COVER
COVER - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 333-256188 | |
Entity Registrant Name | 1STDIBS.COM, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3389618 | |
Entity Address, Address Line One | 51 Astor Place, 3rd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 212 | |
Local Phone Number | 627-3927 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | DIBS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,930,769 | |
Entity Central Index Key | 0001600641 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 157,995 | $ 168,226 |
Accounts receivable, net of allowance for doubtful accounts of $72 and $29 at September 30, 2022 and December 31, 2021, respectively | 681 | 701 |
Prepaid expenses | 5,088 | 3,951 |
Receivables from payment processors | 2,772 | 2,142 |
Other current assets | 2,595 | 867 |
Total current assets | 169,131 | 175,887 |
Total property and equipment, net | 4,023 | 4,459 |
Operating lease right-of-use assets | 22,636 | 0 |
Goodwill | 4,013 | 7,202 |
Intangible assets, net | 10 | 1,164 |
Other assets | 3,564 | 3,542 |
Total assets | 203,377 | 192,254 |
Current liabilities: | ||
Accounts payable | 2,545 | 4,729 |
Payables due to sellers | 9,248 | 10,225 |
Accrued expenses | 12,503 | 13,745 |
Operating lease liabilities, current | 2,707 | 0 |
Other current liabilities | 3,170 | 3,512 |
Total current liabilities | 30,173 | 32,211 |
Operating lease liabilities, non-current | 22,436 | 0 |
Other liabilities | 69 | 2,605 |
Total liabilities | 52,678 | 34,816 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized as of September 30, 2022 and December 31, 2021; zero shares issued and outstanding as of September 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.01 par value; 400,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 38,896,451 and 38,000,086 shares issued as of September 30, 2022 and December 31, 2021, respectively; and 38,896,451 and 37,991,529 shares outstanding as of September 30, 2022 and December 31, 2021, respectively | 384 | 380 |
Additional paid-in capital | 434,975 | 425,769 |
Accumulated deficit | (284,159) | (268,482) |
Accumulated other comprehensive loss | (501) | (229) |
Total stockholders’ equity | 150,699 | 157,438 |
Total liabilities and stockholders’ equity | $ 203,377 | $ 192,254 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 72 | $ 29 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, issued (in shares) | 38,896,451 | 38,000,086 |
Common stock, outstanding (in shares) | 38,896,451 | 37,991,529 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net revenue | $ 22,729 | $ 25,576 | $ 73,892 | $ 75,801 |
Cost of revenue | 7,278 | 7,515 | 22,908 | 21,861 |
Gross profit | 15,451 | 18,061 | 50,984 | 53,940 |
Operating expenses: | ||||
Sales and marketing | 11,072 | 12,863 | 34,139 | 35,652 |
Technology development | 6,363 | 4,775 | 18,711 | 13,261 |
General and administrative | 6,731 | 6,079 | 20,635 | 15,229 |
Provision for transaction losses | 1,183 | 1,270 | 4,432 | 3,786 |
Gain on sale of Design Manager | 0 | 0 | (9,684) | 0 |
Total operating expenses | 25,349 | 24,987 | 68,233 | 67,928 |
Loss from operations | (9,898) | (6,926) | (17,249) | (13,988) |
Other income (expense), net: | ||||
Interest income | 520 | 57 | 746 | 92 |
Interest expense | (3) | (3) | (11) | (12) |
Other, net | 353 | 285 | 837 | 1,032 |
Total other income (expense), net | 870 | 339 | 1,572 | 1,112 |
Net loss before income taxes | (9,028) | (6,587) | (15,677) | (12,876) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | (9,028) | (6,587) | (15,677) | (12,876) |
Accretion of redeemable convertible preferred stock to redemption value | 0 | 0 | 0 | (7,061) |
Net loss attributable to common stockholders, basic | (9,028) | (6,587) | (15,677) | (19,937) |
Net loss attributable to common stockholders, diluted | $ (9,028) | $ (6,587) | $ (15,677) | $ (19,937) |
Net loss per share attributable to common stockholders—basic (in usd per share) | $ (0.23) | $ (0.17) | $ (0.41) | $ (0.90) |
Net loss per share attributable to common stockholders—diluted (in usd per share) | $ (0.23) | $ (0.17) | $ (0.41) | $ (0.90) |
Weighted average common shares outstanding—basic (in shares) | 38,668,231 | 37,832,796 | 38,291,977 | 22,066,629 |
Weighted average common shares outstanding—diluted (in shares) | 38,668,231 | 37,832,796 | 38,291,977 | 22,066,629 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (9,028) | $ (6,587) | $ (15,677) | $ (12,876) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment, net of tax of $0 for each of the three and nine months ended September 30, 2022 and 2021 | (103) | (46) | (272) | (30) |
Comprehensive loss | $ (9,131) | $ (6,633) | $ (15,949) | $ (12,906) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid - In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2020 | 19,243,795 | ||||
Balance at Dec. 31, 2020 | $ 298,525 | ||||
Redeemable Convertible Preferred Stock | |||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) | (19,243,795) | ||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering | $ (305,586) | ||||
Accretion of redeemable convertible preferred stock to redemption value | $ 7,061 | ||||
Balance (in shares) at Sep. 30, 2021 | 0 | ||||
Balance at Sep. 30, 2021 | $ 0 | ||||
Balance (in shares) at Dec. 31, 2020 | 11,376,048 | ||||
Balance at Dec. 31, 2020 | (243,946) | $ 114 | $ 0 | $ (243,858) | $ (202) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) | 19,243,795 | ||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering | 305,586 | $ 192 | 305,394 | ||
Issuance of common stock in connection with initial public offering (in shares) | 6,612,500 | ||||
Issuance of common stock in connection with initial public offering, net of issuance costs | 117,488 | $ 66 | 117,422 | ||
Accretion of redeemable convertible preferred stock to redemption value | (7,061) | (3,400) | (3,661) | ||
Issuance of common stock for acquisition of Design Manager (in shares) | 45,152 | ||||
Issuance of common stock for acquisition of Design Manager | 767 | $ 1 | 766 | ||
Issuance of common stock for exercise of stock options (in shares) | 551,983 | ||||
Issuance of common stock for exercise of stock options | 2,229 | $ 6 | 2,223 | ||
Issuance of common stock for cashless exercise of warrants (in shares) | 35,665 | ||||
Stock-based compensation | 1,855 | 1,855 | |||
Foreign currency translation adjustment | (30) | (30) | |||
Net loss | (12,876) | (12,876) | |||
Balance at Sep. 30, 2021 | $ 164,012 | $ 379 | 424,260 | (260,395) | (232) |
Balance (in shares) at Sep. 30, 2021 | 37,865,143 | ||||
Balance (in shares) at Sep. 30, 2021 | 0 | ||||
Balance at Sep. 30, 2021 | $ 0 | ||||
Balance (in shares) at Jun. 30, 2021 | 37,803,179 | ||||
Balance at Jun. 30, 2021 | 169,586 | $ 378 | 423,202 | (253,808) | (186) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock for exercise of stock options (in shares) | 61,964 | ||||
Issuance of common stock for exercise of stock options | 270 | $ 1 | 269 | ||
Stock-based compensation | 789 | 789 | |||
Foreign currency translation adjustment | (46) | (46) | |||
Net loss | (6,587) | (6,587) | |||
Balance at Sep. 30, 2021 | 164,012 | $ 379 | 424,260 | (260,395) | (232) |
Balance (in shares) at Sep. 30, 2021 | 37,865,143 | ||||
Redeemable Convertible Preferred Stock | |||||
Accretion of redeemable convertible preferred stock to redemption value | $ 0 | ||||
Balance (in shares) at Dec. 31, 2021 | 37,991,529 | 37,991,529 | |||
Balance at Dec. 31, 2021 | $ 157,438 | $ 380 | 425,769 | (268,482) | (229) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock for exercise of stock options (in shares) | 396,089 | 396,089 | |||
Issuance of common stock for exercise of stock options | $ 1,548 | $ 4 | 1,544 | ||
Vested restricted stock units converted to common stock (in shares) | 508,833 | ||||
Stock-based compensation | 7,662 | 7,662 | |||
Foreign currency translation adjustment | (272) | (272) | |||
Net loss | (15,677) | (15,677) | |||
Balance at Sep. 30, 2022 | $ 150,699 | $ 384 | 434,975 | (284,159) | (501) |
Balance (in shares) at Sep. 30, 2022 | 38,896,451 | 38,896,451 | |||
Balance (in shares) at Jun. 30, 2022 | 38,573,212 | ||||
Balance at Jun. 30, 2022 | $ 156,367 | $ 383 | 431,513 | (275,131) | (398) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock for exercise of stock options (in shares) | 78,011 | ||||
Issuance of common stock for exercise of stock options | 309 | $ 1 | 308 | ||
Vested restricted stock units converted to common stock (in shares) | 245,228 | ||||
Stock-based compensation | 3,154 | 3,154 | |||
Foreign currency translation adjustment | (103) | (103) | |||
Net loss | (9,028) | (9,028) | |||
Balance at Sep. 30, 2022 | $ 150,699 | $ 384 | $ 434,975 | $ (284,159) | $ (501) |
Balance (in shares) at Sep. 30, 2022 | 38,896,451 | 38,896,451 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Offering costs | $ 14,762 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (15,677) | $ (12,876) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,189 | 2,399 |
Stock-based compensation expense | 7,662 | 1,831 |
Change in fair value of deferred acquisition consideration | 0 | 427 |
Provision for transaction losses and eCommerce returns | 277 | 320 |
Amortization of costs to obtain revenue contracts | 233 | 350 |
Amortization of operating lease right-of-use assets | 1,891 | 0 |
Deferred rent | 0 | (146) |
Gain on sale of Design Manager | (9,684) | 0 |
Other, net | 517 | 75 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (151) | (59) |
Prepaid expenses and other current assets | (1,448) | (2,822) |
Receivables from payment processors | (619) | (957) |
Other assets | (602) | (113) |
Accounts payable and accrued expenses | (3,692) | 1,633 |
Payables due to sellers | (977) | 4,615 |
Operating lease liabilities | (2,036) | 0 |
Other current liabilities and other liabilities | (293) | (195) |
Net cash used in operating activities | (22,410) | (5,518) |
Cash flows from investing activities: | ||
Development of internal-use software | (1,688) | (1,605) |
Purchases of property and equipment | (84) | (93) |
Proceeds from sale of Design Manager | 14,611 | 0 |
Other, net | (18) | (13) |
Net cash provided by (used in) investing activities | 12,821 | (1,711) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock in initial public offering, net of underwriting discounts and commissions | 0 | 122,993 |
Proceeds from exercise of stock options | 1,548 | 2,229 |
Payment of deferred acquisition consideration | 0 | (640) |
Payment of deferred offering costs | 0 | (5,032) |
Net cash provided by financing activities | 1,548 | 119,550 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (689) | (89) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (8,730) | 112,232 |
Cash, cash equivalents, and restricted cash at beginning of the period | 171,559 | 58,195 |
Cash, cash equivalents, and restricted cash at end of the period | 162,829 | 170,427 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 10 | 12 |
Supplemental disclosure of non-cash activities: | ||
Accretion of redeemable convertible preferred stock to redemption value | 0 | 7,061 |
Conversion of redeemable convertible preferred stock in connection with initial public offering | 0 | 305,586 |
Change in deferred offering costs included in accounts payable and accrued expenses | 0 | (872) |
Issuance of common stock for Design Manager acquisition | $ 0 | $ 767 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Description of Business 1stdibs.com, Inc. (“1stDibs” or the “Company”) is one of the world’s leading online marketplaces for connecting design lovers with many of the best sellers and makers of vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion. The Company’s thoroughly vetted seller base, in-depth editorial content, and custom-built technology platform create trust in the Company’s brand and facilitate high-consideration purchases of luxury design products online. By disrupting the way these items are bought and sold, 1stDibs is both expanding access to, and growing the market for, luxury design products. The Company was incorporated in the state of Delaware on March 10, 2000 and is headquartered in New York, NY with additional office space in Wyboston, United Kingdom. Basis of Presentation The accompanying condensed consolidated financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries, 1stdibs.com, Ltd. and 1stdibs Design Manager, Inc. (“Design Manager”). The Company sold its equity interest in Design Manager on June 29, 2022, therefore, the condensed consolidated statements of operations include activity relating to Design Manager through the sale date. The condensed consolidated balance sheet as of September 30, 2022 no longer includes the assets, liabilities, and equity amounts associated with Design Manager. See section “Sale of Design Manager” for further details. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on March 3, 2022. The condensed consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in redeemable convertible preferred stock and stockholders’ equity (deficit), and cash flows for the interim periods. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2022. There have been no material changes to the Company's significant accounting policies as described in the Form 10-K except for the recently adopted accounting pronouncements discussed below. Restructuring Charges In September 2022, the Company announced and implemented a restructuring plan to reduce operational costs and realign investment priorities involving the reduction of approximately 10% of the Company’s workforce. As a result of the reduction, the Company incurred approximately $0.6 million in non-recurring restructuring charges in the three months ended September 30, 2022, consisting primarily of employee severance and benefits costs. As of September 30, 2022, no amounts have been paid and the $0.6 million is included in accrued expenses on the Company’s condensed consolidated balance sheet. As of September 30, 2022, the restructuring plan was completed and no additional amounts are expected to be recognized. The expense is included within the respective financial statement line items on the condensed consolidated statement of operations as shown in the table below for three and nine months ended September 30, 2022. (in thousands) Three and Nine Months Ended September 30, 2022 Cost of revenue $ 58 Sales and marketing 303 Technology development 201 General and administrative 18 Total $ 580 Sale of Design Manager On May 2, 2019, the Company acquired 100% of the outstanding equity of Franklin Potter Associates, Inc. and its subsidiary, doing business as Design Manager, for a total purchase consideration of $4.2 million. As a result, Design Manager became a wholly-owned subsidiary of the Company. On June 29, 2022, the Company sold 100% of its equity interest in Design Manager for a purchase price of $14.8 million. The Company received net cash proceeds of $14.6 million, of which $1.5 million will be held in a joint escrow account for 12 months from the date of the sale and is recorded as restricted cash in other current assets. Additionally, a net gain on the sale of $9.7 million was recognized during the nine months ended September 30, 2022, and is included in loss from operations on the condensed consolidated statement of operations. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, provision for transaction losses, determination of useful lives of property and equipment, impairment assessment of goodwill, capitalization of internal-use software and determination of useful lives, stock option valuations, the incremental borrowing rate associated with lease liabilities, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. Cash, Cash Equivalents, and Restricted Cash The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented: (in thousands) September 30, 2022 September 30, 2021 Cash and cash equivalents $ 157,995 $ 167,094 Restricted cash 4,834 3,333 Total cash, cash equivalents, and restricted cash $ 162,829 $ 170,427 The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company’s restricted cash relates to a $3.3 million Letter of Credit for its office lease in New York, New York which is included in other assets, as well as $1.5 million which is held in a joint escrow account for 12 months from the date of the sale of Design Manager and is recorded in other current assets. The carrying value of the restricted cash approximates fair value. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in ASU 2016-02 supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the condensed consolidated statements of operations. An entity may adopt the guidance either (1) retrospectively to each prior reporting period presented in the financial statements with a cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented or (2) retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The guidance is effective for fiscal years and interim periods beginning after December 15, 2018 for public business entities, and for fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, for all other entities. The Company adopted this standard on January 1, 2022, which resulted in the Company recording $24.5 million of operating lease right-of-use assets, and $2.7 million and $24.4 million of operating lease liabilities, classified as current and non-current, respectively, on its balance sheet. The adoption did not have a material effect on the statement of operations. The Company utilized the modified retrospective adoption approach, whereby all prior periods continue to be reported under previous lease accounting guidance. The Company elected the package of practical expedients to not reassess prior conclusions related to lease identification, classification and initial direct costs, and did not elect the hindsight practical expedient which would have permitted the use of hindsight in determining the lease term and assessing impairment. See Note 7, "Leases" for further discussion on the Company's accounting for leases under ASC 842. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions with ASC 740, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. This guidance is effective for fiscal years and interim periods beginning after December 15, 2020 for public business entities and for fiscal years beginning after December 15, 2021 for all other entities. The Company adopted this standard on January 1, 2022, which did not have a material impact on the Company's condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 , Financial Instruments-Credit Losses (Topic 326). |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. 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 unobservable inputs (Level 3 measurements). Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies, and similar techniques. The carrying values of cash and cash equivalents, accounts receivable, net, prepaid expenses, receivables from payment processors, accounts payable, payables due to sellers, accrued expenses, and other current liabilities approximate their fair values due to the short-term nature of these assets and liabilities. There were no transfers between Level 1, Level 2, or Level 3 during the three and nine months ended September 30, 2022, and 2021. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following table summarizes the Company’s net revenue by type of service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Seller marketplace services $ 22,504 $ 24,605 $ 71,597 $ 73,146 Other services 225 971 2,295 2,655 Total net revenue $ 22,729 $ 25,576 $ 73,892 $ 75,801 The Company generates revenue from seller marketplace services and other services. Seller marketplace services primarily consist of marketplace transaction, subscription, and listing fees. Other services primarily consist of advertising revenues generated from displaying ads on the Company’s online marketplace and software services revenue related to Design Manager, typically used by interior designers. Design Manger was sold on June 29, 2022; therefore, no related net revenue for software services was recognized in the three months ended September 30, 2022. Contract Balances from Contracts with Customers The following table provides a rollforward of the deferred revenue amounts as follows (in thousands): Balance as of December 31, 2021 $ 944 Billings 1,474 Net revenue recognized (1,625) Reduction resulting from the sale of Design Manager (602) Balance as of September 30, 2022 $ 191 The amount of net revenue recognized during the nine months ended September 30, 2022 that was included in the deferred revenue balance at January 1, 2022 was $0.5 million. |
Other Current Assets
Other Current Assets | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets As of September 30, 2022 and December 31, 2021, other current assets consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Restricted cash $ 1,500 $ — Costs to obtain revenue contracts 253 246 Other current assets 842 621 Total other current assets $ 2,595 $ 867 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net As of September 30, 2022 and December 31, 2021, property and equipment, net consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Internal-use software $ 18,423 $ 16,346 Leasehold improvements 3,594 3,591 Furniture and fixtures 1,114 1,107 Computer equipment and software 850 882 Construction in progress 487 1,047 Total property and equipment, gross 24,468 22,973 Less: Accumulated depreciation and amortization (20,445) (18,514) Total property and equipment, net $ 4,023 $ 4,459 Depreciation expense related to the Company’s property and equipment totaled $0.7 million and $2.1 million for the three and nine months ended September 30, 2022, respectively, and $0.7 million and $2.2 million for the three and nine months ended September 30, 2021, respectively. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses As of September 30, 2022 and December 31, 2021, accrued expenses consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Shipping $ 4,060 $ 6,669 Salaries & benefits 2,879 2,174 Sales & use tax payable 1,295 1,721 Allowance for transaction losses 1,239 1,127 Payment processor fees 986 1,052 Allowance for eCommerce returns 427 415 Restructuring charges 580 — Other 1,037 587 Total accrued expenses $ 12,503 $ 13,745 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company enters into contracts in the normal course of business and assesses whether any such contracts contain a lease. The Company determines if an arrangement is a lease at inception if it conveys the right to control the identified asset for a period of time in exchange for consideration. The Company classifies leases as operating or financing in nature, and records the associated right-of-use asset and lease liability on its consolidated balance sheet. The lease liability represents the present value of future lease payments, net of lease incentives, discounted using an incremental borrowing rate, which is a management estimate based on the information available at the commencement date of a lease arrangement. The Company accounts for lease and non-lease components related to operating leases as a single lease component. The Company has elected that costs associated with leases having an initial term of 12 months or less ("short-term leases") are recognized in the consolidated statement of operations on a straight-line basis over the lease term and are not recorded on the balance sheet. Effective January 1, 2022, the Company adopted ASU 2016-02, utilizing the modified retrospective adoption approach. Prior to adoption, during the fiscal years ended December 31, 2021 and prior, the Company accounted for leases under ASC 840, whereby rent expense associated with operating leases was recognized on a straight-line basis over the lease term. Under ASC 842, lease expense is recognized as a single lease cost on a straight-line basis over the lease term. The lease term consists of non-cancelable periods and may include options, including those to extend or terminate, if it is reasonably certain they will be exercised. As of September 30, 2022, the Company had $22.6 million of operating lease right-of-use assets, $2.7 million and $22.4 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet. These operating lease arrangements included in the measurement of lease liabilities had a weighted-average remaining lease term of 7.2 years, a weighted-average discount rate of 5.9%, and do not reflect options to extend or terminate, as management does not consider the exercise of these options to be reasonably certain. During the three and nine months ended September 30, 2022, the Company paid $1.1 million and $3.2 million, respectively, for amounts included in the measurement of lease liabilities. The Company did not enter into any new lease arrangements during the nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, the Company recognized $1.3 million and $3.9 million of lease expense, respectively. During the three and nine months ended September 30, 2021, rent expense was $0.9 million and $2.8 million, respectively. (in thousands) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease expense $ 1,000 $ 2,987 Short-term lease expense 22 100 Variable lease expense 287 776 Total lease expense $ 1,309 $ 3,863 As of September 30, 2022, the total remaining operating lease payments included in the measurement of lease liabilities was as follows (in thousands): Fiscal Year Ending December 31, Operating Lease Payments 2022 (remaining) $ 1,052 2023 4,079 2024 4,114 2025 4,292 2026 4,292 Thereafter 12,875 Total operating lease payments 30,704 Less: imputed interest (5,561) Total lease liabilities $ 25,143 |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities As of September 30, 2022 and December 31, 2021, other current liabilities consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Deferred rent $ — $ 194 Sales and use tax contingencies 1,908 1,922 Buyer deposits 1,138 595 Deferred revenue 124 801 Total other current liabilities $ 3,170 $ 3,512 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | Equity As of September 30, 2022 and December 31, 2021, the Company had reserved shares of common stock for issuance in connection with the following: September 30, December 31, Options to purchase common stock 4,202,430 3,949,943 Restricted stock units 2,954,549 309,530 Shares available for future grant under the 2021 Plan 3,608,206 5,103,772 Shares available for future grant under the ESPP 1,179,902 800,000 Total 11,945,087 10,163,245 Preferred Stock Effective June 14, 2021, in connection with the closing of the Company’s IPO, the Company’s board of directors (“Board”) is authorized to issue up to 10,000,000 shares of preferred stock, $0.01 par value per share, in one or more series. The Company's Board has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. As of September 30, 2022 and December 31, 2021, no shares of preferred stock were issued or outstanding. Common Stock |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based compensation 2011 Option Plan The Company adopted the 2011 Stock Option and Grant Plan (the “2011 Plan”) on September 2, 2011 and amended and restated the plan on December 14, 2011. The 2011 Plan provided for the Company to grant incentive stock options or nonqualified stock options, restricted stock awards, and other stock-based awards to its employees, directors, officers, outside advisors, and non-employee consultants. At the time of grant, the options issued to new employees pursuant to the 2011 Plan expire ten years from the date of grant and generally vest over four years, with 25% vesting on the first anniversary and the balance vesting ratably over the remaining 36 months. Additional options issued to current employees, current outside advisors, and non-employee consultants pursuant to the 2011 Plan expire ten years from the date of grant and generally vest ratably over 48 months. Following the completion of the Company’s IPO in June 2021, no additional awards and no shares of the Company’s common stock remain available for future issuance under the 2011 Plan. However, the 2011 Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. 2021 Stock Incentive Plan In May 2021, the Company's Board adopted, and its stockholders approved, the 2021 Stock Incentive Plan (the “2021 Plan”), which became effective upon the SEC declaring the Company’s IPO registration statement effective. The 2021 Plan provides for the grant of incentive stock options (“ISOs”), nonstatutory stock options, restricted share awards, stock unit awards, stock appreciation rights, cash-based awards, and performance-based stock awards, or collectively, stock awards. ISOs may be granted only to the Company’s employees, including officers, and the employees of its parent or subsidiaries. All other stock awards may be granted to the Company’s employees, officers, non-employee directors, and consultants and the employees and consultants of its parent, subsidiaries, and affiliates. The aggregate number of shares of the Company’s common stock that may be issued pursuant to stock awards under the 2021 Plan will not exceed the sum of (x) 4,333,333 shares (as adjusted for stock splits, stock dividends, combinations, and the like), plus (y) the sum of (1) the number of reserved shares not issued or subject to outstanding awards under the 2011 Plan on the effective date of the 2021 Plan and (2) the number of shares subject to outstanding stock awards granted under the 2011 Plan and that, following the effective date of the 2021 Plan, (A) are subsequently forfeited or terminated for any reason before being exercised or settled, (B) are not issued because such stock award is settled in cash, (C) are subject to vesting restrictions and are subsequently forfeited, (D) are withheld or reacquired to satisfy the applicable exercise, strike, or purchase price, or (E) are withheld or reacquired to satisfy a tax withholding obligation, plus (z) an annual increase on the first day of each fiscal year, for a period of not more than 10 years, beginning on January 1, 2022 and ending on, and including, January 1, 2031, in an amount equal to the lesser of (i) 5% of the outstanding shares on the last day of the immediately preceding fiscal year or (ii) such lesser amount that the Compensation Committee of the Board determines for purposes of the annual increase for that fiscal year. As of September 30, 2022, 3,608,206 shares were available for future grants of the Company’s common stock. Stock Option Valuation The following table presents, on a weighted-average basis, the assumptions used in the Black Scholes option-pricing model to determine the grant date fair value to the Company’s employees: Nine Months Ended September 30, 2022 2021 Expected term in years 6.0 6.0 Expected stock price volatility 64.6% 67.6% Risk-free interest rate 2.3% 1.1% Expected dividend yield — — No stock options were granted during the three months ended September 30, 2022 and 2021. Stock Options The following table summarizes the Company’s stock option activity since December 31, 2021: Number of Weighted- Weighted- Aggregate Outstanding as of December 31, 2021 3,949,943 $ 6.46 6.9 $ 24,543 Granted 1,040,000 $ 7.39 Exercised 396,089 $ 3.89 Cancelled 391,424 $ 7.46 Outstanding as of September 30, 2022 4,202,430 $ 6.84 6.8 $ 4,109 Options exercisable as of September 30, 2022 2,334,093 $ 5.53 5.2 $ 3,778 Options vested and expected to vest as of September 30, 2022 4,202,430 $ 6.84 6.8 $ 4,109 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for all stock options that had exercise prices lower than the fair value of the Company’s common stock. The aggregate intrinsic value of stock options exercised was $0.2 million and $1.1 million during the three and nine months ended September 30, 2022, respectively, and $0.7 million and $3.6 million during the three and nine months ended September 30, 2021, respectively. The weighted-average grant-date fair value per share of stock options granted was $4.43 and $6.17 during the nine months ended September 30, 2022 and 2021, respectively. No stock options were granted during the three months ended September 30, 2022 and 2021. The total fair value of stock options vested was $0.8 million and $3.4 million during the three and nine months ended September 30, 2022, respectively, and $0.4 million and $1.1 million during the three and nine months ended September 30, 2021 respectively. The stock options granted during the fiscal year ended December 31, 2021 included 615,997 stock options granted to executive officers that include a performance condition related to a sale event or initial public offering occurring before December 31, 2021 in addition to the standard service condition. These options will vest over four years, with approximately 21% vested on January 1, 2022, and the balance vesting ratably over the remaining 38 months. Stock-based compensation expense of $0.2 million and $0.6 million was recognized for options having a performance condition during the three and nine months ended September 30, 2022, respectively, and $0.2 million and $0.5 million during the three and nine months ended September 30, 2021, respectively. Restricted Stock Units The following table summarizes the activity related to the Company's restricted stock units: Outstanding Restricted Stock Units Weighted- Outstanding as of December 31, 2021 309,530 $ 15.30 Granted 3,584,010 7.61 Vested 508,833 8.76 Cancelled 430,158 8.33 Outstanding as of September 30, 2022 2,954,549 $ 8.12 The estimated weighted-average grant date fair value of restricted stock units granted was $7.23 and $7.61 per share for the three and nine months ended September 30, 2022, respectively. The total grant date fair value of restricted stock units vested was $2.1 million and $4.3 million for the three and nine months ended September 30, 2022. Employee Stock Purchase Plan In May 2021, the Company's Board adopted, and its stockholders approved, the Company's 2021 Employee Stock Purchase Plan (the "ESPP"). A total of 1,179,902 shares of the Company's authorized but unissued or reacquired shares of its common stock (as adjusted for stock splits, stock dividends, combinations, and the like) are available for issuance under the ESPP. The number of shares of the Company's common stock that will be available for issuance under the ESPP also includes an annual increase on the first day of each fiscal year, for a period of not more than 10 years, beginning on January 1, 2022, equal to the least of: (i) 1% of the outstanding shares of the Company’s common stock on such date, (ii) 400,000 shares (as adjusted for stock splits, stock dividends, combinations, and the like) or (iii) a lesser amount determined by the Compensation Committee or the Company’s Board. During regularly scheduled “offerings” under the ESPP, participants may purchase the Company’s common stock through payroll deductions, up to a maximum of 15% of their eligible compensation, or such lower limit as may be determined by the Compensation Committee from time to time. Participants will be able to withdraw their accumulated payroll deductions prior to the end of the offering period in accordance with the terms of the offering. Participation in the ESPP will end automatically on termination of employment. The purchase price will be specified pursuant to the offering, but cannot, under the terms of the ESPP, be less than 85% of the fair market value per share of the Company’s common stock on either the offering date or on the purchase date, whichever is less. The fair market value of the Company’s common stock for this purpose will generally be the closing price on Nasdaq (or such other exchange as the Company’s common stock may be traded at the relevant time) for the date in question, or if such date is not a trading day, for the last trading day before the date in question. As of September 30, 2022, an initial offering period has not commenced, and for the three and nine months ended September 30, 2022, no shares of common stock were purchased under the ESPP. Stock-Based Compensation The following table summarizes the classification of the Company’s stock-based compensation in the condensed consolidated statements of operations: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 149 $ 11 $ 402 $ 36 Sales and marketing 704 142 1,765 378 Technology development 1,134 176 2,865 444 General and administrative 1,167 460 2,630 973 Total stock-based compensation $ 3,154 $ 789 $ 7,662 $ 1,831 As of September 30, 2022, total unrecognized compensation expense related to unvested stock-based awards was $31.7 million, which is expected to be recognized over a weighted-average period of 3.1 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe income tax provision was immaterial for the three and nine months ended September 30, 2022 and 2021 due to the net loss before income taxes incurred for the fiscal year ended December 31, 2021 and expected to be incurred for the fiscal year ending December 31, 2022, as well as the Company’s continued maintenance of a full valuation allowance against its net deferred tax assets. There were no material liabilities for interest and penalties accrued as of September 30, 2022. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share amounts) 2022 2021 2022 2021 Numerator: Net loss $ (9,028) $ (6,587) $ (15,677) $ (12,876) Accretion of redeemable convertible preferred stock to redemption value — — — (7,061) Net loss attributable to common stockholders $ (9,028) $ (6,587) $ (15,677) $ (19,937) Denominator: Weighted average common shares outstanding—basic and diluted 38,668,231 37,832,796 38,291,977 22,066,629 Net loss per share attributable to common stockholders—basic and diluted $ (0.23) $ (0.17) $ (0.41) $ (0.90) The Company’s potentially dilutive securities, which include outstanding stock options to purchase shares of common stock and restricted stock units to purchase shares of common stock have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: September 30, 2022 2021 Options to purchase common stock 4,202,430 4,051,401 Restricted stock units 2,954,549 — Total 7,156,979 4,051,401 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is subject to various claims and contingencies which are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, litigation, business transactions, employee-related matters, and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. The liability recorded includes probable and estimable legal costs incurred to date and future legal costs to the point in the legal matter where the Company believes a conclusion to the matter will be reached. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the claim if the likelihood of a potential loss is reasonably possible. The Company does not believe that it is party to any pending legal proceedings that are likely to have a material effect on its business, financial condition, or results of operations for the three and nine months ended September 30, 2022 and 2021. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its Board and officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries, 1stdibs.com, Ltd. and 1stdibs Design Manager, Inc. (“Design Manager”). The Company sold its equity interest in Design Manager on June 29, 2022, therefore, the condensed consolidated statements of operations include activity relating to Design Manager through the sale date. The condensed consolidated balance sheet as of September 30, 2022 no longer includes the assets, liabilities, and equity amounts associated with Design Manager. See section “Sale of Design Manager” for further details. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on March 3, 2022. The condensed consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in redeemable convertible preferred stock and stockholders’ equity (deficit), and cash flows for the interim periods. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2022. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, provision for transaction losses, determination of useful lives of property and equipment, impairment assessment of goodwill, capitalization of internal-use software and determination of useful lives, stock option valuations, the incremental borrowing rate associated with lease liabilities, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. |
Cash, Cash Equivalents, and Restricted Cash | The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company’s restricted cash relates to a $3.3 million Letter of Credit for its office lease in New York, New York which is included in other assets, as well as $1.5 million which is held in a joint escrow account for 12 months from the date of the sale of Design Manager and is recorded in other current assets. The carrying value of the restricted cash approximates fair value. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in ASU 2016-02 supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the condensed consolidated statements of operations. An entity may adopt the guidance either (1) retrospectively to each prior reporting period presented in the financial statements with a cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented or (2) retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The guidance is effective for fiscal years and interim periods beginning after December 15, 2018 for public business entities, and for fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, for all other entities. The Company adopted this standard on January 1, 2022, which resulted in the Company recording $24.5 million of operating lease right-of-use assets, and $2.7 million and $24.4 million of operating lease liabilities, classified as current and non-current, respectively, on its balance sheet. The adoption did not have a material effect on the statement of operations. The Company utilized the modified retrospective adoption approach, whereby all prior periods continue to be reported under previous lease accounting guidance. The Company elected the package of practical expedients to not reassess prior conclusions related to lease identification, classification and initial direct costs, and did not elect the hindsight practical expedient which would have permitted the use of hindsight in determining the lease term and assessing impairment. See Note 7, "Leases" for further discussion on the Company's accounting for leases under ASC 842. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions with ASC 740, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. This guidance is effective for fiscal years and interim periods beginning after December 15, 2020 for public business entities and for fiscal years beginning after December 15, 2021 for all other entities. The Company adopted this standard on January 1, 2022, which did not have a material impact on the Company's condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 , Financial Instruments-Credit Losses (Topic 326). |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restructuring charges | The expense is included within the respective financial statement line items on the condensed consolidated statement of operations as shown in the table below for three and nine months ended September 30, 2022. (in thousands) Three and Nine Months Ended September 30, 2022 Cost of revenue $ 58 Sales and marketing 303 Technology development 201 General and administrative 18 Total $ 580 |
Cash and cash equivalents | The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented: (in thousands) September 30, 2022 September 30, 2021 Cash and cash equivalents $ 157,995 $ 167,094 Restricted cash 4,834 3,333 Total cash, cash equivalents, and restricted cash $ 162,829 $ 170,427 |
Restricted cash | The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented: (in thousands) September 30, 2022 September 30, 2021 Cash and cash equivalents $ 157,995 $ 167,094 Restricted cash 4,834 3,333 Total cash, cash equivalents, and restricted cash $ 162,829 $ 170,427 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Net revenue by type of service | The following table summarizes the Company’s net revenue by type of service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Seller marketplace services $ 22,504 $ 24,605 $ 71,597 $ 73,146 Other services 225 971 2,295 2,655 Total net revenue $ 22,729 $ 25,576 $ 73,892 $ 75,801 |
Rollforward of deferred revenue | The following table provides a rollforward of the deferred revenue amounts as follows (in thousands): Balance as of December 31, 2021 $ 944 Billings 1,474 Net revenue recognized (1,625) Reduction resulting from the sale of Design Manager (602) Balance as of September 30, 2022 $ 191 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other current assets | As of September 30, 2022 and December 31, 2021, other current assets consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Restricted cash $ 1,500 $ — Costs to obtain revenue contracts 253 246 Other current assets 842 621 Total other current assets $ 2,595 $ 867 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | As of September 30, 2022 and December 31, 2021, property and equipment, net consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Internal-use software $ 18,423 $ 16,346 Leasehold improvements 3,594 3,591 Furniture and fixtures 1,114 1,107 Computer equipment and software 850 882 Construction in progress 487 1,047 Total property and equipment, gross 24,468 22,973 Less: Accumulated depreciation and amortization (20,445) (18,514) Total property and equipment, net $ 4,023 $ 4,459 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued expenses | As of September 30, 2022 and December 31, 2021, accrued expenses consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Shipping $ 4,060 $ 6,669 Salaries & benefits 2,879 2,174 Sales & use tax payable 1,295 1,721 Allowance for transaction losses 1,239 1,127 Payment processor fees 986 1,052 Allowance for eCommerce returns 427 415 Restructuring charges 580 — Other 1,037 587 Total accrued expenses $ 12,503 $ 13,745 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease expense | During the three and nine months ended September 30, 2022, the Company recognized $1.3 million and $3.9 million of lease expense, respectively. During the three and nine months ended September 30, 2021, rent expense was $0.9 million and $2.8 million, respectively. (in thousands) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease expense $ 1,000 $ 2,987 Short-term lease expense 22 100 Variable lease expense 287 776 Total lease expense $ 1,309 $ 3,863 |
Remaining operating lease payments | As of September 30, 2022, the total remaining operating lease payments included in the measurement of lease liabilities was as follows (in thousands): Fiscal Year Ending December 31, Operating Lease Payments 2022 (remaining) $ 1,052 2023 4,079 2024 4,114 2025 4,292 2026 4,292 Thereafter 12,875 Total operating lease payments 30,704 Less: imputed interest (5,561) Total lease liabilities $ 25,143 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other current liabilities | As of September 30, 2022 and December 31, 2021, other current liabilities consisted of the following: (in thousands) September 30, 2022 December 31, 2021 Deferred rent $ — $ 194 Sales and use tax contingencies 1,908 1,922 Buyer deposits 1,138 595 Deferred revenue 124 801 Total other current liabilities $ 3,170 $ 3,512 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Reserved shares of common stock | As of September 30, 2022 and December 31, 2021, the Company had reserved shares of common stock for issuance in connection with the following: September 30, December 31, Options to purchase common stock 4,202,430 3,949,943 Restricted stock units 2,954,549 309,530 Shares available for future grant under the 2021 Plan 3,608,206 5,103,772 Shares available for future grant under the ESPP 1,179,902 800,000 Total 11,945,087 10,163,245 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock option valuation assumptions used | The following table presents, on a weighted-average basis, the assumptions used in the Black Scholes option-pricing model to determine the grant date fair value to the Company’s employees: Nine Months Ended September 30, 2022 2021 Expected term in years 6.0 6.0 Expected stock price volatility 64.6% 67.6% Risk-free interest rate 2.3% 1.1% Expected dividend yield — — |
Stock option activity | The following table summarizes the Company’s stock option activity since December 31, 2021: Number of Weighted- Weighted- Aggregate Outstanding as of December 31, 2021 3,949,943 $ 6.46 6.9 $ 24,543 Granted 1,040,000 $ 7.39 Exercised 396,089 $ 3.89 Cancelled 391,424 $ 7.46 Outstanding as of September 30, 2022 4,202,430 $ 6.84 6.8 $ 4,109 Options exercisable as of September 30, 2022 2,334,093 $ 5.53 5.2 $ 3,778 Options vested and expected to vest as of September 30, 2022 4,202,430 $ 6.84 6.8 $ 4,109 |
Restricted stock units activity | The following table summarizes the activity related to the Company's restricted stock units: Outstanding Restricted Stock Units Weighted- Outstanding as of December 31, 2021 309,530 $ 15.30 Granted 3,584,010 7.61 Vested 508,833 8.76 Cancelled 430,158 8.33 Outstanding as of September 30, 2022 2,954,549 $ 8.12 |
Classification of stock-based compensation | The following table summarizes the classification of the Company’s stock-based compensation in the condensed consolidated statements of operations: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 149 $ 11 $ 402 $ 36 Sales and marketing 704 142 1,765 378 Technology development 1,134 176 2,865 444 General and administrative 1,167 460 2,630 973 Total stock-based compensation $ 3,154 $ 789 $ 7,662 $ 1,831 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net loss per share | The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share amounts) 2022 2021 2022 2021 Numerator: Net loss $ (9,028) $ (6,587) $ (15,677) $ (12,876) Accretion of redeemable convertible preferred stock to redemption value — — — (7,061) Net loss attributable to common stockholders $ (9,028) $ (6,587) $ (15,677) $ (19,937) Denominator: Weighted average common shares outstanding—basic and diluted 38,668,231 37,832,796 38,291,977 22,066,629 Net loss per share attributable to common stockholders—basic and diluted $ (0.23) $ (0.17) $ (0.41) $ (0.90) |
Antidilutive securities excluded from computation of diluted net loss per share | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: September 30, 2022 2021 Options to purchase common stock 4,202,430 4,051,401 Restricted stock units 2,954,549 — Total 7,156,979 4,051,401 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Restructuring Charges (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Workforce reduction, percentage | 10% | |||
Restructuring charges | $ 580 | $ 580 | ||
Accrued restructuring charges | $ 580 | 580 | 580 | $ 0 |
Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 58 | 58 | ||
Sales and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 303 | 303 | ||
Research And Development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 201 | 201 | ||
General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 18 | $ 18 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Sale of Design Manager (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2022 | May 02, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||||||
Gain on sale | $ 0 | $ 0 | $ 9,684 | $ 0 | ||
Design Manager | ||||||
Business Acquisition [Line Items] | ||||||
Percentage sold | 100% | |||||
Sale price | $ 14,800 | |||||
Cash proceeds from sale | 14,600 | |||||
Cash proceeds from sale, held in escrow for 12 months | $ 1,500 | |||||
Gain on sale | $ 9,700 | |||||
Design Manager | ||||||
Business Acquisition [Line Items] | ||||||
Percentage acquired | 100% | |||||
Purchase consideration | $ 4,200 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 29, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | $ 157,995 | $ 168,226 | $ 167,094 | ||
Restricted cash | 4,834 | 3,333 | |||
Total cash, cash equivalents, and restricted cash | 162,829 | $ 171,559 | 170,427 | $ 58,195 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash | 4,834 | $ 3,333 | |||
Design Manager | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Cash proceeds from sale, held in escrow for 12 months | $ 1,500 | ||||
Letter of Credit | |||||
Accounting Policies [Abstract] | |||||
Restricted cash | 3,300 | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash | $ 3,300 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | |||
Operating lease right-of-use assets | $ 22,636 | $ 24,500 | $ 0 |
Operating lease liabilities, current | 2,707 | 2,700 | 0 |
Operating lease liabilities, non-current | $ 22,436 | $ 24,400 | $ 0 |
Revenue Recognition - Net Reven
Revenue Recognition - Net Revenue by Type of Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 22,729 | $ 25,576 | $ 73,892 | $ 75,801 |
Seller marketplace services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 22,504 | 24,605 | 71,597 | 73,146 |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 225 | $ 971 | $ 2,295 | $ 2,655 |
Revenue Recognition - Rollforwa
Revenue Recognition - Rollforward of Deferred Revenue (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Change In Contract With Customer, Liability [Roll Forward] | |
Balance | $ 944 |
Billings | 1,474 |
Net revenue recognized | (1,625) |
Reduction resulting from the sale of Design Manager | (602) |
Balance | $ 191 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Net revenue recognized | $ 0.5 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Restricted cash | $ 1,500 | $ 0 |
Costs to obtain revenue contracts | 253 | 246 |
Other current assets | 842 | 621 |
Total other current assets | $ 2,595 | $ 867 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 24,468 | $ 22,973 |
Less: Accumulated depreciation and amortization | (20,445) | (18,514) |
Total property and equipment, net | 4,023 | 4,459 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 18,423 | 16,346 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 3,594 | 3,591 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,114 | 1,107 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 850 | 882 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 487 | $ 1,047 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 0.7 | $ 0.7 | $ 2.1 | $ 2.2 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Shipping | $ 4,060 | $ 6,669 |
Salaries & benefits | 2,879 | 2,174 |
Sales & use tax payable | 1,295 | 1,721 |
Allowance for transaction losses | 1,239 | 1,127 |
Payment processor fees | 986 | 1,052 |
Allowance for eCommerce returns | 427 | 415 |
Restructuring charges | 580 | 0 |
Other | 1,037 | 587 |
Total accrued expenses | $ 12,503 | $ 13,745 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jan. 01, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||||||
Operating lease right-of-use assets | $ 22,636 | $ 22,636 | $ 24,500 | $ 0 | ||
Operating lease liabilities, current | 2,707 | 2,707 | 2,700 | 0 | ||
Operating lease liabilities, non-current | $ 22,436 | $ 22,436 | $ 24,400 | $ 0 | ||
Operating lease liabilities, weighted-average remaining lease term | 7 years 2 months 12 days | 7 years 2 months 12 days | ||||
Operating lease liabilities, weighted-average discount rate | 5.90% | 5.90% | ||||
Lease payments | $ 1,100 | $ 3,200 | ||||
Lease expense | $ 1,309 | $ 3,863 | ||||
Rent expense | $ 900 | $ 2,800 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 1,000 | $ 2,987 |
Short-term lease expense | 22 | 100 |
Variable lease expense | 287 | 776 |
Total lease expense | $ 1,309 | $ 3,863 |
Leases - Remaining Operating Le
Leases - Remaining Operating Lease Payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 (remaining) | $ 1,052 |
2023 | 4,079 |
2024 | 4,114 |
2025 | 4,292 |
2026 | 4,292 |
Thereafter | 12,875 |
Total operating lease payments | 30,704 |
Less: imputed interest | (5,561) |
Total lease liabilities | $ 25,143 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Deferred rent | $ 0 | $ 194 |
Sales and use tax contingencies | 1,908 | 1,922 |
Buyer deposits | 1,138 | 595 |
Deferred revenue | 124 | 801 |
Total other current liabilities | $ 3,170 | $ 3,512 |
Equity - Reserved Shares of Com
Equity - Reserved Shares of Common Stock for Issuance (Details) - shares | Sep. 30, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 11,945,087 | 10,163,245 |
Stock options | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 4,202,430 | 3,949,943 |
Restricted stock units | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 2,954,549 | 309,530 |
Employee stock purchase plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 1,179,902 | 800,000 |
2021 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 3,608,206 | 5,103,772 |
Equity - Narrative (Details)
Equity - Narrative (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 14, 2021 |
Equity [Abstract] | |||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 0 | 0 | |
Preferred stock, outstanding (in shares) | 0 | 0 | |
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate intrinsic value of stock options exercised | $ 200 | $ 700 | $ 1,100 | $ 3,600 | ||
Weighted-average grant-date fair value of stock options granted (in usd per share) | $ 4.43 | $ 6.17 | ||||
Stock options granted (in shares) | 1,040,000 | |||||
Fair value of stock options vested | 800 | 400 | $ 3,400 | $ 1,100 | ||
Total stock-based compensation | $ 3,154 | 789 | $ 7,662 | 1,831 | ||
Weighted-average grant date fair value of restricted stock units granted (in usd per share) | $ 7.23 | $ 7.61 | ||||
Grant date fair value of restricted stock units vested | $ 2,100 | $ 4,300 | ||||
Unrecognized compensation expense | 31,700 | $ 31,700 | ||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense, weighted-average period for recognition | 3 years 1 month 6 days | |||||
Stock options with performance condition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Stock options granted (in shares) | 615,997 | |||||
Total stock-based compensation | $ 200 | $ 200 | $ 600 | $ 500 | ||
Stock options with performance condition | Vesting tranche one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 21% | |||||
Stock options with performance condition | Vesting tranche two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 38 months | |||||
Employee stock purchase plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum shares that may be issued (in shares) | 1,179,902 | 1,179,902 | ||||
Maximum number of shares that may be issued, annual increase percentage | 1% | |||||
Annual increase in number of shares that may be issued, term | 10 years | |||||
Maximum number of shares that may be issued, annual increase (in shares) | 400,000 | |||||
Maximum percentage of eligible compensation | 15% | 15% | ||||
Purchase price percentage | 85% | |||||
2011 Plan | Stock options - new employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 10 years | |||||
Vesting period | 4 years | |||||
2011 Plan | Stock options - new employees | Vesting tranche one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 25% | |||||
2011 Plan | Stock options - new employees | Vesting tranche two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 36 months | |||||
2011 Plan | Stock options - current employees, outside advisors, and non-employee consultants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 10 years | |||||
Vesting period | 48 months | |||||
2021 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum shares that may be issued (in shares) | 4,333,333 | 4,333,333 | ||||
Maximum shares that may be issued, annual increase, period | 10 years | |||||
Maximum number of shares that may be issued, annual increase percentage | 5% | |||||
Shares available for future grants (in shares) | 3,608,206 | 3,608,206 |
Stock-based Compensation - Valu
Stock-based Compensation - Valuation Assumptions (Details) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Expected term | 6 years | 6 years |
Expected stock price volatility | 64.60% | 67.60% |
Risk-free interest rate | 2.30% | 1.10% |
Expected dividend yield | 0% | 0% |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Number of Options | ||
Outstanding (in shares) | shares | 3,949,943 | |
Granted (in shares) | shares | 1,040,000 | |
Exercised (in shares) | shares | 396,089 | |
Cancelled (in shares) | shares | 391,424 | |
Outstanding (in shares) | shares | 4,202,430 | 3,949,943 |
Options exercisable (in shares) | shares | 2,334,093 | |
Options vested and expected to vest (in shares) | shares | 4,202,430 | |
Weighted-Average Exercise Price | ||
Outstanding (in usd per share) | $ / shares | $ 6.46 | |
Granted (in usd per share) | $ / shares | 7.39 | |
Exercised (in usd per share) | $ / shares | 3.89 | |
Cancelled (in usd per share) | $ / shares | 7.46 | |
Outstanding (in usd per share) | $ / shares | 6.84 | $ 6.46 |
Options exercisable (in usd per share) | $ / shares | 5.53 | |
Options vested and expected to vest (in usd per share) | $ / shares | $ 6.84 | |
Weighted Average Remaining Contractual Term | ||
Outstanding | 6 years 9 months 18 days | 6 years 10 months 24 days |
Exercisable | 5 years 2 months 12 days | |
Vested and expected to vest | 6 years 9 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ | $ 4,109 | $ 24,543 |
Exercisable | $ | 3,778 | |
Vested and expected to vest | $ | $ 4,109 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Outstanding Restricted Stock Units | ||
Outstanding (in shares) | 309,530 | |
Granted (in shares) | 3,584,010 | |
Vested (in shares) | 508,833 | |
Cancelled (in shares) | 430,158 | |
Outstanding (in shares) | 2,954,549 | 2,954,549 |
Weighted-Average Grant Date Fair Value | ||
Outstanding (in usd per share) | $ 15.30 | |
Granted (in usd per share) | $ 7.23 | 7.61 |
Vested (in usd per share) | 8.76 | |
Cancelled (in usd per share) | 8.33 | |
Outstanding (in usd per share) | $ 8.12 | $ 8.12 |
Stock-based Compensation - Clas
Stock-based Compensation - Classification of Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 3,154 | $ 789 | $ 7,662 | $ 1,831 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 149 | 11 | 402 | 36 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 704 | 142 | 1,765 | 378 |
Technology development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 1,134 | 176 | 2,865 | 444 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 1,167 | $ 460 | $ 2,630 | $ 973 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net loss | $ (9,028) | $ (6,587) | $ (15,677) | $ (12,876) |
Accretion of redeemable convertible preferred stock to redemption value | 0 | 0 | 0 | (7,061) |
Net loss attributable to common stockholders, basic | (9,028) | (6,587) | (15,677) | (19,937) |
Net loss attributable to common stockholders, diluted | $ (9,028) | $ (6,587) | $ (15,677) | $ (19,937) |
Denominator: | ||||
Weighted average common shares outstanding—basic (in shares) | 38,668,231 | 37,832,796 | 38,291,977 | 22,066,629 |
Weighted average common shares outstanding—diluted (in shares) | 38,668,231 | 37,832,796 | 38,291,977 | 22,066,629 |
Net loss per share attributable to common stockholders—basic (in usd per share) | $ (0.23) | $ (0.17) | $ (0.41) | $ (0.90) |
Net loss per share attributable to common stockholders—diluted (in usd per share) | $ (0.23) | $ (0.17) | $ (0.41) | $ (0.90) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 7,156,979 | 4,051,401 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 4,202,430 | 4,051,401 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 2,954,549 | 0 |