Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40956 | |
Entity Registrant Name | Udemy, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1779864 | |
Entity Address, Address Line One | 600 Harrison Street | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94107 | |
City Area Code | 415 | |
Local Phone Number | 813-1710 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | UDMY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 139,654,592 | |
Amendment Flag | false | |
Entity Central Index Key | 0001607939 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 510,965 | $ 533,868 |
Accounts receivable, net of allowance for doubtful accounts of $678 and $678 as of March 31, 2022 and December 31, 2021, respectively. | 67,699 | 73,180 |
Prepaid expenses and other current assets | 15,279 | 15,927 |
Deferred contract costs, current | 23,074 | 18,898 |
Total current assets | 617,017 | 641,873 |
Property and equipment, net | 8,937 | 9,887 |
Capitalized software, net | 21,693 | 20,054 |
Operating lease right-of-use assets | 15,994 | |
Restricted cash, non-current | 3,629 | 2,900 |
Deferred contract costs, non-current | 27,927 | 25,647 |
Strategic investments | 15,000 | 10,000 |
Intangible assets, net | 12,531 | 13,597 |
Goodwill | 12,646 | 12,646 |
Other assets | 3,516 | 3,247 |
Total assets | 738,890 | 739,851 |
Current liabilities: | ||
Accounts payable | 16,275 | 34,627 |
Accrued expenses and other current liabilities | 35,697 | 40,140 |
Content costs payable | 31,606 | 35,961 |
Accrued compensation and benefits | 20,909 | 22,341 |
Operating lease liabilities, current | 7,410 | |
Deferred revenue, current | 227,701 | 208,274 |
Total current liabilities | 339,598 | 341,343 |
Deferred revenue, non-current | 2,817 | 2,280 |
Operating lease liabilities, non-current | 11,458 | |
Other liabilities, non-current | 4,509 | 6,528 |
Total liabilities | 358,382 | 350,151 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Preferred stock, $0.00001 par value- 50,000,000 shares authorized; zero shares issued and outstanding as of March 31, 2022 and December 31, 2021. | 0 | 0 |
Common stock, $0.00001 par value - 950,000,000 shares authorized; 139,573,416 and 139,164,693 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively. | 1 | 1 |
Additional paid-in capital | 864,676 | 848,229 |
Accumulated other comprehensive income (loss) | 9 | (1) |
Accumulated deficit | (484,178) | (458,529) |
Total stockholders’ equity | 380,508 | 389,700 |
Total liabilities and stockholders' equity | $ 738,890 | $ 739,851 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 678 | $ 678 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 950,000,000 | 950,000,000 |
Common stock, shares issued (in shares) | 139,573,416 | 139,164,693 |
Common stock, shares outstanding (in shares) | 139,573,416 | 139,164,693 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 152,223 | $ 124,550 |
Cost of revenue | 66,438 | 57,923 |
Gross profit | 85,785 | 66,627 |
Operating expenses | ||
Sales and marketing | 66,878 | 53,239 |
Research and development | 22,570 | 15,413 |
General and administrative | 21,653 | 14,413 |
Total operating expenses | 111,101 | 83,065 |
Loss from operations | (25,316) | (16,438) |
Other income (expense) | ||
Interest income (expense), net | 243 | (218) |
Other expense, net | (244) | (428) |
Total other expense, net | (1) | (646) |
Net loss before taxes | (25,317) | (17,084) |
Income tax provision | (332) | (905) |
Net loss attributable to common stockholders | $ (25,649) | $ (17,989) |
Net loss per share attributable to common stockholders | ||
Basic (in dollars per share) | $ (0.18) | $ (0.50) |
Diluted (in dollars per share) | $ (0.18) | $ (0.50) |
Weighted-average shares used in computing net loss per share attributable to common stockholders | ||
Basic (in shares) | 139,405,294 | 36,178,304 |
Diluted (in shares) | 139,405,294 | 36,178,304 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (25,649) | $ (17,989) |
Foreign currency translation gains | 10 | 0 |
Comprehensive loss | $ (25,639) | $ (17,989) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Deficit - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Redeemable convertible preferred stock, beginning balance (in shares) at Dec. 31, 2020 | 85,391,338 | ||||
Redeemable convertible preferred stock, beginning balance at Dec. 31, 2020 | $ 274,104 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Exercise of Series A-1 redeemable convertible preferred stock warrants (in shares) | 12,595 | ||||
Exercise of Series A-1 redeemable convertible preferred stock warrants | $ 163 | ||||
Redeemable convertible preferred stock, ending balance balance (in shares) at Mar. 31, 2021 | 85,403,933 | ||||
Redeemable convertible preferred stock, ending balance at Mar. 31, 2021 | $ 274,267 | ||||
Beginning balance (in shares) at Dec. 31, 2020 | 35,627,503 | ||||
Beginning balance at Dec. 31, 2020 | (260,685) | $ 0 | $ 117,818 | $ 0 | $ (378,503) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 10,562 | 10,562 | |||
Exercise of stock options (in shares) | 1,458,200 | ||||
Exercise of stock options | 4,698 | 4,698 | |||
Cumulative translation adjustment | 0 | ||||
Net loss | (17,989) | (17,989) | |||
Ending balance (in shares) at Mar. 31, 2021 | 37,085,703 | ||||
Ending balance at Mar. 31, 2021 | $ (263,414) | $ 0 | 133,078 | 0 | (396,492) |
Redeemable convertible preferred stock, beginning balance (in shares) at Dec. 31, 2021 | 0 | ||||
Redeemable convertible preferred stock, beginning balance at Dec. 31, 2021 | $ 0 | ||||
Redeemable convertible preferred stock, ending balance balance (in shares) at Mar. 31, 2022 | 0 | ||||
Redeemable convertible preferred stock, ending balance at Mar. 31, 2022 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2021 | 139,164,693 | ||||
Beginning balance at Dec. 31, 2021 | 389,700 | $ 1 | 848,229 | (1) | (458,529) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 14,930 | 14,930 | |||
Exercise of stock options (in shares) | 376,578 | ||||
Exercise of stock options | 1,517 | 1,517 | |||
Vesting of restricted stock units (in shares) | 32,145 | ||||
Cumulative translation adjustment | 10 | 10 | |||
Net loss | (25,649) | (25,649) | |||
Ending balance (in shares) at Mar. 31, 2022 | 139,573,416 | ||||
Ending balance at Mar. 31, 2022 | $ 380,508 | $ 1 | $ 864,676 | $ 9 | $ (484,178) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (25,649) | $ (17,989) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,967 | 3,069 |
Amortization of deferred sales commissions | 6,582 | 3,481 |
Stock-based compensation | 13,342 | 10,512 |
Provision for doubtful accounts | 110 | 3 |
Non-cash operating lease expense | 1,573 | |
Other | 75 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,371 | 2,039 |
Prepaid expenses and other assets | 198 | (2,738) |
Deferred contract costs | (13,038) | (7,956) |
Accounts payable, accrued expenses and other liabilities | (21,964) | (16,265) |
Content costs payable | (4,355) | (1,986) |
Operating lease liabilities | (1,151) | |
Deferred revenue | 19,964 | 14,072 |
Net cash used in operating activities | (13,975) | (13,758) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (156) | (933) |
Capitalized software costs | (3,121) | (3,289) |
Purchases of strategic investments | (5,000) | 0 |
Net cash used in investing activities | (8,277) | (4,222) |
Cash flows from financing activities: | ||
Net proceeds from exercise of Series A-1 redeemable convertible preferred stock warrants | 0 | 2 |
Net proceeds from exercise of stock options | 1,658 | 4,489 |
Payment of redeemable convertible preferred stock issuance costs | 0 | (2,250) |
Payment of deferred offering costs | (1,586) | 0 |
Net cash provided by financing activities | 72 | 2,241 |
Effect of foreign exchange rates on cash flows | 6 | 0 |
Net decrease in cash, cash equivalents and restricted cash | (22,174) | (15,739) |
Cash, cash equivalents and restricted cash—Beginning of period | 536,768 | 177,931 |
Cash, cash equivalents and restricted cash—End of period | 514,594 | 162,192 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 2 | 53 |
Income taxes paid | 64 | 29 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unpaid deferred offering costs | 0 | 58 |
Stock-based compensation in capitalized costs | 1,311 | 457 |
Changes in purchases of property and equipment in accounts payable and accrued expenses | $ 523 | $ 71 |
Organization and description of
Organization and description of business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and description of business | Organization and description of business Description of business Udemy, Inc. (“Udemy” or the “Company”) was incorporated in January 2010 under the laws of the state of Delaware. The Company is headquartered in San Francisco, California. Udemy is a global marketplace platform for teaching and learning, connecting millions of learners to the skills they need to succeed. The Company’s platform allows learners all over the world to access affordable and relevant content from expert instructors. Udemy combines high-quality content, insights and analytics, and technology into a single, unified platform that is purpose-built to meet the specific needs of both individual learners and enterprise customers. Initial public offering On October 29, 2021, the Company completed its initial public offering ("IPO") of common stock, in which it sold 14,500,000 shares. The shares were sold at a price to the public of $29.00 per share for net proceeds of $397.4 million, after deducting underwriting discounts and commissions of $23.1 million. Underwriters were granted an option for a period of 30 days to purchase up to 2,175,000 additional shares of common stock. Upon the completion of the IPO, deferred offering costs of $6.8 million were reclassified into additional paid-in capital as a reduction of the net proceeds received from the IPO. Upon the closing of the IPO, all outstanding shares of the Company’s redeemable convertible preferred stock automatically converted into 85,403,933 shares of common stock on a one-for-one basis. On November 24, 2021, the underwriters exercised the right to purchase 650,000 additional shares of common stock from the Company, resulting in additional net proceeds of $17.8 million, after deducting underwriting discounts and commissions of $1.0 million. The remaining option to purchase additional shares expired unexercised at the end of the 30 day period. |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of consolidation and presentation —The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation, and all other normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results of the periods presented have been made. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was originally filed with the SEC on March 25, 2022. Segment information —The Company defines its segments as those operations the chief operating decision maker (“CODM”), determined to be the Chief Executive Officer of the Company, regularly reviews to allocate resources and assess performance. For the three months ended March 31, 2022 and 2021, the Company operated under two operating and reportable segments: Consumer and Enterprise. The Company continually monitors and reviews its segment reporting structure in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting, to determine whether any changes have occurred that would impact its reportable segments. For further information on the Com pany’s segment reporting, see Note 16 “Segment and geographic information.” Use of estimates —The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the results of operations during the reporting periods. Significant estimates and assumptions reflected in the condensed consolidated financial statements include, but are not limited to, allowance for doubtful accounts, useful lives of property and equipment, capitalization of internally developed software and associated useful lives, the carrying value of operating lease right-of-use assets, stock-based compensation, determination of the income tax valuation allowance and the potential outcome of uncertain tax positions, estimated instructor withholding tax obligations, estimated period of consumption for consumer learners’ single course purchases, the period of benefit for deferred commissions, the fair value and associated useful lives of intangible assets and goodwill acquired via business combinations, and the valuation of privately-held strategic investments, including impairments. Management periodically evaluates such estimates and assumptions for continued reasonableness. Actual results may ultimately differ from management’s estimates and such differences could be material to the financial position and results of operations. Coronavirus disease 2019 (“COVID-19”) —In March 2020, the World Health Organization declared the outbreak of the coronavirus disease named COVID-19 a pandemic. The COVID-19 pandemic has created and may continue to create significant uncertainty in global financial markets. This uncertainty may positively or adversely impact certain aspects of the business, including but not limited to customer demand and spending, the ability to raise capital, impairment of assets, and cash collections. While the Company has not experienced a material negative impact to its business, results of operations, financial position, and liquidity, the future duration, impact, and disruption of the COVID-19 outbreak to the Company’s operations is uncertain. Concentration of credit risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, and accounts receivable. For cash, cash equivalents, and restricted cash, the Company is exposed to credit risk in the event of default by the financial institutions to the extent the amounts recorded on the accompanying condensed consolidated balance sheets are in excess of federal insurance limits. The Company generally does not require collateral or other security in support of accounts receivable. To reduce credit risk, management performs ongoing evaluations of its customers’ financial condition. The Company analyzes the need for reserves for potential credit losses and records allowances for doubtful accounts when necessary . The Company had one customer, a reseller partner for the Enterprise segment, who accounted for 10% of total accounts receivable as of March 31, 2022. The Company had no customers which accounted for more than 10% of total accounts receivable as of December 31, 2021. No customer accounted for more than 10% of total revenue during the three months ended March 31, 2022 and 2021. Summary of significant accounting policies —Except as described below, there were no significant changes to the Company’s significant accounting policies disclosed in Note 2 “Summary of significant accounting policies” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was originally filed with the SEC on March 25, 2022 . Restricted cash —Restricted cash primarily consists of cash restricted in connection with lease agreements for the Company’s facilities. Restricted cash is included in current assets for leases that expire within one year from the balance sheet date and in non-current assets for leases that expire in more than one year from the balance sheet date. As of March 31, As of December 31, Reconciliation of cash, cash equivalents and restricted cash 2022 2021 Cash and cash equivalents $ 510,965 $ 533,868 Restricted cash, non-current 3,629 2,900 Total cash, cash equivalents and restricted cash $ 514,594 $ 536,768 Accounts receivable and allowance for doubtful accounts— Accounts receivable represent amounts owed to the Company for Enterprise subscriptions. Also included in accounts receivable are amounts due from payment processors or mobile application store partners that settle over a period longer than five business days. Accounts receivable balances are recorded at the invoiced amount and are non-interest-bearing. Accounts receivable are presented net of allowances for doubtful accounts. Management assesses the Company’s ability to collect outstanding receivables and records allowances when collection becomes doubtful. The provision for bad debt is recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations. These estimates are based on the assessment of the credit worthiness of the Company’s customers based on multiple sources of information and analysis of such factors as the Company’s historical collection experience and industry and geographic concentrations of credit risk. Accounts receivable deemed to be uncollectible are written off, net of any amounts that may be collected. Balance at Beginning of Period Charged to Expenses Charges Utilized/Written-off Balance at End of Period Allowance for doubtful accounts Three Months Ended March 31, 2022 $ 678 $ 110 $ (110) $ 678 Three Months Ended March 31, 2021 $ 643 $ 3 $ (26) $ 620 Fair value of financial instruments— The Company considers fair value 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 at the measurement date. Valuation techniques used to measure fair value are either observable or unobservable. Observable inputs reflect assumptions that market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based on their own market assumptions. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Inputs are observable, unadjusted quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data; and Level 3—Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The carrying amounts of cash, cash equivalents, restricted cash, and accounts receivable, as well as accounts payable, approximate fair value due to the relatively short-term maturities and are classified as short-term assets and liabilities, respectively, in the accompanying consolidated balance sheets. The fair value measurements of assets that are measured at fair value on a recurring basis are as follows (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 March 31, 2022 Strategic investments $ — $ — $ 15,000 Total as of March 31, 2022 $ — $ — $ 15,000 The Company did not hold any strategic investments as of March 31, 2021. The fair value measurements of liabilities that are measured at fair value on a recurring basis are as follows (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 March 31, 2022 Cash settled stock appreciation rights $ — $ — $ 508 Total as of March 31, 2022 $ — $ — $ 508 March 31, 2021 Cash settled stock appreciation rights $ — $ — $ 674 Total as of March 31, 2021 $ — $ — $ 674 During the three months ended March 31, 2021, the remaining outstanding 12,595 warrants to purchase Series A-1 redeemable convertible preferred stock were exercised for an immaterial amount of cash proceeds at an exercise price of $0.196 per share. The Company reclassified the $0.2 million fair value of the warrants into Series A-1 redeemable convertible preferred stock on the consolidated balance sheet. The change in fair value of the warrants during three months ended March 31, 2021 was immaterial. A summary of the changes in the fair value of Level 3 financial instruments, of which remeasurement of stock appreciation rights are recognized in the condensed consolidated statements of operations, is as follows (in thousands): Warrants Stock Appreciation Rights Strategic Investments Balance— December 31, 2021 $ — $ 818 $ 10,000 Vesting and remeasurement of stock appreciation rights — (310) — Purchases of strategic investments — — 5,000 Balance— March 31, 2022 $ — $ 508 $ 15,000 Balance— December 31, 2020 $ 160 $ 268 $ — Exercise of redeemable convertible preferred stock warrants (160) — — Vesting and remeasurement of stock appreciation rights — 406 — Balance— March 31, 2021 $ — $ 674 $ — Operating leases— The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2026. The Company determines if an arrangement contains a lease at inception based on whether there is an identified tangible asset and whether the Company controls the use of the identified asset throughout the period of use. The Company adopted Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842) on January 1, 2022. Operating leases are included in operating lease right-of-use (“ROU”) assets and in operating lease liabilities in the accompanying condensed consolidated balance sheet. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company measures its operating lease liabilities at lease inception date based on the present value of total lease payments over the lease term. Total lease payments are discounted to present value using the more readily determinable of (i) the rate implicit in the lease or (ii) the Company’s incremental borrowing rate (which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease). Because the Company’s operating leases generally do not provide an implicit rate, the Company estimates its incremental borrowing rate using information available at the lease commencement date, including but not limited to credit rating, lease term, and the currency in which the arrangement is denominated. The Company’s operating lease ROU assets are equal to the corresponding operating lease liability, adjusted for payments made to the lessor at or before the commencement date, initial direct costs incurred, and tenant incentives under the lease. The Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options at commencement. The Company does not allocate consideration between lease and non-lease components. Variable lease payments, such as those for common area maintenance or property taxes, are not included in the measurement of operating lease liabilities and are expensed as incurred. In addition, the Company does not recognize operating ROU assets or operating lease liabilities for leases with a term of 12 months or less for all asset classes. Operating lease expense is recognized on a straight-line basis over the lease term. Lease accounting prior to the adoption of Topic 842 The Company recorded total rent expense on a straight-line basis over the lease term consistent with Topic 840. The Company recorded the difference between cash rent payments and straight-line rent expense, generally due to rent escalations and tenant improvement allowances, as a deferred rent liability within accrued expenses and other current liabilities and other liabilities, non-current, each of which were immaterial as of December 31, 2021. Recently Adopted Accounting Pronouncements —In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted the standard with an effective date of January 1, 2021 using the prospective transition adoption approach. Capitalized implementation costs are recorded in prepaid expenses and other current assets and other assets in the condensed consolidated balance sheet. The adoption of this ASU did not have a material impact on the condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires a lessee to record an asset representing the lessees’ right to use the underlying asset and a liability to make lease payments. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. The Company adopted Topic 842 on January 1, 2022, using the modified retrospective approach. The Company elected the package of practical expedients, the use of hindsight in determining the lease term, and the practical expedient to not recognize an operating ROU asset or operating lease liability for leases with a term of 12 months or less. Upon adoption, the Company recognized $17.6 million in operating ROU assets and $20.0 million in operating lease liabilities in its condensed consolidated balance sheets. The difference between the amounts of operating ROU assets and operating lease liabilities consisted of deferred rent and prepaid rent that were derecognized upon transition. There was no adoption date impact to accumulated deficit, and adoption of the new standard did not have a material impact on the Company’s condensed consolidated statements of operations or cash flows. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which aims to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to (1) recognition of an acquired contract liability and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. The Company elected to early adopt this standard on a prospective basis on January 1, 2022. There has been no impact of adoption to date, as the Company has not entered into any business combinations since adoption. The Company is an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an EGC or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. New accounting pronouncements not yet adopted —In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The FASB issued ASU 2019-10 in November 2019, which deferred the effective date for nonpublic entities, including EGCs, that had not yet adopted the original ASU. Under the amended guidance, the standard will be effective for the Company’s fiscal year beginning after December 15, 2022, and early adoption is still permitted. The Company is currently assessing the potential impact of the new standard on the Company’s condensed consolidated financial statements. In December 31, 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles of income taxes and reducing the cost and complexity in accounting for income taxes. The ASU is effective for the Company’s fiscal year beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently assessing the potential impact of the new standard on the Company’s condensed consolidated financial statements. |
Revenue recognition
Revenue recognition | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | Revenue recognition Deferred revenue — Revenue recognized for the three months ended March 31, 2022 from amounts included in deferred revenue as of December 31, 2021 w as $111.4 million. Revenue recognized for the three months ended March 31, 2021 from amounts included in deferred revenue as of December 31, 2020 was $85.3 million. The below table presents a summary of deferred revenue balances by reportable segment (in thousands): March 31, December 31, December 31, 2022 2021 2020 Deferred revenue: Enterprise $ 171,780 $ 148,966 $ 84,241 Consumer 58,738 61,588 58,135 Total deferred revenue $ 230,518 $ 210,554 $ 142,376 Remaining performance obligations — Remaining performance obligations represent the aggregate amount of the transaction price in contracts for performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations relate to unearned revenue from Consumer single course purchase arrangements and unearned and unbilled revenue from multi-year Enterprise subscription contracts with future installment payments at the end of any given period. As of March 31, 2022, the aggregate transaction price for remaining performance obligations was $368.5 million, of which 72% is expected to be recognized during over the next twelve months and the remainder thereafter. Deferred contract costs — The following table represents a rollforward of the Company’s deferred contract costs (in thousands): Balance at Beginning of Period Additions Amortization Expense Balance at End of Period Three Months Ended March 31, 2022 44,545 13,038 (6,582) 51,001 Three Months Ended March 31, 2021 25,838 7,956 (3,481) 30,313 |
Consolidated balance sheet comp
Consolidated balance sheet components | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated balance sheet components | Consolidated balance sheet components Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2022 2021 Prepaid expenses $ 11,735 $ 12,465 Capitalized cloud computing costs, current 735 808 Short term deposits 340 745 Other current assets 2,469 1,909 Prepaid expenses and other current assets $ 15,279 $ 15,927 Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2022 2021 Computers and equipment $ 7,001 $ 6,798 Furniture and fixtures 4,702 4,701 Purchased software 383 383 Leasehold improvements 19,002 18,932 Construction in progress 13 18 Total property and equipment 31,101 30,832 Less accumulated depreciation and amortization (22,164) (20,945) Property and equipment, net $ 8,937 $ 9,887 Depreciation expense w as $1.2 million a nd $1.1 million for the three months ended March 31, 2022 and 2021, respectively. Capitalized software, net consisted of the following (in thousands): March 31, December 31, 2022 2021 Capitalized software $ 48,167 $ 43,804 Less accumulated amortization (26,474) (23,750) Capitalized software, net $ 21,693 $ 20,054 Amortization expense of capitalized software was $2.7 million and $2.0 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, expected amortization expense for capitalized software over the remaining asset lives is as follows (in thousands): Remainder of 2022 $ 8,180 2023 8,782 2024 4,457 2025 274 Total expected amortization $ 21,693 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company adopted Topic 842 as of January 1, 2022 using the modified retrospective approach. The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2026. During the three months ended March 31, 2022, the Company recorded operating lease costs of $1.7 million and variable lease costs of $0.2 million. During the three months ended March 31, 2022, the Company recorded an immaterial amount for short term lease expense and sublease income, and did not enter into any new leases. The following table sets forth a summary of and other information pertaining to the Company’s operating leases for the three months ended March 31, 2022 (dollar amounts in thousands): Three Months Ended March 31, 2022 Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives $ 1,151 Weighted average remaining term (years) 2.7 Weighted average discount rate 3.8 % Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year as of March 31, 2022, were as follows (in thousands): Remainder of 2022 $ 5,697 2023 7,176 2024 5,825 2025 809 2026 410 Gross lease payments 19,917 Less imputed interest (1,049) Present value of operating lease liabilities $ 18,868 Future minimum lease payments as measured under Topic 840 for noncancellable operating leases as of December 31, 2021, were as follows (in thousands): 2022 $ 7,826 2023 7,212 2024 5,921 2025 809 2026 410 Total lease commitments $ 22,178 |
Strategic investments
Strategic investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Strategic investments | Strategic investments In the fiscal year ended December 31, 2021, the Company made a strategic investment of $10.0 million in cash for preferred shares of privately held online education platform technology company. On February 28, 2022, the Company completed the second tranche purchase of this investment, which resulted in an incremental cash investment of $5.0 million, for a total value of $15.0 million. The estimation of fair value for this investment requires the use of significant unobservable inputs, and as a result, the Company classifies this investment as Level 3 within the fair value hierarchy. The carrying value of this investment is adjusted based on price changes from observable transactions of identical or similar securities of the same issuer (referred to as the measurement alternative) or for impairment. Any changes in carrying value are recorded within other expense, net in the condensed consolidated statements of operations. As of March 31, 2022, there have been no observable transactions that would cause the Company to adjust the carrying amount of the investment, resulting in no realized or unrealized gains or losses for the three months ended March 31, 2022. The Company evaluates this investment for impairment at each reporting period based on a qualitative assessment that considers various potential impairment indicators. This evaluation consists of several factors including, but not limited to, an assessment of a significant adverse change in the economic environment, significant adverse changes in the general market condition of the geographies and industries in which the investee operates, and other publicly available information that affects the value of the investment. No adverse factors were noted in the assessment performed as of March 31, 2022, resulting in no impairment losses during the three months ended March 31, 2022. The Company did not own any strategic investments during the three months ended March 31, 2021. |
Business combinations
Business combinations | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business combinations | Business combinations On August 24, 2021, the Company completed its acquisition of CorpU, an online learning platform and content catalog focused on blended executive training. The acquisition is intended to deepen the Company’s UB offerings through CorpU’s cohort-based learning in scalable, virtual environments. The transaction has been accounted for as a business combination. The purchase price was $28.6 million, of which $27.1 million was paid at closing with the remaining balance recorded in the accrued expenses and other current liabilities caption of the accompanying condensed consolidated balance sheets. The remaining balance is expected to be paid in August 2022 after adjustment for any indemnification losses incurred by the Company for which it is entitled to recover. The Company issued 61,300 shares of restricted common stock to a former executive of CorpU, which is not included in the calculation of the acquisition purchase price and is accounted for as post-acquisition stock-based compensation over a three-year term. The total purchase consideration of the CorpU acquisition was allocated to the tangible and intangible assets acquired, and liabilities assumed, based upon their respective fair values as of the date of the acquisition. Management determined the preliminary fair values based on a number of factors, including a valuation from an independent third-party valuation firm. The excess of the purchase price over the net assets acquired was recorded as goodwill. Goodwill is attributable t o the assembled workforce and anticipated synergies arising from the acquisition, and has been allocated to the Enterprise reporting segment for the purposes of annual impairment testing. The goodwill recorded in the acquisition is not expected to be deductible for income tax purposes. The assets acquired and liabilities assumed were recorded at fair value as follows (in thousands): Cash and cash equivalents $ 2,641 Accounts receivable, net 250 Prepaid expenses and other current assets 67 Property and equipment, net 133 Intangible assets 15,100 Goodwill 12,646 Accounts payable and other liabilities (596) Deferred revenue (1,610) Total acquisition consideration $ 28,631 The Company has included the financial results of CorpU in the condensed consolidated financial statements from the date of acquisition, which for the three months ended March 31, 2022, was not material. The business combination does not qualify as an acquisition of a significant business, and therefore pro forma financial statements were not required. |
Intangible assets, net and good
Intangible assets, net and goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net and goodwill | Intangible assets, net and goodwill As of March 31, 2022, intangible assets, net acquired as part of the CorpU business combination were as follows (in thousands): Estimated Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Customer relationships 6 years $ 5,500 $ (552) $ 4,948 Vendor relationships 3 years 4,500 (903) 3,597 Developed technology 3 years 4,200 (843) 3,357 Tradename 2 years 900 (271) 629 Total $ 15,100 $ (2,569) $ 12,531 As of December 31, 2021, intangible assets, net acquired as part of the CorpU business combination were as follows (in thousands): Estimated Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Customer relationships 6 years $ 5,500 $ (323) $ 5,177 Vendor relationships 3 years 4,500 (529) 3,971 Developed technology 3 years 4,200 (493) 3,707 Tradename 2 years 900 (158) 742 Total $ 15,100 $ (1,503) $ 13,597 Amortization expense of intangible assets for the three months ended March 31, 2022 was $1.1 million. The Company did not have any intangible assets during the three months ended March 31, 2021. The expected future amortization expense for intangible assets as of March 31, 2022 was as follows (in thousands): Remainder of 2022 $ 3,200 2023 4,108 2024 2,795 2025 917 2026 917 Thereafter 594 Total expected amortization $ 12,531 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2022 2021 Accrued expenses $ 5,524 $ 7,326 Indirect tax reserves 17,411 18,392 Indirect tax payables 9,790 10,786 Deferred rent, current — 803 Other current liabilities 2,972 2,833 Accrued expenses and other current liabilities $ 35,697 $ 40,140 Indirect tax payables relate to amounts collected from customers on behalf of third-party taxing authorities, primarily on sales in the U.S. and in international jurisdictions. Indirect tax payables also include withholding taxes on payments made to the Company’s instructors before remitting these amounts to the taxing authorities. Indirect tax reserves primarily relate to instructor withholding tax reserves. Instructor withholding tax reserves —The Company conducts operations in many tax jurisdictions throughout the United States and the rest of the world. The Company has an obligation to comply with information reporting and tax withholding requirements with regards to certain payments made to its U.S. and non-U.S. instructors. Under United States federal tax rules, in the case where the Company withholds less than the correct amount of tax or fails to report it, it is liable for the correct amount that it was required to withhold, plus interest and potential penalties. The Company may be entitled to relief on certain payments if the Company can obtain documentation (e.g. taxpayer identification forms) from instructors establishing that the instructor payee qualifies for reduced withholding tax rates, or that the instructor payee reported the payments and paid the corresponding taxes owed. Prior to March 2020, the Company had not obtained appropriate taxpayer identification forms from instructors, nor remitted applicable tax withholding amounts to the U.S. Internal Revenue Service (“IRS”) where required. In accordance with GAAP, the Company recorded a provision for its tax exposure when it was both probable that a liability had been incurred and the amount of the exposure could be reasonably estimated. Given the significant quantity of instructor payments the Company makes in its operations, the Company has applied a statistical sampling approach that is analogous to methods commonly used by the IRS when determining the extent of withholding tax obligations during IRS audits for the historical instructor payments. The instructor withholding provision estimate includes several key assumptions including, but not limited to, the tax characterization of the Company’s payments made to instructors, the historical lookback practices and scoping precedents of the IRS, the methods for sourcing of instructor payments to U.S. and non-U.S. jurisdictions, and management’s estimate of the penalty relief on certain instructor payments it will be entitled to. Beginning in March 2020, the Company began collecting appropriate taxpayer identification forms from its instructors, assessing whether the forms justified a reduced rate of withholding or withholding exemption, and remitting withholding tax payments to the IRS where required. The Company also began reporting payments to its non-U.S. instructors and the IRS annually where required to do so. As of March 31, 2022, the Company determined that it was probable that it would owe an estimated $15.7 million for withholding taxes related to historical payments to its instructors. The Company has recorded this amount in accrued expenses and other liabilities in the accompanying condensed consolidated balance sheets. Changes in the estimated amount the Company has determined it will owe are recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations. Estimated interest is recorded in interest income (expense), net in the accompanying condensed consolidated statement of operations. Changes to the instructor withholding tax reserve are as follows (in thousands): Three Months Ended March 31, 2022 2021 Balance, beginning of period $ 17,036 $ 22,166 Amounts charged to (released from) expense (1,343) 168 Net payments and settlements — — Balance, end of period $ 15,693 $ 22,334 The change in the instructor withholding tax reserve during the three months ended March 31, 2022 is based on a revision of certain key assumptions, including the expected relief on certain instructor payments the Company will be entitled to. In 2020, the Company began approaching the IRS to address the historical withholding amounts for instructors. Final settlement of the matter could differ materially from the estimate recorded in the accompanying condensed consolidated balance sheets, and there exists a reasonable possibility that the Company could incur losses that are significantly more or significantly less than the Company has accrued as of March 31, 2022 and December 31, 2021. The Company estimated a potential range of loss between $12.0 million and $15.7 million as of March 31, 2022. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Noncancellable purchase commitments —The Company has contractual commitments with its cloud infrastructure provider, network service providers and paid advertising vendors that are noncancellable. As of March 31, 2022, the Company had appro ximately $17.3 million worth of future minimum payments under the Company’s noncancellable purchase commitments which are expected to b e paid through 2024. Indemnification —The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including certain business partners, investors, contractors, and the Company’s officers, directors, and certain employees. The Company has agreed to indemnify and defend the indemnified party’s claims and related losses suffered or incurred by the indemnified party resulting from actual or threatened third-party claims because of the Company’s activities or, in some cases, non-compliance with certain representations and warranties made by the Company. In general, the Company does not record any liability for these indemnities in the accompanying condensed consolidated balance sheets as the amounts cannot be reasonably estimated and are not considered probable. The Company does, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable. To date, losses recorded in the Company’s condensed consolidated statements of operations in connection with the indemnification provisions have not been material. Litigation —From time to time, in the ordinary course of business, the Company is subject to legal proceedings, claims, investigations, and other proceedings, including claims of alleged infringement of third-party patents and other intellectual property rights, and commercial, employment, and other matters. In accordance with generally accepted accounting principles, the Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least annually and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. The outcome of such litigation is not expected to have a material effect on the financial position, results of operation and cash flows of the Company. The Company has recorded an immaterial amount related to all outstanding litigation matters as of March 31, 2022. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The provision for income taxes for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that are taken into consideration in the relevant period. Each quarter, the Company updates the estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company records a cumulative adjustment to the provision. The income tax provision for the three months ended March 31, 2022 and 2021 resulted in an effective tax rate of (1.3)% and (5.3)%, respectively. During the three months ended March 31, 2022 , as compared to the same period in the prior year, the effective tax rate decreased primarily due to changes in foreign tax expense and foreign withholding taxes. The difference between the 21% statutory federal tax rate and the effective tax rate was primarily a result of income earned in jurisdictions with higher statutory tax rates, foreign withholding taxes, and tax credits offset by change in valuation allowance. As of March 31, 2022 and December 31, 2021, the Company has provided a valuation allowance against U.S. federal and state deferred tax assets. Management continu es to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. The Company recognizes interest and penalties associated with uncertain tax benefits as part of the income tax provision. To date, the Company has not recognized any interest and penalties in its condensed consolidated statements of operations, nor has it accrued for or made payments for interest and penalties. The Company is subject to taxation in the U.S. and various foreign jurisdictions. Due to NOL carryforwards and tax credit carryforwards, the statutes of limitations remain open for tax years from inception of the Company through 2021. There are currently no income tax audits underway by U.S. federal, state, or foreign tax authorities. |
Employee retirement plan
Employee retirement plan | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee retirement plan | Employee retirement planThe Company maintains a 401(k) retirement savings plan covering eligible employees. Employee contributions to the plan consist of a percentage based on eligible employee compensation. The Company matches 25% of an employee’s contribution up to 6% of the employee’s compensation, with a cap of $500 annually, subject to a two-year graded vesting schedule that vests 50% after an employee’s first year of employment and 100% after two years of employment. The Company contribut ed $0.3 million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Naspers Ltd. (“Naspers”) is affiliated with OLX Group B.V., where a member of the Company’s Board of Directors serves as an executive officer, and Prosus N.V., where another member of the Company’s Board of Directors serves as an executive officer. Naspers, and another entity affiliated with Naspers, are also customers of the Company’s Enterprise subscription offering. The Company recorded $0.4 million and $0.3 million of revenue from services provided to these customers during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company had an accounts receivable balance with these custom ers of $0.1 million and $0.1 million, respectively . Insight Partners, where a member of the Company’s Board of directors is a Managing Director, is affiliated with certain vendors that the Company has contracted to provide technology and software solutions. During the three months ended March 31, 2022 and 2021, respectively, the Company recorded $0.2 million and no general and administrative expenses with these vendors, respectively. As of March 31, 2022 and December 31, 2021, the Company had an accounts payable balance with these vendors of zero and $0.1 million, respectively. A member of the Company’s Board of Directors is a co-founder and current executive officer for a customer of the Company’s Enterprise subscription offering. The Company recorded an immaterial amount of revenue from services provided to this customer during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company had an accounts receivable balance with this customer of $0.2 million and zero, respectively. |
Stockholders' equity
Stockholders' equity | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' equity | Stockholders’ equity Preferred stock— In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 50,000,000 shares of undesignated preferred stock with a par value of $0.00001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors. Common stock— Common stockholders are entitled to one vote per share. The Company had the following common stock reserved for future issuance as of March 31, 2022, and December 31, 2021, respectively: March 31, December 31, 2022 2021 Stock options to purchase common stock (1) 19,703,879 20,342,259 Shares available for future issuance under: 2021 Equity Incentive Plan 10,084,842 11,417,359 2021 Employee Stock Purchase Plan 2,800,000 2,800,000 Total shares of common stock reserved 32,588,721 34,559,618 (1) Excludes 105,623 and 106,155 cash-settled stock appreciation rights (“SARs”) outstanding as of March 31, 2022 and December 31, 2021, respectively. Equity incentive plans— In 2010, the Company adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan provided for incentive stock options (“ISOs”), non-statutory stock options (“NSOs”, collectively with ISOs, “stock options”), SARs, restricted stock, and restricted stock units (“RSUs”) to be granted to eligible employees, directors, and consultants. The 2010 Plan was terminated in October 2021 in connection with the IPO but continues to govern the terms and conditions of the outstanding awards granted pursuant to the 2010 Plan. No further equity awards will be granted under the 2010 Plan. The Company adopted the 2021 Equity Incentive Plan (the "2021 Plan") in September 2021, which became effective on October 28, 2021 (collectively with the 2010 Plan, the “Equity Incentive Plans”) and was approved by the Company’s stockholders. The 2021 Plan provides for the granting of ISOs, NSOs, SARs, restricted stock, RSUs, and performance awards to eligible employees, directors, and consultants. The Company initially reserved 13,800,000 shares for issuance under the 2021 Plan. The amount available for issuance is subject to an annual increase on the first day of each calendar year, beginning on January 1, 2023, in an amount equal to 5% of the outstanding shares of the Company’s common stock on the last day of the immediately preceding calendar year or a lesser amount determined by the Company’s Board of Directors or compensation committee. The amount available for issuance shall also include Returning Shares, which are any shares subject to awards granted under the 2010 Plan that, on or after October 29, 2021, expire or otherwise terminate without having been exercised in full, are tendered to or withheld by the Company for payment of an exercise price or for tax withholding obligations, or are forfeited to or repurchased by the Company due to failure to vest. Stock options —The Company may grant stock options at exercise prices not less than the fair market value at the date of grant. These options generally expire 10 years from the date of grant. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period for each award, which is generally even over four years. The following is a summary of activity for stock options under the Equity Incentive Plans (amounts in thousands, except share and per share amounts): Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 19,942,259 $ 9.70 8.14 $ 226,350 Granted — — Exercised (376,578) 4.03 Canceled (261,802) 15.06 Balance - March 31, 2022 19,303,879 $ 9.74 7.88 $ 102,880 Vested & Expected to Vest as of March 31, 2022 19,303,879 $ 9.74 7.88 $ 102,880 Exercisable as of March 31, 2022 9,129,677 $ 5.30 7.25 $ 67,191 There were no stock options granted during the three months ended March 31, 2022. Total aggregate intrinsic value of options exercised during the three months ended March 31, 2022 and 2021 was $3.9 million and $23.4 million, respectively. As of March 31, 2022, total unrecognized stock-based compensation expense related to unvested stock options was $84.9 million, which will be recognized over a weighted average period of 2.3 years. Stock appreciation rights— The Company may grant SARs at exercise prices not less than the fair market value at the date of grant. The SARs are liability-classified awards that generally expire 10 years from the date of grant. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period for each award, which is generally even over four years. The following is a summary of activity for SARs under the Equity Incentive Plans (amounts in thousands, except share and per share amounts): SARs Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 106,155 $ 8.45 8.25 $ 1,267 Granted — — Exercised — — Canceled (532) 10.02 Balance - March 31, 2022 105,623 $ 8.45 7.95 $ 595 Vested & Expected to Vest as of March 31, 2022 105,623 $ 8.45 7.95 $ 595 Exercisable as of March 31, 2022 55,585 $ 5.57 7.61 $ 384 There were no SARs granted during the three months ended March 31, 2022. As of March 31, 2022, total compensation cost related to unvested SARs not yet recognized was $0.3 million, which will be recognized over a weighted average period of 2.1 years. Restricted stock units— The Company first issued RSU awards in the fiscal year ended December 31, 2021. The fair value of RSUs is determined using the fair value of the Company’s common stock on the date of grant. The Company recognizes stock-based compensation expense for RSUs with service-based vesting conditions on a straight-line basis over the requisite service period for each award, which typically vest over a three A summary of RSU activity under the 2021 Plan is as follows: RSUs Outstanding Weighted Average Grant Date Fair Value Unvested - December 31, 2021 2,545,051 $27.64 Granted 1,683,039 $14.32 Released (32,165) $27.21 Canceled (88,700) $20.90 Unvested - March 31, 2022 4,107,225 $22.33 As of March 31, 2022, total unrecognized stock-based compensation expense related to unvested RSUs was $83.3 million, which will be recognized over a weighted average period of 3.8 years. Performance-based awards— U nder the Equity Incentive Plans, the Company may grant share-based awards whose vesting is contingent on meeting various departmental or company-wide performance goals, such as the achievement of certain sales targets or an IPO event, in lieu of or in addition to a service-based vesting condition (“Performance-Based Awards”). Such awards are generally granted with an exercise price equal to the fair market value of the underlying common stock share on the date of grant and have a contractual term of 10 years. If vesting is dependent on satisfying a performance condition that is probable of being achieved, the Company estimates the expected term as the midpoint between the time at which the performance conditions are probable of being satisfied and the contractual term of the award. If vesting is dependent on satisfying a performance condition that is not probable of being achieved and the service period is not explicitly stated, the Company estimates the expected term as the contractual term. The remaining inputs to the Black-Scholes option pricing model used to determine grant date fair value, including risk-free interest, expected volatility, and expected dividend yield, are calculated using the same method as that used for stock options with service-based vesting conditions. Grants for Performance-Based Awards are made out of the same pool of stock options available for future issuance under the Equity Incentive Plans. Compensation expense for Performance-Based Awards is based on the grant date fair market value. The Company recognizes expense for Performance-Based Awards having either (a) multiple performance-based vesting conditions, or (b) performance and graded service-based vesting conditions, by separately attributing each vesting tranche of the award over the requisite service period applicable to each vesting condition. Management’s estimate of the number of shares expected to vest is based on the anticipated achievement of the specified performance goals. If the performance-based vesting condition is considered probable of being achieved, the Company recognizes expense over the remaining service period based on the probable outcome of achievement. If the performance goals are not met, no compensation cost is recognized, and any previously recognized compensation cost is reversed. For awards with both performance and service-based vesting conditions where the performance condition is considered improbable of being achieved, the Company does not recognize expense until the performance condition is satisfied, after which time expense is recognized over the requisite service period. The Company had two Performance-Based Awards outstanding as of March 31, 2022, and December 31, 2021. In 2018, the Company granted an award of 50,000 stock options that was eligible to vest upon the closing of the Company’s IPO occurring prior to the sixth (6th) anniversary of the date the award was granted and subject to recipient’s continued service to the Company. Upon the completion of the IPO requirement, the options vest in 48 equal monthly installments thereafter, subject to the recipient continuing to provide service to the Company through each vesting date. Prior to the Company’s IPO on October, 29, 2021, management considered the performance-based vesting conditions improbable of being satisfied. Upon completion of the IPO, the performance condition was satisfied, and the Company recognized an immaterial amount of cumulative stock-based compensation expense. In 2020, the Company granted 350,000 stock options with performance-based vesting conditions, with 50% vesting when the Company achieves $230.0 million in UB Annual Recurring Revenue (“ARR”), and the other 50% vesting when the Company achieves $330.0 million in UB ARR. Management considered that both performance-based vesting conditions were probable of being satisfied during the performance period. As such, the Company began recognizing expense for each tranche of the award using the estimated time period by which the performance conditions are probable of being achieved. The $230.0 million UB ARR performance condition was achieved in the fourth quarter of fiscal year 2021, and the Board of Directors’ compensation committee formally certified satisfaction of the performance condition in February 2022. The following table summarizes the activities of Performance-Based Awards under the Equity Incentive Plans (amounts in thousands, except share and per share amounts): Performance-Based Awards Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 400,000 $ 10.12 8.60 $ 3,768 Granted — Exercised — Canceled — Balance - March 31, 2022 400,000 $ 10.12 8.36 $ 936 Vested & Expected to Vest as of March 31, 2022 400,000 $ 10.12 8.36 $ 936 Exercisable as of March 31, 2022 179,166 $ 10.94 8.59 $ 272 As of March 31, 2022, total compensation cost related to unvested Performance-Based Awards not yet recognized was $0.4 million, which will be recognized over a weighted average period of 0.6 years. Employee stock purchase plan— The 2021 Employee Stock Purchase Plan (the “ESPP”) became effective on October 29, 2021. The Company initially reserved 2,800,000 shares of the Company's common stock under the ESPP. Shares reserved for issuance shall increase on the first day of the fiscal year, beginning in fiscal 2023, in an amount equal to the least of 1% of the outstanding shares of common stock on the last day of the immediately preceding fiscal year, three times the initial number of shares reserved under the ESPP, or a lesser amount determined by the Company’s Board of Directors or compensation committee. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount of 15% during an offering period. Offering periods are 24-month periods beginning on the first trading day on or after May 20 or November 20 (defined as the enrollment date), except for the first offering period which commenced on October 29, 2021, and will end on November 20, 2023. Each offering period has four purchase periods which last approximately 6 months, or the length of time between exercise dates (defined as the first trading day on or after May 20 and November 20 of each purchase period), except that the first purchase period of any offering period is the time between the enrollment date and first exercise date. At the start of an offering period, eligible employees may elect to contribute up to 15% of their eligible compensation each payroll period during that offering period to purchase shares of common stock in accordance with the ESPP. On each exercise date, eligible employees will purchase the Company’s common stock at a price per share equal to 85% of the lesser of the fair market value of the Company’s common stock on (i) the enrollment date or (ii) the exercise date. For the three months ended March 31, 2022, no shares of common stock were issued under the ESPP, as the first exercise date had not yet occurred. As of March 31, 2022, total unrecognized compensation cost for the ESPP was $5.3 million, which will be recognized over a weighted average period of 1.6 years. Other equity transactions— During the first quarter of 2021, the Company facilitated a tender offer for certain eligible employees to sell 236,086 vested stock options and outstanding shares of common stock to an existing investor at a per share price of $23.75 per share. The Company recorded stock-based compensation of $1.6 million during the three months ended March 31, 2021, in its condensed consolidated statements of operations for the difference be tween the price paid and the fair value of the Company’s common stock on the date of the transaction. On August 24, 2021, the Company issued 61,300 shares of Udemy restricted common stock to a former executive of CorpU at a grant date fair value per share of $34.14. The total compensation cost recognized during the three months ended March 31, 2022, was $0.2 million. As of March 31, 2022, total compensation cost related to the restricted stock not yet recognized was $1.7 million, which will be recognized over a weighted average period of 2.4 years. Total stock-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2022 2021 Cost of revenue $ 840 $ 300 Sales and marketing 4,137 1,924 Research and development 3,334 2,090 General and administrative 5,031 6,198 Total stock-based compensation expense $ 13,342 $ 10,512 The Company capitalized $1.2 million and $0.5 million of stock-based compensation expense as capitalized software during the three months ended March 31, 2022 and 2021, respectively. |
Net loss per share
Net loss per share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net loss per share | Net loss per share The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): Three Months Ended March 31, 2022 2021 Numerator: Net loss attributable to common stockholders $ (25,649) $ (17,989) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders Basic and diluted 139,405,294 36,178,304 Net loss per share attributable to common stockholders Basic and diluted $ (0.18) $ (0.50) The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations, because the impact of including them would have been anti-dilutive: Three Months Ended March 31, 2022 2021 Redeemable convertible preferred stock — 85,403,933 Stock options 19,703,879 19,646,473 RSUs and restricted stock 4,168,525 — Contingently issuable shares under ESPP 440,920 — Total potentially dilutive securities 24,313,324 105,050,406 |
Segment and geographic informat
Segment and geographic information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and geographic information | Segment and geographic information The Company’s Chief Executive Officer is its CODM. The CODM reviews separate financial information presented for the Company’s two segments, Consumer and Enterprise, in order to allocate resources and evaluate the Company’s financial performance. The Consumer segment targets individual learners seeking to obtain hands-on learning, gain valuable job skills to advance their professional careers, or learn a new personal skill. The Enterprise segment is focused on helping business and government customers upskill and reskill their employees and public servants. The CODM measures the performance of each segment primarily based on segment revenue and segment gross profit. Segment gross profit, as presented below, is defined as segment revenue less segment cost of revenue. Segment cost of revenue includes content costs, hosting and platform costs, customer support services, and payment processing fees that are allocable to each segment. Segment gross profit excludes amortization of capitalized software, depreciation, stock-based compensation, and amortization of intangible assets allocated to cost of revenue as the CODM does not include the information in his measurement of the performance of the operating segments. Additionally, the Company does not allocate sales and marketing expenses, research and development expenses, and general and administrative expenses because the CODM does not include the information in his measurement of the performance of the operating segments. The Udemy platform supports the operations of each segment. The CODM does not use asset information by segments to assess performance and make decisions regarding allocation of resources, and the Company does not track its long-lived assets by segment. The geographic identification of these assets is set forth below. Financial information for each reportable segment was as follows (in thousands): Three Months Ended March 31, 2022 2021 Revenue Consumer $ 87,312 $ 87,873 Enterprise 64,911 36,677 Total Revenue $ 152,223 $ 124,550 Segment cost of revenue Consumer 39,797 42,450 Enterprise 22,163 12,958 Total segment cost of revenue $ 61,960 $ 55,408 Segment gross profit Consumer 47,515 45,423 Enterprise 42,748 23,719 Total segment gross profit $ 90,263 $ 69,142 Reconciliation of segment gross profit to gross profit Amortization of capitalized software 2,724 2,012 Amortization of intangible assets 725 — Depreciation 189 203 Stock-based compensation 840 300 Total reconciling items 4,478 2,515 Total gross profit $ 85,785 $ 66,627 Geographic information Revenue : The following table summarizes the revenue by region based on the billing address of the Company’s customers (in thousands): Three Months Ended March 31, 2022 2021 North America $ 60,588 $ 48,010 Europe, Middle East, Africa 47,725 43,501 Asia Pacific 33,188 23,484 Latin America 10,722 9,555 Total revenue $ 152,223 $ 124,550 No single country other than the United States represented 10% or more of the Company’s total revenue du ring the three months ended March 31, 2022 and 2021. Long-lived assets : The following table presents the Company’s long-lived assets, which consist of tangible property and equipment net of depreciation, by geographic region (in thousands): March 31, December 31, 2022 2021 North America $ 6,185 $ 6,922 Rest of world 2,641 2,832 Total long-lived assets $ 8,826 $ 9,754 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Presentation | Basis of consolidation and presentation —The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation, and all other normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results of the periods presented have been made. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was originally filed with the SEC on March 25, 2022. |
Segment Information | Segment information —The Company defines its segments as those operations the chief operating decision maker (“CODM”), determined to be the Chief Executive Officer of the Company, regularly reviews to allocate resources and assess performance. For the three months ended March 31, 2022 and 2021, the Company operated under two operating and reportable segments: Consumer and Enterprise. The Company continually monitors and reviews its segment reporting structure in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting, to determine whether any changes have occurred that would impact its reportable segments. For further information on the Com pany’s segment reporting, see Note 16 “Segment and geographic information.” |
Use of Estimates | Use of estimates —The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the results of operations during the reporting periods. Significant estimates and assumptions reflected in the condensed consolidated financial statements include, but are not limited to, allowance for doubtful accounts, useful lives of property and equipment, capitalization of internally developed software and associated useful lives, the carrying value of operating lease right-of-use assets, stock-based compensation, determination of the income tax valuation allowance and the potential outcome of uncertain tax positions, estimated instructor withholding tax obligations, estimated period of consumption for consumer learners’ single course purchases, the period of benefit for deferred commissions, the fair value and associated useful lives of intangible assets and goodwill acquired via business combinations, and the valuation of privately-held strategic investments, including impairments. Management periodically evaluates such estimates and assumptions for continued reasonableness. Actual results may ultimately differ from management’s estimates and such differences could be material to the financial position and results of operations. |
Concentration of Credit Risk | Concentration of credit risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, and accounts receivable. For cash, cash equivalents, and restricted cash, the Company is exposed to credit risk in the event of default by the financial institutions to the extent the amounts recorded on the accompanying condensed consolidated balance sheets are in excess of federal insurance limits. |
Restricted cash | Restricted cash —Restricted cash primarily consists of cash restricted in connection with lease agreements for the Company’s facilities. Restricted cash is included in current assets for leases that expire within one year from the balance sheet date and in non-current assets for leases that expire in more than one year from the balance sheet date. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts— Accounts receivable represent amounts owed to the Company for Enterprise subscriptions. Also included in accounts receivable are amounts due from payment processors or mobile application store partners that settle over a period longer than five business days. Accounts receivable balances are recorded at the invoiced amount and are non-interest-bearing. Accounts receivable are presented net of allowances for doubtful accounts. Management assesses the Company’s ability to collect outstanding receivables and records allowances when collection becomes doubtful. The provision for bad debt is recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations. These estimates are based on the assessment of the credit worthiness of the Company’s customers based on multiple sources of information and analysis of such factors as the Company’s historical collection experience and industry and geographic concentrations of credit risk. Accounts receivable deemed to be uncollectible are written off, net of any amounts that may be collected. |
Fair value of financial instruments | Fair value of financial instruments— The Company considers fair value 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 at the measurement date. Valuation techniques used to measure fair value are either observable or unobservable. Observable inputs reflect assumptions that market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based on their own market assumptions. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Inputs are observable, unadjusted quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data; and Level 3—Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The carrying amounts of cash, cash equivalents, restricted cash, and accounts receivable, as well as accounts payable, approximate fair value due to the relatively short-term maturities and are classified as short-term assets and liabilities, respectively, in the accompanying consolidated balance sheets. |
Operating leases | Operating leases— The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2026. The Company determines if an arrangement contains a lease at inception based on whether there is an identified tangible asset and whether the Company controls the use of the identified asset throughout the period of use. The Company adopted Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842) on January 1, 2022. Operating leases are included in operating lease right-of-use (“ROU”) assets and in operating lease liabilities in the accompanying condensed consolidated balance sheet. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company measures its operating lease liabilities at lease inception date based on the present value of total lease payments over the lease term. Total lease payments are discounted to present value using the more readily determinable of (i) the rate implicit in the lease or (ii) the Company’s incremental borrowing rate (which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease). Because the Company’s operating leases generally do not provide an implicit rate, the Company estimates its incremental borrowing rate using information available at the lease commencement date, including but not limited to credit rating, lease term, and the currency in which the arrangement is denominated. The Company’s operating lease ROU assets are equal to the corresponding operating lease liability, adjusted for payments made to the lessor at or before the commencement date, initial direct costs incurred, and tenant incentives under the lease. The Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options at commencement. The Company does not allocate consideration between lease and non-lease components. Variable lease payments, such as those for common area maintenance or property taxes, are not included in the measurement of operating lease liabilities and are expensed as incurred. In addition, the Company does not recognize operating ROU assets or operating lease liabilities for leases with a term of 12 months or less for all asset classes. Operating lease expense is recognized on a straight-line basis over the lease term. Lease accounting prior to the adoption of Topic 842 |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements —In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted the standard with an effective date of January 1, 2021 using the prospective transition adoption approach. Capitalized implementation costs are recorded in prepaid expenses and other current assets and other assets in the condensed consolidated balance sheet. The adoption of this ASU did not have a material impact on the condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires a lessee to record an asset representing the lessees’ right to use the underlying asset and a liability to make lease payments. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. The Company adopted Topic 842 on January 1, 2022, using the modified retrospective approach. The Company elected the package of practical expedients, the use of hindsight in determining the lease term, and the practical expedient to not recognize an operating ROU asset or operating lease liability for leases with a term of 12 months or less. Upon adoption, the Company recognized $17.6 million in operating ROU assets and $20.0 million in operating lease liabilities in its condensed consolidated balance sheets. The difference between the amounts of operating ROU assets and operating lease liabilities consisted of deferred rent and prepaid rent that were derecognized upon transition. There was no adoption date impact to accumulated deficit, and adoption of the new standard did not have a material impact on the Company’s condensed consolidated statements of operations or cash flows. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which aims to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to (1) recognition of an acquired contract liability and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. The Company elected to early adopt this standard on a prospective basis on January 1, 2022. There has been no impact of adoption to date, as the Company has not entered into any business combinations since adoption. The Company is an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an EGC or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. New accounting pronouncements not yet adopted —In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The FASB issued ASU 2019-10 in November 2019, which deferred the effective date for nonpublic entities, including EGCs, that had not yet adopted the original ASU. Under the amended guidance, the standard will be effective for the Company’s fiscal year beginning after December 15, 2022, and early adoption is still permitted. The Company is currently assessing the potential impact of the new standard on the Company’s condensed consolidated financial statements. In December 31, 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles of income taxes and reducing the cost and complexity in accounting for income taxes. The ASU is effective for the Company’s fiscal year beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently assessing the potential impact of the new standard on the Company’s condensed consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | As of March 31, As of December 31, Reconciliation of cash, cash equivalents and restricted cash 2022 2021 Cash and cash equivalents $ 510,965 $ 533,868 Restricted cash, non-current 3,629 2,900 Total cash, cash equivalents and restricted cash $ 514,594 $ 536,768 |
Restrictions on Cash and Cash Equivalents | As of March 31, As of December 31, Reconciliation of cash, cash equivalents and restricted cash 2022 2021 Cash and cash equivalents $ 510,965 $ 533,868 Restricted cash, non-current 3,629 2,900 Total cash, cash equivalents and restricted cash $ 514,594 $ 536,768 |
Accounts Receivable, Allowance for Credit Loss | Balance at Beginning of Period Charged to Expenses Charges Utilized/Written-off Balance at End of Period Allowance for doubtful accounts Three Months Ended March 31, 2022 $ 678 $ 110 $ (110) $ 678 Three Months Ended March 31, 2021 $ 643 $ 3 $ (26) $ 620 |
Fair Value, Assets Measured on Recurring Basis | The fair value measurements of assets that are measured at fair value on a recurring basis are as follows (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 March 31, 2022 Strategic investments $ — $ — $ 15,000 Total as of March 31, 2022 $ — $ — $ 15,000 |
Fair Value, Liabilities Measured on Recurring Basis | The fair value measurements of liabilities that are measured at fair value on a recurring basis are as follows (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 March 31, 2022 Cash settled stock appreciation rights $ — $ — $ 508 Total as of March 31, 2022 $ — $ — $ 508 March 31, 2021 Cash settled stock appreciation rights $ — $ — $ 674 Total as of March 31, 2021 $ — $ — $ 674 |
Summary of the Changes in the Fair Value of Level 3 Financial Instruments | A summary of the changes in the fair value of Level 3 financial instruments, of which remeasurement of stock appreciation rights are recognized in the condensed consolidated statements of operations, is as follows (in thousands): Warrants Stock Appreciation Rights Strategic Investments Balance— December 31, 2021 $ — $ 818 $ 10,000 Vesting and remeasurement of stock appreciation rights — (310) — Purchases of strategic investments — — 5,000 Balance— March 31, 2022 $ — $ 508 $ 15,000 Balance— December 31, 2020 $ 160 $ 268 $ — Exercise of redeemable convertible preferred stock warrants (160) — — Vesting and remeasurement of stock appreciation rights — 406 — Balance— March 31, 2021 $ — $ 674 $ — |
Summary of the Changes in the Fair Value of Level 3 Financial Instruments | A summary of the changes in the fair value of Level 3 financial instruments, of which remeasurement of stock appreciation rights are recognized in the condensed consolidated statements of operations, is as follows (in thousands): Warrants Stock Appreciation Rights Strategic Investments Balance— December 31, 2021 $ — $ 818 $ 10,000 Vesting and remeasurement of stock appreciation rights — (310) — Purchases of strategic investments — — 5,000 Balance— March 31, 2022 $ — $ 508 $ 15,000 Balance— December 31, 2020 $ 160 $ 268 $ — Exercise of redeemable convertible preferred stock warrants (160) — — Vesting and remeasurement of stock appreciation rights — 406 — Balance— March 31, 2021 $ — $ 674 $ — |
Revenue recognition (Tables)
Revenue recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Deferred Revenue Balances by Reportable Segment | The below table presents a summary of deferred revenue balances by reportable segment (in thousands): March 31, December 31, December 31, 2022 2021 2020 Deferred revenue: Enterprise $ 171,780 $ 148,966 $ 84,241 Consumer 58,738 61,588 58,135 Total deferred revenue $ 230,518 $ 210,554 $ 142,376 |
Schedule of Deferred Contract Costs | The following table represents a rollforward of the Company’s deferred contract costs (in thousands): Balance at Beginning of Period Additions Amortization Expense Balance at End of Period Three Months Ended March 31, 2022 44,545 13,038 (6,582) 51,001 Three Months Ended March 31, 2021 25,838 7,956 (3,481) 30,313 |
Consolidated balance sheet co_2
Consolidated balance sheet components (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2022 2021 Prepaid expenses $ 11,735 $ 12,465 Capitalized cloud computing costs, current 735 808 Short term deposits 340 745 Other current assets 2,469 1,909 Prepaid expenses and other current assets $ 15,279 $ 15,927 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2022 2021 Computers and equipment $ 7,001 $ 6,798 Furniture and fixtures 4,702 4,701 Purchased software 383 383 Leasehold improvements 19,002 18,932 Construction in progress 13 18 Total property and equipment 31,101 30,832 Less accumulated depreciation and amortization (22,164) (20,945) Property and equipment, net $ 8,937 $ 9,887 |
Schedule of Capitalized Computer Software | Capitalized software, net consisted of the following (in thousands): March 31, December 31, 2022 2021 Capitalized software $ 48,167 $ 43,804 Less accumulated amortization (26,474) (23,750) Capitalized software, net $ 21,693 $ 20,054 |
Schedule of Expected Amortization Expense | As of March 31, 2022, expected amortization expense for capitalized software over the remaining asset lives is as follows (in thousands): Remainder of 2022 $ 8,180 2023 8,782 2024 4,457 2025 274 Total expected amortization $ 21,693 The expected future amortization expense for intangible assets as of March 31, 2022 was as follows (in thousands): Remainder of 2022 $ 3,200 2023 4,108 2024 2,795 2025 917 2026 917 Thereafter 594 Total expected amortization $ 12,531 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Other Information Pertaining to Operating Leases | The following table sets forth a summary of and other information pertaining to the Company’s operating leases for the three months ended March 31, 2022 (dollar amounts in thousands): Three Months Ended March 31, 2022 Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives $ 1,151 Weighted average remaining term (years) 2.7 Weighted average discount rate 3.8 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year as of March 31, 2022, were as follows (in thousands): Remainder of 2022 $ 5,697 2023 7,176 2024 5,825 2025 809 2026 410 Gross lease payments 19,917 Less imputed interest (1,049) Present value of operating lease liabilities $ 18,868 |
Schedule of Future Minimum Lease Payments under Topic 840 | Future minimum lease payments as measured under Topic 840 for noncancellable operating leases as of December 31, 2021, were as follows (in thousands): 2022 $ 7,826 2023 7,212 2024 5,921 2025 809 2026 410 Total lease commitments $ 22,178 |
Business combinations (Tables)
Business combinations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets and Liabilities Assumed | The assets acquired and liabilities assumed were recorded at fair value as follows (in thousands): Cash and cash equivalents $ 2,641 Accounts receivable, net 250 Prepaid expenses and other current assets 67 Property and equipment, net 133 Intangible assets 15,100 Goodwill 12,646 Accounts payable and other liabilities (596) Deferred revenue (1,610) Total acquisition consideration $ 28,631 |
Intangible assets, net and go_2
Intangible assets, net and goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Acquired through Business Combination | As of March 31, 2022, intangible assets, net acquired as part of the CorpU business combination were as follows (in thousands): Estimated Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Customer relationships 6 years $ 5,500 $ (552) $ 4,948 Vendor relationships 3 years 4,500 (903) 3,597 Developed technology 3 years 4,200 (843) 3,357 Tradename 2 years 900 (271) 629 Total $ 15,100 $ (2,569) $ 12,531 As of December 31, 2021, intangible assets, net acquired as part of the CorpU business combination were as follows (in thousands): Estimated Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Customer relationships 6 years $ 5,500 $ (323) $ 5,177 Vendor relationships 3 years 4,500 (529) 3,971 Developed technology 3 years 4,200 (493) 3,707 Tradename 2 years 900 (158) 742 Total $ 15,100 $ (1,503) $ 13,597 |
Schedule of Expected Amortization Expense | As of March 31, 2022, expected amortization expense for capitalized software over the remaining asset lives is as follows (in thousands): Remainder of 2022 $ 8,180 2023 8,782 2024 4,457 2025 274 Total expected amortization $ 21,693 The expected future amortization expense for intangible assets as of March 31, 2022 was as follows (in thousands): Remainder of 2022 $ 3,200 2023 4,108 2024 2,795 2025 917 2026 917 Thereafter 594 Total expected amortization $ 12,531 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2022 2021 Accrued expenses $ 5,524 $ 7,326 Indirect tax reserves 17,411 18,392 Indirect tax payables 9,790 10,786 Deferred rent, current — 803 Other current liabilities 2,972 2,833 Accrued expenses and other current liabilities $ 35,697 $ 40,140 |
Schedule of Changes to the Withholding Tax Reserve | Changes to the instructor withholding tax reserve are as follows (in thousands): Three Months Ended March 31, 2022 2021 Balance, beginning of period $ 17,036 $ 22,166 Amounts charged to (released from) expense (1,343) 168 Net payments and settlements — — Balance, end of period $ 15,693 $ 22,334 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | The Company had the following common stock reserved for future issuance as of March 31, 2022, and December 31, 2021, respectively: March 31, December 31, 2022 2021 Stock options to purchase common stock (1) 19,703,879 20,342,259 Shares available for future issuance under: 2021 Equity Incentive Plan 10,084,842 11,417,359 2021 Employee Stock Purchase Plan 2,800,000 2,800,000 Total shares of common stock reserved 32,588,721 34,559,618 (1) Excludes 105,623 and 106,155 cash-settled stock appreciation rights (“SARs”) outstanding as of March 31, 2022 and December 31, 2021, respectively. |
Summary of Option Activity | The following is a summary of activity for stock options under the Equity Incentive Plans (amounts in thousands, except share and per share amounts): Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 19,942,259 $ 9.70 8.14 $ 226,350 Granted — — Exercised (376,578) 4.03 Canceled (261,802) 15.06 Balance - March 31, 2022 19,303,879 $ 9.74 7.88 $ 102,880 Vested & Expected to Vest as of March 31, 2022 19,303,879 $ 9.74 7.88 $ 102,880 Exercisable as of March 31, 2022 9,129,677 $ 5.30 7.25 $ 67,191 |
Summary of Stock Appreciation Rights | The following is a summary of activity for SARs under the Equity Incentive Plans (amounts in thousands, except share and per share amounts): SARs Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 106,155 $ 8.45 8.25 $ 1,267 Granted — — Exercised — — Canceled (532) 10.02 Balance - March 31, 2022 105,623 $ 8.45 7.95 $ 595 Vested & Expected to Vest as of March 31, 2022 105,623 $ 8.45 7.95 $ 595 Exercisable as of March 31, 2022 55,585 $ 5.57 7.61 $ 384 |
Schedule of Restricted Stock Unit Activity | A summary of RSU activity under the 2021 Plan is as follows: RSUs Outstanding Weighted Average Grant Date Fair Value Unvested - December 31, 2021 2,545,051 $27.64 Granted 1,683,039 $14.32 Released (32,165) $27.21 Canceled (88,700) $20.90 Unvested - March 31, 2022 4,107,225 $22.33 |
Summary of Performance-Based Options | The following table summarizes the activities of Performance-Based Awards under the Equity Incentive Plans (amounts in thousands, except share and per share amounts): Performance-Based Awards Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 400,000 $ 10.12 8.60 $ 3,768 Granted — Exercised — Canceled — Balance - March 31, 2022 400,000 $ 10.12 8.36 $ 936 Vested & Expected to Vest as of March 31, 2022 400,000 $ 10.12 8.36 $ 936 Exercisable as of March 31, 2022 179,166 $ 10.94 8.59 $ 272 |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2022 2021 Cost of revenue $ 840 $ 300 Sales and marketing 4,137 1,924 Research and development 3,334 2,090 General and administrative 5,031 6,198 Total stock-based compensation expense $ 13,342 $ 10,512 |
Net loss per share (Tables)
Net loss per share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Net Earnings (Loss) per Share | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): Three Months Ended March 31, 2022 2021 Numerator: Net loss attributable to common stockholders $ (25,649) $ (17,989) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders Basic and diluted 139,405,294 36,178,304 Net loss per share attributable to common stockholders Basic and diluted $ (0.18) $ (0.50) |
Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share | The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations, because the impact of including them would have been anti-dilutive: Three Months Ended March 31, 2022 2021 Redeemable convertible preferred stock — 85,403,933 Stock options 19,703,879 19,646,473 RSUs and restricted stock 4,168,525 — Contingently issuable shares under ESPP 440,920 — Total potentially dilutive securities 24,313,324 105,050,406 |
Segment and geographic inform_2
Segment and geographic information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Each Reportable Segment | Financial information for each reportable segment was as follows (in thousands): Three Months Ended March 31, 2022 2021 Revenue Consumer $ 87,312 $ 87,873 Enterprise 64,911 36,677 Total Revenue $ 152,223 $ 124,550 Segment cost of revenue Consumer 39,797 42,450 Enterprise 22,163 12,958 Total segment cost of revenue $ 61,960 $ 55,408 Segment gross profit Consumer 47,515 45,423 Enterprise 42,748 23,719 Total segment gross profit $ 90,263 $ 69,142 Reconciliation of segment gross profit to gross profit Amortization of capitalized software 2,724 2,012 Amortization of intangible assets 725 — Depreciation 189 203 Stock-based compensation 840 300 Total reconciling items 4,478 2,515 Total gross profit $ 85,785 $ 66,627 |
Summary of Revenue by Region | The following table summarizes the revenue by region based on the billing address of the Company’s customers (in thousands): Three Months Ended March 31, 2022 2021 North America $ 60,588 $ 48,010 Europe, Middle East, Africa 47,725 43,501 Asia Pacific 33,188 23,484 Latin America 10,722 9,555 Total revenue $ 152,223 $ 124,550 |
Summary of Long-lived Assets by Region | The following table presents the Company’s long-lived assets, which consist of tangible property and equipment net of depreciation, by geographic region (in thousands): March 31, December 31, 2022 2021 North America $ 6,185 $ 6,922 Rest of world 2,641 2,832 Total long-lived assets $ 8,826 $ 9,754 |
Organization and description _2
Organization and description of business (Details) $ / shares in Units, $ in Thousands | Nov. 24, 2021USD ($)shares | Oct. 29, 2021USD ($)$ / sharesshares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Subsequent Event [Line Items] | ||||
Payment of redeemable convertible preferred stock issuance costs | $ 0 | $ 2,250 | ||
Common Stock | ||||
Subsequent Event [Line Items] | ||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | shares | 85,403,933 | |||
IPO | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold in transaction (in shares) | shares | 14,500,000 | |||
Initial public offering, price per share (in dollars per share) | $ / shares | $ 29 | |||
Proceeds from sale of stock | $ 397,400 | |||
Payment of redeemable convertible preferred stock issuance costs | 23,100 | |||
Deferred offering costs | $ 6,800 | |||
Redeemable convertible preferred stock converted into shares of common stock, conversion basis | 1 | |||
Over-Allotment Option | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold in transaction (in shares) | shares | 650,000 | |||
Proceeds from sale of stock | $ 17,800 | |||
Payment of redeemable convertible preferred stock issuance costs | $ 1,000 | |||
Underwriters purchase option period | 30 days | 30 days | ||
Underwriters purchase option, number of shares, maximum (in shares) | shares | 2,175,000 |
Summary of significant accoun_4
Summary of significant accounting policies - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($)$ / sharesshares | Jan. 01, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Concentration Risk [Line Items] | |||||
Number of operating segments | segment | 2 | ||||
Number of reportable segments | segment | 2 | ||||
Exercise price of warrants (in USD per share) | $ / shares | $ 0.196 | ||||
Redeemable convertible preferred stock | $ 0 | $ 274,267 | $ 0 | $ 274,104 | |
Operating lease right-of-use assets | 15,994 | ||||
Operating lease liabilities | $ 18,868 | ||||
Reclassification | |||||
Concentration Risk [Line Items] | |||||
Redeemable convertible preferred stock warrants outstanding | $ (200) | ||||
Series A-1 Preferred Stock | |||||
Concentration Risk [Line Items] | |||||
Issuance of convertible preferred stock, net of issuance costs (in shares) | shares | 12,595 | ||||
Series A-1 Preferred Stock | Reclassification | |||||
Concentration Risk [Line Items] | |||||
Redeemable convertible preferred stock | $ 200 | ||||
Accounting Standards Update 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | |||||
Concentration Risk [Line Items] | |||||
Operating lease right-of-use assets | $ 17,600 | ||||
Operating lease liabilities | $ 20,000 | ||||
Reseller Partner | Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 10.00% |
Summary of significant accoun_5
Summary of significant accounting policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 510,965 | $ 533,868 | ||
Restricted cash, non-current | 3,629 | 2,900 | ||
Total cash, cash equivalents and restricted cash | $ 514,594 | $ 536,768 | $ 162,192 | $ 177,931 |
Summary of significant accoun_6
Summary of significant accounting policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 678 | $ 643 |
Charged to Expenses | 110 | 3 |
Charges Utilized/Written-off | (110) | (26) |
Balance at End of Period | $ 678 | $ 620 |
Summary of significant accoun_7
Summary of significant accounting policies - Fair Value of Recurring Assets and Liabilities (Details) - USD ($) | Mar. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Assets | ||||
Strategic investments | $ 15,000,000 | $ 15,000,000 | $ 10,000,000 | |
Fair Value, Recurring | Level 1 | ||||
Assets | ||||
Strategic investments | 0 | |||
Total assets, fair value | 0 | |||
Liabilities | ||||
Cash settled stock appreciation rights | 0 | $ 0 | ||
Total liabilities, fair value | 0 | 0 | ||
Fair Value, Recurring | Level 2 | ||||
Assets | ||||
Strategic investments | 0 | |||
Total assets, fair value | 0 | |||
Liabilities | ||||
Cash settled stock appreciation rights | 0 | 0 | ||
Total liabilities, fair value | 0 | 0 | ||
Fair Value, Recurring | Level 3 | ||||
Assets | ||||
Strategic investments | 15,000,000 | 0 | ||
Total assets, fair value | 15,000,000 | |||
Liabilities | ||||
Cash settled stock appreciation rights | 508,000 | 674,000 | ||
Total liabilities, fair value | $ 508,000 | $ 674,000 |
Summary of significant accoun_8
Summary of significant accounting policies - Level 3 Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Strategic Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 10,000 | $ 0 |
Purchases of strategic investments | 5,000 | |
Ending balance | 15,000 | 0 |
Warrants | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 160 |
Exercise of redeemable convertible preferred stock warrants | (160) | |
Ending balance | 0 | 0 |
Stock Appreciation Rights | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 818 | 268 |
Vesting and remeasurement of stock appreciation rights | (310) | 406 |
Ending balance | $ 508 | $ 674 |
Revenue recognition - Narrative
Revenue recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with customer, liability, revenue recognized | $ 111.4 | $ 85.3 |
Remaining performance obligation, amount | $ 368.5 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 72.00% | |
Revenue, remaining performance obligation, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 23.00% | |
Revenue, remaining performance obligation, period |
Revenue recognition - Deferred
Revenue recognition - Deferred Revenue Balances by Reportable Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue [Line Items] | |||
Total deferred revenue | $ 230,518 | $ 210,554 | $ 142,376 |
Enterprise | |||
Disaggregation of Revenue [Line Items] | |||
Total deferred revenue | 171,780 | 148,966 | 84,241 |
Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Total deferred revenue | $ 58,738 | $ 61,588 | $ 58,135 |
Revenue recognition - Deferre_2
Revenue recognition - Deferred Contracts Costs Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Deferred contract costs [Roll Forward] | ||
Balance at Beginning of Period | $ 44,545 | $ 25,838 |
Additions | 13,038 | 7,956 |
Amortization Expense | (6,582) | (3,481) |
Balance at End of Period | $ 51,001 | $ 30,313 |
Consolidated balance sheet co_3
Consolidated balance sheet components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 11,735 | $ 12,465 |
Capitalized cloud computing costs, current | 735 | 808 |
Short term deposits | 340 | 745 |
Other current assets | 2,469 | 1,909 |
Prepaid expenses and other current assets | $ 15,279 | $ 15,927 |
Consolidated balance sheet co_4
Consolidated balance sheet components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 31,101 | $ 30,832 |
Less accumulated depreciation and amortization | (22,164) | (20,945) |
Property and equipment, net | 8,937 | 9,887 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,001 | 6,798 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,702 | 4,701 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 383 | 383 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 19,002 | 18,932 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 13 | $ 18 |
Consolidated balance sheet co_5
Consolidated balance sheet components - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Depreciation | $ 1.2 | $ 1.1 |
Amortization of capitalized software | $ 2.7 | $ 2 |
Consolidated balance sheet co_6
Consolidated balance sheet components - Capitalized Software (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Capitalized software | $ 48,167 | $ 43,804 |
Less accumulated amortization | (26,474) | (23,750) |
Capitalized software, net | $ 21,693 | $ 20,054 |
Consolidated balance sheet co_7
Consolidated balance sheet components - Expected Amortization Expense Capitalized Software (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Remainder of 2022 | $ 8,180 | |
2023 | 8,782 | |
2024 | 4,457 | |
2025 | 274 | |
Capitalized software, net | $ 21,693 | $ 20,054 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease, rent expense | $ 1.4 | |
Operating lease costs | $ 1.7 | |
Variable Lease, Cost | $ 0.2 |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives | $ 1,151 |
Weighted average remaining term (years) | 2 years 8 months 12 days |
Weighted average discount rate | 3.80% |
Leases - Lease Payments (Detail
Leases - Lease Payments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 5,697 |
2023 | 7,176 |
2024 | 5,825 |
2025 | 809 |
2026 | 410 |
Gross lease payments | 19,917 |
Less imputed interest | (1,049) |
Present value of operating lease liabilities | $ 18,868 |
Leases - Lease Payments under T
Leases - Lease Payments under Topic 840 (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 7,826 |
2023 | 7,212 |
2024 | 5,921 |
2025 | 809 |
2026 | 410 |
Total lease commitments | $ 22,178 |
Strategic investments (Details)
Strategic investments (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Investments, All Other Investments [Abstract] | ||||
Strategic investments | $ 15,000 | $ 15,000 | $ 10,000 | |
Purchases of strategic investments | $ 5,000 | $ 5,000 | $ 0 |
Business combinations - Narrati
Business combinations - Narrative (Details) - CorpU - USD ($) $ in Millions | Aug. 24, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 28.6 | ||
Cash consideration paid | $ 27.1 | ||
Acquisition costs | $ 0.3 | ||
Restricted stock | |||
Business Acquisition [Line Items] | |||
Restricted stock issued for business combination (in shares) | 61,300 | ||
Unrecognized compensation costs, period for recognition (in years) | 3 years | 2 years 4 months 24 days |
Business combinations - Assets
Business combinations - Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 24, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 12,646 | $ 12,646 | |
CorpU | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 2,641 | ||
Accounts receivable, net | 250 | ||
Prepaid expenses and other current assets | 67 | ||
Property and equipment, net | 133 | ||
Intangible assets | 15,100 | ||
Goodwill | 12,646 | ||
Accounts payable and other liabilities | (596) | ||
Deferred revenue | (1,610) | ||
Total acquisition consideration | $ 28,631 |
Intangible assets, net and go_3
Intangible assets, net and goodwill - Intangible Assets Acquired through Business Combination (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross | $ 15,100,000 | $ 15,100,000 | |
Accumulated Amortization | (2,569,000) | (1,503,000) | |
Intangible Assets, Net | $ 12,531,000 | $ 13,597,000 | $ 0 |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 6 years | 6 years | |
Intangible Assets, Gross | $ 5,500,000 | $ 5,500,000 | |
Accumulated Amortization | (552,000) | (323,000) | |
Intangible Assets, Net | $ 4,948,000 | $ 5,177,000 | |
Vendor relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 3 years | 3 years | |
Intangible Assets, Gross | $ 4,500,000 | $ 4,500,000 | |
Accumulated Amortization | (903,000) | (529,000) | |
Intangible Assets, Net | $ 3,597,000 | $ 3,971,000 | |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 3 years | 3 years | |
Intangible Assets, Gross | $ 4,200,000 | $ 4,200,000 | |
Accumulated Amortization | (843,000) | (493,000) | |
Intangible Assets, Net | $ 3,357,000 | $ 3,707,000 | |
Tradename | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 2 years | 2 years | |
Intangible Assets, Gross | $ 900,000 | $ 900,000 | |
Accumulated Amortization | (271,000) | (158,000) | |
Intangible Assets, Net | $ 629,000 | $ 742,000 |
Intangible assets, net and go_4
Intangible assets, net and goodwill - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Aug. 24, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 1,100 | ||
Goodwill | $ 12,646 | $ 12,646 | |
CorpU | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 12,646 |
Intangible assets, net and go_5
Intangible assets, net and goodwill - Expected Future Amortization (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Remainder of 2022 | $ 3,200,000 | ||
2023 | 4,108,000 | ||
2024 | 2,795,000 | ||
2025 | 917,000 | ||
2026 | 917,000 | ||
Thereafter | 594,000 | ||
Intangible Assets, Net | $ 12,531,000 | $ 13,597,000 | $ 0 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 5,524 | $ 7,326 |
Indirect tax reserves | 17,411 | 18,392 |
Indirect tax payables | 9,790 | 10,786 |
Deferred rent, current | 0 | 803 |
Other current liabilities | 2,972 | 2,833 |
Accrued expenses and other current liabilities | $ 35,697 | $ 40,140 |
Accrued expenses and other cu_4
Accrued expenses and other current liabilities - Narrative (Details) - Historical Tax Withholding Possible Loss - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | $ 15,693 | $ 17,036 | $ 22,334 | $ 22,166 |
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 12,000 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 15,700 |
Accrued expenses and other cu_5
Accrued expenses and other current liabilities - Changes to Withholding Tax Reserve (Details) - Historical Tax Withholding Possible Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loss Contingency Accrual [Roll Forward] | ||
Balance, beginning of period | $ 17,036 | $ 22,166 |
Amounts charged to (released from) expense | (1,343) | 168 |
Net payments and settlements | 0 | 0 |
Balance, end of period | $ 15,693 | $ 22,334 |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) $ in Millions | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total lease commitments | $ 17.3 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | (1.30%) | (5.30%) |
Employee retirement plan (Detai
Employee retirement plan (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Employer matching contribution, percent of match | 25.00% | |
Employer matching contribution, percent of employees' gross pay | 6.00% | |
Maximum annual contributions per employee | $ 500 | |
Vesting period (in years) | 2 years | |
Annual vesting percentage | 50.00% | |
Vesting percentage after two years of employment | 1 | |
Contributions made | $ 300,000 | $ 200,000 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Affiliated Entity | Naspers Ltd. and Other Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 400,000 | $ 300,000 | |
Accounts receivable, related parties | 100,000 | $ 100,000 | |
Affiliated Entity | Certain Vendors | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses, related party | 200,000 | $ 0 | |
Accounts payable, related parties | 0 | 100,000 | |
Board of Directors Member | Carbon Health Technologies | |||
Related Party Transaction [Line Items] | |||
Accounts receivable, related parties | $ 200,000 | $ 0 |
Stockholders' equity - Narrativ
Stockholders' equity - Narrative (Details) | Aug. 24, 2021USD ($)$ / sharesshares | Mar. 31, 2022USD ($)awardperiodvote$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2018installmentshares | Dec. 31, 2021award$ / sharesshares | Oct. 29, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | shares | 50,000,000 | 50,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||||
Number of votes per common stock | vote | 1 | ||||||
Aggregate intrinsic value of options exercised in period | $ 3,900,000 | $ 23,400,000 | |||||
Unrecognized compensation costs, options | $ 84,900,000 | ||||||
Total shares of common stock reserved (in shares) | shares | 32,588,721 | 34,559,618 | |||||
Stock-based compensation | $ 13,342,000 | 10,512,000 | |||||
Stock-based compensation capitalized as a software | $ 1,200,000 | $ 500,000 | |||||
2021 Stock incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares reserved for future issuance (in shares) | shares | 13,800,000 | ||||||
Annual percentage increase, term | 0.05 | ||||||
Granted (in shares) | shares | 0 | ||||||
Tender Offer to Sell Common Stock to an Investor | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares sold in transaction (in shares) | shares | 236,086 | ||||||
Sale of stock, term, less than (in USD per share) | $ / shares | $ 23.75 | ||||||
Stock-based compensation | $ 1,600,000 | ||||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term (in years) | 10 years | ||||||
Award vesting period (in years) | 4 years | ||||||
Unrecognized compensation costs, period for recognition (in years) | 2 years 3 months 18 days | ||||||
Stock Appreciation Rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term (in years) | 10 years | ||||||
Award vesting period (in years) | 4 years | ||||||
Unrecognized compensation costs, period for recognition (in years) | 2 years 1 month 6 days | ||||||
Unrecognized compensation costs, excluding options | $ 300,000 | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs, period for recognition (in years) | 3 years 9 months 18 days | ||||||
Unrecognized compensation costs, excluding options | $ 83,300,000 | ||||||
Restricted stock issued for business combination, grant date fair value (in dollars per share) | $ / shares | $ 22.33 | $ 27.64 | |||||
Restricted Stock Units (RSUs) | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 3 years | ||||||
Restricted Stock Units (RSUs) | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 4 years | ||||||
Performance-Based Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term (in years) | 10 years | ||||||
Unrecognized compensation costs, period for recognition (in years) | 7 months 6 days | ||||||
Number of Performance-Based Awards outstanding | award | 2 | 2 | |||||
Granted (in shares) | shares | 350,000 | 50,000 | |||||
Number of equal monthly installments | installment | 48 | ||||||
Unrecognized compensation costs | $ 400,000 | ||||||
Performance-Based Awards | Amended and Restated 2010 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | shares | 0 | ||||||
Performance-Based Awards | Share-based Payment Arrangement, Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 50.00% | ||||||
Required annual recurring revenues, vesting term | $ 230,000,000 | ||||||
Performance-Based Awards | Share-based Payment Arrangement, Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 50.00% | ||||||
Required annual recurring revenues, vesting term | $ 330,000,000 | ||||||
Employee Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs, period for recognition (in years) | 1 year 7 months 6 days | ||||||
Unrecognized compensation costs, excluding options | $ 5,300,000 | ||||||
Total shares of common stock reserved (in shares) | shares | 2,800,000 | ||||||
Percent of outstanding shares | 1.00% | ||||||
ESPP discount percentage from market price, beginning of purchase period | 15.00% | ||||||
Consecutive offering period | 24 months | ||||||
Number of purchase periods | period | 4 | ||||||
Purchase period | 6 months | ||||||
ESPP purchase price of common stock, percent of market price | 85.00% | ||||||
Restricted stock | CorpU | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs, period for recognition (in years) | 3 years | 2 years 4 months 24 days | |||||
Unrecognized compensation costs, excluding options | $ 1,700,000 | ||||||
Stock-based compensation | $ 200,000 | ||||||
Restricted stock issued for business combination (in shares) | shares | 61,300 | ||||||
Restricted stock issued for business combination, grant date fair value (in dollars per share) | $ / shares | $ 34.14 |
Stockholders' equity - Common S
Stockholders' equity - Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options to purchase common stock (in shares) | 19,703,879 | 20,342,259 |
Total shares of common stock reserved (in shares) | 32,588,721 | 34,559,618 |
Stock Appreciation Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options, outstanding (in shares) | 105,623 | 106,155 |
2021 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved for future issuance (in shares) | 10,084,842 | 11,417,359 |
2021 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved for future issuance (in shares) | 2,800,000 | 2,800,000 |
Stockholders' equity - Stock Op
Stockholders' equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Options Outstanding | |||||
Outstanding, beginning balance (in shares) | 20,342,259 | ||||
Outstanding, ending balance (in shares) | 19,703,879 | 20,342,259 | |||
2021 Stock incentive Plan | |||||
Options Outstanding | |||||
Outstanding, beginning balance (in shares) | 19,942,259 | ||||
Granted (in shares) | 0 | ||||
Exercised (in shares) | (376,578) | ||||
Canceled (in shares) | (261,802) | ||||
Outstanding, ending balance (in shares) | 19,303,879 | 19,942,259 | |||
Weighted Average Exercise Price | |||||
Outstanding, beginning balance (in USD per share) | $ 9.70 | ||||
Granted (in USD per share) | 0 | ||||
Exercised (in USD per share) | 4.03 | ||||
Canceled (in USD per share) | 15.06 | ||||
Outstanding, ending balance (in USD per share) | $ 9.74 | $ 9.70 | |||
Outstanding, Weighted Average Remaining Contractual Term (in years) | 7 years 10 months 17 days | 8 years 1 month 20 days | |||
Outstanding, Aggregate Intrinsic Value | $ 102,880 | $ 226,350 | |||
Vested and Expected to Vest, Awards Outstanding (in shares) | 19,303,879 | ||||
Vested and Expected to Vest, Weighted Average Exercise Price (in USD per shares) | $ 9.74 | ||||
Vested and Expected to Vest, Weighted Average Remaining Contractual Term (in years) | 7 years 10 months 17 days | ||||
Vested and Expected to Vest, Aggregate Intrinsic Value | $ 102,880 | ||||
Exercisable, Awards Outstanding (in shares) | 9,129,677 | ||||
Exercisable, Weighted Average Exercise Price (in USD per share) | $ 5.30 | ||||
Exercisable, Weighted Average Remaining Contractual Term (in years) | 7 years 3 months | ||||
Exercisable, Aggregate Intrinsic Value | $ 67,191 | ||||
Performance-Based Awards | |||||
Options Outstanding | |||||
Granted (in shares) | 350,000 | 50,000 | |||
Performance-Based Awards | Amended and Restated 2010 Equity Incentive Plan | |||||
Options Outstanding | |||||
Outstanding, beginning balance (in shares) | 400,000 | ||||
Granted (in shares) | 0 | ||||
Exercised (in shares) | 0 | ||||
Canceled (in shares) | 0 | ||||
Outstanding, ending balance (in shares) | 400,000 | 400,000 | |||
Weighted Average Exercise Price | |||||
Outstanding, beginning balance (in USD per share) | $ 10.12 | ||||
Granted (in USD per share) | |||||
Exercised (in USD per share) | |||||
Canceled (in USD per share) | |||||
Outstanding, ending balance (in USD per share) | $ 10.12 | $ 10.12 | |||
Outstanding, Weighted Average Remaining Contractual Term (in years) | 8 years 4 months 9 days | 8 years 7 months 6 days | |||
Outstanding, Aggregate Intrinsic Value | $ 936 | $ 3,768 | |||
Vested and Expected to Vest, Awards Outstanding (in shares) | 400,000 | ||||
Vested and Expected to Vest, Weighted Average Exercise Price (in USD per shares) | $ 10.12 | ||||
Vested and Expected to Vest, Weighted Average Remaining Contractual Term (in years) | 8 years 4 months 9 days | ||||
Vested and Expected to Vest, Aggregate Intrinsic Value | $ 936 | ||||
Exercisable, Awards Outstanding (in shares) | 179,166 | ||||
Exercisable, Weighted Average Exercise Price (in USD per share) | $ 10.94 | ||||
Exercisable, Weighted Average Remaining Contractual Term (in years) | 8 years 7 months 2 days | ||||
Exercisable, Aggregate Intrinsic Value | $ 272 |
Stockholders' equity - SARs Act
Stockholders' equity - SARs Activity (Details) - Stock Appreciation Rights - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Outstanding | ||
Outstanding, beginning balance (in shares) | 106,155 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Canceled (in shares) | (532) | |
Outstanding, ending balance (in shares) | 105,623 | 106,155 |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in USD per share) | $ 8.45 | |
Granted (in USD per share) | 0 | |
Exercised (in USD per share) | 0 | |
Canceled (in USD per share) | 10.02 | |
Outstanding, ending balance (in USD per share) | $ 8.45 | $ 8.45 |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 7 years 11 months 12 days | 8 years 3 months |
Outstanding, Aggregate Intrinsic Value | $ 595 | $ 1,267 |
Vested and Expected to Vest, Awards Outstanding (in shares) | 105,623 | |
Vested and Expected to Vest, Weighted Average Exercise Price (in USD per shares) | $ 8.45 | |
Vested and Expected to Vest, Weighted Average Remaining Contractual Term (in years) | 7 years 11 months 12 days | |
Vested and Expected to Vest, Aggregate Intrinsic Value | $ 595 | |
Exercisable, Awards Outstanding (in shares) | 55,585 | |
Exercisable, Weighted Average Exercise Price (in USD per share) | $ 5.57 | |
Exercisable, Weighted Average Remaining Contractual Term (in years) | 7 years 7 months 9 days | |
Exercisable, Aggregate Intrinsic Value | $ 384 |
Stockholders' equity - RSU Acti
Stockholders' equity - RSU Activity (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Outstanding | |
Unvested beginning balance (in shares) | shares | 2,545,051 |
Granted (in shares) | shares | 1,683,039 |
Released (in shares) | shares | (32,165) |
Canceled (in shares) | shares | (88,700) |
Unvested ending balance (in shares) | shares | 4,107,225 |
Weighted Average Grant Date Fair Value | |
Unvested beginning balance (in USD per share) | $ / shares | $ 27.64 |
Granted (in USD per share) | $ / shares | 14.32 |
Released (in USD per share) | $ / shares | 27.21 |
Canceled (in USD per share) | $ / shares | 20.90 |
Unvested ending balance (in USD per share) | $ / shares | $ 22.33 |
Stockholders' equity - Stock-Ba
Stockholders' equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 13,342 | $ 10,512 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 840 | 300 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 4,137 | 1,924 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 3,334 | 2,090 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 5,031 | $ 6,198 |
Net loss per share - Calculatio
Net loss per share - Calculation of Basic and Diluted Net Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net loss attributable to common stockholders | $ (25,649) | $ (17,989) |
Weighted-average shares used in computing net loss per share attributable to common stockholders | ||
Basic (in shares) | 139,405,294 | 36,178,304 |
Diluted (in shares) | 139,405,294 | 36,178,304 |
Net loss per share attributable to common stockholders | ||
Basic (in dollars per share) | $ (0.18) | $ (0.50) |
Diluted (in dollars per share) | $ (0.18) | $ (0.50) |
Net loss per share - Potentiall
Net loss per share - Potentially Dilutive Securities Excluded (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities | 24,313,324 | 105,050,406 |
Redeemable convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities | 0 | 85,403,933 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities | 19,703,879 | 19,646,473 |
RSUs and restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities | 4,168,525 | 0 |
Contingently issuable shares under ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities | 440,920 | 0 |
Segment and geographic inform_3
Segment and geographic information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment and geographic inform_4
Segment and geographic information - Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 152,223 | $ 124,550 |
Segment cost of revenue | 66,438 | 57,923 |
Gross profit | 85,785 | 66,627 |
Reconciliation of segment gross profit to gross profit | ||
Amortization of capitalized software | 2,700 | 2,000 |
Amortization of intangible assets | 1,100 | |
Depreciation | 1,200 | 1,100 |
Stock-based compensation | 13,342 | 10,512 |
Gross profit | 85,785 | 66,627 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 152,223 | 124,550 |
Segment cost of revenue | 61,960 | 55,408 |
Gross profit | 90,263 | 69,142 |
Reconciliation of segment gross profit to gross profit | ||
Gross profit | 90,263 | 69,142 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 4,478 | 2,515 |
Reconciliation of segment gross profit to gross profit | ||
Amortization of capitalized software | 2,724 | 2,012 |
Amortization of intangible assets | 725 | 0 |
Depreciation | 189 | 203 |
Stock-based compensation | 840 | 300 |
Gross profit | 4,478 | 2,515 |
Consumer | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 87,312 | 87,873 |
Segment cost of revenue | 39,797 | 42,450 |
Gross profit | 47,515 | 45,423 |
Reconciliation of segment gross profit to gross profit | ||
Gross profit | 47,515 | 45,423 |
Enterprise | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 64,911 | 36,677 |
Segment cost of revenue | 22,163 | 12,958 |
Gross profit | 42,748 | 23,719 |
Reconciliation of segment gross profit to gross profit | ||
Gross profit | $ 42,748 | $ 23,719 |
Segment and geographic inform_5
Segment and geographic information - Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 152,223 | $ 124,550 |
North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 60,588 | 48,010 |
Europe, Middle East, Africa | ||
Segment Reporting Information [Line Items] | ||
Revenue | 47,725 | 43,501 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 33,188 | 23,484 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 10,722 | $ 9,555 |
Segment and geographic inform_6
Segment and geographic information - Long-lived Assets by Region (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 8,826 | $ 9,754 |
North America | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 6,185 | 6,922 |
Rest of world | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 2,641 | $ 2,832 |