Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 $0.00001 per share | |
Trading Symbol | FRSH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001544522 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,470,180 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 228,656,730 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,179,958 | $ 95,382 |
Marketable securities | 146,592 | 142,733 |
Accounts receivable, net | 44,298 | 34,270 |
Deferred contract acquisition costs | 13,001 | 9,167 |
Prepaid expenses and other current assets | 37,956 | 30,852 |
Total current assets | 1,421,805 | 312,404 |
Property and equipment, net | 21,205 | 20,784 |
Deferred contract acquisition costs, noncurrent | 13,219 | 9,106 |
Intangible assets, net | 2,985 | 6,223 |
Goodwill | 6,181 | 6,181 |
Deferred tax assets | 16,048 | 4,393 |
Other assets | 6,062 | 8,333 |
Total assets | 1,487,505 | 367,424 |
Current liabilities: | ||
Accounts payable | 3,184 | 3,710 |
Accrued liabilities | 54,146 | 35,608 |
Deferred revenue | 143,159 | 104,184 |
Income tax payable | 865 | 8,740 |
Total current liabilities | 201,354 | 152,242 |
Other liabilities | 18,273 | 16,827 |
Total liabilities | 219,627 | 169,069 |
Commitments and contingencies (Note 9) | ||
Redeemable convertible preferred stock, $0.0001 par value per share; zero and 154,055,430 shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero and 153,937,730 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of zero and $326,559 as of September 30, 2021 and December 31, 2020, respectively | 0 | 2,895,096 |
Stockholders' Equity (Deficit) | ||
Preferred stock, $0.00001 par value per share; 10,000,000 and zero shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 0 | 0 |
Additional paid-in capital | 4,464,100 | 0 |
Accumulated other comprehensive (loss) income | (20) | 411 |
Accumulated deficit | (3,196,205) | (2,697,153) |
Total stockholders' equity (deficit) | 1,267,878 | (2,696,741) |
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | 1,487,505 | 367,424 |
Common Stock | ||
Stockholders' Equity (Deficit) | ||
Common stock, value | 0 | 1 |
Class A Common Stock | ||
Stockholders' Equity (Deficit) | ||
Common stock, value | 0 | 0 |
Class B Common Stock | ||
Stockholders' Equity (Deficit) | ||
Common stock, value | $ 3 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Redeemable convertible preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Redeemable convertible preferred stock, authorized (in shares) | 0 | 154,055,430 |
Redeemable convertible preferred stock, issued (in shares) | 0 | 153,937,730 |
Redeemable convertible preferred stock, outstanding (in shares) | 0 | 153,937,730 |
Aggregation liquidation preference | $ 0 | $ 326,559,000 |
Preferred stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, authorized (in shares) | 10,000,000 | 0 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common Stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 0 | 285,000,000 |
Common stock, issued (in shares) | 0 | 77,619,030 |
Common stock, outstanding (in shares) | 0 | 77,619,030 |
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 | 0 |
Common stock, issued (in shares) | 37,128,830 | 0 |
Common stock, outstanding (in shares) | 37,128,830 | 0 |
Class B Common Stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 350,000,000 | 0 |
Common stock, issued (in shares) | 225,988,280 | 0 |
Common stock, outstanding (in shares) | 225,988,280 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 96,614 | $ 66,187 | $ 265,542 | $ 176,658 |
Cost of revenue | 22,236 | 13,163 | 57,632 | 37,020 |
Gross profit | 74,378 | 53,024 | 207,910 | 139,638 |
Operating expense: | ||||
Research and development | 57,087 | 13,249 | 91,377 | 53,062 |
Sales and marketing | 96,785 | 34,164 | 188,155 | 95,348 |
General and administrative | 60,759 | 5,558 | 76,785 | 43,953 |
Total operating expenses | 214,631 | 52,971 | 356,317 | 192,363 |
(Loss) income from operations | (140,253) | 53 | (148,407) | (52,725) |
Interest and other income, net | 22,923 | 1,239 | 23,428 | 862 |
(Loss) income before income taxes | (117,330) | 1,292 | (124,979) | (51,863) |
(Benefit from) provision for income taxes | (9,915) | (95) | (7,720) | 3,896 |
Net (loss) income | (107,415) | 1,387 | (117,259) | (55,759) |
Accretion of redeemable convertible preferred stock | (2,264,838) | (269,358) | (2,646,662) | (371,522) |
Net loss attributable to common stockholders - basic and diluted | ||||
Net loss attributable to common stockholders - basic | (2,372,253) | (267,971) | (2,763,921) | (427,281) |
Net loss attributable to common stockholders - diluted | $ (2,372,253) | $ (267,971) | $ (2,763,921) | $ (427,281) |
Net loss attributable to common stockholders - basic and diluted | ||||
Basic (in dollars per share) | $ (24.72) | $ (3.49) | $ (32.96) | $ (5.56) |
Diluted (in dollars per share) | $ (24.72) | $ (3.49) | $ (32.96) | $ (5.56) |
Weighted average shares used in computing net loss per share attributable to common stockholders - basic and diluted | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares) | 95,930 | 76,880 | 83,860 | 76,846 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares) | 95,930 | 76,880 | 83,860 | 76,846 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (107,415) | $ 1,387 | $ (117,259) | $ (55,759) |
Other comprehensive (loss) income: | ||||
Unrealized (loss) gain on marketable securities | (18) | (494) | (431) | 615 |
Comprehensive (loss) income | $ (107,433) | $ 893 | $ (117,690) | $ (55,144) |
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 Income (Loss) | Accumulated Deficit |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 76,821,000 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 153,938,000 | ||||
Beginning balance at Dec. 31, 2019 | $ 1,334,572 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | $ 371,522 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 153,938,000 | ||||
Ending balance at Sep. 30, 2020 | $ 1,706,094 | ||||
Beginning balance at Dec. 31, 2019 | (1,122,721) | $ 1 | $ 0 | $ 139 | $ (1,122,861) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | (371,522) | (43,401) | (328,121) | ||
Issuance of common stock upon exercise of stock options (in shares) | 392,000 | ||||
Issuance of common stock upon exercise of stock options | 121 | 121 | |||
Stock-based compensation | 43,280 | 43,280 | |||
Unrealized (loss) gain on marketable securities | 615 | 615 | |||
Net loss | (55,759) | (55,759) | |||
Ending balance (in shares) at Sep. 30, 2020 | 77,213,000 | ||||
Ending balance at Sep. 30, 2020 | $ (1,505,986) | $ 1 | 0 | 754 | (1,506,741) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 76,857,000 | ||||
Beginning balance (in shares) at Jun. 30, 2020 | 153,938,000 | ||||
Beginning balance at Jun. 30, 2020 | $ 1,436,736 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | $ 269,358 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 153,938,000 | ||||
Ending balance at Sep. 30, 2020 | $ 1,706,094 | ||||
Beginning balance at Jun. 30, 2020 | (1,237,631) | $ 1 | 0 | 1,248 | (1,238,880) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | (269,358) | (110) | (269,248) | ||
Issuance of common stock upon exercise of stock options (in shares) | 356,000 | ||||
Issuance of common stock upon exercise of stock options | 110 | $ 0 | 110 | ||
Unrealized (loss) gain on marketable securities | (494) | (494) | |||
Net loss | 1,387 | 1,387 | |||
Ending balance (in shares) at Sep. 30, 2020 | 77,213,000 | ||||
Ending balance at Sep. 30, 2020 | $ (1,505,986) | $ 1 | 0 | 754 | (1,506,741) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 77,213,000 | ||||
Beginning balance (in shares) | 77,619,000 | ||||
Beginning balance (in shares) at Dec. 31, 2020 | 153,937,730 | ||||
Beginning balance at Dec. 31, 2020 | $ 2,895,096 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | $ 2,646,662 | ||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering (in shares) | (153,938,000) | ||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering | $ (5,541,758) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 0 | ||||
Ending balance at Sep. 30, 2021 | $ 0 | ||||
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 | (2,646,662) | (2,264,869) | (381,793) | ||
Conversion of redeemable convertible preferred stock (in shares) | 153,938,000 | ||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering | 5,541,758 | $ 2 | 5,541,756 | ||
Issuance of common stock upon initial public offering, net of underwriting discounts and offering expenses | 31,350,000 | ||||
Issuance of common stock upon initial public offering, net of underwriting discounts and offering expenses | $ 1,062,453 | 1,062,453 | |||
Issuance of common stock upon exercise of stock options (in shares) | 210,000 | 210,000 | |||
Issuance of common stock upon exercise of stock options | $ 43 | 43 | |||
Stock-based compensation | 124,717 | 124,717 | |||
Unrealized (loss) gain on marketable securities | (431) | (431) | |||
Net loss | (117,259) | (117,259) | |||
Ending balance (in shares) at Sep. 30, 2021 | 263,117,000 | ||||
Ending balance at Sep. 30, 2021 | $ 1,267,878 | $ 3 | 4,464,100 | (20) | (3,196,205) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 77,756,000 | ||||
Beginning balance (in shares) at Jun. 30, 2021 | 153,938,000 | ||||
Beginning balance at Jun. 30, 2021 | $ 3,276,920 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | $ 2,264,838 | ||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering (in shares) | (153,938,000) | ||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering | $ (5,541,758) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 0 | ||||
Ending balance at Sep. 30, 2021 | $ 0 | ||||
Beginning balance at Jun. 30, 2021 | (3,088,791) | $ 1 | 0 | (2) | (3,088,790) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of redeemable convertible preferred stock | (2,264,838) | (2,264,838) | 0 | ||
Conversion of redeemable convertible preferred stock (in shares) | 153,938,000 | ||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering | 5,541,758 | $ 2 | 5,541,756 | ||
Issuance of common stock upon initial public offering, net of underwriting discounts and offering expenses | 31,350,000 | ||||
Issuance of common stock upon initial public offering, net of underwriting discounts and offering expenses | 1,062,453 | 1,062,453 | |||
Issuance of common stock upon exercise of stock options (in shares) | 73,000 | ||||
Issuance of common stock upon exercise of stock options | 12 | 12 | |||
Stock-based compensation | 124,717 | 124,717 | |||
Unrealized (loss) gain on marketable securities | (18) | (18) | |||
Net loss | (107,415) | (107,415) | |||
Ending balance (in shares) at Sep. 30, 2021 | 263,117,000 | ||||
Ending balance at Sep. 30, 2021 | $ 1,267,878 | $ 3 | $ 4,464,100 | $ (20) | $ (3,196,205) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 263,117,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows Operating Activities: | ||
Net loss | $ (117,259) | $ (55,759) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 9,792 | 8,215 |
Amortization of deferred contract acquisition costs | 9,085 | 5,374 |
Stock-based compensation | 124,259 | 43,280 |
Premium amortization on marketable securities | 1,206 | 874 |
Gain realized on sale of marketable securities and non-marketable equity investment | (23,835) | (132) |
Change in fair value of equity securities | (100) | (44) |
Deferred income taxes | (11,721) | 0 |
Other | 133 | 184 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10,039) | (6,116) |
Deferred contract acquisition costs | (17,032) | (9,935) |
Prepaid expenses and other assets | (14,823) | (6,312) |
Accounts payable | (542) | (2,529) |
Accrued and other liabilities | 18,517 | 17,267 |
Deferred revenue | 38,975 | 24,682 |
Net cash provided by operating activities | 6,616 | 19,049 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (4,056) | (3,628) |
Proceeds from sale of property and equipment | 565 | 0 |
Capitalized internal-use software | (3,050) | (3,828) |
Sale of non-marketable equity investment | 23,979 | 0 |
Purchases of marketable securities | (154,828) | (99,058) |
Sales of marketable securities | 36,831 | 15,658 |
Maturities and redemptions of marketable securities | 112,554 | 59,462 |
Acquired intangible assets | 0 | (1,750) |
Business combination, net of cash acquired | 0 | (5,075) |
Net cash provided by (used in) investing activities | 11,995 | (38,219) |
Cash Flows from Financing Activities: | ||
Proceeds from initial public offering, net of underwriting discounts | 1,069,348 | 0 |
Proceeds from exercise of stock options | 43 | 121 |
Payment of deferred offering costs | (5,472) | 0 |
Payment of acquisition-related liabilities | (900) | (1,200) |
Net cash provided by (used in) financing activities | 1,063,019 | (1,079) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,081,630 | (20,249) |
Cash, cash equivalents and restricted cash, beginning of period | 98,331 | 79,135 |
Cash, cash equivalents and restricted cash, end of period | 1,179,961 | 58,886 |
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets: | ||
Cash and cash equivalents | 1,179,958 | 55,951 |
Restricted cash included in prepaid expenses and other current assets | 0 | 1,916 |
Restricted cash included in other assets | 3 | 1,019 |
Total cash, cash equivalents and restricted cash | 1,179,961 | 58,886 |
Supplemental cash flow information: | ||
Cash paid for taxes | 6,981 | 3,273 |
Non-cash investing and financing activities: | ||
Purchased property and equipment included in accrued expenses | 16 | 187 |
Property and equipment acquired through tenant improvement allowance | 0 | 322 |
Deferred offering costs | 1,423 | 0 |
Deferred purchase consideration for acquisition | 0 | 900 |
Accretion of redeemable convertible preferred stock | $ 2,646,662 | $ 371,522 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation 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, and has foreign subsidiaries located in India, Australia, the United Kingdom, Ireland, Germany, France, the Netherlands, and Singapore. Initial Public Offering 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, which included 2,850,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $1.1 billion from the IPO, after deducting underwriters’ discounts. As of September 30, 2021, deferred offering costs totaling $7.0 million were reclassified to stockholders' equity (deficit) as a reduction of the net proceeds from the IPO. In connection with the IPO, all shares of common stock then outstanding were reclassified as Class B common stock, and 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. See Note 10 for additional details. As detailed in Note 11— Stockholders' Equity and Stock-Based Compensation , under the 2011 Stock Plan, the Company granted employees restricted stock units (RSUs) with both a service and a liquidity performance condition. Upon the Company's IPO on September 22, 2021, the liquidity event condition was met for all RSUs. RSUs that had already met the service condition at that date are entitled to one share of Class B common stock for each vested RSU, which will be issued on the applicable settlement dates, which may occur in increments if certain stock price targets are met, and in any event will be fully settled approximately 180 days after the IPO. Stock Split In September 2021, the Company 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 has been adjusted on a retrospective basis to reflect this stock split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Consolidated Financial Statement s The accompanying condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations, of comprehensive income (loss), of cash flows, and of redeemable convertible preferred stock and stockholders’ equity (deficit) for the three and nine months ended September 30, 2021 and 2020, 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 September 30, 2021 and its results of operations and cash flows for the three and nine months ended September 30, 2021 and 2020. The results of operations for the three and nine months ended September 30, 2021 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 final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on September 22, 2021 (the Prospectus). 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 period. 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 • fair value of redeemable convertible preferred stock. Risk and Uncertainties Due to the COVID-19 pandemic, the Company has temporarily closed its headquarters in San Mateo, California, and other offices around the world, required its employees to work remotely from home, and implemented travel restrictions, all of which have caused significant disruption in how the Company operates its business. At the same time, the operations of its partners and customers have also been disrupted. While the duration and extent of the COVID-19 pandemic depends largely on future developments that cannot be accurately predicted at this time, such as the extent of and effectiveness of containment actions and developed vaccines, it has already had an adverse effect on the global economy and the ultimate societal and economic impact of the COVID-19 pandemic remains unknown. In particular, the conditions caused by this pandemic 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, limit the potential to generate additional business with new customers due to travel restrictions imposed, 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 COVID-19 or other estimates 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. Revenue Recognition 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. On occasion, the Company sells subscriptions to third-party resellers. The price at which subscriptions are sold to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As pricing to the reseller is fixed, and the Company lacks visibility into the pricing provided by the reseller to the end customer, reseller revenue is recorded net of any reseller margin. Subscription Revenue Subscription revenue is primarily comprised of fees paid by the Company’s customers for accessing its cloud-based software during the term of the arrangement. Cloud-based services allow customers to use the Company’s multi-tenant software without requiring them to take possession of the software. Given that access to the cloud-based software represents a series of distinct services that comprise a single performance obligation that is satisfied over time, subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date that the cloud-based software is made available to customers. Professional Services Revenue Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. The Company recognizes professional services revenues as services are performed. Customers with Multiple Performance Obligations Some of the Company’s contracts with customers contain both subscriptions and professional services. For these contracts, the Company accounts for individual performance obligations separately. The transaction price is allocated to the separate performance obligations on the basis of relative SSP. The Company determines SSP by taking into consideration historical selling price of these performance obligations in similar transactions, as well as current pricing practices and other observable inputs including, but not limited to, customer size and geography. As the Company’s go-to-market strategies evolve, it may modify its pricing practices in the future, which could result in changes to SSP. Stock-Based Compensation The Company issues stock options and restricted stock units (RSUs) to employees, consultants, and directors, and recognizes stock-based compensation expense using the straight line attribution method in the consolidated statements of operations. Stock-based compensation is recognized over the requisite service period, which is the vesting period of the respective awards. Prior to the IPO, there was no stock-based compensation expense recognized from RSUs as the liquidity event-related performance condition was not probable. Upon completion of the IPO, the performance condition became probable, and the Company recognized stock-based compensation expense. Forfeitures are accounted for when they occur. Prior to the IPO, the fair market value of the Company's common stock on the date of the grant was determined based on independent third-party valuations as there was no public market. Subsequent to the IPO, the fair market value of the Company's common stock underlying the RSUs is determined based on the closing market price of its Class A common stock on the date of the grant. For the performance-based award granted to the chief executive officer (CEO) with both a service-based vesting condition and a market condition (as discussed further in Note 11), the Company determines the fair value of the award by using the Monte Carlo simulation model. Since both vesting conditions have to be met for each tranche of the award to ultimately vest, the associated stock-based compensation expense is recognized over the longer of the derived service period or the requisite service period, using the accelerated attribution method. Provided that the CEO remains employed by the Company in his current position, stock-based compensation expense is recognized over the requisite service period, regardless of whether the stock price goals are achieved. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount, net of allowance for doubtful accounts. The allowance is based on the Company’s assessment of the collectability of accounts and is recorded as an offset to revenue and deferred revenue. The Company regularly reviews the adequacy of the allowance by considering the age of each outstanding invoice and the collection history. Accounts receivable deemed uncollectible are recognized as bad debt expense and classified as general and administrative expenses in the condensed consolidated statements of operations. As of September 30, 2021 and December 31, 2020, the Company's allowance for doubtful accounts was $6.8 million and $6.4 million, respectively. Defined Benefit Plan Employees in India are entitled to benefits under the Gratuity Act, a defined benefit retirement plan covering eligible employees. The plan requires employers to provide for a lump-sum payment to eligible employees at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employee’s salary and tenure of employment. Employees in India are also entitled to a defined benefit plan with benefits based on an employee’s accumulated leave balance and salary. Both plans are unfunded arrangements. Current service costs are accrued in the period to which they relate. The benefit obligations are calculated by a qualified actuary using the projected unit credit method and the unfunded position is recognized as a liability in the consolidated balance sheets. In measuring the defined benefit obligations, the Company uses a discount rate at the reporting date based on yields of local government treasury bills denominated in the same currency in which the benefits are expected to be paid, with maturities approximating the terms of the Company’s obligations. Since the plan is unfunded, no annual contributions are required to be made as per applicable regulations. Disclosures required under ASC 715—Compensation—Retirement Benefits, have been omitted because the Company has deemed them immaterial to its consolidated financial statements. The benefit plans had a plan benefit obligation of $6.2 million and $5.6 million as of September 30, 2021 and December 31, 2020, respectively, included in other liabilities in the consolidated balance sheets. Recent Accounting Pronouncements New accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) under its ASC or ASU and adopted by the Company as of the specified effective date. As an emerging growth company, the Jumpstart Our Business Startups Act (the JOBS Act) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the requirements of ASU 2018-15 as of January 1, 2021 on a prospective basis. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on their balance sheets as right-of-use assets with corresponding lease liabilities and eliminates certain real estate-specific provisions. Under the standard, lease expenses will continue to be recorded over the lease term in the consolidated statements of operations in a manner similar to the current standard. Certain practical expedients are available for lessees to elect upon adopting the new standard. This standard is effective for the Company on January 1, 2022, and early adoption is permitted. The Company plans to adopt Topic 842 on a modified basis using the optional transition method, and accordingly, will not restate comparative periods. Amounts and related disclosures for fiscal 2021 will continue to be presented in accordance with ASC 840, Leases. Amounts and disclosures for fiscal 2022 will be presented under ASC 842. The Company expects the impact of adoption to materially increase the right-of-use assets and lease liabilities in its condensed consolidated financial statements. 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. ASU 2016-13 will become effective for the Company on January 1, 2023, and the modified retrospective approach is the only available option, with a cumulative effect adjustment recorded to accumulated deficit as of the date of the adoption. The Company is currently evaluating the impact of adopting this standard 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 guidance will become effective for the Company on January 1, 2022; early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its condensed consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customer | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customer | 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 Revenues The following table summarizes revenue by the Company’s service offerings (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Subscription services $ 94,312 $ 64,258 $ 257,827 $ 171,869 Professional services 2,302 1,929 7,715 4,789 Total revenue $ 96,614 $ 66,187 $ 265,542 $ 176,658 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 September 30, 2021 and 2020 from amounts included in deferred revenue at the beginning of these periods was $61.6 million and $38.9 million, respectively. Revenue recognized during the nine months ended September 30, 2021 and 2020 from amounts included in deferred revenue at the beginning of these periods was $95.6 million and $63.5 million, respectively. The aggregate balance of remaining performance obligations as of September 30, 2021 was $199.0 million. The Company expects to recognize $159.3 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance at beginning of the period $ 23,604 $ 14,851 $ 18,273 $ 11,610 Add: Contract costs capitalized during the period 6,032 3,307 17,032 9,936 Less: Amortization of contract costs during the period (3,416) (1,986) (9,085) (5,374) Balance at end of the period $ 26,220 $ 16,172 $ 26,220 $ 16,172 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities Debt Securities Debt securities are classified as available-for-sale and reported under marketable securities in the condensed consolidated balance sheets. The following table summarizes carrying amounts and fair values as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Debt Securities: U.S. treasury securities $ 97,587 $ 14 $ (6) $ 97,595 Corporate debt securities 45,403 6 (34) 45,375 Total $ 142,990 $ 20 $ (40) $ 142,970 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Debt Securities: U.S. treasury securities $ 50,087 $ 136 $ — $ 50,223 Corporate debt securities 85,413 265 (5) 85,673 Asset-backed securities 3,247 15 — 3,262 Total $ 138,747 $ 416 $ (5) $ 139,158 The amortized cost and fair value of the debt securities based on contractual maturities are as follows (in thousands): September 30, 2021 Amortized Cost Fair Value Due within one year $ 68,687 $ 68,693 Due after one year but within five years 74,303 74,277 Total $ 142,990 $ 142,970 Equity Investments Marketable equity investments consist of money market funds and corporate debt securities with original maturities of less than 90 days, and term bond mutual funds, and are measured at fair value. The cost of the money market funds and the corporate debt securities approximate fair value. 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. Non-marketable equity investments represent the Company’s interest in privately held entities which have no readily determinable fair values. The Company carries these investments at cost, less impairment. In September 2021, the Company sold its interest in a privately held entity for proceeds totaling $24.0 million, resulting in a gain of $23.8 million, which was recorded in interest and other income, net, in the condensed consolidated statements of operations. The types of equity investments are summarized in the following table (in thousands): Condensed Consolidated Balance Sheets Classification September 30, December 31, Type Description Marketable equity investments Money market funds Cash and cash equivalents $ 1,140,671 $ 56,474 Marketable equity investments Corporate debt securities Cash and cash equivalents 3,000 — Marketable equity investments Term bond mutual funds Marketable securities 3,622 3,575 Non-marketable equity investments Investments in equity securities without a readily determinable fair value Other assets 367 517 $ 1,147,660 $ 60,566 The following table summarizes the realized and unrealized gains recognized in the condensed consolidated statements of operations for the term bond mutual funds during the three and nine months ended September 30, 2021 and 2020 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net gains recognized on marketable equity investments $ 35 $ 107 $ 100 $ 44 Unrealized gains at the end of the period $ 35 $ 107 $ 100 $ 44 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets at fair value in 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. Cash equivalents and marketable equity securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Available-for-sale debt securities and derivative assets 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. In connection with the acquisition of Natero, Inc., the Company recognized a liability on the acquisition date for the estimated fair value of the contingent consideration based on the probability of achieving certain milestones pursuant to the acquisition agreement. The fair value measurement of the contingent consideration is based on significant unobservable inputs and management judgment; therefore, it is categorized under Level 3. The Company does not have any assets or liabilities subject to fair value remeasurement on a nonrecurring basis as of September 30, 2021 and December 31, 2020. 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 and financial liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Fair Value Measured Using Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents: Money market funds $ 1,140,671 $ — $ — $ 1,140,671 Corporate debt securities — 3,000 — 3,000 Marketable securities: U.S. treasury securities 97,595 — — 97,595 Corporate debt securities — 45,375 — 45,375 Term bond mutual funds — 3,622 — 3,622 Total financial assets $ 1,238,266 $ 51,997 $ — $ 1,290,263 Financial liabilities: Acquisition-related contingent consideration $ — $ — $ 800 $ 800 December 31, 2020 Fair Value Measured Using Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents: Money market funds $ 56,474 $ — $ — $ 56,474 Marketable securities: U.S. treasury securities 50,223 — — 50,223 Corporate debt securities — 85,673 — 85,673 Asset-backed securities — 3,262 — 3,262 Term bond mutual funds — 3,575 — 3,575 Total financial assets $ 106,697 $ 92,510 $ — $ 199,207 Financial liabilities: Acquisition-related contingent consideration $ — $ — $ 775 $ 775 The following table represents a reconciliation of the contingent consideration liability measured at fair value on a recurring basis, using Level 3 significant unobservable inputs (amounts in thousands): September 30, 2021 December 31, 2020 Beginning balance $ 775 $ 1,950 Additions during the period — — Payments during the period — (1,200) Change in estimated fair value 25 25 Ending balance $ 800 $ 775 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Computers $ 11,152 $ 9,249 Capitalized internal-use software 13,549 10,041 Office equipment 3,213 2,770 Furniture and fixtures 9,391 9,472 Motor vehicles 1,499 2,423 Leasehold improvements 4,274 4,274 Construction in progress 10 322 Total property and equipment 43,088 38,551 Less: accumulated depreciation and amortization (21,883) (17,767) Property and equipment, net $ 21,205 $ 20,784 Capitalization of costs associated with internal-use software were $1.3 million and $1.4 million for the three months ended September 30, 2021 and 2020, respectively; and $3.5 million and $3.8 million for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021 and December 31, 2020, the net carrying value of capitalized internal-use software was $8.3 million and $6.7 million, respectively. Depreciation and amortization expense was $2.3 million and $1.7 million for the three months ended September 30, 2021 and 2020, respectively; and $6.6 million and $5.1 million for the nine months ended September 30, 2021 and 2020, respectively. Accrued Liabilities The following table summarizes accrued liabilities as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Accrued compensation $ 13,317 $ 8,983 Acquisition-related liabilities 800 1,942 Accrued third-party cloud infrastructure expenses 2,357 1,572 Accrued reseller commissions 5,623 3,999 Accrued advertising and marketing expenses 7,982 2,412 Advanced payments from customers 2,716 2,815 Accrued taxes 16,311 8,645 Other accrued expenses 5,040 5,240 Total accrued liabilities $ 54,146 $ 35,608 |
Business Combinations and Asset
Business Combinations and Asset Purchase | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations and Asset Purchase | Business Combinations and Asset Purchase AnsweriQ Inc. (AIQ) In January 2020, the Company acquired all issued and outstanding shares of AIQ, a provider of machine learning and artificial intelligence self-service tools. The acquisition date cash consideration paid was $5.7 million. The Company acquired $4.0 million of developed technology with an estimated useful life of two years, and $1.7 million of goodwill which is primarily attributed to the assembled workforce. Infiverve Technologies Private Ltd. and Infiverve Technologies Pte. Ltd. (collectively known as Flint) In March 2020, the Company entered into an asset purchase agreement with Flint, an IT orchestration and cloud management platform, to complement Freshservice’s IT service management and IT operations management product capabilities, for a total consideration of $2.0 million in cash. The transaction was accounted for as an asset acquisition as the developed technology was the only asset acquired. None of the above transactions had a material impact on the Company’s condensed consolidated financial statements; therefore, historical and proforma disclosures have not been presented. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net The carrying value of goodwill was $6.2 million as of September 30, 2021 and December 31, 2020. 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 September 30, 2021 and December 31, 2020: September 30, 2021 Gross Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life (amounts in thousands) (in years) Developed technology $ 10,496 $ (8,157) $ 2,339 0.9 Customer relationships 1,600 (954) 646 1.7 Total $ 12,096 $ (9,111) $ 2,985 December 31, 2020 Gross Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life (amounts in thousands) (in years) Developed technology $ 10,496 $ (5,218) $ 5,278 1.5 Customer relationships 1,600 (655) 945 2.4 Total $ 12,096 $ (5,873) $ 6,223 Total amortization of acquired intangible assets was $1.1 million and $1.1 million for the three months ended September 30, 2021 and 2020, respectively; and $3.3 million and $3.1 million for the nine months ended September 30, 2021 and 2020, respectively. The Company recorded amortization of developed technology totaling $1.0 million and $1.0 million for the three months ended September 30, 2021 and 2020, respectively; and $3.0 million and $2.8 million for the nine months ended September 30, 2021 and 2020, respectively, as cost of revenue in each of the respective periods in the condensed consolidated statements of operations. The Company recorded amortization of customer relationships totaling $0.1 million and $0.1 million for the three months ended September 30, 2021 and 2020, respectively, and $0.3 million and $0.3 million for the nine months ended September 30, 2021 and 2020, respectively as sales and marketing expense in each of the respective periods in the condensed consolidated statements of operations. Expected future amortization expense related to acquired intangible assets is as follows (in thousands): As of September 30, Amortization Expense 2021 (remaining three months) $ 1,091 2022 1,591 2023 303 Total future amortization $ 2,985 |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company leases office space under non-cancelable operating lease agreements, which expire on various dates through September 2028. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. In September 2018, the Company entered into a lease agreement for its corporate headquarters located in San Mateo, California, which it occupied in January 2019. This lease covers approximately 22,000 square feet of office spaces at a monthly base rent of $113,246, increasing approximately 3% annually. The lease expires in July 2026, with an option to extend the lease for another five years, subject to certain requirements. The total commitment is $10.5 million with a tenant improvement allowance of $1.5 million. Deferred rent was $4.8 million and $5.1 million as of September 30, 2021 and December 31, 2020, respectively, of which $3.9 million and $4.6 million was classified in other liabilities in the condensed consolidated balance sheets, in each of the periods, respectively. Rent expense for operating leases was $2.4 million and $2.5 million for the three months ended September 30, 2021 and 2020, respectively, and $7.3 million and $7.6 million for the nine months ended September 30, 2021 and 2020, respectively. Other Contractual Commitments The Company's other contractual commitments primarily consist of third-party cloud infrastructure agreements and service subscription arrangements used to support operations at the enterprise level. As of September 30, 2021, other contractual commitments totaling $48.5 million remain outstanding under these agreements though 2024. 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. 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. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock Immediately prior to the completion of the IPO, 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, and their carrying value of $5.6 billion was reclassified into stockholders' equity (deficit). As of September 30, 2021, there were no shares of redeemable convertible preferred stock issued and outstanding. As of December 31, 2020, there were 154,055,430 authorized shares and 153,937,730 issued and outstanding shares of redeemable convertible preferred stock with aggregate liquidation preference of $326.6 million. Accretion of the redemption price of the redeemable convertible preferred stock was $2.3 billion and $269.4 million for the three months ended September 30, 2021 and 2020, respectively, and $2.7 billion and $371.5 million for the nine months ended September 2021 and 2020, respectively. The accretion was first recorded against additional paid-in capital to the extent that it became exhausted, with the remainder charged against accumulated deficit. Preferred Stock Transactions In January 2020, an investor, also a member of the Board of Directors of the Company (the Board) at that time, entered into a secondary transaction to sell 26,210 shares of redeemable convertible Series A preferred stock, 1,314,830 shares of redeemable convertible Series B preferred stock, and 448,110 shares of redeemable convertible Series C preferred stock to a new investor for a total price in excess of the fair value of the shares. The sale was facilitated by the Company and deemed compensatory to the seller. The amount paid by the investor to acquire the shares was $25.5 million, while the fair value of the shares on the transaction date was $14.7 million. The excess value of $10.8 million was recognized as stock-based compensation expense by the Company in general and administrative expense in its condensed consolidated statements of operations. See Note 11 for a discussion of stock-based compensation recognized from the secondary transaction involving the repurchases of redeemable convertible preferred stock (as described above) and common stock from the Company’s founders and employees. |
Stockholders' Equity and Stock
Stockholders' Equity and Stock Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments | Stockholders' Equity and Stock-Based Compensation Preferred Stock In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of undesignated preferred stock with a par value of $0.00001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors. Common Stock The Company has two classes of common stock: Class A common stock and Class B common stock. In connection with the IPO, the Company’s amended and restated certificate of incorporation authorized the issuance of 1,000,000,000 shares of Class A common stock and 350,000,000 shares of Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock have a par value of $0.00001 per share, and are referred to as common stock throughout these notes to the condensed consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors. Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (1) sale or transfer of such share of Class B common stock, except for certain permitted transfers as described in our amended and restated certificate of incorporation; (2) the death of such Class B common stockholder (or nine months after the date of death if the stockholder is our founder); and (3) on the final conversion date, defined as the earlier of (a) the last trading day of the fiscal year following the seventh anniversary of the IPO; or (b) the date specified by a vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a single class. Shares of common stock reserved for future issuance were as follows (shares in thousands): September 30, 2021 December 31, 2020 Redeemable convertible preferred stock — 153,938 2011 Stock Plan: Options and RSUs outstanding 60,319 36,024 Shares reserved for future award issuances — 9,981 2021 Equity Incentive Plan: Shares reserved for future award issuances 35,059 — 2021 Employee Stock Purchase Plan 6,500 — Total shares of common stock reserved for issuance 101,878 199,943 Equity Incentive Plans In 2011, the Company adopted the 2011 Stock Plan (the 2011 Plan) pursuant to which the board of directors (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 and RSUs. The 2011 Plan was terminated in September 2021 in connection with the IPO but continues to govern the terms of outstanding awards that were granted prior to its termination. With the establishment of the 2021 Equity Incentive Plan (the 2021 Plan) as further discussed below, upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock-based awards granted under the 2011 Plan, an equal number of shares of Class A common stock will become available for grant under the 2021 Plan. In August 2021, the Board adopted the 2021 Plan, which became effective upon the IPO. Upon adoption, the 2021 Plan began with a reserve of 35,000,000 new shares of Class A common stock for future issuance, with (i) an automatic increase occurring on January 1 of each year by 5% of the aggregate number of shares of common stock of all classes issued and outstanding on December 31 of the preceding calendar year, or (ii) a lesser number of shares determined by the Board prior to January 1 of each year. The reserve is reduced by the number of shares granted, and increased by the number of shares subject to stock options or other stock awards that would have otherwise returned to the 2011 Plan, up to a maximum of 51,178,920 shares. As of September 30, 2021, 59,470 shares cancelled from the 2011 Plan were added to the reserve, increasing it to 35,059,470 shares available for future issuance, and no shares have been granted from the 2021 Plan. 2021 Employee Stock Purchase Plan (ESPP) In August 2021, the Board adopted the ESPP, which became effective upon the Company’s IPO. Initially, 6,500,000 Class A shares of common stock have been reserved for future issuance under the ESPP, with an automatic increase to such reserve on January 1 of each year. The price at which Class A common stock is purchased under the ESPP is equal to 85% of the fair market value of a share of the Company’s Class A common stock on the first or last day of the offering period, whichever is lower. Offering periods are generally six months long and begin on May 15 and November 15 of each year, except for the first offering period. The enrollment in the ESPP began upon the completion of the IPO, which was September 22, 2021, with contributions from employees beginning on October 1, 2021. The first offering period will end on May 13, 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. Stock option activity during the nine months ended September 30, 2021 is as follows: Share Information: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in thousands, except per share data) Balance as of December 31, 2020 2,096 $ 0.23 4.1 $ 33,947 Stock options granted — $ — Stock options exercised (210) $ 0.22 Stock options cancelled / forfeited / expired (203) $ 0.06 Balance as of September 30, 2021 (2) 1,683 $ 0.25 3.8 $ 71,401 (1) Aggregate intrinsic value for stock options 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, exercisable, or vested. (2) The ending balance as of September 30, 2021 represents options that were fully vested and exercisable. Restricted Stock Units RSUs are granted at fair market value at the date of the grant, have 10-year contractual terms, and vest over a four-year period. RSU activity during the nine months ended September 30, 2021 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, 2020 33,928 $ 5.41 Granted 26,376 $ 24.43 Vested — $ — Forfeited (1,668) $ 10.35 Unvested, as of September 30, 2021 58,636 $ 13.81 Performance-Based Awards In May 2019, the Board approved a grant of 166,390 performance-based RSUs (PRSUs) to the Company’s CEO. The vesting of these PRSUs is contingent upon the satisfaction of all three of the following: (i) the achievement of certain revenue-related milestones on or before December 31, 2019, (ii) vesting over the requisite service period in accordance with the Plan, and (iii) a liquidity event. The revenue-related milestone was met as of December 31, 2019, and the liquidity event condition was met upon the completion of the IPO as described in Note 1— Initial Public Offering . As of September 30, 2021, the time-based vesting was the only condition yet to be satisfied over the remaining requisite service period. 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. For the three and nine months ended September 30, 2021, the Company recognized $1.9 million of stock-based compensation expense associated with the performance-based awards described above, of which $1.4 million was related to the CEO Performance Award. Stock-based compensation expense for these performance-based awards was recorded in general and administrative expenses in the condensed consolidated statements of operations. Stock-Based Compensation For the three and nine months ended September 30, 2021, stock-based compensation expense of $124.3 million included a cumulative charge associated with certain RSUs for which the service-based vesting condition has been satisfied upon the completion of the liquidity event, as further described in Note 1— Initial Public Offering. In 2020 and 2021, the Board approved separation agreements for two senior executives who terminated employment with the Company . Pursuant to such agreements, the Company accelerated the vesting of RSUs and accounted for this as a modification of their original stock-based awards. For the three and nine months ended September 30, 2021, in connection with these arrangements, the Company recognized stock-based compensation of $6.1 million, of which $2.6 million and $3.5 million was recorded to research and development and sales and marketing, respectively. Stock-based compensation for the nine months ended September 30, 2020 included expenses recognized from employee stock-based awards, and the excess value of $43.2 million paid to repurchase shares in a secondary transaction. The excess value was comprised of $10.8 million recorded in general and administrative expense for the repurchase of redeemable convertible preferred stock (as described in Note 10), and $32.4 million for the repurchases of shares of common stock from the Company’s founders and a number of employees, of which $16.5 million and $15.9 million were recorded in general and administrative expense and research and development expense, respectively. Total stock-based compensation expense recorded for the three and nine months ended September 30, 2021 and 2020 was as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Employee awards: Cost of revenue $ 3,983 $ — $ 3,983 $ — Research and development 36,823 — 36,823 8 Sales and marketing 40,465 — 40,465 7 General and administrative 42,988 — 42,988 29 Total employee awards 124,259 — 124,259 44 Secondary transaction — — — 43,236 Stock-based compensation, net of amounts capitalized 124,259 — 124,259 43,280 Capitalized stock-based compensation 458 — 458 — Total stock-based compensation expense $ 124,717 $ — $ 124,717 $ 43,280 Stock-based compensation expense recorded to research and development in the condensed consolidated statements of operations excludes amounts that were capitalized for internal-use software for the three and nine months ended September 30, 2021. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2021 | |
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 equivalents, but excluded them from the computation of diluted net loss per share attributable to common stockholders in the periods presented, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net (loss) income $ (107,415) $ 1,387 $ (117,259) $ (55,759) Accretion of redeemable convertible preferred stock (2,264,838) (269,358) (2,646,662) (371,522) Net loss attributable to Class A and Class B common stockholders - basic and diluted $ (2,372,253) $ (267,971) $ (2,763,921) $ (427,281) Denominator: Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted 95,930 76,880 83,860 76,846 Net loss per share attributable to Class A and Class B common stockholders - basic and diluted $ (24.72) $ (3.49) $ (32.96) $ (5.56) The following table summarizes the potential common equivalents that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (in thousands): September 30, 2021 2020 Redeemable convertible preferred stock — 153,938 Stock options 1,682 2,504 RSUs 58,636 31,578 Total 60,318 188,020 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
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 (benefit from) income taxes was $(9.9) million and $(0.1) million for the three months ended September 30, 2021 and 2020, respectively. The $9.8 million decrease in tax expense resulted primarily from $11.7 million related to a pre-tax loss in jurisdictions where we expect to realize a tax benefit in the future, offset by an increase in tax expense of $1.9 million from profitable foreign jurisdictions. For the nine months ended September 30, 2021 and 2020, the (benefit from) provision for income taxes was $(7.7) million and $3.9 million, respectively. The $11.6 million benefit in tax expense resulted primarily from $11.7 million related to a pre-tax loss in a foreign jurisdiction where we expect to realize a tax benefit in the future |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table summarizes revenue by geographic location, based upon the billing address of the customer (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 North America $ 41,961 $ 29,534 $ 113,668 $ 79,458 Europe, Middle East and Africa 39,566 26,318 110,695 69,639 Asia Pacific 12,955 8,954 35,382 23,663 Other 2,132 1,381 5,797 3,898 Total revenue $ 96,614 $ 66,187 $ 265,542 $ 176,658 The following table summarizes long-lived assets by geographic information (in thousands): September 30, 2021 December 31, 2020 North America $ 14,826 $ 16,796 Europe, Middle East and Africa 552 606 Asia Pacific 8,811 9,605 Total long-lived assets $ 24,189 $ 27,007 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation and Unaudited Interim Consolidated Financial Statements | 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. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Consolidated Financial Statement s The accompanying condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations, of comprehensive income (loss), of cash flows, and of redeemable convertible preferred stock and stockholders’ equity (deficit) for the three and nine months ended September 30, 2021 and 2020, 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 September 30, 2021 and its results of operations and cash flows for the three and nine months ended September 30, 2021 and 2020. The results of operations for the three and nine months ended September 30, 2021 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 final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on September 22, 2021 (the Prospectus). |
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 period. 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 • fair value of redeemable convertible preferred stock. |
Revenue Recognition, Subscription Revenue, Professional Services Revenue and Customers with Multiple Performance Obligations | Revenue Recognition 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. On occasion, the Company sells subscriptions to third-party resellers. The price at which subscriptions are sold to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As pricing to the reseller is fixed, and the Company lacks visibility into the pricing provided by the reseller to the end customer, reseller revenue is recorded net of any reseller margin. Subscription Revenue Subscription revenue is primarily comprised of fees paid by the Company’s customers for accessing its cloud-based software during the term of the arrangement. Cloud-based services allow customers to use the Company’s multi-tenant software without requiring them to take possession of the software. Given that access to the cloud-based software represents a series of distinct services that comprise a single performance obligation that is satisfied over time, subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date that the cloud-based software is made available to customers. Professional Services Revenue Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. The Company recognizes professional services revenues as services are performed. Customers with Multiple Performance Obligations Some of the Company’s contracts with customers contain both subscriptions and professional services. For these contracts, the Company accounts for individual performance obligations separately. The transaction price is allocated to the separate performance obligations on the basis of relative SSP. The Company determines SSP by taking into consideration historical selling price of these performance obligations in similar transactions, as well as current pricing practices and other observable inputs including, but not limited to, customer size and geography. As the Company’s go-to-market strategies evolve, it may modify its pricing practices in the future, which could result in changes to SSP. 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. |
Stock-based Compensation | Stock-Based Compensation The Company issues stock options and restricted stock units (RSUs) to employees, consultants, and directors, and recognizes stock-based compensation expense using the straight line attribution method in the consolidated statements of operations. Stock-based compensation is recognized over the requisite service period, which is the vesting period of the respective awards. Prior to the IPO, there was no stock-based compensation expense recognized from RSUs as the liquidity event-related performance condition was not probable. Upon completion of the IPO, the performance condition became probable, and the Company recognized stock-based compensation expense. Forfeitures are accounted for when they occur. Prior to the IPO, the fair market value of the Company's common stock on the date of the grant was determined based on independent third-party valuations as there was no public market. Subsequent to the IPO, the fair market value of the Company's common stock underlying the RSUs is determined based on the closing market price of its Class A common stock on the date of the grant. For the performance-based award granted to the chief executive officer (CEO) with both a service-based vesting condition and a market condition (as discussed further in Note 11), the Company determines the fair value of the award by using the Monte Carlo simulation model. Since both vesting conditions have to be met for each tranche of the award to ultimately vest, the associated stock-based compensation expense is recognized over the longer of the derived service period or the requisite service period, using the accelerated attribution method. Provided that the CEO remains employed by the Company in his current position, stock-based compensation expense is recognized over the requisite service period, regardless of whether the stock price goals are achieved. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful AccountsTrade accounts receivable are recorded at the invoiced amount, net of allowance for doubtful accounts. The allowance is based on the Company’s assessment of the collectability of accounts and is recorded as an offset to revenue and deferred revenue. The Company regularly reviews the adequacy of the allowance by considering the age of each outstanding invoice and the collection history. Accounts receivable deemed uncollectible are recognized as bad debt expense and classified as general and administrative expenses in the condensed consolidated statements of operations. |
Defined Benefit Plan | Defined Benefit Plan Employees in India are entitled to benefits under the Gratuity Act, a defined benefit retirement plan covering eligible employees. The plan requires employers to provide for a lump-sum payment to eligible employees at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employee’s salary and tenure of employment. Employees in India are also entitled to a defined benefit plan with benefits based on an employee’s accumulated leave balance and salary. Both plans are unfunded arrangements. Current service costs are accrued in the period to which they relate. The benefit obligations are calculated by a qualified actuary using the projected unit credit method and the unfunded position is recognized as a liability in the consolidated balance sheets. In measuring the defined benefit obligations, the Company uses a discount rate at the reporting date based on yields of local government treasury bills denominated in the same currency in which the benefits are expected to be paid, with maturities approximating the terms of the Company’s obligations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) under its ASC or ASU and adopted by the Company as of the specified effective date. As an emerging growth company, the Jumpstart Our Business Startups Act (the JOBS Act) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the requirements of ASU 2018-15 as of January 1, 2021 on a prospective basis. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on their balance sheets as right-of-use assets with corresponding lease liabilities and eliminates certain real estate-specific provisions. Under the standard, lease expenses will continue to be recorded over the lease term in the consolidated statements of operations in a manner similar to the current standard. Certain practical expedients are available for lessees to elect upon adopting the new standard. This standard is effective for the Company on January 1, 2022, and early adoption is permitted. The Company plans to adopt Topic 842 on a modified basis using the optional transition method, and accordingly, will not restate comparative periods. Amounts and related disclosures for fiscal 2021 will continue to be presented in accordance with ASC 840, Leases. Amounts and disclosures for fiscal 2022 will be presented under ASC 842. The Company expects the impact of adoption to materially increase the right-of-use assets and lease liabilities in its condensed consolidated financial statements. 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. ASU 2016-13 will become effective for the Company on January 1, 2023, and the modified retrospective approach is the only available option, with a cumulative effect adjustment recorded to accumulated deficit as of the date of the adoption. The Company is currently evaluating the impact of adopting this standard 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 guidance will become effective for the Company on January 1, 2022; early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its condensed consolidated financial statements. |
Fair Value Measurements | The Company measures its financial assets at fair value in 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 Customer (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Subscription services $ 94,312 $ 64,258 $ 257,827 $ 171,869 Professional services 2,302 1,929 7,715 4,789 Total revenue $ 96,614 $ 66,187 $ 265,542 $ 176,658 |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance at beginning of the period $ 23,604 $ 14,851 $ 18,273 $ 11,610 Add: Contract costs capitalized during the period 6,032 3,307 17,032 9,936 Less: Amortization of contract costs during the period (3,416) (1,986) (9,085) (5,374) Balance at end of the period $ 26,220 $ 16,172 $ 26,220 $ 16,172 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Carrying Amounts and Fair Values of Debt Securities | Debt securities are classified as available-for-sale and reported under marketable securities in the condensed consolidated balance sheets. The following table summarizes carrying amounts and fair values as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Debt Securities: U.S. treasury securities $ 97,587 $ 14 $ (6) $ 97,595 Corporate debt securities 45,403 6 (34) 45,375 Total $ 142,990 $ 20 $ (40) $ 142,970 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Debt Securities: U.S. treasury securities $ 50,087 $ 136 $ — $ 50,223 Corporate debt securities 85,413 265 (5) 85,673 Asset-backed securities 3,247 15 — 3,262 Total $ 138,747 $ 416 $ (5) $ 139,158 |
Schedule of Amortized Costs and Fair Value of Debt Securities Based on Contractual Maturities | The amortized cost and fair value of the debt securities based on contractual maturities are as follows (in thousands): September 30, 2021 Amortized Cost Fair Value Due within one year $ 68,687 $ 68,693 Due after one year but within five years 74,303 74,277 Total $ 142,990 $ 142,970 |
Schedule Of Equity Investments | The types of equity investments are summarized in the following table (in thousands): Condensed Consolidated Balance Sheets Classification September 30, December 31, Type Description Marketable equity investments Money market funds Cash and cash equivalents $ 1,140,671 $ 56,474 Marketable equity investments Corporate debt securities Cash and cash equivalents 3,000 — Marketable equity investments Term bond mutual funds Marketable securities 3,622 3,575 Non-marketable equity investments Investments in equity securities without a readily determinable fair value Other assets 367 517 $ 1,147,660 $ 60,566 |
Summary of Realized and Unrealized Gains | The following table summarizes the realized and unrealized gains recognized in the condensed consolidated statements of operations for the term bond mutual funds during the three and nine months ended September 30, 2021 and 2020 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net gains recognized on marketable equity investments $ 35 $ 107 $ 100 $ 44 Unrealized gains at the end of the period $ 35 $ 107 $ 100 $ 44 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 and financial liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Fair Value Measured Using Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents: Money market funds $ 1,140,671 $ — $ — $ 1,140,671 Corporate debt securities — 3,000 — 3,000 Marketable securities: U.S. treasury securities 97,595 — — 97,595 Corporate debt securities — 45,375 — 45,375 Term bond mutual funds — 3,622 — 3,622 Total financial assets $ 1,238,266 $ 51,997 $ — $ 1,290,263 Financial liabilities: Acquisition-related contingent consideration $ — $ — $ 800 $ 800 December 31, 2020 Fair Value Measured Using Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents: Money market funds $ 56,474 $ — $ — $ 56,474 Marketable securities: U.S. treasury securities 50,223 — — 50,223 Corporate debt securities — 85,673 — 85,673 Asset-backed securities — 3,262 — 3,262 Term bond mutual funds — 3,575 — 3,575 Total financial assets $ 106,697 $ 92,510 $ — $ 199,207 Financial liabilities: Acquisition-related contingent consideration $ — $ — $ 775 $ 775 |
Contingent Consideration Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table represents a reconciliation of the contingent consideration liability measured at fair value on a recurring basis, using Level 3 significant unobservable inputs (amounts in thousands): September 30, 2021 December 31, 2020 Beginning balance $ 775 $ 1,950 Additions during the period — — Payments during the period — (1,200) Change in estimated fair value 25 25 Ending balance $ 800 $ 775 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | The following table summarizes property and equipment, net as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Computers $ 11,152 $ 9,249 Capitalized internal-use software 13,549 10,041 Office equipment 3,213 2,770 Furniture and fixtures 9,391 9,472 Motor vehicles 1,499 2,423 Leasehold improvements 4,274 4,274 Construction in progress 10 322 Total property and equipment 43,088 38,551 Less: accumulated depreciation and amortization (21,883) (17,767) Property and equipment, net $ 21,205 $ 20,784 |
Schedule of Accrued Liabilities | Accrued Liabilities The following table summarizes accrued liabilities as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Accrued compensation $ 13,317 $ 8,983 Acquisition-related liabilities 800 1,942 Accrued third-party cloud infrastructure expenses 2,357 1,572 Accrued reseller commissions 5,623 3,999 Accrued advertising and marketing expenses 7,982 2,412 Advanced payments from customers 2,716 2,815 Accrued taxes 16,311 8,645 Other accrued expenses 5,040 5,240 Total accrued liabilities $ 54,146 $ 35,608 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020: September 30, 2021 Gross Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life (amounts in thousands) (in years) Developed technology $ 10,496 $ (8,157) $ 2,339 0.9 Customer relationships 1,600 (954) 646 1.7 Total $ 12,096 $ (9,111) $ 2,985 December 31, 2020 Gross Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life (amounts in thousands) (in years) Developed technology $ 10,496 $ (5,218) $ 5,278 1.5 Customer relationships 1,600 (655) 945 2.4 Total $ 12,096 $ (5,873) $ 6,223 |
Summary of Estimated Future Amortization Expense | Expected future amortization expense related to acquired intangible assets is as follows (in thousands): As of September 30, Amortization Expense 2021 (remaining three months) $ 1,091 2022 1,591 2023 303 Total future amortization $ 2,985 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary Of Common Shares Reserved For Future Issuance | Shares of common stock reserved for future issuance were as follows (shares in thousands): September 30, 2021 December 31, 2020 Redeemable convertible preferred stock — 153,938 2011 Stock Plan: Options and RSUs outstanding 60,319 36,024 Shares reserved for future award issuances — 9,981 2021 Equity Incentive Plan: Shares reserved for future award issuances 35,059 — 2021 Employee Stock Purchase Plan 6,500 — Total shares of common stock reserved for issuance 101,878 199,943 |
Schedule of Stock Option Activity | Stock option activity during the nine months ended September 30, 2021 is as follows: Share Information: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in thousands, except per share data) Balance as of December 31, 2020 2,096 $ 0.23 4.1 $ 33,947 Stock options granted — $ — Stock options exercised (210) $ 0.22 Stock options cancelled / forfeited / expired (203) $ 0.06 Balance as of September 30, 2021 (2) 1,683 $ 0.25 3.8 $ 71,401 (1) Aggregate intrinsic value for stock options 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, exercisable, or vested. (2) The ending balance as of September 30, 2021 represents options that were fully vested and exercisable. |
Schedule of Restricted Stock Unit Activity | RSU activity during the nine months ended September 30, 2021 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, 2020 33,928 $ 5.41 Granted 26,376 $ 24.43 Vested — $ — Forfeited (1,668) $ 10.35 Unvested, as of September 30, 2021 58,636 $ 13.81 |
Stock-based Compensation Expense | Total stock-based compensation expense recorded for the three and nine months ended September 30, 2021 and 2020 was as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Employee awards: Cost of revenue $ 3,983 $ — $ 3,983 $ — Research and development 36,823 — 36,823 8 Sales and marketing 40,465 — 40,465 7 General and administrative 42,988 — 42,988 29 Total employee awards 124,259 — 124,259 44 Secondary transaction — — — 43,236 Stock-based compensation, net of amounts capitalized 124,259 — 124,259 43,280 Capitalized stock-based compensation 458 — 458 — Total stock-based compensation expense $ 124,717 $ — $ 124,717 $ 43,280 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net (loss) income $ (107,415) $ 1,387 $ (117,259) $ (55,759) Accretion of redeemable convertible preferred stock (2,264,838) (269,358) (2,646,662) (371,522) Net loss attributable to Class A and Class B common stockholders - basic and diluted $ (2,372,253) $ (267,971) $ (2,763,921) $ (427,281) Denominator: Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted 95,930 76,880 83,860 76,846 Net loss per share attributable to Class A and Class B common stockholders - basic and diluted $ (24.72) $ (3.49) $ (32.96) $ (5.56) |
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 common stockholders for the periods presented (in thousands): September 30, 2021 2020 Redeemable convertible preferred stock — 153,938 Stock options 1,682 2,504 RSUs 58,636 31,578 Total 60,318 188,020 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Long-Lived Assets by Geographical Region | The following table summarizes revenue by geographic location, based upon the billing address of the customer (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 North America $ 41,961 $ 29,534 $ 113,668 $ 79,458 Europe, Middle East and Africa 39,566 26,318 110,695 69,639 Asia Pacific 12,955 8,954 35,382 23,663 Other 2,132 1,381 5,797 3,898 Total revenue $ 96,614 $ 66,187 $ 265,542 $ 176,658 The following table summarizes long-lived assets by geographic information (in thousands): September 30, 2021 December 31, 2020 North America $ 14,826 $ 16,796 Europe, Middle East and Africa 552 606 Asia Pacific 8,811 9,605 Total long-lived assets $ 24,189 $ 27,007 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($)shares | Jun. 30, 2021shares | Dec. 31, 2020shares | Jun. 30, 2020shares | Dec. 31, 2019shares | |
Sale of Stock [Line Items] | ||||||||
Proceeds from initial public offering, net of underwriting discounts | $ | $ 1,069,348 | $ 0 | ||||||
Deferred offering costs reclassified to stockholders' equity (deficit) | $ | $ 7,000 | |||||||
Redeemable convertible preferred stock, outstanding (in shares) | 0 | 0 | 0 | 153,938,000 | 153,938,000 | 153,937,730 | 153,938,000 | 153,938,000 |
Number of shares issued in conversion (in shares) | 1 | 1 | 1 | |||||
Stock split ratio, common stock | 10 | |||||||
IPO | ||||||||
Sale of Stock [Line Items] | ||||||||
Public offering price (in USD per share) | $ / shares | $ 36 | $ 36 | $ 36 | |||||
IPO | Class A Common Stock | ||||||||
Sale of Stock [Line Items] | ||||||||
Number of shares issued and sold (in shares) | 31,350,000 | |||||||
Over-Allotment Option | ||||||||
Sale of Stock [Line Items] | ||||||||
Number of shares issued and sold (in shares) | 2,850,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | Sep. 21, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 0 | $ 124,259,000 | $ 43,280,000 | |||
Allowance for doubtful accounts | $ 6,800,000 | 6,800,000 | $ 6,400,000 | |||
Plan benefit obligation | 6,200,000 | 6,200,000 | $ 5,600,000 | |||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 0 | $ 124,259,000 | $ 124,300,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customer - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 96,614 | $ 66,187 | $ 265,542 | $ 176,658 |
Subscription services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 94,312 | 64,258 | 257,827 | 171,869 |
Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,302 | $ 1,929 | $ 7,715 | $ 4,789 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue recognized during the period | $ 61.6 | $ 38.9 | $ 95.6 | $ 63.5 |
Remaining performance obligation | 199 | 199 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 159.3 | $ 159.3 | ||
Remaining performance obligation, expected timing of satisfaction, period | 12 months | 12 months |
Revenue from Contracts with C_5
Revenue from Contracts with Customer - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Change in Deferred Contract Acquisition Costs [Roll Forward] | ||||
Balance at beginning of the period | $ 23,604 | $ 14,851 | $ 18,273 | $ 11,610 |
Add: Contract costs capitalized during the period | 6,032 | 3,307 | 17,032 | 9,936 |
Less: Amortization of contract costs during the period | (3,416) | (1,986) | (9,085) | (5,374) |
Balance at end of the period | $ 26,220 | $ 16,172 | $ 26,220 | $ 16,172 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Carrying Amounts and Fair Values of Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 142,990 | $ 138,747 |
Unrealized Gains | 20 | 416 |
Unrealized Losses | (40) | (5) |
Fair Value | 142,970 | 139,158 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 97,587 | 50,087 |
Unrealized Gains | 14 | 136 |
Unrealized Losses | (6) | 0 |
Fair Value | 97,595 | 50,223 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 45,403 | 85,413 |
Unrealized Gains | 6 | 265 |
Unrealized Losses | (34) | (5) |
Fair Value | $ 45,375 | 85,673 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,247 | |
Unrealized Gains | 15 | |
Unrealized Losses | 0 | |
Fair Value | $ 3,262 |
Marketable Securities - Amortiz
Marketable Securities - Amortized Cost and Fair Value Based on Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due within one year | $ 68,687 | |
Due after one year but within five years | 74,303 | |
Amortized Cost | 142,990 | $ 138,747 |
Fair Value | ||
Due within one year | 68,693 | |
Due after one year but within five years | 74,277 | |
Total | $ 142,970 | $ 139,158 |
Marketable Securities - Sched_2
Marketable Securities - Schedule Of Equity Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Sale of non-marketable equity investment | $ 24,000 | $ 23,979 | $ 0 | |
Gain on sale of investment | 23,800 | 23,835 | $ 132 | |
Equity Investments | 1,147,660 | 1,147,660 | $ 60,566 | |
Cash and cash equivalents | Money market funds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Marketable equity investments | 1,140,671 | 1,140,671 | 56,474 | |
Cash and cash equivalents | Corporate debt securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Marketable equity investments | 3,000 | 3,000 | 0 | |
Marketable securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Marketable equity investments | 3,622 | 3,622 | 3,575 | |
Other assets | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Non-marketable equity investments | $ 367 | $ 367 | $ 517 |
Marketable Securities - Summary
Marketable Securities - Summary of Realized and Unrealized Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains recognized on marketable equity investments | $ 35 | $ 107 | $ 100 | $ 44 |
Unrealized gains at the end of the period | $ 35 | $ 107 | $ 100 | $ 44 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 142,970 | $ 139,158 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 45,375 | 85,673 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 97,595 | 50,223 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,262 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 1,290,263 | 199,207 |
Acquisition-related contingent consideration | 800 | 775 |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,140,671 | 56,474 |
Fair Value, Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,000 | |
Marketable securities | 45,375 | 85,673 |
Fair Value, Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 97,595 | 50,223 |
Fair Value, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,262 | |
Fair Value, Recurring | Term bond mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,622 | 3,575 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 1,238,266 | 106,697 |
Acquisition-related contingent consideration | 0 | 0 |
Fair Value, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,140,671 | 56,474 |
Fair Value, Recurring | Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 97,595 | 50,223 |
Fair Value, Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Level 1 | Term bond mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 51,997 | 92,510 |
Acquisition-related contingent consideration | 0 | 0 |
Fair Value, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,000 | |
Marketable securities | 45,375 | 85,673 |
Fair Value, Recurring | Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,262 | |
Fair Value, Recurring | Level 2 | Term bond mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,622 | 3,575 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Acquisition-related contingent consideration | 800 | 775 |
Fair Value, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Level 3 | Term bond mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | $ 0 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Contingent Consideration Liability Measured at Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | ||
Beginning balance | $ 775 | $ 1,950 |
Additions during the period | 0 | 0 |
Payments during the period | 0 | (1,200) |
Change in estimated fair value | 25 | 25 |
Ending balance | $ 800 | $ 775 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 43,088 | $ 38,551 |
Less: accumulated depreciation and amortization | (21,883) | (17,767) |
Property and equipment, net | 21,205 | 20,784 |
Computers | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,152 | 9,249 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,549 | 10,041 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,213 | 2,770 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,391 | 9,472 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,499 | 2,423 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,274 | 4,274 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 10 | $ 322 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Capitalized costs | $ 1.3 | $ 1.4 | $ 3.5 | $ 3.8 | |
Net carrying value | 8.3 | 8.3 | $ 6.7 | ||
Capitalized internal-use software | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Depreciation expense and amortization | $ 2.3 | $ 1.7 | $ 6.6 | $ 5.1 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation | $ 13,317 | $ 8,983 |
Acquisition-related liabilities | 800 | 1,942 |
Accrued third-party cloud infrastructure expenses | 2,357 | 1,572 |
Accrued reseller commissions | 5,623 | 3,999 |
Accrued advertising and marketing expenses | 7,982 | 2,412 |
Advanced payments from customers | 2,716 | 2,815 |
Accrued taxes | 16,311 | 8,645 |
Other accrued expenses | 5,040 | 5,240 |
Accrued liabilities | $ 54,146 | $ 35,608 |
Business Combinations and Ass_2
Business Combinations and Asset Purchase (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Mar. 31, 2020 | Jan. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 6,181 | $ 6,181 | ||
AnsweriQ Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition date cash consideration paid | $ 5,700 | |||
Goodwill | 1,700 | |||
AnsweriQ Inc. | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | $ 4,000 | |||
Estimated useful life of finite-lived intangible assets acquired | 2 years | |||
Flint | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Asset acquisition, total consideration | $ 2,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 6,181 | $ 6,181 | $ 6,181 | ||
Amortization of acquired intangible assets | 1,100 | $ 1,100 | 3,300 | $ 3,100 | |
Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of acquired intangible assets | 1,000 | 1,000 | 3,000 | 2,800 | |
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of acquired intangible assets | $ 100 | $ 100 | $ 300 | $ 300 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 12,096 | $ 12,096 |
Accumulated Amortization | (9,111) | (5,873) |
Total future amortization | 2,985 | 6,223 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 10,496 | 10,496 |
Accumulated Amortization | (8,157) | (5,218) |
Total future amortization | $ 2,339 | $ 5,278 |
Weighted Average Remaining Useful Life | 10 months 24 days | 1 year 6 months |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 1,600 | $ 1,600 |
Accumulated Amortization | (954) | (655) |
Total future amortization | $ 646 | $ 945 |
Weighted Average Remaining Useful Life | 1 year 8 months 12 days | 2 years 4 months 24 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Summary of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (remaining three months) | $ 1,091 | |
2022 | 1,591 | |
2023 | 303 | |
Total future amortization | $ 2,985 | $ 6,223 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) ft² in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)ft² | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Other Commitments [Line Items] | ||||||
Area of leased space | ft² | 22,000 | |||||
Monthly base rent | $ 113,246 | |||||
Rate of increase for monthly base rent | 3.00% | |||||
Option to extend | 5 years | |||||
Total commitment | $ 10,500,000 | |||||
Tenant improvement allowance | $ 1,500,000 | |||||
Deferred rent | $ 4,800,000 | $ 4,800,000 | $ 5,100,000 | |||
Rent expense | 2,400,000 | $ 2,500,000 | 7,300,000 | $ 7,600,000 | ||
Contractual commitments | 48,500,000 | 48,500,000 | ||||
Other liabilities | ||||||
Other Commitments [Line Items] | ||||||
Deferred rent | $ 3,900,000 | $ 3,900,000 | $ 4,600,000 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jan. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Temporary Equity [Line Items] | ||||||||||
Conversion of stock, shares converted (in shares) | 153,937,730 | |||||||||
Number of shares issued in conversion (in shares) | 100.00% | 100.00% | 100.00% | |||||||
Carrying value | $ 5,600,000,000 | $ 5,541,758,000 | $ 5,541,758,000 | |||||||
Redeemable convertible preferred stock, issued (in shares) | 0 | 0 | 0 | 153,937,730 | ||||||
Redeemable convertible preferred stock, outstanding (in shares) | 0 | 0 | 153,938,000 | 0 | 153,938,000 | 153,938,000 | 153,937,730 | 153,938,000 | 153,938,000 | |
Redeemable convertible preferred stock, authorized (in shares) | 0 | 0 | 0 | 154,055,430 | ||||||
Aggregation liquidation preference | $ 0 | $ 0 | $ 0 | $ 326,559,000 | ||||||
Stock-based compensation expense | $ 0 | 124,259,000 | $ 43,280,000 | |||||||
Accretion of redeemable convertible preferred stock | $ 2,264,838,000 | $ 269,358,000 | $ 2,646,662,000 | 371,522,000 | ||||||
Secondary transaction | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Amount paid by investor to acquire shares | $ 25,500,000 | |||||||||
Fair value of shares | 14,700,000 | |||||||||
Stock-based compensation expense | $ 43,200,000 | |||||||||
Secondary transaction | General and administrative | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Stock-based compensation expense | $ 10,800,000 | |||||||||
Redeemable Convertible Series A Preferred Stock | Secondary transaction | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Number of shares issued and sold (in shares) | 26,210,000 | |||||||||
Redeemable Convertible Series B Preferred Stock | Secondary transaction | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Number of shares issued and sold (in shares) | 1,314,830,000 | |||||||||
Redeemable Convertible Series C Preferred Stock | Secondary transaction | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Number of shares issued and sold (in shares) | 448,110,000 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock Based Compensation - Narrative (Details) | Sep. 21, 2021USD ($) | Sep. 30, 2021USD ($)tranchetargetvote$ / sharesshares | Aug. 31, 2021shares | Feb. 28, 2021shares | Jan. 31, 2020USD ($) | Sep. 30, 2021USD ($)vote$ / sharesshares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)vote$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2020$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Preferred stock, authorized (in shares) | shares | 10,000,000 | 10,000,000 | 10,000,000 | 0 | ||||||
Preferred stock, par value (in USD per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||
Total shares of common stock reserved for issuance (in shares) | shares | 101,878,000 | 101,878,000 | 101,878,000 | 199,943,000 | ||||||
Contractual term | 10 years | |||||||||
Stock-based compensation expense | $ 0 | $ 124,259,000 | $ 43,280,000 | |||||||
Unrecognized stock-based compensation expense | $ 612,100,000 | $ 612,100,000 | $ 612,100,000 | |||||||
Period for recognition | 3 years 9 months 18 days | |||||||||
Secondary Transaction - Repurchase of Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | 6,100,000 | $ 6,100,000 | 32,400,000 | |||||||
Secondary Transaction - Repurchase of Common Stock | Research and development | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | 2,600,000 | $ 3,500,000 | 15,900,000 | |||||||
Secondary Transaction - Repurchase of Common Stock | General and administrative | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | 16,500,000 | |||||||||
Share-base compensation expense, excess value | 10,800,000 | |||||||||
Secondary transaction | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | $ 43,200,000 | |||||||||
Secondary transaction | General and administrative | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | $ 10,800,000 | |||||||||
Stock options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 4 years | |||||||||
RSUs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 4 years | |||||||||
Contractual terms for restricted stock units | 10 years | |||||||||
Number of shares approved for grant (in shares) | shares | 26,376,000 | |||||||||
Stock-based compensation expense | $ 0 | 124,259,000 | $ 124,300,000 | |||||||
Performance Based Restricted Stock Units (PRSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | 1,900,000 | 1,900,000 | ||||||||
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 | $ 131,000,000 | |||||||||
Stock-based compensation expense | $ 1,400,000 | $ 1,400,000 | ||||||||
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 | |||||||||
2021 Plan | Employee Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total shares of common stock reserved for issuance (in shares) | shares | 35,059,470 | 35,000,000 | 35,059,470 | 35,059,470 | ||||||
Percent of annual increase in capital shares reserved for future issuance | 5.00% | |||||||||
Maximum amount of reduction to reserve (in shares) | shares | 51,178,920 | |||||||||
Shares cancelled and added to reserve (in shares) | shares | 59,470 | 59,470 | 59,470 | |||||||
2021 Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total shares of common stock reserved for issuance (in shares) | shares | 6,500,000 | 6,500,000 | 6,500,000 | 0 | ||||||
Class A Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, authorized (in shares) | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 0 | ||||||
Common stock, number of votes per share | vote | 1 | 1 | 1 | |||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||
Class A Common Stock | 2021 Employee Stock Purchase Plan | Employee Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total shares of common stock reserved for issuance (in shares) | shares | 6,500,000 | |||||||||
Purchase price of common stock in percent | 85.00% | |||||||||
Class B Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, authorized (in shares) | shares | 350,000,000 | 350,000,000 | 350,000,000 | 0 | ||||||
Common stock, number of votes per share | vote | 10 | 10 | 10 | |||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock Based Compensation - Shares of Common Stock Reserved for Future Issuance (Details) - shares shares in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance (in shares) | 101,878 | 199,943 |
Redeemable convertible preferred stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance (in shares) | 0 | 153,938 |
2011 Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance (in shares) | 0 | 9,981 |
2011 Stock Plan | Options and RSUs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance (in shares) | 60,319 | 36,024 |
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) | 35,059 | 0 |
2021 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance (in shares) | 6,500 | 0 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock Based Compensation - Summary of Stock Options (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Shares | ||
Beginning balance (in shares) | shares | 2,096,000 | |
Stock options granted (in shares) | shares | 0 | |
Stock options exercised (in shares) | shares | (210,000) | |
Stock options cancelled / forfeited / expired (in shares) | shares | (203,000) | |
Ending balance (in shares) | shares | 1,683,000 | 2,096,000 |
Weighted-Average Exercise Price | ||
Beginning balance (in USD per share) | $ / shares | $ 0.23 | |
Stock options granted (in USD per share) | $ / shares | 0 | |
Stock options exercised (in USD per share) | $ / shares | 220 | |
Stock options cancelled / forfeited / expired (in USD per share) | $ / shares | 60 | |
Ending balance (in USD per share) | $ / shares | $ 250 | $ 0.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-Average Remaining Contractual Term (in years) | 3 years 9 months 18 days | 4 years 1 month 6 days |
Aggregate intrinsic value | $ | $ 71,401 | $ 33,947 |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock Based Compensation - Restricted Stock Units (Details) - RSUs | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Shares | |
Unvested, beginning balance (in shares) | shares | 33,928,000 |
Granted (in shares) | shares | 26,376,000 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (1,668,000) |
Unvested, ending balance (in shares) | shares | 58,636,000 |
Weighted-Average Grant Date Fair Value Per Share | |
Unvested, beginning balance (in USD per share) | $ / shares | $ 5,410 |
Granted (in USD per share) | $ / shares | 24,430 |
Vested (in USD per share) | $ / shares | 0 |
Forfeited (in USD per share) | $ / shares | 10,350 |
Unvested, ending balance (in USD per share) | $ / shares | $ 13,810 |
Stockholders' Equity and Stoc_7
Stockholders' Equity and Stock Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total employee awards | $ 0 | $ 124,259 | $ 43,280 | |
Capitalized stock-based compensation | $ 458 | 0 | 458 | 0 |
Total stock-based compensation expense | 124,717 | 0 | 124,717 | 43,280 |
Employee awards: | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total employee awards | 124,259 | 0 | 124,259 | 44 |
Secondary transaction | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total employee awards | 0 | 0 | 0 | 43,236 |
Cost of revenue | Employee awards: | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total employee awards | 3,983 | 0 | 3,983 | 0 |
Research and development | Employee awards: | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total employee awards | 36,823 | 0 | 36,823 | 8 |
Sales and marketing | Employee awards: | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total employee awards | 40,465 | 0 | 40,465 | 7 |
General and administrative | Employee awards: | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total employee awards | $ 42,988 | $ 0 | $ 42,988 | $ 29 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net (loss) income | $ (107,415) | $ 1,387 | $ (117,259) | $ (55,759) |
Accretion of redeemable convertible preferred stock | (2,264,838) | (269,358) | (2,646,662) | (371,522) |
Net loss attributable to common stockholders - basic | (2,372,253) | (267,971) | (2,763,921) | (427,281) |
Net loss attributable to common stockholders - diluted | $ (2,372,253) | $ (267,971) | $ (2,763,921) | $ (427,281) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares) | 95,930 | 76,880 | 83,860 | 76,846 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares) | 95,930 | 76,880 | 83,860 | 76,846 |
Net loss per share attributable to Class A and Class B common stockholders - basic and diluted | ||||
Basic (in dollars per share) | $ (24.72) | $ (3.49) | $ (32.96) | $ (5.56) |
Diluted (in dollars per share) | $ (24.72) | $ (3.49) | $ (32.96) | $ (5.56) |
Common Stock | ||||
Numerator: | ||||
Net loss attributable to common stockholders - basic | $ (2,372,253) | $ (267,971) | $ (2,763,921) | $ (427,281) |
Net loss attributable to common stockholders - diluted | $ (2,372,253) | $ (267,971) | $ (2,763,921) | $ (427,281) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares) | 95,930 | 76,880 | 83,860 | 76,846 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares) | 95,930 | 76,880 | 83,860 | 76,846 |
Net loss per share attributable to Class A and Class B common stockholders - basic and diluted | ||||
Basic (in dollars per share) | $ (24.72) | $ (3.49) | $ (32.96) | $ (5.56) |
Diluted (in dollars per share) | $ (24.72) | $ (3.49) | $ (32.96) | $ (5.56) |
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 | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 60,318 | 188,020 |
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 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,682 | 2,504 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 58,636 | 31,578 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Examination [Line Items] | ||||
(Benefit from) provision for income taxes | $ (9,915) | $ (95) | $ (7,720) | $ 3,896 |
Increase in tax benefit | 9,800 | $ 11,600 | ||
Foreign Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
(Benefit from) provision for income taxes | 1,900 | |||
Benefit in tax expense from foreign stock-based compensation expense | $ 11,700 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 96,614 | $ 66,187 | $ 265,542 | $ 176,658 | |
Total long-lived assets | 24,189 | 24,189 | $ 27,007 | ||
North America | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 41,961 | 29,534 | 113,668 | 79,458 | |
Total long-lived assets | 14,826 | 14,826 | 16,796 | ||
Europe, Middle East and Africa | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 39,566 | 26,318 | 110,695 | 69,639 | |
Total long-lived assets | 552 | 552 | 606 | ||
Asia Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 12,955 | 8,954 | 35,382 | 23,663 | |
Total long-lived assets | 8,811 | 8,811 | $ 9,605 | ||
Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 2,132 | $ 1,381 | $ 5,797 | $ 3,898 |