Company elected not to recognize operating ROU assets and the associated operating lease liabilities for leases with a term of 12 months or less from the lease commencement date. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets by requiring an allowance to be recorded as an offset to the amortized cost of such assets. The standard primarily impacts the amortized cost of the Company's available-for-sale debt securities. The Company adopted this standard on January 1, 2022 using the modified retrospective approach, which did not result in a material impact on its condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The standard eliminates certain exceptions related to the approach for intraperiod tax allocation and the methodology for calculating income taxes in an interim period. The standard also simplifies aspects of accounting for franchise taxes and enacted changes in tax or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis for goodwill. The Company adopted this standard effective January 1, 2022, which did not result in a material impact on its condensed consolidated financial statements. |
Revenue | Revenue The Company derives revenue from subscription fees and related professional services. The Company sells subscriptions for its cloud-based solutions directly to customers and indirectly through channel partners through arrangements that are non-cancelable and non-refundable. The Company’s subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. The Company records revenue net of sales or value-added taxes. |
Fair Value Measurements | The Company measures its financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 —Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 —Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly. Level 3 —Inputs that are unobservable. |
Revenue From Contracts with C_2
Revenue From Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table summarizes revenue by the Company’s service offerings (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Subscription services $ 118,393 $ 85,693 $ 229,790 $ 163,515 Professional services 3,039 2,648 6,279 5,413 Total revenue $ 121,432 $ 88,341 $ 236,069 $ 168,928 |
Summary of Changes in the Balance of Deferred Contract Acquisition Costs | The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of the period $ 30,972 $ 20,404 $ 29,647 $ 18,273 Add: Contract costs capitalized during the period 7,041 6,210 12,641 11,000 Less: Amortization of contract costs during the period (4,421) (3,010) (8,696) (5,669) Balance at end of the period $ 33,592 $ 23,604 $ 33,592 $ 23,604 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Cash equivalents and available-for-sale debt securities consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 306,917 $ — $ — $ 306,917 U.S. treasury securities 44,963 — (10) 44,953 U.S. government agency securities 172,992 — (56) 172,936 Corporate debt securities 11,988 — — 11,988 Total cash equivalents 536,860 — (66) 536,794 Debt securities: U.S. treasury securities 371,776 6 (3,714) 368,068 U.S. government agency securities 124,725 23 (1,676) 123,072 Corporate debt securities 93,757 — (882) 92,875 Total debt securities 590,258 29 (6,272) 584,015 Total cash equivalents and debt securities $ 1,127,118 $ 29 $ (6,338) $ 1,120,809 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds $ 684,485 $ — $ — $ 684,485 U.S. treasury securities 22,000 — — 22,000 U.S. government agency securities 4,286 — (1) 4,285 Corporate debt securities 15,998 — — 15,998 Total cash equivalents 726,769 — (1) 726,768 Debt securities: U.S. treasury securities 442,715 2 (432) 442,285 U.S. government agency securities 75,725 — (159) 75,566 Corporate debt securities 54,335 17 (175) 54,177 Total debt securities 572,775 19 (766) 572,028 Total cash equivalents and debt securities $ 1,299,544 $ 19 $ (767) $ 1,298,796 |
Schedule of Amortized Costs and Fair Value of Debt Securities Based on Contractual Maturities | The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands): June 30, 2022 Amortized Cost Fair Value Due within one year $ 433,496 $ 429,867 Due after one year but within five years 156,762 154,148 Total $ 590,258 $ 584,015 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Fair Value Measured Using Level 1 Level 2 Total Financial assets: Cash equivalents: Money market funds $ 306,917 $ — $ 306,917 U.S. treasury securities 44,953 — 44,953 U.S. government agency securities — 172,936 172,936 Corporate debt securities — 11,988 11,988 Marketable securities: U.S. treasury securities 368,068 — 368,068 U.S. government agency securities — 123,072 123,072 Corporate debt securities — 92,875 92,875 Total financial assets $ 719,938 $ 400,871 $ 1,120,809 December 31, 2021 Fair Value Measured Using Level 1 Level 2 Total Financial assets: Cash equivalents: Money market funds $ 684,485 $ — $ 684,485 U.S. treasury securities 22,000 — 22,000 U.S. government agency securities — 4,285 4,285 Corporate debt securities — 15,998 15,998 Marketable securities: U.S. treasury securities 442,285 — 442,285 U.S. government agency securities — 75,566 75,566 Corporate debt securities — 54,177 54,177 Term bond mutual funds — 3,651 3,651 Total financial assets $ 1,148,770 $ 153,677 $ 1,302,447 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | The following table summarizes property and equipment, net as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Computers $ 14,588 $ 13,041 Capitalized internal-use software 17,395 14,178 Office equipment 3,478 3,375 Furniture and fixtures 8,599 8,395 Motor vehicles 1,274 1,421 Leasehold improvements 4,297 4,274 Construction in progress 1,476 — Total property and equipment 51,107 44,684 Less: accumulated depreciation and amortization (27,768) (23,206) Property and equipment, net $ 23,339 $ 21,478 |
Schedule of Accrued Liabilities | Accrued Liabilities The following table summarizes accrued liabilities as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Accrued compensation $ 17,785 $ 17,261 Accrued third-party cloud infrastructure expenses 2,597 2,785 Accrued reseller commissions 6,361 5,870 Accrued advertising and marketing expenses 8,954 6,022 Advanced payments from customers 3,362 3,260 Accrued taxes 7,044 10,777 Operating lease liabilities, current 5,859 — Contributions withheld for employee stock purchase plan 1,683 4,211 Other accrued expenses 5,442 5,643 Total accrued liabilities $ 59,087 $ 55,829 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Acquired intangible assets consist of developed technology and customer relationships and are amortized on a straight-line basis over their estimated useful lives. The following tables summarize acquired intangible assets as of June 30, 2022 and December 31, 2021: June 30, 2022 Gross Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life (amounts in thousands) (in years) Developed technology $ 10,496 $ (9,987) $ 509 0.7 Customer relationships 1,600 (1,254) 346 0.9 Total $ 12,096 $ (11,241) $ 855 December 31, 2021 Gross Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life (amounts in thousands) (in years) Developed technology $ 10,496 $ (9,147) $ 1,349 0.9 Customer relationships 1,600 (1,055) 545 1.4 Total $ 12,096 $ (10,202) $ 1,894 |
Finite-lived Intangible Assets Amortization Expense | Amortization of acquired intangible assets is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Developed technology: Cost of revenue $ 315 $ 980 $ 840 $ 1,949 Customer relationships: Sales and marketing 100 99 199 198 Total amortization expense $ 415 $ 1,079 $ 1,039 $ 2,147 |
Summary of Estimated Future Amortization Expense | As of June 30, 2022, expected future amortization expense related to acquired intangible assets is as follows (in thousands): Year Ending December 31, Amortization Expense 2022 (remaining six months) 552 2023 303 Total future amortization $ 855 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Lease, Cost | The following table presents various components of the lease costs (in thousands): Operating Leases Three months ended June 30, 2022 Six months ended June 30, 2022 Operating lease cost $ 2,104 $ 3,879 Short-term lease cost 342 657 Variable lease cost 769 1,438 The weighted-average remaining term of the Company's operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows: Lease Term and Discount Rate June 30, 2022 Weighted-average remaining lease term (in years) 5.2 Weighted-average discount rate 7.5 % The following table presents supplemental information arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of the operating lease liabilities, and as such, are excluded from the amounts below (in thousands): Supplemental Cash Flow Information: Three months ended June 30, 2022 Six months ended June 30, 2022 Cash payments included in the measurement of operating lease liabilities $ 1,550 $ 4,274 Operating ROU assets obtained in exchange for lease obligations 1,895 7,219 |
Lessee, Operating Lease, Liability, Maturity | As of June 30, 2022, maturities of the operating lease liabilities are as follows (in thousands): Year Ending December 31: Operating Leases 2022 (remaining 6 months) $ 3,803 2023 8,406 2024 7,593 2025 6,753 2026 4,448 Thereafter 8,292 Total lease payments 39,295 Less: imputed interest (7,919) Present value of operating lease liabilities $ 31,376 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under non-cancelable operating leases of December 31, 2021 were as follows (in thousands): Year Ending December 31: Operating Leases 2022 $ 6,954 2023 6,790 2024 6,642 2025 5,976 2026 3,579 Thereafter 4,304 Total minimum future payments $ 34,245 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Common Shares Reserved for Future Issuance | Shares of common stock reserved for future issuance were as follows (in thousands): June 30, 2022 2011 Stock Plan: Options and RSUs outstanding 27,923 2021 Equity Incentive Plan: RSUs outstanding 8,749 Shares reserved for future award issuances 50,412 2021 Employee Stock Purchase Plan 8,698 Total shares of common stock reserved for issuance 95,782 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period: Valuation Assumption Inputs Three and Six Months Ended June 30, 2022 Expected term (in years) 0.5 - 2.0 Stock price volatility 55.8% - 84.5% Risk-free interest rate 1.54% - 2.58% Dividend yield —% |
Schedule of Restricted Stock Unit Activity | RSU activity, which includes PRSUs, during the six months ended June 30, 2022 is as follows: Share Information: Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands, except per share data) Unvested, as of December 31, 2021 47,830 $ 14.47 Granted 8,519 $ 18.76 Vested (19,030) $ 7.83 Forfeited (1,603) $ 16.15 Unvested, as of June 30, 2022 35,716 $ 18.95 |
Stock-based Compensation Expense | Total stock-based compensation expense recorded for the three and six months ended June 30, 2022 and 2021 was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ 1,914 $ — $ 3,440 $ — Research and development 7,819 — 16,128 — Sales and marketing 15,033 — 27,569 — General and administrative (1) 25,369 — 49,623 — Stock-based compensation, net of amounts capitalized 50,135 — 96,760 — Capitalized stock-based compensation 1,223 — 1,223 — Total stock-based compensation expense $ 51,358 $ — $ 97,983 $ — (1) For the three and six months ended June 30, 2022, general and administrative expense includes $13.9 million and $27.7 million of stock-based compensation expense associated with RSUs and PRSUs primarily granted to the CEO in September 2021, respectively. |
Share-based Payment Arrangement, Nonvested Award, Cost | As of June 30, 2022, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data): June 30, 2022 Unrecognized Stock-Based Compensation Weighted-Average Period to Recognize Expense RSUs and PRSUs $ 616,893 3.2 ESPP 14,658 1.1 Total unrecognized stock-based compensation expense $ 631,551 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ (69,753) $ (7,429) $ (118,812) $ (9,844) Accretion of redeemable convertible preferred stock — (597,955) — (381,824) Net loss attributable to Class A and Class B common stockholders - basic and diluted $ (69,753) $ (605,384) $ (118,812) $ (391,668) Denominator: Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted 284,761 77,753 281,492 77,724 Net loss per share attributable to Class A and Class B common stockholders - basic and diluted $ (0.24) $ (7.79) $ (0.42) $ (5.04) |
Schedule of Potential Common Equivalents Excluded from Computation of Diluted Net Loss per Share | The following table summarizes the potential common equivalents that were excluded from the computation of diluted net loss per share attributable to Class A and Class B common stockholders for the periods presented (in thousands): Three and Six Months Ended June 30, 2022 2021 Redeemable convertible preferred stock — 153,938 RSUs and PRSUs 35,716 45,751 Stock options 977 1,759 ESPP 151 — Total 36,844 201,448 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Long-Lived Assets by Geographical Region | The following table summarizes revenue by geographic location (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 North America $ 52,117 $ 37,568 $ 100,890 $ 71,707 Europe, Middle East and Africa 47,878 37,349 93,383 71,129 Asia Pacific 18,240 11,578 35,719 22,427 Other 3,197 1,846 6,077 3,665 Total revenue $ 121,432 $ 88,341 $ 236,069 $ 168,928 The following table summarizes long-lived assets by geographic information (in thousands): June 30, 2022 December 31, 2021 North America $ 21,870 $ 13,780 Europe, Middle East and Africa 2,942 578 Asia Pacific 27,166 9,015 Total long-lived assets $ 51,978 $ 23,373 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | |||
Sep. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Jan. 01, 2022 USD ($) | Dec. 31, 2021 shares | |
Sale of Stock [Line Items] | ||||
Proceeds from issuance initial public offering | $ 1,100,000 | |||
Common stock, outstanding (in shares) | shares | 153,937,730 | |||
Number of shares issued in conversion (in shares) | 1 | |||
Stock split ratio, common stock | 10 | |||
Operating lease right-of-use assets | $ 28,639 | |||
Present value of operating lease liabilities | $ 31,376 | |||
Accounting Standards Update 2016-02 | ||||
Sale of Stock [Line Items] | ||||
Operating lease right-of-use assets | $ 24,300 | |||
Present value of operating lease liabilities | $ 28,800 | |||
Class A Common Stock | ||||
Sale of Stock [Line Items] | ||||
Common stock, outstanding (in shares) | shares | 125,413,749 | 50,554,821 | ||
IPO | ||||
Sale of Stock [Line Items] | ||||
Public offering price (in USD per share) | $ / shares | $ 36 | |||
IPO | Class A Common Stock | ||||
Sale of Stock [Line Items] | ||||
Number of shares issued and sold (in shares) | shares | 31,350,000 |
Revenue From Contracts with C_3
Revenue From Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 121,432 | $ 88,341 | $ 236,069 | $ 168,928 |
Subscription services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 118,393 | 85,693 | 229,790 | 163,515 |
Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,039 | $ 2,648 | $ 6,279 | $ 5,413 |
Revenue From Contracts with C_4
Revenue From Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue recognized during the period | $ 80.3 | $ 56 | $ 118.2 | $ 76.7 |
Remaining performance obligation | 266.8 | 266.8 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 207.5 | $ 207.5 | ||
Remaining performance obligation, expected timing of satisfaction, period | 12 months | 12 months |
Revenue From Contracts with C_5
Revenue From Contracts with Customers - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Change in Deferred Contract Acquisition Costs [Roll Forward] | ||||
Balance at beginning of the period | $ 30,972 | $ 20,404 | $ 29,647 | $ 18,273 |
Add: Contract costs capitalized during the period | 7,041 | 6,210 | 12,641 | 11,000 |
Less: Amortization of contract costs during the period | (4,421) | (3,010) | (8,696) | (5,669) |
Balance at end of the period | $ 33,592 | $ 23,604 | $ 33,592 | $ 23,604 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Schedule of Carrying Amounts and Fair Values of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized Gains | $ 29 | $ 19 |
Unrealized Losses | (6,338) | (767) |
Cash Equivalents and Available-for-sale Debt Securities | ||
Amortized Cost | 1,127,118 | 1,299,544 |
Fair Value | 1,120,809 | 1,298,796 |
Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized Gains | 0 | 0 |
Unrealized Losses | (66) | (1) |
Cash Equivalents and Available-for-sale Debt Securities | ||
Amortized Cost | 536,860 | 726,769 |
Fair Value | 536,794 | 726,768 |
Cash Equivalents | U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Amortized Cost | 44,963 | 22,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (10) | 0 |
Fair Value | 44,953 | 22,000 |
Cash Equivalents | U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Amortized Cost | 172,992 | 4,286 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (56) | (1) |
Fair Value | 172,936 | 4,285 |
Cash Equivalents | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Amortized Cost | 11,988 | 15,998 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 11,988 | 15,998 |
Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Amortized Cost | 590,258 | 572,775 |
Unrealized Gains | 29 | 19 |
Unrealized Losses | (6,272) | (766) |
Fair Value | 584,015 | 572,028 |
Marketable Securities | U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Amortized Cost | 371,776 | 442,715 |
Unrealized Gains | 6 | 2 |
Unrealized Losses | (3,714) | (432) |
Fair Value | 368,068 | 442,285 |
Marketable Securities | U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Amortized Cost | 124,725 | 75,725 |
Unrealized Gains | 23 | 0 |
Unrealized Losses | (1,676) | (159) |
Fair Value | 123,072 | 75,566 |
Marketable Securities | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Amortized Cost | 93,757 | 54,335 |
Unrealized Gains | 0 | 17 |
Unrealized Losses | (882) | (175) |
Fair Value | 92,875 | 54,177 |
Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash Equivalents | $ 306,917 | $ 684,485 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Amortized Cost and Fair Value Based on Contractual Maturities (Details) - Marketable Securities - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due within one year | $ 433,496 | |
Due after one year but within five years | 156,762 | |
Debt securities, Amortized Cost | 590,258 | $ 572,775 |
Fair Value | ||
Due within one year | 429,867 | |
Due after one year but within five years | 154,148 | |
Total | $ 584,015 | $ 572,028 |
Cash Equivalents and Marketab_5
Cash Equivalents and Marketable Securities - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest | $ 1.6 | |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 0 | $ 3.7 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 1,120,809 | $ 1,302,447 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 368,068 | 442,285 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 123,072 | 75,566 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 92,875 | 54,177 |
Term bond mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,651 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 306,917 | 684,485 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 44,953 | 22,000 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 172,936 | 4,285 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 11,988 | 15,998 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 719,938 | 1,148,770 |
Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 368,068 | 442,285 |
Level 1 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Term bond mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 306,917 | 684,485 |
Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 44,953 | 22,000 |
Level 1 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | 0 |
Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 400,871 | 153,677 |
Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 123,072 | 75,566 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 92,875 | 54,177 |
Level 2 | Term bond mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,651 | |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | 0 |
Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | 0 |
Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 172,936 | 4,285 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | $ 11,988 | $ 15,998 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 51,107 | $ 44,684 |
Less: accumulated depreciation and amortization | (27,768) | (23,206) |
Property and equipment, net | 23,339 | 21,478 |
Computers | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,588 | 13,041 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 17,395 | 14,178 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,478 | 3,375 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,599 | 8,395 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,274 | 1,421 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,297 | 4,274 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,476 | $ 0 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Capitalized costs | $ 2.6 | $ 1.2 | $ 3.9 | $ 2.2 | |
Net carrying value | 10.1 | 10.1 | $ 8.3 | ||
Depreciation expense and amortization | $ 2.4 | $ 2.2 | $ 4.7 | $ 4.3 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation | $ 17,785 | $ 17,261 |
Accrued third-party cloud infrastructure expenses | 2,597 | 2,785 |
Accrued reseller commissions | 6,361 | 5,870 |
Accrued advertising and marketing expenses | 8,954 | 6,022 |
Advanced payments from customers | 3,362 | 3,260 |
Accrued taxes | 7,044 | 10,777 |
Operating lease liabilities, current | 5,859 | 0 |
Contributions withheld for employee stock purchase plan | 1,683 | 4,211 |
Other accrued expenses | 5,442 | 5,643 |
Accrued liabilities | $ 59,087 | $ 55,829 |
Intangible Assets, Net - Narrat
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 6,181 | $ 6,181 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 12,096 | $ 12,096 |
Accumulated Amortization | (11,241) | (10,202) |
Net Carrying Value | 855 | 1,894 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 10,496 | 10,496 |
Accumulated Amortization | (9,987) | (9,147) |
Net Carrying Value | $ 509 | $ 1,349 |
Weighted Average Remaining Useful Life | 8 months 12 days | 10 months 24 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 1,600 | $ 1,600 |
Accumulated Amortization | (1,254) | (1,055) |
Net Carrying Value | $ 346 | $ 545 |
Weighted Average Remaining Useful Life | 10 months 24 days | 1 year 4 months 24 days |
Intangible Assets, Net - Summ_2
Intangible Assets, Net - Summary of Acquired Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired intangible assets | $ 415 | $ 1,079 | $ 1,039 | $ 2,147 |
Developed technology | Cost of revenue | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired intangible assets | 315 | 980 | 840 | 1,949 |
Customer relationships | Sales and marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired intangible assets | $ 100 | $ 99 | $ 199 | $ 198 |
Intangible Assets, Net - Summ_3
Intangible Assets, Net - Summary of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining six months) | $ 552 | |
2023 | 303 | |
Net Carrying Value | $ 855 | $ 1,894 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, option to extend, term | 6 years | ||
Rent expense | $ 2.4 | $ 4.9 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, term | 9 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,104 | $ 3,879 |
Short-term lease cost | 342 | 657 |
Variable lease cost | $ 769 | $ 1,438 |
Leases - Summary of Lease Term
Leases - Summary of Lease Term and Discount Rate (Details) | Jun. 30, 2022 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 5 years 2 months 12 days |
Weighted average discount rate (as a percent) | 7.50% |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Cash payments included in the measurement of operating lease liabilities | $ 1,550 | $ 4,274 | |
Operating lease right-of-use assets obtained in exchange for operating lease obligations | $ 1,895 | $ 7,219 | $ 0 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 (remaining 6 months) | $ 3,803 |
2023 | 8,406 |
2024 | 7,593 |
2025 | 6,753 |
2026 | 4,448 |
Thereafter | 8,292 |
Total lease payments | 39,295 |
Less: imputed interest | (7,919) |
Present value of operating lease liabilities | $ 31,376 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
Leases [Abstract] | |
2022 | $ 6,954 |
2023 | 6,790 |
2024 | 6,642 |
2025 | 5,976 |
2026 | 3,579 |
Thereafter | 4,304 |
Total minimum future payments | $ 34,245 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual commitments | $ 123.2 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock Based Compensation - Shares of Common Stock Reserved for Future Issuance (Details) shares in Thousands | Jun. 30, 2022 shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved for issuance (in shares) | 95,782 |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved for issuance (in shares) | 8,698 |
2011 Stock Plan: | RSUs and PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved for issuance (in shares) | 27,923 |
2021 Equity Incentive Plan: | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved for issuance (in shares) | 50,412 |
2021 Equity Incentive Plan: | RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved for issuance (in shares) | 8,749 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 14, 2022 shares | Sep. 30, 2021 USD ($) target tranche $ / shares shares | May 31, 2019 shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) purchasePeriod $ / shares shares | Jun. 30, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock under employee stock purchase plan, net of shares withheld for taxes (in shares) | shares | 510,093 | ||||||
Proceeds from issuance of common stock under employee stock purchase plan, net | $ 7,011 | $ 0 | |||||
Share-based payment arrangement, expensed and capitalized, amount | $ 51,358 | $ 0 | $ 97,983 | 0 | |||
Stock withheld for tax withholding requirements (in shares) | shares | 1,000,000 | 7,600,000 | |||||
Restricted stock issued net of shares withheld for taxes (in shares) | shares | 9,300,000 | ||||||
Cash paid related to withholding taxes on share settlement of equity awards | $ 138,349 | 0 | |||||
Stock-based compensation, net of amounts capitalized | $ 50,135 | $ 0 | $ 96,760 | $ 0 | |||
ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Offering period | 24 months | ||||||
Number of purchase periods | purchasePeriod | 4 | ||||||
Purchase period | 6 months | ||||||
Share-based compensation arrangement by share-based payment award, weighted average price of shares purchased (in USD per share) | $ / shares | $ 13.76 | $ 13.76 | |||||
Proceeds from issuance of common stock under employee stock purchase plan, net | $ 7,000 | ||||||
Share-based payment arrangement, expensed and capitalized, amount | $ 4,000 | $ 7,200 | |||||
Dividend yield | 0% | 0% | |||||
ESPP | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock price volatility expected term | 1 year | 1 year | |||||
ESPP | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock price volatility expected term | 2 years | 2 years | |||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term | 10 years | ||||||
Award vesting period | 4 years | ||||||
Stock options outstanding and exercisable (in shares) | shares | 976,634 | 976,634 | |||||
Aggregate intrinsic value | $ 12,600 | $ 12,600 | |||||
Stock options vested, exercisable, weighted-average exercise price (in dollars per share) | $ / shares | $ 0.27 | $ 0.27 | |||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
Total restricted stock units vested (in shares) | shares | 2,800,000 | 19,030,000 | |||||
Cash paid related to withholding taxes on share settlement of equity awards | $ 18,400 | $ 138,300 | |||||
Number of shares approved for grant (in shares) | shares | 8,519,000 | ||||||
Performance Based Restricted Stock Units (PRSUs) | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares approved for grant (in shares) | shares | 6,000,000 | 166,390 | |||||
Number of threshold stock price targets | target | 5 | ||||||
Number of threshold vesting tranches | tranche | 5 | ||||||
Trading day period | 60 days | ||||||
Total grant date fair value | $ 131,000 | ||||||
Stock-based compensation, net of amounts capitalized | $ 7,000 | $ 13,900 | |||||
Performance Based Restricted Stock Units (PRSUs) | Chief Executive Officer | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Threshold stock price target (in USD per share) | $ / shares | $ 70 | ||||||
Performance Based Restricted Stock Units (PRSUs) | Chief Executive Officer | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Threshold stock price target (in USD per share) | $ / shares | $ 200 | ||||||
Class A Common Stock | ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price of common stock in percent | 85% |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock Based Compensation - Summary of ESPP Valuation Assumptions (Details) - ESPP | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | 0% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | 6 months |
Stock price volatility | 55.80% | 55.80% |
Risk-free interest rate | 1.54% | 1.54% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 2 years | 2 years |
Stock price volatility | 84.50% | 84.50% |
Risk-free interest rate | 2.58% | 2.58% |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Number of Shares | ||
Unvested, beginning balance (in shares) | 47,830 | |
Granted (in shares) | 8,519 | |
Vested (in shares) | (2,800) | (19,030) |
Forfeited (in shares) | (1,603) | |
Unvested, ending balance (in shares) | 35,716 | 35,716 |
Weighted-Average Grant Date Fair Value Per Share | ||
Unvested, beginning balance (in USD per share) | $ 14.47 | |
Granted (in USD per share) | 18.76 | |
Vested (in USD per share) | 7.83 | |
Forfeited (in USD per share) | 16.15 | |
Unvested, ending balance (in USD per share) | $ 18.95 | $ 18.95 |
Stockholders' Equity and Stoc_7
Stockholders' Equity and Stock Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 50,135 | $ 0 | $ 96,760 | $ 0 |
Capitalized stock-based compensation | 1,223 | 0 | 1,223 | 0 |
Total stock-based compensation expense | 51,358 | 0 | 97,983 | 0 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 1,914 | 0 | 3,440 | 0 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 7,819 | 0 | 16,128 | 0 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 15,033 | 0 | 27,569 | 0 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 25,369 | $ 0 | 49,623 | $ 0 |
General and administrative | RSUs and PRSUs | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 13,900 | $ 27,700 |
Stockholders' Equity and Stoc_8
Stockholders' Equity and Stock Based Compensation - Schedule of Unrecognized Stock-Based Compensation (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation | $ 631,551 |
RSUs and PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation | $ 616,893 |
Weighted-Average Period to Recognize Expense (in years) | 3 years 2 months 12 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation | $ 14,658 |
Weighted-Average Period to Recognize Expense (in years) | 1 year 1 month 6 days |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net loss | $ (69,753) | $ (7,429) | $ (118,812) | $ (9,844) |
Accretion of redeemable convertible preferred stock | 0 | 597,955 | 0 | 381,824 |
Net income (loss) available to common stockholders, basic, total | (69,753) | (605,384) | (118,812) | (391,668) |
Net income (loss) available to common stockholders, diluted, total | $ (69,753) | $ (605,384) | $ (118,812) | $ (391,668) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares) | 284,761 | 77,753 | 281,492 | 77,724 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares) | 284,761 | 77,753 | 281,492 | 77,724 |
Net loss per share attributable to Class A and Class B common stockholders - diluted (in dollars per share) | $ (0.24) | $ (7.79) | $ (0.42) | $ (5.04) |
Net loss per share attributable to Class A and Class B common stockholders - basic (in dollars per share) | $ (0.24) | $ (7.79) | $ (0.42) | $ (5.04) |
Net Loss Per Share - Potential
Net Loss Per Share - Potential Common Equivalents Excluded from Computation of Diluted Net Loss per Share (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 36,844 | 201,448 |
Redeemable convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 153,938 |
RSUs and PRSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 35,716 | 45,751 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 977 | 1,759 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 151 | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Loss Carryforwards [Line Items] | ||||
Provision for income taxes | $ 2,159 | $ 1,122 | $ 4,696 | $ 2,195 |
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Provision for income taxes | $ 1,100 | $ 2,500 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 121,432 | $ 88,341 | $ 236,069 | $ 168,928 | |
Total long-lived assets | 51,978 | 51,978 | $ 23,373 | ||
North America | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 52,117 | 37,568 | 100,890 | 71,707 | |
Total long-lived assets | 21,870 | 21,870 | 13,780 | ||
Europe, Middle East and Africa | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 47,878 | 37,349 | 93,383 | 71,129 | |
Total long-lived assets | 2,942 | 2,942 | 578 | ||
Asia Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 18,240 | 11,578 | 35,719 | 22,427 | |
Total long-lived assets | 27,166 | 27,166 | $ 9,015 | ||
Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 3,197 | $ 1,846 | $ 6,077 | $ 3,665 |