COVER
COVER - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $0.01 par value per share | |
Trading Symbol | DIBS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,981,248 | |
Entity Central Index Key | 0001600641 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 32,442 | $ 153,209 |
Short-term investments | 110,552 | 0 |
Restricted cash, current | 0 | 1,500 |
Accounts receivable, net of allowance for doubtful accounts of $195 and $113 at September 30, 2023 and December 31, 2022, respectively | 693 | 972 |
Prepaid expenses | 2,612 | 3,506 |
Receivables from payment processors | 3,475 | 2,476 |
Other current assets | 942 | 800 |
Total current assets | 150,716 | 162,463 |
Restricted cash, non-current | 3,336 | 3,334 |
Property and equipment, net | 3,283 | 3,685 |
Operating lease right-of-use assets | 20,073 | 21,990 |
Goodwill | 4,082 | 4,075 |
Other assets | 1,286 | 249 |
Total assets | 182,776 | 195,796 |
Current liabilities: | ||
Accounts payable | 2,325 | 2,905 |
Payables due to sellers | 7,789 | 7,185 |
Accrued expenses | 11,323 | 10,761 |
Operating lease liabilities, current | 2,891 | 2,770 |
Other current liabilities | 2,633 | 2,429 |
Total current liabilities | 26,961 | 26,050 |
Operating lease liabilities, non-current | 19,494 | 21,678 |
Other liabilities | 8 | 46 |
Total liabilities | 46,463 | 47,774 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized as of September 30, 2023 and December 31, 2022; zero shares issued and outstanding as of September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.01 par value; 400,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 40,386,375 and 39,260,193 shares issued as of September 30, 2023 and December 31, 2022, respectively; and 40,051,416 and 39,260,193 outstanding as of September 30, 2023 and December 31, 2022, respectively | 403 | 393 |
Treasury stock, at cost; 334,959 and zero shares as of September 30, 2023 and December 31, 2022, respectively | (1,377) | 0 |
Additional paid-in capital | 448,544 | 439,005 |
Accumulated deficit | (310,778) | (291,020) |
Accumulated other comprehensive loss | (479) | (356) |
Total stockholders’ equity | 136,313 | 148,022 |
Total liabilities and stockholders’ equity | $ 182,776 | $ 195,796 |
Common stock, outstanding (in shares) | 40,051,416 | 39,260,193 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 195 | $ 113 |
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) | 40,386,375 | 39,260,193 |
Common stock, outstanding (in shares) | 40,051,416 | 39,260,193 |
Treasury stock, common (in shares) | 334,959 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net revenue | $ 20,663 | $ 22,729 | $ 63,762 | $ 73,892 |
Cost of revenue | 5,510 | 7,278 | 19,144 | 22,908 |
Gross profit | 15,153 | 15,451 | 44,618 | 50,984 |
Operating expenses: | ||||
Sales and marketing | 8,411 | 11,072 | 28,007 | 34,139 |
Technology development | 4,515 | 6,363 | 17,199 | 18,711 |
General and administrative | 6,772 | 6,731 | 22,323 | 20,635 |
Provision for transaction losses | 688 | 1,183 | 2,940 | 4,432 |
Gain on sale of Design Manager | 0 | 0 | 0 | (9,684) |
Total operating expenses | 20,386 | 25,349 | 70,469 | 68,233 |
Loss from operations | (5,233) | (9,898) | (25,851) | (17,249) |
Other income, net: | ||||
Interest income | 1,757 | 520 | 4,933 | 746 |
Interest expense | 0 | (3) | 0 | (11) |
Other, net | 171 | 353 | 1,160 | 837 |
Total other income, net | 1,928 | 870 | 6,093 | 1,572 |
Net loss before income taxes | (3,305) | (9,028) | (19,758) | (15,677) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | $ (3,305) | $ (9,028) | $ (19,758) | $ (15,677) |
Net loss per share attributable to common stockholders—basic (in usd per share) | $ (0.08) | $ (0.23) | $ (0.50) | $ (0.41) |
Net loss per share attributable to common stockholders—diluted (in usd per share) | $ (0.08) | $ (0.23) | $ (0.50) | $ (0.41) |
Weighted average common shares outstanding—basic (in shares) | 39,962,932 | 38,668,231 | 39,647,716 | 38,291,977 |
Weighted average common shares outstanding—diluted (in shares) | 39,962,932 | 38,668,231 | 39,647,716 | 38,291,977 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (3,305) | $ (9,028) | $ (19,758) | $ (15,677) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment, net of tax of $0 for each of the three and nine months ended September 30, 2023 and 2022 | (34) | (103) | 9 | (272) |
Unrealized losses on short-term investments, net of tax of $0 for each of the three and nine months ended September 30, 2023 and 2022 | (12) | 0 | (132) | 0 |
Comprehensive loss | $ (3,351) | $ (9,131) | $ (19,881) | $ (15,949) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized (losses) gains on short-term investments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid - In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2021 | 37,991,529 | |||||
Beginning 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 | |||||
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 | |||||
Vested restricted stock units converted to common shares | 0 | |||||
Stock-based compensation | 7,662 | 7,662 | ||||
Other comprehensive loss | (272) | (272) | ||||
Net loss | (15,677) | (15,677) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 38,896,451 | |||||
Ending balance at Sep. 30, 2022 | 150,699 | $ 384 | 434,975 | (284,159) | (501) | |
Beginning balance (in shares) at Jun. 30, 2022 | 38,573,212 | |||||
Beginning 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 | |||||
Vested restricted stock units converted to common shares | 0 | |||||
Stock-based compensation | 3,154 | 3,154 | ||||
Other comprehensive loss | (103) | (103) | ||||
Net loss | (9,028) | (9,028) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 38,896,451 | |||||
Ending balance at Sep. 30, 2022 | $ 150,699 | $ 384 | 434,975 | (284,159) | (501) | |
Beginning balance (in shares) at Dec. 31, 2022 | 39,260,193 | 39,260,193 | ||||
Beginning balance at Dec. 31, 2022 | $ 148,022 | $ 393 | 439,005 | (291,020) | (356) | |
Beginning balance at Dec. 31, 2022 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock for exercise of stock options (in shares) | 19,978 | 19,978 | ||||
Issuance of common stock for exercise of stock options | $ 78 | 78 | ||||
Vested restricted stock units converted to common stock (in shares) | 1,106,204 | |||||
Vested restricted stock units converted to common shares | 0 | $ 10 | (10) | |||
Stock-based compensation | 9,471 | 9,471 | ||||
Repurchase of common stock (shares) | (334,959) | |||||
Repurchase of common stock | (1,377) | $ (1,377) | ||||
Other comprehensive loss | (123) | (123) | ||||
Net loss | $ (19,758) | (19,758) | ||||
Ending balance (in shares) at Sep. 30, 2023 | 40,051,416 | 40,051,416 | ||||
Ending balance at Sep. 30, 2023 | $ 136,313 | $ 403 | 448,544 | (310,778) | (479) | |
Ending balance at Sep. 30, 2023 | (334,959) | (1,377,000) | ||||
Beginning balance (in shares) at Jun. 30, 2023 | 40,037,018 | |||||
Beginning balance at Jun. 30, 2023 | $ 137,974 | $ 400 | 445,480 | (307,473) | (433) | |
Beginning balance at Jun. 30, 2023 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock for exercise of stock options (in shares) | 11,000 | |||||
Issuance of common stock for exercise of stock options | 43 | 43 | ||||
Vested restricted stock units converted to common stock (in shares) | 338,357 | |||||
Vested restricted stock units converted to common shares | 0 | $ 3 | (3) | |||
Stock-based compensation | 3,024 | 3,024 | ||||
Repurchase of common stock (shares) | (334,959) | |||||
Repurchase of common stock | (1,377) | $ (1,377) | ||||
Other comprehensive loss | (46) | (46) | ||||
Net loss | $ (3,305) | (3,305) | ||||
Ending balance (in shares) at Sep. 30, 2023 | 40,051,416 | 40,051,416 | ||||
Ending balance at Sep. 30, 2023 | $ 136,313 | $ 403 | $ 448,544 | $ (310,778) | $ (479) | |
Ending balance at Sep. 30, 2023 | (334,959) | (1,377,000) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (19,758) | $ (15,677) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,815 | 2,189 |
Stock-based compensation expense | 9,340 | 7,662 |
Provision for transaction losses, returns and refunds | 703 | 277 |
Amortization of costs to obtain revenue contracts | 242 | 233 |
Amortization of operating lease right-of-use assets | 1,917 | 1,891 |
Gain on sale of Design Manager | 0 | (9,684) |
Amortization of (discounts) premiums, net on short-term investments | (2,366) | 0 |
Other, net | (45) | 517 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 40 | (151) |
Prepaid expenses and other current assets | 415 | (1,448) |
Receivables from payment processors | (999) | (619) |
Other assets | (1,215) | (602) |
Accounts payable and accrued expenses | (210) | (3,692) |
Payables due to sellers | 606 | (977) |
Operating lease liabilities | (2,063) | (2,036) |
Other current liabilities and other liabilities | 103 | (293) |
Net cash used in operating activities | (11,475) | (22,410) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (166,471) | 0 |
Maturities of short-term investments | 58,153 | 0 |
Development of internal-use software | (1,215) | (1,688) |
Purchases of property and equipment | (67) | (84) |
Proceeds from sale of Design Manager | 0 | 14,611 |
Other, net | 0 | (18) |
Net cash (used in) provided by investing activities | (109,600) | 12,821 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 78 | 1,548 |
Payments for repurchase of common stock | (1,312) | 0 |
Net cash (used in) provided by financing activities | (1,234) | 1,548 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 44 | (689) |
Net decrease in cash, cash equivalents, and restricted cash | (122,265) | (8,730) |
Cash, cash equivalents, and restricted cash at beginning of the period | 158,043 | 171,559 |
Cash, cash equivalents, and restricted cash at end of the period | 35,778 | 162,829 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 0 | $ 10 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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 furniture, 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. 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 for the nine months ended September 30, 2022 includes activity relating to Design Manager. The condensed consolidated balance sheet as of September 30, 2023 no longer includes the assets, liabilities, and equity amounts associated with Design Manager. 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, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 3, 2023. The condensed consolidated balance sheet as of December 31, 2022, 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 stockholders’ equity, and cash flows for the interim periods. The results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2023. There have been no material changes to the Company's significant accounting policies as described in the Form 10-K except for the short-term investments and treasury stock discussed below. Certain immaterial amounts in the financial statements of the prior years have been reclassified to conform to the current year presentation for comparative purposes. Restructuring Charges In June 2023, the Company announced a workforce reduction designed to reduce operating costs and realign investment priorities involving the reduction of approximately 20% of the Company’s global workforce. As a result of the reduction, the Company incurred approximately $2.0 million in non-recurring restructuring charges during the nine months ended September 30, 2023, consisting primarily of employee severance and benefits costs. During the three months ended September 30, 2023, $1.4 million has been paid and $0.6 million is included in accrued expenses on the Company’s condensed consolidated balance sheet as of September 30, 2023. The following table displays a rollforward of the charges to the accrued balance as of September 30, 2023: (in thousands) Restructuring Charges Balance, December 31, 2022 $ — Restructuring charges 2,004 Cash payments 1,374 Balance, September 30, 2023 $ 630 The expense is included within the respective financial statement line items on the condensed consolidated statements of operations as shown in the table below for the nine months ended September 30, 2023. There was no expense incurred during the three months ended September 30, 2023. (in thousands) Nine Months Ended Cost of revenue $ 135 Sales and marketing 789 Technology development 1,044 General and administrative 36 Total $ 2,004 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, income taxes, and the valuation of stock-based compensation and leases. 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, 2023 September 30, 2022 Cash and cash equivalents $ 32,442 $ 157,995 Restricted cash, current — 1,500 Restricted cash, non-current 3,336 3,334 Total cash, cash equivalents, and restricted cash $ 35,778 $ 162,829 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. Certain cash equivalents consist of investments in debt securities that are classified as available-for-sale. During the three and nine months ended September 30, 2023, the Company purchased $3.2 million and $34.9 million of available-for-sale securities classified as cash equivalents, respectively. The Company’s restricted cash relates to a $3.3 million Letter of Credit for its office lease in New York, New York. Prior to September 30, 2023, $1.5 million was held in a joint escrow account in connection with the sale of Design Manager. As of September 30, 2023 the restriction was lifted and the funds were released. The carrying value of the restricted cash approximates fair value. Short-term Investments Short-term investments designated as available-for-sale securities are carried at fair value, which is based on quoted market prices for such securities, if available, or is estimated on the basis of quoted market prices of financial instruments with similar characteristics. Investments with original maturities greater than 90 days and less than one year are classified within short-term investments on the Company’s condensed consolidated balance sheets. In addition, investments with maturities beyond one year at the time of purchase that are highly liquid in nature and represent the investment of cash that is available for current operations are classified as short-term investments. Any other investments with original maturities greater than one year would be classified within long-term investments. Unrealized gains and losses of available-for-sale securities are excluded from earnings and are reported as a component of other comprehensive income (loss) until the security is sold, has matured, or the Company determines that the fair value of the security has declined below its adjusted cost basis and the decline is not due to a credit loss. Realized gains and losses on short-term investments are calculated based on the specific identification method and would be reclassified from accumulated other comprehensive loss to other, net in the Company’s condensed consolidated statements of operations. Short-term investments are evaluated for impairment quarterly. The Company’s portfolio of available-for-sale debt securities is required to incorporate forward-looking information to determine any credit losses. This risk is mitigated by the high quality nature of the investments. The Company evaluates the current expected credit loss by considering various factors in determining whether it should recognize an impairment charge, including the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, the severity and reason for the decline in value, and the Company’s intent to sell and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. If the Company concluded that an investment is impaired or a portion of the unrealized loss is a result of a credit loss, it recognizes the charge at that time in the condensed consolidated statements of operations. Determining whether the decline in fair value is due to a credit loss requires management judgment based on the specific facts and circumstances of each security. The ultimate value realized on these securities is subject to market price volatility until they are sold. The Company did not recognize any credit losses related to available-for-sale debt securities during the three and nine months ended September 30, 2023. Treasury Stock In August 2023, the Company’s Board of Directors authorized the Company to repurchase up to an aggregate of $20.0 million of its common stock (“Stock Repurchase Program”). Repurchased common stock is stated at cost, determined on an average cost basis and is presented as a reduction of stockholders’ equity on the condensed consolidated balance sheets. The direct costs incurred to acquire treasury stock are treated like stock issuance costs and added to the cost of the treasury stock, which includes applicable fees and taxes. There have been no reissuances of treasury stock as of September 30, 2023. Accounts Receivable, net The Company’s accounts receivable are recorded at amounts billed to sellers, generally for subscription revenue, and are presented net of an estimated allowance for doubtful accounts on the Company’s consolidated balance sheets. The Company’s accounts receivable do not bear interest and do not require collateral or other security to support related receivables. The allowance for doubtful accounts considers forward-looking information to estimate expected credit losses using a number of factors, including age of the receivable, current economic conditions, historical losses, and management’s assessment and judgment of the seller. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. Losses are charged against the allowance when management believes the un-collectability of a receivable is confirmed and subsequent recoveries, if any, are credited to the allowance. Account balances are written off after all means of collection are exhausted and the potential for non-recovery is determined to be probable. Adjustments to the allowance for doubtful accounts are recorded as a component of provision for transaction losses in the condensed consolidated statements of operations. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which replaces the incurred loss impairment methodology with a methodology that requires the reflection of expected credit losses and also requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. For most financial instruments, the standard requires the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which generally results in the earlier recognition of credit losses on financial instruments. The Company adopted this standard effective January 1, 2023 under a modified retrospective basis and considers forward-looking information to estimate expected credit losses. No adjustment to accumulated deficit was recorded as the adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
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 require 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. Short-term investments and certain cash equivalents consist of investments in debt securities that are available-for-sale. The table below segregates all assets that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date: September 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 6,875 $ — $ — $ 6,875 U.S. Treasury securities — 995 — 995 Total cash equivalents $ 6,875 $ 995 $ — $ 7,870 Short-term investments: Commercial paper $ — $ 15,572 $ — $ 15,572 Corporate notes — 7,122 — 7,122 U.S. Treasury securities — 22,757 — 22,757 U.S. Government agency securities — 65,101 — 65,101 Total short-term investments $ — $ 110,552 $ — $ 110,552 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 2023 2022 Seller marketplace services $ 20,467 $ 22,504 $ 63,239 $ 71,597 Other services 196 225 523 2,295 Total net revenue $ 20,663 $ 22,729 $ 63,762 $ 73,892 The Company generates revenue from seller marketplace services and other services. Seller marketplace services primarily consist of marketplace transactions, subscriptions, 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 Manager was sold on June 29, 2022; therefore, no related net revenue for software services was recognized during the three and nine months ended September 30, 2023 as well as the three months ended September 30, 2022. As of both September 30, 2023 and December 31, 2022, the Company recorded $0.5 million of costs to obtain revenue contracts, of which $0.3 million was included in other current assets, and $0.2 million was included in other assets. Amortization of costs to obtain revenue contracts totaled $0.1 million and $0.2 million for both the three and nine months ended September 30, 2023, and 2022, respectively. The Company periodically reviews the costs to obtain revenue contracts to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these costs to obtain revenue contracts. |
Short-Term Investments
Short-Term Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | Short-Term Investments The following table summarizes the estimated value of the Company’s short-term investments as of September 30, 2023: September 30, 2023 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value Commercial paper $ 15,589 $ — $ (17) $ 15,572 Corporate notes 7,134 — (12) 7,122 U.S. Treasury securities 22,786 — (29) 22,757 U.S. Government agency securities 65,175 10 (84) 65,101 Total short-term investments $ 110,684 $ 10 $ (142) $ 110,552 As of December 31, 2022, the Company had no short-term investments. As of September 30, 2023, the fair value of short-term investments by remaining contractual maturity consisted of the following: (in thousands) Fair Value Remaining maturity date one year or less $ 99,000 Remaining maturity date greater than one year 11,552 Total short-term investments $ 110,552 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net As of September 30, 2023 and December 31, 2022, property and equipment, net consisted of the following: (in thousands) September 30, 2023 December 31, 2022 Internal-use software $ 19,047 $ 18,418 Leasehold improvements 3,605 3,594 Furniture and fixtures 1,131 1,114 Computer equipment and software 898 851 Software in progress 520 562 Total property and equipment, gross 25,201 24,539 Less: Accumulated depreciation and amortization (21,918) (20,854) Total property and equipment, net $ 3,283 $ 3,685 As of September 30, 2023 and December 31, 2022, the net book value of internal-use software was $2.6 million and $3.0 million, respectively. Depreciation and amortization expense related to the Company’s property and equipment totaled $0.4 million and $1.8 million for the three and nine months ended September 30, 2023, respectively, which included amortization expense for internal-use software of $0.4 million and $1.7 million, respectively. Included in amortization expense for the nine months ended September 30, 2023, was $0.5 million of accelerated internal-use software amortization related to the shift in strategy to discontinue supporting the Company’s NFT platform. Depreciation and amortization 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, |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses As of September 30, 2023 and December 31, 2022, accrued expenses consisted of the following: (in thousands) September 30, 2023 December 31, 2022 Shipping $ 3,213 $ 3,597 Salaries & benefits 3,267 1,862 Sales & use taxes payable 1,159 1,378 Allowance for transaction losses 1,200 1,327 Restructuring charges 630 — Payment processor fees 525 970 Allowance for e-commerce returns 392 438 Other 937 1,189 Total accrued expenses $ 11,323 $ 10,761 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
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 condensed 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 condensed consolidated statements of operations on a straight-line basis over the lease term and are not recorded on the balance sheet. 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. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. The Company’s operating lease arrangements are principally for office space in its New York City headquarters. As of September 30, 2023, the Company had $20.1 million of operating lease right-of-use assets, $2.9 million and $19.5 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 6.25 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. As of December 31, 2022, the Company had $22.0 million of operating lease right-of-use assets, $2.8 million and $21.7 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet. During the three and nine months ended September 30, 2023, the Company paid $1.0 million and $3.1 million, respectively, for amounts included in the measurement of lease liabilities, and $1.1 million and $3.2 million during the three and nine months ended September 30, 2022, respectively. The Company did not enter into any new lease arrangements as a lessee during the three and nine months ended September 30, 2022. In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its New York City headquarters (the “Sublease”). The Sublease will commence on October 1, 2023 for approximately 78% of the rentable square feet and expand to 100% of the rentable square feet on January 15, 2024. The sublease ends on December 31, 2029, the expiration date of the Company’s New York City headquarter’s lease, and contains an option for the lessee to terminate on the third anniversary of the commencement date. The Sublease contains a five-month rent abatement provision, with an additional abatement against fixed rent for the sixth calendar month. Beginning in April 2024 the Company will collect monthly lease payments of $0.3 million with annual increases over the term. In addition, the subtenant will be responsible for its proportionate share of the operating expenses of the building, including taxes, electric, heating, ventilation, and air conditioning. The proportionate share will be 78% from the commencement of the Sublease until the January 15, 2024, at that time the proportionate share will be increased to 100%. Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s condensed consolidated statement of operations. During the three months ended September 30, 2023, the Company capitalized its $1.1 million broker fee paid which will be amortized over the life of the Sublease. There was no sublease income recognized in the three and nine months ended September 30, 2023 and 2022. Subsequent to the balance sheet date, in November 2023, the Company entered into a lease agreement, as the lessee, for 13,671 square feet for a new office which is anticipated to be the Company’s new corporate headquarters in New York City (the Lease Agreement”). The Lease Agreement is expected to have a commencement date of January 15, 2024 with a five year term and an initial seven month rent abatement period. The lease agreement includes an option for the Company to extend the lease for an additional five years. The Company recognized lease expense for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Operating lease expense $ 991 $ 1,000 $ 2,979 $ 2,987 Short-term lease expense 33 22 87 100 Variable lease expense 196 287 772 776 Total lease expense $ 1,220 $ 1,309 $ 3,838 $ 3,863 As of September 30, 2023, 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 2023 (remaining) $ 1,020 2024 4,114 2025 4,292 2026 4,292 2027 4,292 Thereafter 8,583 Total operating lease payments 26,593 Less: imputed interest (4,208) Total lease liabilities $ 22,385 |
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 condensed 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 condensed consolidated statements of operations on a straight-line basis over the lease term and are not recorded on the balance sheet. 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. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. The Company’s operating lease arrangements are principally for office space in its New York City headquarters. As of September 30, 2023, the Company had $20.1 million of operating lease right-of-use assets, $2.9 million and $19.5 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 6.25 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. As of December 31, 2022, the Company had $22.0 million of operating lease right-of-use assets, $2.8 million and $21.7 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet. During the three and nine months ended September 30, 2023, the Company paid $1.0 million and $3.1 million, respectively, for amounts included in the measurement of lease liabilities, and $1.1 million and $3.2 million during the three and nine months ended September 30, 2022, respectively. The Company did not enter into any new lease arrangements as a lessee during the three and nine months ended September 30, 2022. In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its New York City headquarters (the “Sublease”). The Sublease will commence on October 1, 2023 for approximately 78% of the rentable square feet and expand to 100% of the rentable square feet on January 15, 2024. The sublease ends on December 31, 2029, the expiration date of the Company’s New York City headquarter’s lease, and contains an option for the lessee to terminate on the third anniversary of the commencement date. The Sublease contains a five-month rent abatement provision, with an additional abatement against fixed rent for the sixth calendar month. Beginning in April 2024 the Company will collect monthly lease payments of $0.3 million with annual increases over the term. In addition, the subtenant will be responsible for its proportionate share of the operating expenses of the building, including taxes, electric, heating, ventilation, and air conditioning. The proportionate share will be 78% from the commencement of the Sublease until the January 15, 2024, at that time the proportionate share will be increased to 100%. Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s condensed consolidated statement of operations. During the three months ended September 30, 2023, the Company capitalized its $1.1 million broker fee paid which will be amortized over the life of the Sublease. There was no sublease income recognized in the three and nine months ended September 30, 2023 and 2022. Subsequent to the balance sheet date, in November 2023, the Company entered into a lease agreement, as the lessee, for 13,671 square feet for a new office which is anticipated to be the Company’s new corporate headquarters in New York City (the Lease Agreement”). The Lease Agreement is expected to have a commencement date of January 15, 2024 with a five year term and an initial seven month rent abatement period. The lease agreement includes an option for the Company to extend the lease for an additional five years. The Company recognized lease expense for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Operating lease expense $ 991 $ 1,000 $ 2,979 $ 2,987 Short-term lease expense 33 22 87 100 Variable lease expense 196 287 772 776 Total lease expense $ 1,220 $ 1,309 $ 3,838 $ 3,863 As of September 30, 2023, 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 2023 (remaining) $ 1,020 2024 4,114 2025 4,292 2026 4,292 2027 4,292 Thereafter 8,583 Total operating lease payments 26,593 Less: imputed interest (4,208) Total lease liabilities $ 22,385 |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities As of September 30, 2023 and December 31, 2022, other current liabilities consisted of the following: (in thousands) September 30, 2023 December 31, 2022 Sales and use tax contingencies $ 1,946 $ 1,863 Buyer deposits 392 318 Deferred revenue 99 140 Other 196 108 Total other current liabilities $ 2,633 $ 2,429 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity As of September 30, 2023 and December 31, 2022, the Company had reserved shares of common stock for issuance in connection with the following: September 30, 2023 December 31, 2022 Options to purchase common stock 3,930,336 4,034,287 Restricted stock units outstanding 4,116,974 2,807,981 Shares available for future grant under the 2021 Plan 2,781,826 3,151,824 Shares available for future grant under the ESPP 1,572,504 1,179,902 Total 12,401,640 11,173,994 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, 2023 and December 31, 2022, no shares of preferred stock were issued or outstanding. Common Stock As of September 30, 2023 and December 31, 2022, the Company had authorized 400,000,000 shares of voting common stock, $0.01 par value per share. Each holder of the Company's common stock is entitled to one vote for each share on all matters to be voted upon by the stockholders and there are no cumulative rights. Subject to any preferential rights of any outstanding preferred stock, holders of the Company's common stock are entitled to receive ratably the dividends, if any, as may be declared from time to time by the Board out of legally available funds. If there is a liquidation, dissolution, or winding up of the Company, holders of the Company's common stock would be entitled to share in the Company's assets remaining after the payment of liabilities and any preferential rights of any outstanding preferred stock. The rights, preferences, and privileges of the holders of the Company's common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock which the Company may designate and issue in the future. Treasury Stock As of September 30, 2023, the Company had 334,959 shares of treasury stock carried at its cost basis of $1.4 million, which the Company purchased during the three months ended September 30, 2023, and approximately $18.6 million remains available for future purchases. The repurchase may be effected, from time-to-time, through open market purchases, privately negotiated transactions, Rule 10b5-1 plans, accelerated stock repurchases, block trades, derivative contracts or otherwise in compliance with Rule 10b-18 of the Exchange Act. The repurchase program is not subject to a termination or expiration date, and it does not obligate the Company to acquire any specific number of shares. The timing, price and volume of repurchases will be based on a number of factors, including market conditions, relevant securities laws, and other considerations. |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Sep. 30, 2023 | |
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. Options issued 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, 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. On January 1, 2023, the number of shares of common stock available for issuance under the 2021 Plan was automatically increased according to its terms by 1,963,010 shares. As of September 30, 2023, 2,781,826 shares were available for future grants of the Company’s common stock. Stock Option Valuation No stock options were granted during the three and nine months ended September 30, 2023, or the three months ended September 30, 2022. On a weighted-average basis, the assumptions used in the Black Scholes option-pricing model to determine the grant date fair value of the options granted to the Company’s employees were an expected term of 6 years, an expected stock price volatility of 64.6%, and a risk-free interest rate of 2.3% for the nine months ended September 30, 2022. Stock Options The following table summarizes the Company’s stock option activity since December 31, 2022: Number of Weighted-Average Weighted-Average Aggregate Outstanding as of December 31, 2022 4,034,287 $ 6.90 6.9 $ 1,625 Granted — $ — Exercised (19,978) $ 3.90 Cancelled/Forfeited (83,973) $ 6.38 Outstanding as of September 30, 2023 3,930,336 $ 6.92 6.1 $ — Options exercisable as of September 30, 2023 2,799,980 $ 6.27 5.4 $ — Options vested and expected to vest as of September 30, 2023 3,930,336 $ 6.92 6.1 $ — 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 less than $0.1 million during each of the three and nine months ended September 30, 2023, and $0.2 million and $1.1 million during the three and nine months ended September 30, 2022, respectively. The weighted-average grant date fair value per share of stock options granted was $4.43 for the nine months ended September 30, 2022. The total fair value of stock options vested was $0.7 million and $2.7 million during the three and nine months ended September 30, 2023, respectively, and $0.8 million and $3.4 million during the three and nine months ended September 30, 2022, 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 $0.5 million was recognized for options having a performance condition during the three and nine months ended September 30, 2023, respectively, and $0.2 million and $0.6 million during the three and nine months ended September 30, 2022, respectively. Restricted Stock Units The following table summarizes the activity related to the Company's restricted stock units: Outstanding Restricted Stock Units Weighted-Average Outstanding as of December 31, 2022 2,807,981 $ 7.85 Granted 2,992,595 3.95 Vested (1,106,204) 6.54 Cancelled (577,398) 7.00 Outstanding as of September 30, 2023 4,116,974 $ 5.49 The estimated weighted-average grant date fair value of restricted stock units granted was $4.11 and $3.95 per share for the three and nine months ended September 30, 2023, and $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 $2.0 million and $7.2 million for the three and nine months ended September 30, 2023, respectively, and $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 1,572,504 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 of Directors. On January 1, 2023, the number of shares of common stock available for issuance under the ESPP was automatically increased according to its terms by 392,602 shares. 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, 2023, an initial offering period has not commenced, and for the three and nine months ended September 30, 2023, no shares of common stock were purchased under the ESPP. Stock-Based Compensation Expense The following table summarizes the classification of the Company’s stock-based compensation expense in the condensed consolidated statements of operations: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 75 $ 149 $ 312 $ 402 Sales and marketing 727 704 2,176 1,765 Technology development 792 1,134 2,802 2,865 General and administrative 1,388 1,167 4,050 2,630 Total stock-based compensation expense $ 2,982 $ 3,154 $ 9,340 $ 7,662 Stock-based compensation capitalized in connection with the Company’s internal-use software was less than $0.1 million for the three months ended September 30, 2023, $0.1 million for the nine months ended September 30, 2023, and less than $0.1 million for each of the three and nine months ended September 30, 2022. As of September 30, 2023, total unrecognized compensation expense related to unvested stock-based awards was $27.0 million, which is expected to be recognized over a weighted-average period of 2.4 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe income tax provision was immaterial for the three and nine months ended September 30, 2023 and 2022 due to the net loss before income taxes incurred for the fiscal year ended December 31, 2022 and expected to be incurred for the fiscal year ending December 31, 2023. The Company’s continues to maintain a full valuation allowance against its net deferred tax assets. There were no material liabilities for interest and penalties accrued as of September 30, 2023. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share amounts) 2023 2022 2023 2022 Numerator: Net loss $ (3,305) $ (9,028) $ (19,758) $ (15,677) Denominator: Weighted average common shares outstanding—basic and diluted 39,962,932 38,668,231 39,647,716 38,291,977 Net loss per share—basic and diluted $ (0.08) $ (0.23) $ (0.50) $ (0.41) The Company’s potentially dilutive securities, which include outstanding stock options and restricted stock units have been excluded from the computation of diluted net loss per share from each period as including them would have had an anti-dilutive effect. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same. The Company excluded the following potentially dilutive securities for each period presented: September 30, 2023 2022 Options to purchase common stock 3,930,336 4,202,430 Restricted stock units 4,116,974 2,954,549 Total 8,047,310 7,156,979 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations The Company has $28.8 million of non-cancelable contractual commitments as of September 30, 2023, primarily related to its operating lease agreement for its corporate headquarters in New York, NY, as well as other software and support services. For those agreements with variable terms, the Company does not estimate what the total obligation may be beyond any minimum obligations. The following table represents the Company’s commitments under its purchase obligations as of September 30, 2023 (in thousands): Fiscal Year Ending December 31, Lease Obligations Other Obligations Total Obligations 2023 (remaining) $ 1,020 $ 372 $ 1,392 2024 4,114 1,291 5,405 2025 4,292 506 4,798 2026 4,292 33 4,325 2027 4,292 — 4,292 Thereafter 8,583 — 8,583 Total $ 26,593 $ 2,202 $ 28,795 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, 2023 and 2022. 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 officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 for the nine months ended September 30, 2022 includes activity relating to Design Manager. The condensed consolidated balance sheet as of September 30, 2023 no longer includes the assets, liabilities, and equity amounts associated with Design Manager. 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, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 3, 2023. The condensed consolidated balance sheet as of December 31, 2022, 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. |
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, income taxes, and the valuation of stock-based compensation and leases. 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. Certain cash equivalents consist of investments in debt securities that are classified as available-for-sale. During the three and nine months ended September 30, 2023, the Company purchased $3.2 million and $34.9 million of available-for-sale securities classified as cash equivalents, respectively. The Company’s restricted cash relates to a $3.3 million Letter of Credit for its office lease in New York, New York. Prior to September 30, 2023, $1.5 million was held in a joint escrow account in connection with the sale of Design Manager. As of September 30, 2023 the restriction was lifted and the funds were released. The carrying value of the restricted cash approximates fair value. |
Short-term Investments | Short-term investments designated as available-for-sale securities are carried at fair value, which is based on quoted market prices for such securities, if available, or is estimated on the basis of quoted market prices of financial instruments with similar characteristics. Investments with original maturities greater than 90 days and less than one year are classified within short-term investments on the Company’s condensed consolidated balance sheets. In addition, investments with maturities beyond one year at the time of purchase that are highly liquid in nature and represent the investment of cash that is available for current operations are classified as short-term investments. Any other investments with original maturities greater than one year would be classified within long-term investments. Unrealized gains and losses of available-for-sale securities are excluded from earnings and are reported as a component of other comprehensive income (loss) until the security is sold, has matured, or the Company determines that the fair value of the security has declined below its adjusted cost basis and the decline is not due to a credit loss. Realized gains and losses on short-term investments are calculated based on the specific identification method and would be reclassified from accumulated other comprehensive loss to other, net in the Company’s condensed consolidated statements of operations. |
Stockholders' Equity, Policy | Repurchased common stock is stated at cost, determined on an average cost basis and is presented as a reduction of stockholders’ equity on the condensed consolidated balance sheets. The direct costs incurred to acquire treasury stock are treated like stock issuance costs and added to the cost of the treasury stock, which includes applicable fees and taxes. |
Accounts Receivable, net | The Company’s accounts receivable are recorded at amounts billed to sellers, generally for subscription revenue, and are presented net of an estimated allowance for doubtful accounts on the Company’s consolidated balance sheets. The Company’s accounts receivable do not bear interest and do not require collateral or other security to support related receivables. The allowance for doubtful accounts considers forward-looking information to estimate expected credit losses using a number of factors, including age of the receivable, current economic conditions, historical losses, and management’s assessment and judgment of the seller. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. Losses are charged against the allowance when management believes the un-collectability of a receivable is confirmed and subsequent recoveries, if any, are credited to the allowance. Account balances are written off after all means of collection are exhausted and the potential for non-recovery is determined to be probable. Adjustments to the allowance for doubtful accounts are recorded as a component of provision for transaction losses in the condensed consolidated statements of operations. |
Recently Adopted Accounting Pronouncements | In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which replaces the incurred loss impairment methodology with a methodology that requires the reflection of expected credit losses and also requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. For most financial instruments, the standard requires the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which generally results in the earlier recognition of credit losses on financial instruments. The Company adopted this standard effective January 1, 2023 under a modified retrospective basis and considers forward-looking information to estimate expected credit losses. No adjustment to accumulated deficit was recorded as the adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. |
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 condensed 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 condensed consolidated statements of operations on a straight-line basis over the lease term and are not recorded on the balance sheet. 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. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restructuring charges | The following table displays a rollforward of the charges to the accrued balance as of September 30, 2023: (in thousands) Restructuring Charges Balance, December 31, 2022 $ — Restructuring charges 2,004 Cash payments 1,374 Balance, September 30, 2023 $ 630 The expense is included within the respective financial statement line items on the condensed consolidated statements of operations as shown in the table below for the nine months ended September 30, 2023. There was no expense incurred during the three months ended September 30, 2023. (in thousands) Nine Months Ended Cost of revenue $ 135 Sales and marketing 789 Technology development 1,044 General and administrative 36 Total $ 2,004 |
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, 2023 September 30, 2022 Cash and cash equivalents $ 32,442 $ 157,995 Restricted cash, current — 1,500 Restricted cash, non-current 3,336 3,334 Total cash, cash equivalents, and restricted cash $ 35,778 $ 162,829 |
Restricted cash | The following represents the Company’s cash, cash equivalents, and restricted cash as of the periods presented: (in thousands) September 30, 2023 September 30, 2022 Cash and cash equivalents $ 32,442 $ 157,995 Restricted cash, current — 1,500 Restricted cash, non-current 3,336 3,334 Total cash, cash equivalents, and restricted cash $ 35,778 $ 162,829 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of assets measured at fair value on a recurring basis | The table below segregates all assets that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date: September 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 6,875 $ — $ — $ 6,875 U.S. Treasury securities — 995 — 995 Total cash equivalents $ 6,875 $ 995 $ — $ 7,870 Short-term investments: Commercial paper $ — $ 15,572 $ — $ 15,572 Corporate notes — 7,122 — 7,122 U.S. Treasury securities — 22,757 — 22,757 U.S. Government agency securities — 65,101 — 65,101 Total short-term investments $ — $ 110,552 $ — $ 110,552 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 2023 2022 Seller marketplace services $ 20,467 $ 22,504 $ 63,239 $ 71,597 Other services 196 225 523 2,295 Total net revenue $ 20,663 $ 22,729 $ 63,762 $ 73,892 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of short-term investments | The following table summarizes the estimated value of the Company’s short-term investments as of September 30, 2023: September 30, 2023 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value Commercial paper $ 15,589 $ — $ (17) $ 15,572 Corporate notes 7,134 — (12) 7,122 U.S. Treasury securities 22,786 — (29) 22,757 U.S. Government agency securities 65,175 10 (84) 65,101 Total short-term investments $ 110,684 $ 10 $ (142) $ 110,552 |
Short-term investments by contractual maturity | As of September 30, 2023, the fair value of short-term investments by remaining contractual maturity consisted of the following: (in thousands) Fair Value Remaining maturity date one year or less $ 99,000 Remaining maturity date greater than one year 11,552 Total short-term investments $ 110,552 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | As of September 30, 2023 and December 31, 2022, property and equipment, net consisted of the following: (in thousands) September 30, 2023 December 31, 2022 Internal-use software $ 19,047 $ 18,418 Leasehold improvements 3,605 3,594 Furniture and fixtures 1,131 1,114 Computer equipment and software 898 851 Software in progress 520 562 Total property and equipment, gross 25,201 24,539 Less: Accumulated depreciation and amortization (21,918) (20,854) Total property and equipment, net $ 3,283 $ 3,685 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued expenses | As of September 30, 2023 and December 31, 2022, accrued expenses consisted of the following: (in thousands) September 30, 2023 December 31, 2022 Shipping $ 3,213 $ 3,597 Salaries & benefits 3,267 1,862 Sales & use taxes payable 1,159 1,378 Allowance for transaction losses 1,200 1,327 Restructuring charges 630 — Payment processor fees 525 970 Allowance for e-commerce returns 392 438 Other 937 1,189 Total accrued expenses $ 11,323 $ 10,761 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lease expense | The Company recognized lease expense for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Operating lease expense $ 991 $ 1,000 $ 2,979 $ 2,987 Short-term lease expense 33 22 87 100 Variable lease expense 196 287 772 776 Total lease expense $ 1,220 $ 1,309 $ 3,838 $ 3,863 |
Remaining operating lease payments | As of September 30, 2023, 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 2023 (remaining) $ 1,020 2024 4,114 2025 4,292 2026 4,292 2027 4,292 Thereafter 8,583 Total operating lease payments 26,593 Less: imputed interest (4,208) Total lease liabilities $ 22,385 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other current liabilities | As of September 30, 2023 and December 31, 2022, other current liabilities consisted of the following: (in thousands) September 30, 2023 December 31, 2022 Sales and use tax contingencies $ 1,946 $ 1,863 Buyer deposits 392 318 Deferred revenue 99 140 Other 196 108 Total other current liabilities $ 2,633 $ 2,429 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Reserved shares of common stock | As of September 30, 2023 and December 31, 2022, the Company had reserved shares of common stock for issuance in connection with the following: September 30, 2023 December 31, 2022 Options to purchase common stock 3,930,336 4,034,287 Restricted stock units outstanding 4,116,974 2,807,981 Shares available for future grant under the 2021 Plan 2,781,826 3,151,824 Shares available for future grant under the ESPP 1,572,504 1,179,902 Total 12,401,640 11,173,994 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock option activity | The following table summarizes the Company’s stock option activity since December 31, 2022: Number of Weighted-Average Weighted-Average Aggregate Outstanding as of December 31, 2022 4,034,287 $ 6.90 6.9 $ 1,625 Granted — $ — Exercised (19,978) $ 3.90 Cancelled/Forfeited (83,973) $ 6.38 Outstanding as of September 30, 2023 3,930,336 $ 6.92 6.1 $ — Options exercisable as of September 30, 2023 2,799,980 $ 6.27 5.4 $ — Options vested and expected to vest as of September 30, 2023 3,930,336 $ 6.92 6.1 $ — |
Restricted stock units activity | The following table summarizes the activity related to the Company's restricted stock units: Outstanding Restricted Stock Units Weighted-Average Outstanding as of December 31, 2022 2,807,981 $ 7.85 Granted 2,992,595 3.95 Vested (1,106,204) 6.54 Cancelled (577,398) 7.00 Outstanding as of September 30, 2023 4,116,974 $ 5.49 |
Classification of stock-based compensation | The following table summarizes the classification of the Company’s stock-based compensation expense in the condensed consolidated statements of operations: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 75 $ 149 $ 312 $ 402 Sales and marketing 727 704 2,176 1,765 Technology development 792 1,134 2,802 2,865 General and administrative 1,388 1,167 4,050 2,630 Total stock-based compensation expense $ 2,982 $ 3,154 $ 9,340 $ 7,662 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share amounts) 2023 2022 2023 2022 Numerator: Net loss $ (3,305) $ (9,028) $ (19,758) $ (15,677) Denominator: Weighted average common shares outstanding—basic and diluted 39,962,932 38,668,231 39,647,716 38,291,977 Net loss per share—basic and diluted $ (0.08) $ (0.23) $ (0.50) $ (0.41) |
Antidilutive securities excluded from computation of diluted net loss per share | The Company excluded the following potentially dilutive securities for each period presented: September 30, 2023 2022 Options to purchase common stock 3,930,336 4,202,430 Restricted stock units 4,116,974 2,954,549 Total 8,047,310 7,156,979 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of commitments under purchase obligations | The following table represents the Company’s commitments under its purchase obligations as of September 30, 2023 (in thousands): Fiscal Year Ending December 31, Lease Obligations Other Obligations Total Obligations 2023 (remaining) $ 1,020 $ 372 $ 1,392 2024 4,114 1,291 5,405 2025 4,292 506 4,798 2026 4,292 33 4,325 2027 4,292 — 4,292 Thereafter 8,583 — 8,583 Total $ 26,593 $ 2,202 $ 28,795 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||||
Workforce reduction, percentage | 20% | |||
Restructuring charges | $ 0 | $ 2,004 | ||
Payments for restructuring | 1,400 | 1,374 | ||
Restructuring charges | 630 | $ 630 | 630 | $ 0 |
Restructuring Reserve [Roll Forward] | ||||
Balance, December 31, 2022 | 0 | |||
Restructuring charges | 0 | 2,004 | ||
Cash payments | 1,400 | 1,374 | ||
Balance, September 30, 2023 | $ 630 | $ 630 | 630 | |
Cost of revenue | ||||
Accounting Policies [Abstract] | ||||
Restructuring charges | 135 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 135 | |||
Sales and marketing | ||||
Accounting Policies [Abstract] | ||||
Restructuring charges | 789 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 789 | |||
Technology development | ||||
Accounting Policies [Abstract] | ||||
Restructuring charges | 1,044 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1,044 | |||
General and administrative | ||||
Accounting Policies [Abstract] | ||||
Restructuring charges | 36 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 36 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 29, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 32,442 | $ 32,442 | $ 157,995 | $ 153,209 | ||
Restricted cash, current | 0 | 0 | 1,500 | 1,500 | ||
Restricted cash, non-current | 3,336 | 3,336 | 3,334 | 3,334 | ||
Total cash, cash equivalents, and restricted cash | 35,778 | 35,778 | 162,829 | $ 158,043 | $ 171,559 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Payments to acquire available for sale securities | 166,471 | $ 0 | ||||
Cash Equivalents | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Payments to acquire available for sale securities | 3,200 | 34,900 | ||||
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 | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash, current | $ 3,300 | $ 3,300 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Short-term Investments (Details) | Sep. 30, 2023 USD ($) |
Accounting Policies [Abstract] | |
Debt securities, available-for-sale, allowance for credit loss | $ 0 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Treasury Stock (Details) $ in Millions | Aug. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
Stock repurchase program, authorized amount | $ 20 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 7,870,000 | |
Total short-term investments | 110,552,000 | $ 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 15,572,000 | |
Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 7,122,000 | |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 22,757,000 | |
U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 65,101,000 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,875,000 | |
Total short-term investments | 0 | |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 1 | Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 1 | U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 995,000 | |
Total short-term investments | 110,552,000 | |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 15,572,000 | |
Level 2 | Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 7,122,000 | |
Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 22,757,000 | |
Level 2 | U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 65,101,000 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
Total short-term investments | 0 | |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 3 | Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Level 3 | U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Money market fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,875,000 | |
Money market fund | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,875,000 | |
Money market fund | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
Money market fund | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 995,000 | |
U.S. Treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
U.S. Treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 995,000 | |
U.S. Treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 20,663 | $ 22,729 | $ 63,762 | $ 73,892 |
Seller marketplace services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 20,467 | 22,504 | 63,239 | 71,597 |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 196 | $ 225 | $ 523 | $ 2,295 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Costs to obtain revenue contracts | $ 500 | $ 500 | $ 500 | ||
Capitalized contract cost, current | 300 | 300 | 300 | ||
Capitalized contract cost, noncurrent | 200 | 200 | $ 200 | ||
Amortization of costs to obtain revenue contracts | $ 100 | $ 100 | $ 242 | $ 233 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short-term Investments (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 110,684,000 | |
Unrealized Gain | 10,000 | |
Unrealized Loss | (142,000) | |
Fair Value | 110,552,000 | $ 0 |
Commercial paper | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 15,589,000 | |
Unrealized Gain | 0 | |
Unrealized Loss | (17,000) | |
Fair Value | 15,572,000 | |
Corporate notes | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 7,134,000 | |
Unrealized Gain | 0 | |
Unrealized Loss | (12,000) | |
Fair Value | 7,122,000 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 22,786,000 | |
Unrealized Gain | 0 | |
Unrealized Loss | (29,000) | |
Fair Value | 22,757,000 | |
U.S. Government agency securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 65,175,000 | |
Unrealized Gain | 10,000 | |
Unrealized Loss | (84,000) | |
Fair Value | $ 65,101,000 |
Short-Term Investments - Short-
Short-Term Investments - Short-Term Investments Remaining Contractual Maturity (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Remaining maturity date one year or less | $ 99,000,000 | |
Remaining maturity date greater than one year | 11,552,000 | |
Total short-term investments | $ 110,552,000 | $ 0 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 25,201 | $ 24,539 |
Less: Accumulated depreciation and amortization | (21,918) | (20,854) |
Total property and equipment, net | 3,283 | 3,685 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 19,047 | 18,418 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 3,605 | 3,594 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,131 | 1,114 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 898 | 851 |
Software in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 520 | $ 562 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||||
Net book value of internal-use software | $ 2.6 | $ 2.6 | $ 3 | ||
Depreciation | 0.4 | $ 0.7 | 1.8 | $ 2.1 | |
Internal-use software amortization expense | $ 0.4 | $ 0.7 | 1.7 | $ 2 | |
Accelerated amortization | $ 0.5 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Shipping | $ 3,213 | $ 3,597 |
Salaries & benefits | 3,267 | 1,862 |
Sales & use taxes payable | 1,159 | 1,378 |
Allowance for transaction losses | 1,200 | 1,327 |
Restructuring charges | 630 | 0 |
Payment processor fees | 525 | 970 |
Allowance for e-commerce returns | 392 | 438 |
Other | 937 | 1,189 |
Total accrued expenses | $ 11,323 | $ 10,761 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||||||
Apr. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jan. 15, 2024 | Nov. 01, 2023 ft² | Oct. 01, 2023 | Aug. 01, 2023 | Dec. 31, 2022 USD ($) | |
Lessor, Lease, Description [Line Items] | ||||||||||
Operating lease right-of-use assets | $ 20,073,000 | $ 20,073,000 | $ 21,990,000 | |||||||
Operating lease liabilities, current | 2,891,000 | 2,891,000 | 2,770,000 | |||||||
Operating lease liabilities, non-current | $ 19,494,000 | $ 19,494,000 | $ 21,678,000 | |||||||
Operating lease liabilities, weighted-average remaining lease term | 6 years 3 months | 6 years 3 months | ||||||||
Operating lease liabilities, weighted-average discount rate | 5.90% | 5.90% | ||||||||
Lease payments | $ 1,000,000 | $ 1,100,000 | $ 3,100,000 | $ 3,200,000 | ||||||
Sublease abatement provision term | 5 months | |||||||||
Brokerage fee payments | 1,100,000 | |||||||||
Sublease income | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Subsequent Event | ||||||||||
Lessor, Lease, Description [Line Items] | ||||||||||
Sublease rentable space, percentage | 1 | 0.78 | ||||||||
Sublease monthly rental payments | $ 300,000 | |||||||||
Lessee, lease not yet commenced, net rentable area | ft² | 13,671 | |||||||||
Lessee, lease not yet commenced, term of contract | 5 years | |||||||||
Lessee, lease not yet commenced, initial abatement term | 7 months | |||||||||
Lessee, lease not yet commenced, renewal term | 5 years |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 991 | $ 1,000 | $ 2,979 | $ 2,987 |
Short-term lease expense | 33 | 22 | 87 | 100 |
Variable lease expense | 196 | 287 | 772 | 776 |
Total lease expense | $ 1,220 | $ 1,309 | $ 3,838 | $ 3,863 |
Leases - Remaining Operating Le
Leases - Remaining Operating Lease Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 (remaining) | $ 1,020 |
2024 | 4,114 |
2025 | 4,292 |
2026 | 4,292 |
2027 | 4,292 |
Thereafter | 8,583 |
Total operating lease payments | 26,593 |
Less: imputed interest | (4,208) |
Total lease liabilities | $ 22,385 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Sales and use tax contingencies | $ 1,946 | $ 1,863 |
Buyer deposits | 392 | 318 |
Deferred revenue | 99 | 140 |
Other | 196 | 108 |
Total other current liabilities | $ 2,633 | $ 2,429 |
Equity - Reserved Shares of Com
Equity - Reserved Shares of Common Stock for Issuance (Details) - shares | Sep. 30, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 12,401,640 | 11,173,994 |
Options to purchase common stock | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 3,930,336 | 4,034,287 |
Restricted stock units | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 4,116,974 | 2,807,981 |
Shares available for future grant under the ESPP | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 1,572,504 | 1,179,902 |
2021 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 2,781,826 | 3,151,824 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | 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 | |
Treasury stock, common (in shares) | 334,959 | 0 | |
Treasury stock, value, acquired, cost method | $ 1,400 | ||
Treasury common stock, value | 1,377 | $ 0 | |
Stock repurchase program, remaining authorized repurchase amount | $ 18,600 |
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, 2023 | Jan. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options granted (in shares) | 0 | 0 | 0 | ||||
Aggregate intrinsic value of stock options exercised | $ 100 | $ 200 | $ 100 | $ 1,100 | |||
Weighted-average grant-date fair value of stock options granted (in usd per share) | $ 4.43 | $ 4.43 | |||||
Fair value of stock options vested | 700 | $ 800 | 2,700 | $ 3,400 | |||
Total stock-based compensation expense | $ 2,982 | $ 3,154 | $ 9,340 | $ 7,662 | |||
Weighted-average grant date fair value of restricted stock units granted (in usd per share) | $ 4.11 | $ 7.23 | $ 3.95 | $ 7.61 | |||
Grant date fair value of restricted stock units vested | $ 2,000 | $ 2,100 | $ 7,200 | $ 4,300 | |||
Share-based compensation capitalized | 100 | 100 | 100 | $ 100 | |||
Unrecognized compensation expense | 27,000 | $ 27,000 | |||||
Options to purchase common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value assumptions, expected term | 6 years | ||||||
Fair value assumptions, expected volatility rate | 64.60% | ||||||
Fair value assumptions, risk free interest rate | 2.30% | ||||||
Unrecognized compensation expense, weighted-average period for recognition | 2 years 4 months 24 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 expense | $ 200 | $ 200 | $ 500 | $ 600 | |||
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 | ||||||
Shares available for future grant under the ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum shares that may be issued (in shares) | 1,572,504 | 1,572,504 | |||||
Maximum number of shares that may be issued, annual increase percentage | 1% | ||||||
Increase in common stock available for future issuance (in shares) | 392,602 | ||||||
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 period | 1 year | ||||||
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% | ||||||
Increase in common stock available for future issuance (in shares) | 1,963,010 | ||||||
Shares available for future grants (in shares) | 2,781,826 | 2,781,826 |
Stock-based compensation - Stoc
Stock-based compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Number of Options | ||||
Outstanding (in shares) | 4,034,287 | |||
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (19,978) | |||
Cancelled/Forfeited (in shares) | (83,973) | |||
Outstanding (in shares) | 3,930,336 | 3,930,336 | 4,034,287 | |
Options exercisable (in shares) | 2,799,980 | 2,799,980 | ||
Options vested and expected to vest (in shares) | 3,930,336 | 3,930,336 | ||
Weighted-Average Exercise Price | ||||
Outstanding (in usd per share) | $ 6.90 | |||
Granted (in usd per share) | 0 | |||
Exercised (in usd per share) | 3.90 | |||
Cancelled/Forfeited (in usd per share) | 6.38 | |||
Outstanding (in usd per share) | $ 6.92 | 6.92 | $ 6.90 | |
Options exercisable (in usd per share) | 6.27 | 6.27 | ||
Options vested and expected to vest (in usd per share) | $ 6.92 | $ 6.92 | ||
Weighted Average Remaining Contractual Term | ||||
Outstanding | 6 years 1 month 6 days | 6 years 10 months 24 days | ||
Exercisable | 5 years 4 months 24 days | |||
Vested and expected to vest | 6 years 1 month 6 days | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 0 | $ 0 | $ 1,625 | |
Exercisable | 0 | 0 | ||
Vested and expected to vest | $ 0 | $ 0 |
Stock-based compensation - Rest
Stock-based compensation - Restricted Stock Units Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Outstanding Restricted Stock Units | ||||
Outstanding (in shares) | 2,807,981 | |||
Granted (in shares) | 2,992,595 | |||
Vested (in shares) | (1,106,204) | |||
Cancelled (in shares) | (577,398) | |||
Outstanding (in shares) | 4,116,974 | 4,116,974 | ||
Weighted-Average Grant Date Fair Value | ||||
Outstanding (in usd per share) | $ 7.85 | |||
Granted (in usd per share) | $ 4.11 | $ 7.23 | 3.95 | $ 7.61 |
Vested (in usd per share) | 6.54 | |||
Cancelled (in usd per share) | 7 | |||
Outstanding (in usd per share) | $ 5.49 | $ 5.49 |
Stock-based compensation - Clas
Stock-based compensation - Classification of Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 2,982 | $ 3,154 | $ 9,340 | $ 7,662 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 75 | 149 | 312 | 402 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 727 | 704 | 2,176 | 1,765 |
Technology development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 792 | 1,134 | 2,802 | 2,865 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 1,388 | $ 1,167 | $ 4,050 | $ 2,630 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net loss | $ (3,305) | $ (9,028) | $ (19,758) | $ (15,677) |
Denominator: | ||||
Weighted average common shares outstanding—basic (in shares) | 39,962,932 | 38,668,231 | 39,647,716 | 38,291,977 |
Weighted average common shares outstanding—diluted (in shares) | 39,962,932 | 38,668,231 | 39,647,716 | 38,291,977 |
Net loss per share—basic (in usd per share) | $ (0.08) | $ (0.23) | $ (0.50) | $ (0.41) |
Net loss per share—diluted (in usd per share) | $ (0.08) | $ (0.23) | $ (0.50) | $ (0.41) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 8,047,310 | 7,156,979 |
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 | 3,930,336 | 4,202,430 |
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 | 4,116,974 | 2,954,549 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 28,795 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of commitments under purchase obligations (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Lease Obligations | |
2023 (remaining) | $ 1,020 |
2024 | 4,114 |
2025 | 4,292 |
2026 | 4,292 |
2027 | 4,292 |
Thereafter | 8,583 |
Total operating lease payments | 26,593 |
Other Obligations | |
2023 (remaining) | 372 |
2024 | 1,291 |
2025 | 506 |
2026 | 33 |
2027 | 0 |
Thereafter | 0 |
Total | 2,202 |
Total Obligations | |
2023 (remaining) | 1,392 |
2024 | 5,405 |
2025 | 4,798 |
2026 | 4,325 |
2027 | 4,292 |
Thereafter | 8,583 |
Total | $ 28,795 |