Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $0.00001 par value | |
Trading Symbol | UDMY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,774,569 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Entity Central Index Key | 0001607939 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 275,633 | $ 313,685 |
Marketable securities | 169,613 | 151,687 |
Accounts receivable, net | 96,423 | 104,530 |
Prepaid expenses and other current assets | 17,418 | 14,878 |
Deferred contract costs, current | 35,929 | 30,234 |
Total current assets | 595,016 | 615,014 |
Property and equipment, net | 6,206 | 7,012 |
Capitalized software, net | 29,045 | 27,412 |
Operating lease right-of-use assets | 9,849 | 11,377 |
Restricted cash, non-current | 3,629 | 3,629 |
Deferred contract costs, non-current | 36,510 | 35,411 |
Strategic investments | 12,104 | 12,104 |
Intangible assets, net | 8,264 | 9,331 |
Goodwill | 12,646 | 12,646 |
Other assets | 3,631 | 3,632 |
Total assets | 716,900 | 737,568 |
Current liabilities: | ||
Accounts payable | 10,792 | 14,529 |
Accrued expenses and other current liabilities | 26,420 | 31,247 |
Content costs payable | 35,019 | 37,310 |
Accrued compensation and benefits | 27,335 | 22,882 |
Operating lease liabilities, current | 6,910 | 7,002 |
Deferred revenue, current | 276,050 | 273,937 |
Total current liabilities | 382,526 | 386,907 |
Operating lease liabilities, non-current | 4,920 | 6,545 |
Deferred revenue, non-current | 4,348 | 4,342 |
Other liabilities, non-current | 21 | 464 |
Total liabilities | 391,815 | 398,258 |
Note 8 – Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.00001 par value - 50,000,000 shares authorized; zero shares issued and outstanding as of March 31, 2023, and December 31, 2022. | 0 | 0 |
Common stock, $0.00001 par value - 950,000,000 shares authorized; 146,627,024 and 145,013,786 shares issued and outstanding as of March 31, 2023, and December 31, 2022, respectively. | 1 | 1 |
Additional paid-in capital | 982,128 | 951,946 |
Accumulated other comprehensive loss | (96) | (233) |
Accumulated deficit | (656,948) | (612,404) |
Total stockholders’ equity | 325,085 | 339,310 |
Total liabilities and stockholders' equity | $ 716,900 | $ 737,568 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
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) | 146,627,024 | 145,013,786 |
Common stock, shares outstanding (in shares) | 146,627,024 | 145,013,786 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 176,430 | $ 152,223 |
Cost of revenue | 76,701 | 66,438 |
Gross profit | 99,729 | 85,785 |
Operating expenses | ||
Sales and marketing | 79,657 | 66,878 |
Research and development | 30,887 | 22,570 |
General and administrative | 26,334 | 21,653 |
Restructuring charges | 10,128 | 0 |
Total operating expenses | 147,006 | 111,101 |
Loss from operations | (47,277) | (25,316) |
Other income (expense) | ||
Interest income, net | 3,932 | 243 |
Other expense, net | (142) | (244) |
Total other income (expense), net | 3,790 | (1) |
Net loss before taxes | (43,487) | (25,317) |
Income tax provision | (1,057) | (332) |
Net loss | (44,544) | (25,649) |
Net loss | $ (44,544) | $ (25,649) |
Net loss per share | ||
Basic (in dollars per share) | $ (0.31) | $ (0.18) |
Diluted (in dollars per share) | $ (0.31) | $ (0.18) |
Weighted-average shares used in computing net loss per share | ||
Basic (in shares) | 145,737,709 | 139,405,294 |
Diluted (in shares) | 145,737,709 | 139,405,294 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (44,544) | $ (25,649) |
Net loss | (44,544) | (25,649) |
Foreign currency translation gain (loss), net of tax | (11) | 10 |
Change in unrealized loss on marketable securities, net of tax | 148 | 0 |
Comprehensive loss | $ (44,407) | $ (25,639) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
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 | ||||
Vesting of restricted stock units | 0 | 0 | |||
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) |
Beginning balance (in shares) at Dec. 31, 2022 | 145,013,786 | ||||
Beginning balance at Dec. 31, 2022 | 339,310 | $ 1 | 951,946 | (233) | (612,404) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 28,733 | 28,733 | |||
Exercise of stock options (in shares) | 355,516 | ||||
Exercise of stock options | 1,449 | 1,449 | |||
Vesting of restricted stock units (in shares) | 1,257,722 | ||||
Vesting of restricted stock units | 0 | 0 | |||
Other comprehensive loss | 137 | 137 | 0 | ||
Cumulative translation adjustment | (11) | ||||
Net loss | (44,544) | (44,544) | |||
Ending balance (in shares) at Mar. 31, 2023 | 146,627,024 | ||||
Ending balance at Mar. 31, 2023 | $ 325,085 | $ 1 | $ 982,128 | $ (96) | $ (656,948) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (44,544) | $ (25,649) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5,786 | 4,967 |
Amortization of deferred sales commissions | 10,508 | 6,582 |
Stock-based compensation | 26,283 | 13,342 |
Allowance for credit losses | 301 | 110 |
Accretion of marketable securities | (1,815) | 0 |
Non-cash operating lease expense | 1,572 | 1,573 |
Other | 375 | 75 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,805 | 5,371 |
Prepaid expenses and other assets | (2,434) | 198 |
Deferred contract costs | (17,302) | (13,038) |
Accounts payable, accrued expenses and other liabilities | (4,499) | (21,964) |
Content costs payable | (2,292) | (4,355) |
Operating lease liabilities | (1,759) | (1,151) |
Deferred revenue | 2,120 | 19,964 |
Net cash used in operating activities | (19,895) | (13,975) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (58,463) | 0 |
Proceeds from maturities of marketable securities | 42,500 | 0 |
Purchases of property and equipment | (100) | (156) |
Capitalized software costs | (3,256) | (3,121) |
Purchases of strategic investments | 0 | (5,000) |
Net cash used in investing activities | (19,319) | (8,277) |
Cash flows from financing activities: | ||
Net proceeds from exercise of stock options | 1,180 | 1,658 |
Payment of deferred offering costs | 0 | (1,586) |
Net cash provided by financing activities | 1,180 | 72 |
Effect of foreign exchange rates on cash flows | (18) | 6 |
Net decrease in cash, cash equivalents and restricted cash | (38,052) | (22,174) |
Cash, cash equivalents and restricted cash—Beginning of period | 317,314 | 536,768 |
Cash, cash equivalents and restricted cash—End of period | 279,262 | 514,594 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 275,633 | 510,965 |
Restricted cash | 3,629 | 3,629 |
Total cash, cash equivalents and restricted cash | 279,262 | 514,594 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 488 | 2 |
Income taxes paid | 44 | 64 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Stock-based compensation in capitalized costs | 2,305 | 1,311 |
Change in unrealized loss on marketable securities | $ 149 | $ 0 |
Organization and description of
Organization and description of business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and description of business | 1. 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 learning company whose online platform empowers organizations and individuals with flexible and effective skill acquisition and development. The Company’s learning marketplace platform enables tens of thousands of subject matter experts to develop, distribute and enhance content that reaches Udemy’s broad global audience of learners. Udemy leverages technology, data and insights to deliver personalized and effective learning experiences. The Company further curates its highest-quality content from the marketplace for Udemy Business, which enables companies around the world to offer engaging, effective, on-demand learning for all employees, immersive laboratory-style learning for tech teams, and cohort-based learning focused on leadership development. |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. 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. Segment information — On March 1, 2023, Greg Brown became the Company’s new Chief Executive Officer and chief operating decision maker (“CODM”). The Company defines its segments as those operations the CODM regularly reviews to allocate resources and assess performance. For the three months ended March 31, 2023 and 2022, the Company operated under two operating and reportable segments: Enterprise and Consumer. 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 13 – 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 credit losses, capitalization of internally developed software and ass ociated useful lives, stock-based compensation, determination of the income tax valuation allowance and the potential outcome of uncertain tax positions, estimated instructor withholding tax obligations, estimated service period for consumer single course purchases, the period of benefit for deferred commissions, t he 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 Company’s financial position and results of operations. Concentration of credit risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash, and accounts receivable. For cash 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’s investments, classified as cash equivalents and marketable securities, consist of high-credit-quality instruments and fixed-income securities. 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 and maintains an allowance based upon expected credit losses of outstandin g receivables. The Company had one customer, a reseller partner for the Enterprise segment, who accounted for more than 10% of total accounts receivable as of March 31, 2023. The Company had no customers which accounted for more than 10% of total accounts receivable as of December 31, 2022. No customer accounted for more than 10% of total revenue during the three months ended March 31, 2023 or 2022. Summary of significant ac counting 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, 2022, which was filed with the SEC on February 27, 2023 (the “Annual Report”). Stock-based compensation — The Company accounts for its stock-based compensation pursuant to ASC Topic 718, Compensation-Stock Compensation. The Company granted performance-based restricted stock units (“PSUs”) in the first quarter of 2023, which vest based on the achievement of predefined corporate performance metrics and are subject to ongoing service conditions. The Company determines the fair value of PSUs based on the fair value of the Company’s common stock on the date of grant. Because PSUs have both performance and service-based vesting conditions, the Company separately attributes stock-based compensation expense for each vesting tranche of the award over their requisite service periods. Management estimates the number of PSUs that are expected to vest based on the anticipated achievement of the specified performance metrics. If the performance-based vesting condition is considered probable of being achieved, the Company recognizes expense over the requisite service period based on the probable outcome of achievement. If the performance goals are not met, or are considered improbable, no compensation cost is recognized, and any previously recognized compensation cost is reversed. Accounts receivable, net — Accounts receivable primarily 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 is presented net of allowance for credit losses in the accompanying condensed consolidated balance sheets. The Company maintains an allowance based upon expected credit losses of outstanding receivables. Management derives its estimate using a variety of factors, including historical collection and loss patterns; the current aging of receivables; geographic and other customer-specific credit risk factors; and reasonable and supportable forecasts of future economic conditions which inform adjustments to historical loss patterns. The provision for expected credit losses is recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations. Accounts receivable deemed to be uncollectible are written off, net of expected or actual recoveries. Balance at Beginning of Period Charged to Expenses Charges Utilized/Written-off, Net of Recoveries Balance at End of Period Allowance for credit losses (in thousands) Three Months Ended March 31, 2023 $ 1,528 $ 301 $ (213) $ 1,616 Three Months Ended March 31, 2022 $ 678 $ 110 $ (110) $ 678 Self-insurance — Beginning in 2023, the Company became self-insured for medical benefits offered to certain employees, up to certain stop-loss limits. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. As of March 31, 2023, the accrued liability for self-insurance totaled $1.0 million and is included in accrued compensation and benefits on the condensed consolidated balance sheets. Recently Adopted Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted |
Revenue recognition
Revenue recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | 3. Revenue recognition Deferred revenue — Revenue recognized for the three months ended March 31, 2023, from amounts included in deferred revenue as of December 31, 2022 was $134.6 million. R evenue recognized for the three months ended March 31, 2022, from amounts included in deferred revenue as of December 31, 2021 was $111.4 million. The below table presents a summary of deferred revenue balances by reportable segment (in thousands): March 31, December 31, December 31, 2023 2022 2021 Deferred revenue: Enterprise $ 221,157 $ 219,030 $ 148,966 Consumer 59,241 59,249 61,588 Total deferred revenue $ 280,398 $ 278,279 $ 210,554 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 primarily relate to unearned and unbilled revenue from multi-year Enterprise subscription contracts with future installment payments, as well as unearned revenue from Consumer single course purchases and subscriptions at the end of any given period. As of March 31, 2023, the aggregate transaction price for remaining performance ob ligations was $502.3 million, of which 70% is expected to be recognized 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, 2023 $ 65,645 $ 17,302 $ (10,508) $ 72,439 Three Months Ended March 31, 2022 $ 44,545 $ 13,038 $ (6,582) $ 51,001 |
Investments and fair value meas
Investments and fair value measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Investments and fair value measurements | 4. Investments and fair value measurements The Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy are as follows (in thousands): As of March 31, 2023 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 237,819 $ — $ — Marketable securities: U.S. government securities $ — $ 169,613 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Current liabilities— accrued compensation and benefits: Cash settled stock appreciation rights $ — $ — $ 243 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 21 As of December 31, 2022 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 130,377 $ — $ — U.S. government securities — 48,900 — Total cash equivalents $ 130,377 $ 48,900 $ — Marketable securities: U.S. government securities $ — $ 151,687 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 462 The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets. The Company’s investments in U.S. government securities are classified within Level 2 of the fair value hierarchy because they have been valued using inputs other than quoted prices in active markets that are directly or indirectly observable. The Company’s strategic investment and stock appreciation rights (“SARs”) are classified within Level 3 of the fair value hierarchy because they have been valued using significant unobservable inputs for which the Company has been required to develop its own assumptions. A summary of the changes in the fair value of Level 3 financial instruments, of which remeasurement of SARs are recognized in the condensed consolidated statements of operations, is as follows (in thousands): Stock Appreciation Rights Strategic Investments Balance— December 31, 2022 $ 462 $ 12,104 Vesting and remeasurement of SARs (198) — Balance— March 31, 2023 $ 264 $ 12,104 Balance— December 31, 2021 $ 818 $ 10,000 Vesting and remeasurement of SARs, net (310) — Purchases of strategic investments — 5,000 Balance— March 31, 2022 $ 508 $ 15,000 |
Consolidated balance sheet comp
Consolidated balance sheet components | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated balance sheet components | 5. Consolidated balance sheet components Cash, cash equivalents, and marketable securities — The amortized cost, unrealized gains and losses, and estimated fair value of cash, cash equivalents, and marketable securities consisted of the following (in thousands): As of March 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 37,814 $ — $ — $ 37,814 Money market funds 237,819 — — 237,819 Total cash and cash equivalents 275,633 — — 275,633 Marketable securities: U.S. government securities 169,677 40 (104) 169,613 Total cash, cash equivalents, and marketable securities $ 445,310 $ 40 $ (104) $ 445,246 As of December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 134,408 $ — $ — $ 134,408 Money market funds 130,377 — — 130,377 U.S. government securities 48,899 4 (3) 48,900 Total cash and cash equivalents 313,684 4 (3) 313,685 Marketable securities: U.S. government securities 151,900 30 (243) 151,687 Total cash, cash equivalents, and marketable securities $ 465,584 $ 34 $ (246) $ 465,372 Cash equivalents and marketable securities in an unrealized loss position consisted of the following (in thousands): March 31, 2023 December 31, 2022 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Cash equivalents: U.S. government securities $ — $ — $ 24,960 $ (3) Marketable securities: U.S. government securities 37,102 (104) 59,057 (243) Total securities in an unrealized loss position $ 37,102 $ (104) $ 84,017 $ (246) Realized gains and losses reclassified from accumulated other comprehensive loss to other income (expense), net were zero for the three months ended March 31, 2023. No securities had been in a continuous unrealized loss position for twelve months or longer as of March 31, 2023 or December 31, 2022. The Company does not intend to sell available-for-sale marketable debt securities in unrealized loss positions, and it is more likely than not that the Company will hold these securities until maturity or recovery of the cost basis. As of March 31, 2023 and December 31, 2022, the Company did not have an allowance for credit losses related to its available-for-sale debt securities due to a zero loss expectation for the portfolio which consists solely of U.S. government securities. As of March 31, 2023, the entirety of the Company’s marketable securities portfolio had remaining contractual maturities of one year or less. Property and equipment, net — Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2023 2022 Computers and equipment $ 7,756 $ 7,820 Furniture and fixtures 4,678 4,870 Purchased software 383 383 Leasehold improvements 19,017 19,109 Construction in progress 8 — Total property and equipment 31,842 32,182 Less accumulated depreciation and amortization (25,636) (25,170) Property and equipment, net $ 6,206 $ 7,012 Depreciation expense w as $0.8 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively. Capitalized software, net — Capitalized software, net consisted of the following (in thousands): March 31, December 31, 2023 2022 Capitalized software $ 69,284 $ 63,748 Less accumulated amortization (40,239) (36,336) Capitalized software, net $ 29,045 $ 27,412 Amortization expense of capitalized softwar e was $3.9 million and $2.7 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, expected amortization expense for capitalized software over the remaining asset lives was as follows (in thousands): Remainder of 2023 $ 11,583 2024 11,496 2025 5,630 2026 336 Total expected amortization $ 29,045 Intangible assets, net and goodwill— As of March 31, 2023, 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 $ (1,469) $ 4,031 Vendor relationships 3 years 4,500 (2,403) 2,097 Developed technology 3 years 4,200 (2,243) 1,957 Tradename 2 years 900 (721) 179 Total $ 15,100 $ (6,836) $ 8,264 As of December 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 $ (1,239) $ 4,261 Vendor relationships 3 years 4,500 (2,028) 2,472 Developed technology 3 years 4,200 (1,893) 2,307 Tradename 2 years 900 (609) 291 Total $ 15,100 $ (5,769) $ 9,331 Amortization expense of intangible assets for the three months ended March 31, 2023 and 2022 was $1.1 million and $1.1 million, respectively. The expected future amortization expense for intangible assets as of March 31, 2023 was as follows (in thousands): Remainder of 2023 $ 3,041 2024 2,795 2025 917 2026 917 2027 594 Total expected amortization $ 8,264 Goodwill in the amount of $12.6 million was established as part of the CorpU acquisition on August 24, 2021, and allocated to the Enterprise segment. This amount represents the excess of the purchase price over the fair value of net assets acquired. There have been no adjustments to the carrying amount of goodwill as of March 31, 2023. The Company tests for impairment at least annually, or whenever events or changes in circumstances occur that could impact the recoverability of these assets. No such triggering events were noted for the three months ended March 31, 2023 and 2022. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 6. Leases The Company applies the guidance under Topic 842 for leases of real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2026. The Company recognized the following amounts related to its operating leases in its condensed consolidated statements of operations and cash flows (in thousands): Three Months Ended March 31, 2023 2022 Operating lease costs $ 1,670 $ 1,701 Variable lease costs $ 314 $ 204 Cash paid for operating leases $ 1,923 $ 1,151 Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year as of March 31, 2023, were as follows (in thousands): 2023 $ 5,279 2024 5,790 2025 809 2026 410 Gross lease payments 12,288 Less imputed interest (458) Present value of operating lease liabilities $ 11,830 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | 7. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2023 2022 Accrued expenses $ 7,262 $ 8,494 Indirect tax reserves 4,158 6,627 Indirect tax payables 7,968 9,137 Other current liabilities 7,032 6,989 Accrued expenses and other current liabilities $ 26,420 $ 31,247 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. As of March 31, 2023, indirect tax reserves consist of the residual interest payable on the Company’s instructor withholding tax reserves and other indirect tax reserves. Instructor withholding tax reserves — 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. 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. In 2020, the Company approached the IRS to address the historical tax withholding amounts for instructors and engaged in a voluntary disclosure program. As of March 31, 2023, the Company has filed all outstanding withholding tax returns and has paid the associated tax obligation to the IRS. The estimated interest associated with the reserve is still outstanding. 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, 2023 2022 Balance, beginning of period $ 2,528 $ 17,036 Amounts charged to (released from) expense 44 (1,343) Net payments and settlements — — Balance, end of period $ 2,572 $ 15,693 |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 8. 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, 2023, the Company had $55.4 million w orth of future minimum payments under the Company’s noncancellable purchase commitments which are expected to be paid through 2026. 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 in the accompanying condensed consolidated balance sheets, within accrued expenses and other current liabilities as of March 31, 2023, and December 31, 2022. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 9. 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 Company had an effective tax rate of (2.43)% and (1.30)% for the three months ended March 31, 2023 and 2022, respectively. 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, 2023 and December 31, 2022, the Company has provided a valuation allowance against U.S. federal and state deferred tax assets. Management continues 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 positions 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 2022. There are currently no income tax audits underway by U.S. federal or state tax authorities. There are income audits in Turkey and India that began in the year ended December 31, 2022, but no notices or assessments have been issued at this time. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | 10. Related party transactions Naspers Ltd. (“Naspers”), through an investment entity controlled by Prosus N.V. (“Prosus”), beneficially owns more than 5% of the Company’s outstanding capital stock. A current member of the Company’s Board of Directors is an executive officer of a Prosus operating subsidiary, OLX Global B.V. A former member of the Company’s Board of Directors, who resigned in September 2022, was an executive officer of Prosus. Naspers and cer tain entities directly and indirectly controlled by Naspers are customers of the Company’s Enterprise subscription offering. The Company recorded $0.3 million and $0.4 million of revenue from services provided to these customers during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, the Company had an accounts receivable balance of $0.1 million with these customers. 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. For each of the three months ended March 31, 2023 and 2022, the Company recorded $0.2 million of operating expenses with these vendors. The Company did not have an accounts payable balance with these vendors as of March 31, 2023 or December 31, 2022. Certain members of the Company’s Board of Directors also serve as executive officers for customers of the Company’s Enterprise subscription offering. During the three months ended March 31, 2023 and 2022, the Company recorded $0.1 million and an immaterial amount, respectively, of revenue from services provided to these customers. As of March 31, 2023 and December 31, 2022, the Company had an accounts receivable balance with these customers of zero and $0.4 million, respectively. |
Stockholders' equity
Stockholders' equity | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' equity | 11. 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. As of March 31, 2023 and December 31, 2022, the following shares of common stock were available for future issuance: March 31, December 31, 2023 2022 2010 Equity Incentive Plan: Stock options outstanding 9,925,732 10,333,771 2021 Equity Incentive Plan: RSUs outstanding and PSUs (1) 17,713,184 16,178,101 Shares available for future issuance under: 2021 Equity Incentive Plan 7,324,533 2,814,126 2021 Employee Stock Purchase Plan 3,379,715 1,929,578 Total shares of common stock reserved 38,343,164 31,255,576 (1) The number of PSUs reserved for issuance is based on the maximum achievement of the corporate performance metric. 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. On January 1, 2023, the shares available for future grants under the 2021 Plan automatically increased by 7,250,689 pursuant to the above evergreen provision of the 2021 Plan. 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 having only service-based vesting conditions under the Equity Incentive Plans: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2022 10,283,771 $ 4.18 6.38 $ 66,234 Granted — — Exercised (355,516) 4.10 Canceled (52,523) 11.28 Balance - March 31, 2023 9,875,732 $ 4.15 3.06 $ 47,212 Vested & expected to vest as of March 31, 2023 9,875,732 $ 4.15 3.06 $ 47,212 Exercisable as of March 31, 2023 8,973,521 $ 3.92 2.89 $ 44,616 There were no stock options granted during the three months ended March 31, 2023 or 2022. The decrease in weighted average remaining contractual term during the period is due to stock options held by the Company’s former CEO, Mr. Coccari, which will expire if not exercised by the end of the 90-day post-termination exercise window that begins upon completion of his transition agreement in February 2024. Refer to further discussion below under other equity transactions. As of March 31, 2023, total unrecognized stock-based compensation expense related to unvested stock options was $2.2 million, which will be recognized over a weighted average period of 0.8 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: SARs Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2022 81,770 $ 5.44 6.90 $ 418 Granted — — Exercised — — Canceled (9,289) 6.58 Balance - March 31, 2023 72,481 $ 5.29 0.57 $ 257 Vested & expected to vest as of March 31, 2023 72,481 $ 5.29 0.57 $ 257 Exercisable as of March 31, 2023 71,706 $ 5.28 0.50 $ 254 There were no SARs granted during the three months ended March 31, 2023 or 2022. The decrease in weighted average remaining contractual term during the period is due to SARs held by employees impacted by the workforce reduction, as described in Note 14. Such SARs will expire if not exercised by the end of their respective 90-day post-termination exercise windows. As of March 31, 2023, total unrecognized stock-based compensation expense related to unvested SARs was immaterial. Restricted stock units and performance-based restricted stock units — 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 During the first quarter of 2023, the Company granted 645,833 PSUs to certain executives at target. Each PSU conveys a right to receive one share of the Company’s common stock on the date it vests, provided that the number of PSUs that will ultimately vest may vary from 0% to 150% of target based upon the achievement of the corporate performance metric at the end of the performance period. One quarter of the eligible PSUs vest upon certification of the corporate performance metric in the first quarter of 2024, and the remaining 75% will vest equally over the following 12 quarters thereafter, subject to continual service by the grantee. Total stock-based compensation expense to be recognized may fluctuate during the performance period due to changes in forecasted achievement. The corporate performance metric associated with these awards has been considered probable of being achieved since the grant date, and the Company assumed 100% achievement as of March 31, 2023. A summary of RSU and PSU activity under the 2021 Plan is as follows: RSUs Outstanding Weighted Average Grant Date Fair Value PSUs Outstanding Weighted Average Grant Date Fair Value Unvested - December 31, 2022 16,178,101 $ 17.37 — $ — Granted 2,290,999 $ 9.84 645,833 $ 8.89 Released (1,257,722) $ 17.91 — $ — Canceled (466,926) $ 15.48 — $ — Unvested - March 31, 2023 16,744,452 $ 16.35 645,833 $ 8.89 As of March 31, 2023, total unrecognized stock-based compensation expense related to unvested RSUs was $221.0 million, which will be recognized over a weighted average period of 3.0 years. As of March 31, 2023, total unrecognized stock-based compensation expense related to unvested PSUs was $5.6 million, which will be recognized over a weighted average period of 2.2 years. Performance-based stock options — There have been no other changes to the Company’s performance-based stock options compared to those described in Note 14— Stockholders’ equity, included in Part II, Item 8 of the Company’s Annual Report. As of March 31, 2023, there were 50,000 performance-based stock options outstanding, of which 16,666 were exercisable. As of March 31, 2023, total unrecognized stock-based compensation expense related to unvested performance-based stock options was immaterial. 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. On January 1, 2023, the shares available for future grants under the ESPP automatically increased by 1,450,137 pursuant to the above evergreen provision of the 2021 ESPP. As of March 31, 2023, total unrecognized compensation cost for the ESPP was $6.5 million, which will be recognized over a weighted average period of 1.3 years. Other equity transactions — On February 28, 2023, the Company entered into a transition agreement with Mr. Coccari under which he will provide transition advice through February 28, 2024. During the transition period, he will continue to meet the definition of a service provider under the 2021 Plan, and his equity incentive awards will continue to vest in accordance with their original vesting schedules. Because the scope of services to be provided under the transition period represent a substantive reduction in services being provided by the former CEO, the Company recognize d $3.1 million in stock-based compensation expense during the three months ended March 31, 2023, that would have otherwise been recognized from April 2023 to February 2024. 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, 2023 and 2022 was $0.2 million and $0.2 million, respectively. As of March 31, 2023, total compensation cost related to the restricted stock not yet recognized was $1.0 million, which will be recognized over a weighted average period of 1.4 years. Total stock-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 1,593 $ 840 Sales and marketing 7,277 4,137 Research and development 6,294 3,334 General and administrative 9,911 5,031 Restructuring charges 1,208 — Total stock-based compensation expense $ 26,283 $ 13,342 The Company capitalized $2.3 million and $1.2 million of stock-based compensation expense as capitalized software during the three months ended March 31, 2023 and 2022, respectively. |
Net loss per share
Net loss per share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net loss per share | 12. 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, 2023 2022 Numerator: Net loss $ (44,544) $ (25,649) Denominator: Weighted-average shares used in computing net loss per share Basic and diluted 145,737,709 139,405,294 Net loss per share Basic and diluted $ (0.31) $ (0.18) 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, 2023 2022 Stock options 9,925,732 19,703,879 RSUs, PSUs, and restricted stock 17,431,152 4,168,525 Contingently issuable shares under ESPP 550,259 440,920 Total potentially dilutive securities 27,907,143 24,313,324 |
Segment and geographic informat
Segment and geographic information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment and geographic information | 13. 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, Enterprise and Consumer, in order to allocate resources and evaluate the Company’s financial performance. Financial information for each reportable segment was as follows (in thousands): Three Months Ended March 31, 2023 2022 Revenue Enterprise $ 95,242 $ 64,911 Consumer 81,188 87,312 Total revenue 176,430 152,223 Segment cost of revenue Enterprise 32,867 22,163 Consumer 37,496 39,797 Total segment cost of revenue 70,363 61,960 Segment gross profit Enterprise 62,375 42,748 Consumer 43,692 47,515 Total segment gross profit 106,067 90,263 Reconciliation of segment gross profit to gross profit Amortization of capitalized software 3,903 2,724 Amortization of intangible assets 725 725 Depreciation 117 189 Stock-based compensation 1,593 840 Total reconciling items 6,338 4,478 Total gross profit $ 99,729 $ 85,785 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, 2023 2022 North America $ 71,707 $ 60,588 Europe, Middle East, Africa 54,551 47,725 Asia Pacific 38,159 33,188 Latin America 12,013 10,722 Total revenue $ 176,430 $ 152,223 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, 2023 or 2022. Long-lived assets : The following table presents the Company’s long-lived assets, which consist of tangible property and equipment, net of depreciation, and operating lease ROU assets, by geographic region (in thousands): March 31, December 31, 2023 2022 North America $ 11,083 $ 12,782 Rest of world 4,933 5,556 Total long-lived assets $ 16,016 $ 18,338 |
Restructuring charges
Restructuring charges | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring charges | 14. Restructuring charges On February 13, 2023, the Company communicated to its employees that in response to current macroeconomic conditions and to further streamline its operations and cost structure, it would reduce its global workforce by approximately 10%. As a result, the Company recognized total restructuring charges of $10.1 million in the first quarter of 2023, primarily consisting of $8.9 million of personnel expenses such as salaries and wages, one-time severance payments, and other benefits. The Company also recognized $1.2 million of stock-based compensation expense on the communication date, resulting from impacted employees having no future substantive service requirement but continuing to vest into their equity awards during legally required retention periods as well as certain modifications to enable additional vesting after impacted employees’ termination dates. The Company expects the restructuring to be complete by the end of the third quarter of 2023. Restructuring charges are presented as separate operating expenses within the Company’s condensed consolidated statements of operations. The following table summarizes the activity related to the restructuring liability recorded in accrued compensation and benefits in the accompanying condensed consolidated balance sheets (in thousands): Beginning balance— January 1, 2023 $ — Restructuring charges 8,920 Settlements (4,376) Ending balance— March 31, 2023 $ 4,544 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of consolidation and presentation | Basis of consolidation and presentation — |
Segment information | Segment information — On March 1, 2023, Greg Brown became the Company’s new Chief Executive Officer and chief operating decision maker (“CODM”). The Company defines its segments as those operations the CODM regularly reviews to allocate resources and assess performance. For the three months ended March 31, 2023 and 2022, the Company operated under two operating and reportable segments: Enterprise and Consumer. 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 13 – 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 credit losses, capitalization of internally developed software and ass ociated useful lives, stock-based compensation, determination of the income tax valuation allowance and the potential outcome of uncertain tax positions, estimated instructor withholding tax obligations, estimated service period for consumer single course purchases, the period of benefit for deferred commissions, t he 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 Company’s 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, marketable securities, restricted cash, and accounts receivable. For cash 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’s investments, classified as cash equivalents and marketable securities, consist of high-credit-quality instruments and fixed-income securities. |
Stock-based compensation | Stock-based compensation — The Company accounts for its stock-based compensation pursuant to ASC Topic 718, Compensation-Stock Compensation. The Company granted performance-based restricted stock units (“PSUs”) in the first quarter of 2023, which vest based on the achievement of predefined corporate performance metrics and are subject to ongoing service conditions. The Company determines the fair value of PSUs based on the fair value of the Company’s common stock on the date of grant. Because PSUs have both performance and service-based vesting conditions, the Company separately attributes stock-based compensation expense for each vesting tranche of the award over their requisite service periods. |
Accounts receivable, net | Accounts receivable, net — Accounts receivable primarily 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 is presented net of allowance for credit losses in the accompanying condensed consolidated balance sheets. The Company maintains an allowance based upon expected credit losses of outstanding receivables. Management derives its estimate using a variety of factors, including historical collection and loss patterns; the current aging of receivables; geographic and other customer-specific credit risk factors; and reasonable and supportable forecasts of future economic conditions which inform adjustments to historical loss patterns. The provision for expected credit losses is recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations. Accounts receivable deemed to be uncollectible are written off, net of expected or actual recoveries. |
Self-insurance | Self-insurance — |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Allowance for Credit Losses | Balance at Beginning of Period Charged to Expenses Charges Utilized/Written-off, Net of Recoveries Balance at End of Period Allowance for credit losses (in thousands) Three Months Ended March 31, 2023 $ 1,528 $ 301 $ (213) $ 1,616 Three Months Ended March 31, 2022 $ 678 $ 110 $ (110) $ 678 |
Revenue recognition (Tables)
Revenue recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 2022 2021 Deferred revenue: Enterprise $ 221,157 $ 219,030 $ 148,966 Consumer 59,241 59,249 61,588 Total deferred revenue $ 280,398 $ 278,279 $ 210,554 |
Summary 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, 2023 $ 65,645 $ 17,302 $ (10,508) $ 72,439 Three Months Ended March 31, 2022 $ 44,545 $ 13,038 $ (6,582) $ 51,001 |
Investments and fair value me_2
Investments and fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments on Condensed Consolidated Balance Sheets | The Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy are as follows (in thousands): As of March 31, 2023 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 237,819 $ — $ — Marketable securities: U.S. government securities $ — $ 169,613 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Current liabilities— accrued compensation and benefits: Cash settled stock appreciation rights $ — $ — $ 243 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 21 As of December 31, 2022 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 130,377 $ — $ — U.S. government securities — 48,900 — Total cash equivalents $ 130,377 $ 48,900 $ — Marketable securities: U.S. government securities $ — $ 151,687 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 462 |
Summary of Investments on Condensed Consolidated Balance Sheets | The Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy are as follows (in thousands): As of March 31, 2023 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 237,819 $ — $ — Marketable securities: U.S. government securities $ — $ 169,613 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Current liabilities— accrued compensation and benefits: Cash settled stock appreciation rights $ — $ — $ 243 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 21 As of December 31, 2022 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 130,377 $ — $ — U.S. government securities — 48,900 — Total cash equivalents $ 130,377 $ 48,900 $ — Marketable securities: U.S. government securities $ — $ 151,687 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 462 |
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 SARs are recognized in the condensed consolidated statements of operations, is as follows (in thousands): Stock Appreciation Rights Strategic Investments Balance— December 31, 2022 $ 462 $ 12,104 Vesting and remeasurement of SARs (198) — Balance— March 31, 2023 $ 264 $ 12,104 Balance— December 31, 2021 $ 818 $ 10,000 Vesting and remeasurement of SARs, net (310) — Purchases of strategic investments — 5,000 Balance— March 31, 2022 $ 508 $ 15,000 |
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 SARs are recognized in the condensed consolidated statements of operations, is as follows (in thousands): Stock Appreciation Rights Strategic Investments Balance— December 31, 2022 $ 462 $ 12,104 Vesting and remeasurement of SARs (198) — Balance— March 31, 2023 $ 264 $ 12,104 Balance— December 31, 2021 $ 818 $ 10,000 Vesting and remeasurement of SARs, net (310) — Purchases of strategic investments — 5,000 Balance— March 31, 2022 $ 508 $ 15,000 |
Consolidated balance sheet co_2
Consolidated balance sheet components (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Cash, Cash Equivalents, and Marketable Securities | The amortized cost, unrealized gains and losses, and estimated fair value of cash, cash equivalents, and marketable securities consisted of the following (in thousands): As of March 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 37,814 $ — $ — $ 37,814 Money market funds 237,819 — — 237,819 Total cash and cash equivalents 275,633 — — 275,633 Marketable securities: U.S. government securities 169,677 40 (104) 169,613 Total cash, cash equivalents, and marketable securities $ 445,310 $ 40 $ (104) $ 445,246 As of December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 134,408 $ — $ — $ 134,408 Money market funds 130,377 — — 130,377 U.S. government securities 48,899 4 (3) 48,900 Total cash and cash equivalents 313,684 4 (3) 313,685 Marketable securities: U.S. government securities 151,900 30 (243) 151,687 Total cash, cash equivalents, and marketable securities $ 465,584 $ 34 $ (246) $ 465,372 Cash equivalents and marketable securities in an unrealized loss position consisted of the following (in thousands): March 31, 2023 December 31, 2022 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Cash equivalents: U.S. government securities $ — $ — $ 24,960 $ (3) Marketable securities: U.S. government securities 37,102 (104) 59,057 (243) Total securities in an unrealized loss position $ 37,102 $ (104) $ 84,017 $ (246) |
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2023 2022 Computers and equipment $ 7,756 $ 7,820 Furniture and fixtures 4,678 4,870 Purchased software 383 383 Leasehold improvements 19,017 19,109 Construction in progress 8 — Total property and equipment 31,842 32,182 Less accumulated depreciation and amortization (25,636) (25,170) Property and equipment, net $ 6,206 $ 7,012 |
Summary of Capitalized Computer Software | Capitalized software, net consisted of the following (in thousands): March 31, December 31, 2023 2022 Capitalized software $ 69,284 $ 63,748 Less accumulated amortization (40,239) (36,336) Capitalized software, net $ 29,045 $ 27,412 |
Summary of Expected Amortization Expense | As of March 31, 2023, expected amortization expense for capitalized software over the remaining asset lives was as follows (in thousands): Remainder of 2023 $ 11,583 2024 11,496 2025 5,630 2026 336 Total expected amortization $ 29,045 The expected future amortization expense for intangible assets as of March 31, 2023 was as follows (in thousands): Remainder of 2023 $ 3,041 2024 2,795 2025 917 2026 917 2027 594 Total expected amortization $ 8,264 |
Summary of Intangible Assets Acquired through Business Combination | Intangible assets, net and goodwill— As of March 31, 2023, 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 $ (1,469) $ 4,031 Vendor relationships 3 years 4,500 (2,403) 2,097 Developed technology 3 years 4,200 (2,243) 1,957 Tradename 2 years 900 (721) 179 Total $ 15,100 $ (6,836) $ 8,264 As of December 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 $ (1,239) $ 4,261 Vendor relationships 3 years 4,500 (2,028) 2,472 Developed technology 3 years 4,200 (1,893) 2,307 Tradename 2 years 900 (609) 291 Total $ 15,100 $ (5,769) $ 9,331 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of Information Pertaining to Operating Leases | The Company recognized the following amounts related to its operating leases in its condensed consolidated statements of operations and cash flows (in thousands): Three Months Ended March 31, 2023 2022 Operating lease costs $ 1,670 $ 1,701 Variable lease costs $ 314 $ 204 Cash paid for operating leases $ 1,923 $ 1,151 |
Summary 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, 2023, were as follows (in thousands): 2023 $ 5,279 2024 5,790 2025 809 2026 410 Gross lease payments 12,288 Less imputed interest (458) Present value of operating lease liabilities $ 11,830 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2023 2022 Accrued expenses $ 7,262 $ 8,494 Indirect tax reserves 4,158 6,627 Indirect tax payables 7,968 9,137 Other current liabilities 7,032 6,989 Accrued expenses and other current liabilities $ 26,420 $ 31,247 |
Summary of Changes to the Withholding Tax Reserve | Changes to the instructor withholding tax reserve are as follows (in thousands): Three Months Ended March 31, 2023 2022 Balance, beginning of period $ 2,528 $ 17,036 Amounts charged to (released from) expense 44 (1,343) Net payments and settlements — — Balance, end of period $ 2,572 $ 15,693 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Common Stock Reserved for Future Issuance | As of March 31, 2023 and December 31, 2022, the following shares of common stock were available for future issuance: March 31, December 31, 2023 2022 2010 Equity Incentive Plan: Stock options outstanding 9,925,732 10,333,771 2021 Equity Incentive Plan: RSUs outstanding and PSUs (1) 17,713,184 16,178,101 Shares available for future issuance under: 2021 Equity Incentive Plan 7,324,533 2,814,126 2021 Employee Stock Purchase Plan 3,379,715 1,929,578 Total shares of common stock reserved 38,343,164 31,255,576 (1) The number of PSUs reserved for issuance is based on the maximum achievement of the corporate performance metric. |
Summary of Option Activity | The following is a summary of activity for stock options having only service-based vesting conditions under the Equity Incentive Plans: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2022 10,283,771 $ 4.18 6.38 $ 66,234 Granted — — Exercised (355,516) 4.10 Canceled (52,523) 11.28 Balance - March 31, 2023 9,875,732 $ 4.15 3.06 $ 47,212 Vested & expected to vest as of March 31, 2023 9,875,732 $ 4.15 3.06 $ 47,212 Exercisable as of March 31, 2023 8,973,521 $ 3.92 2.89 $ 44,616 |
Summary of Stock Appreciation Rights | The following is a summary of activity for SARs under the Equity Incentive Plans: SARs Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2022 81,770 $ 5.44 6.90 $ 418 Granted — — Exercised — — Canceled (9,289) 6.58 Balance - March 31, 2023 72,481 $ 5.29 0.57 $ 257 Vested & expected to vest as of March 31, 2023 72,481 $ 5.29 0.57 $ 257 Exercisable as of March 31, 2023 71,706 $ 5.28 0.50 $ 254 |
Summary of Restricted Stock Unit Activity | A summary of RSU and PSU activity under the 2021 Plan is as follows: RSUs Outstanding Weighted Average Grant Date Fair Value PSUs Outstanding Weighted Average Grant Date Fair Value Unvested - December 31, 2022 16,178,101 $ 17.37 — $ — Granted 2,290,999 $ 9.84 645,833 $ 8.89 Released (1,257,722) $ 17.91 — $ — Canceled (466,926) $ 15.48 — $ — Unvested - March 31, 2023 16,744,452 $ 16.35 645,833 $ 8.89 |
Summary of Performance-Based Options | A summary of RSU and PSU activity under the 2021 Plan is as follows: RSUs Outstanding Weighted Average Grant Date Fair Value PSUs Outstanding Weighted Average Grant Date Fair Value Unvested - December 31, 2022 16,178,101 $ 17.37 — $ — Granted 2,290,999 $ 9.84 645,833 $ 8.89 Released (1,257,722) $ 17.91 — $ — Canceled (466,926) $ 15.48 — $ — Unvested - March 31, 2023 16,744,452 $ 16.35 645,833 $ 8.89 |
Summary 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, 2023 2022 Cost of revenue $ 1,593 $ 840 Sales and marketing 7,277 4,137 Research and development 6,294 3,334 General and administrative 9,911 5,031 Restructuring charges 1,208 — Total stock-based compensation expense $ 26,283 $ 13,342 |
Net loss per share (Tables)
Net loss per share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary 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, 2023 2022 Numerator: Net loss $ (44,544) $ (25,649) Denominator: Weighted-average shares used in computing net loss per share Basic and diluted 145,737,709 139,405,294 Net loss per share Basic and diluted $ (0.31) $ (0.18) |
Summary 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, 2023 2022 Stock options 9,925,732 19,703,879 RSUs, PSUs, and restricted stock 17,431,152 4,168,525 Contingently issuable shares under ESPP 550,259 440,920 Total potentially dilutive securities 27,907,143 24,313,324 |
Segment and geographic inform_2
Segment and geographic information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Each Reportable Segment | Financial information for each reportable segment was as follows (in thousands): Three Months Ended March 31, 2023 2022 Revenue Enterprise $ 95,242 $ 64,911 Consumer 81,188 87,312 Total revenue 176,430 152,223 Segment cost of revenue Enterprise 32,867 22,163 Consumer 37,496 39,797 Total segment cost of revenue 70,363 61,960 Segment gross profit Enterprise 62,375 42,748 Consumer 43,692 47,515 Total segment gross profit 106,067 90,263 Reconciliation of segment gross profit to gross profit Amortization of capitalized software 3,903 2,724 Amortization of intangible assets 725 725 Depreciation 117 189 Stock-based compensation 1,593 840 Total reconciling items 6,338 4,478 Total gross profit $ 99,729 $ 85,785 |
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, 2023 2022 North America $ 71,707 $ 60,588 Europe, Middle East, Africa 54,551 47,725 Asia Pacific 38,159 33,188 Latin America 12,013 10,722 Total revenue $ 176,430 $ 152,223 |
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, and operating lease ROU assets, by geographic region (in thousands): March 31, December 31, 2023 2022 North America $ 11,083 $ 12,782 Rest of world 4,933 5,556 Total long-lived assets $ 16,016 $ 18,338 |
Restructuring charges (Tables)
Restructuring charges (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Charges | The following table summarizes the activity related to the restructuring liability recorded in accrued compensation and benefits in the accompanying condensed consolidated balance sheets (in thousands): Beginning balance— January 1, 2023 $ — Restructuring charges 8,920 Settlements (4,376) Ending balance— March 31, 2023 $ 4,544 |
Summary of significant accoun_4
Summary of significant accounting policies - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 segment | |
Disaggregation of Revenue [Line Items] | ||
Number of operating segments | 2 | 2 |
Number of reportable segments | 2 | 2 |
Self insurance | $ | $ 1 | |
Customer Concentration Risk | Accounts Receivable | One Customer | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 10% |
Summary of significant accoun_5
Summary of significant accounting policies - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 1,528 | $ 678 |
Charged to Expenses | 301 | 110 |
Charges Utilized/Written-off, Net of Recoveries | (213) | (110) |
Balance at End of Period | $ 1,616 | $ 678 |
Revenue recognition - Narrative
Revenue recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with customer, liability, revenue recognized | $ 134.6 | $ 111.4 |
Remaining performance obligation, amount | $ 502.3 | |
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 | 70% | |
Revenue, remaining performance obligation, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 31% | |
Revenue, remaining performance obligation, period |
Revenue recognition - Summary o
Revenue recognition - Summary of Deferred Revenue Balances by Reportable Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | |||
Total deferred revenue | $ 280,398 | $ 278,279 | $ 210,554 |
Enterprise | |||
Disaggregation of Revenue [Line Items] | |||
Total deferred revenue | 221,157 | 219,030 | 148,966 |
Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Total deferred revenue | $ 59,241 | $ 59,249 | $ 61,588 |
Revenue recognition - Summary_2
Revenue recognition - Summary of Deferred Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Deferred contract costs [Roll Forward] | ||
Balance at Beginning of Period | $ 65,645 | $ 44,545 |
Additions | 17,302 | 13,038 |
Amortization Expense | (10,508) | (6,582) |
Balance at End of Period | $ 72,439 | $ 51,001 |
Investments and fair value me_3
Investments and fair value measurements - Summary of Investments on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Marketable securities | $ 445,246 | $ 465,372 |
Strategic investments | 12,104 | 12,104 |
Level 1 | ||
Assets | ||
Cash equivalents | 130,377 | |
Strategic investments | 0 | 0 |
Current liabilities— accrued compensation and benefits: | ||
Cash settled stock appreciation rights | 0 | |
Non-current liabilities: | ||
Cash settled stock appreciation rights | 0 | 0 |
Level 1 | U.S. government securities | ||
Assets | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Level 1 | Money market funds | ||
Assets | ||
Cash equivalents | 237,819 | 130,377 |
Level 2 | ||
Assets | ||
Cash equivalents | 48,900 | |
Strategic investments | 0 | 0 |
Current liabilities— accrued compensation and benefits: | ||
Cash settled stock appreciation rights | 0 | |
Non-current liabilities: | ||
Cash settled stock appreciation rights | 0 | 0 |
Level 2 | U.S. government securities | ||
Assets | ||
Cash equivalents | 48,900 | |
Marketable securities | 169,613 | 151,687 |
Level 2 | Money market funds | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents | 0 | |
Strategic investments | 12,104 | 12,104 |
Current liabilities— accrued compensation and benefits: | ||
Cash settled stock appreciation rights | 243 | |
Non-current liabilities: | ||
Cash settled stock appreciation rights | 21 | 462 |
Level 3 | U.S. government securities | ||
Assets | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Level 3 | Money market funds | ||
Assets | ||
Cash equivalents | $ 0 | $ 0 |
Investments and fair value me_4
Investments and fair value measurements - Summary of the Changes in the Fair Value of Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Preferred Stock | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Vesting and remeasurement of SARs | $ 0 | $ 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 12,104 | 10,000 |
Purchases of strategic investments | 5,000 | |
Ending balance | 12,104 | 15,000 |
Stock Appreciation Rights | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 462 | 818 |
Vesting and remeasurement of SARs | (198) | (310) |
Ending balance | $ 264 | 508 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Purchases of strategic investments | $ 0 |
Investments and fair value me_5
Investments and fair value measurements - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Impairment of strategic investment | $ 0 |
Strategic investment’s cost basis | 15,000,000 |
Carrying value | 12,100,000 |
Cumulative impairment charges | $ 2,900,000 |
Consolidated balance sheet co_3
Consolidated balance sheet components - Summary of Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | $ 445,310 | $ 465,584 |
Unrealized Gains | 40 | 34 |
Unrealized Losses | (104) | (246) |
Fair Value | 445,246 | 465,372 |
Unrealized Loss Position, Fair Value | 37,102 | 84,017 |
Cash and Cash Equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 275,633 | 313,684 |
Unrealized Gains | 0 | 4 |
Unrealized Losses | 0 | (3) |
Fair Value | 275,633 | 313,685 |
Unrealized Loss Position, Fair Value | 0 | 24,960 |
Cash and Cash Equivalents | Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 37,814 | 134,408 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 37,814 | 134,408 |
Cash and Cash Equivalents | Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 237,819 | 130,377 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 237,819 | 130,377 |
Cash and Cash Equivalents | U.S. government securities | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 48,899 | |
Unrealized Gains | 4 | |
Unrealized Losses | (3) | |
Fair Value | 48,900 | |
Marketable Securities | U.S. government securities | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 169,677 | 151,900 |
Unrealized Gains | 40 | 30 |
Unrealized Losses | (104) | (243) |
Fair Value | 169,613 | 151,687 |
Unrealized Loss Position, Fair Value | $ 37,102 | $ 59,057 |
Consolidated balance sheet co_4
Consolidated balance sheet components - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 USD ($) security | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Aug. 24, 2021 USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Realized gains and losses reclassified from accumulated other comprehensive loss to other income (expense), net | $ 0 | |||
Number of continuous unrealized loss position for twelve months or longer | security | 0 | |||
Depreciation | $ 800 | $ 1,200 | ||
Amortization of capitalized software | 3,900 | 2,700 | ||
Amortization of intangible assets | 1,100 | $ 1,100 | ||
Goodwill | $ 12,646 | $ 12,646 | ||
CorpU | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 12,600 |
Consolidated balance sheet co_5
Consolidated balance sheet components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 31,842 | $ 32,182 |
Less accumulated depreciation and amortization | (25,636) | (25,170) |
Property and equipment, net | 6,206 | 7,012 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,756 | 7,820 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,678 | 4,870 |
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 | 19,017 | 19,109 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 8 | $ 0 |
Consolidated balance sheet co_6
Consolidated balance sheet components - Summary of Capitalized Computer Software (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Capitalized software | $ 69,284 | $ 63,748 |
Less accumulated amortization | (40,239) | (36,336) |
Total expected amortization | $ 29,045 | $ 27,412 |
Consolidated balance sheet co_7
Consolidated balance sheet components - Summary of Expected Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Remainder of 2023 | $ 11,583 | |
2024 | 11,496 | |
2025 | 5,630 | |
2026 | 336 | |
Total expected amortization | $ 29,045 | $ 27,412 |
Consolidated balance sheet co_8
Consolidated balance sheet components - Summary of Intangible Assets Acquired through Business Combination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 15,100 | $ 15,100 |
Accumulated Amortization | (6,836) | (5,769) |
Intangible Assets, Net | $ 8,264 | $ 9,331 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 6 years | 6 years |
Intangible Assets, Gross | $ 5,500 | $ 5,500 |
Accumulated Amortization | (1,469) | (1,239) |
Intangible Assets, Net | $ 4,031 | $ 4,261 |
Vendor relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years | 3 years |
Intangible Assets, Gross | $ 4,500 | $ 4,500 |
Accumulated Amortization | (2,403) | (2,028) |
Intangible Assets, Net | $ 2,097 | $ 2,472 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years | 3 years |
Intangible Assets, Gross | $ 4,200 | $ 4,200 |
Accumulated Amortization | (2,243) | (1,893) |
Intangible Assets, Net | $ 1,957 | $ 2,307 |
Tradename | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 2 years | 2 years |
Intangible Assets, Gross | $ 900 | $ 900 |
Accumulated Amortization | (721) | (609) |
Intangible Assets, Net | $ 179 | $ 291 |
Consolidated balance sheet co_9
Consolidated balance sheet components - Summary of Expected Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Remainder of 2023 | $ 3,041 | |
2024 | 2,795 | |
2025 | 917 | |
2026 | 917 | |
2027 | 594 | |
Total expected amortization | $ 8,264 | $ 9,331 |
Leases - Summary of Information
Leases - Summary of Information Pertaining to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease costs | $ 1,670 | $ 1,701 |
Variable lease costs | 314 | 204 |
Cash paid for operating leases | $ 1,923 | $ 1,151 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 5,279 |
2024 | 5,790 |
2025 | 809 |
2026 | 410 |
Gross lease payments | 12,288 |
Less imputed interest | (458) |
Present value of operating lease liabilities | $ 11,830 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 7,262 | $ 8,494 |
Indirect tax reserves | 4,158 | 6,627 |
Indirect tax payables | 7,968 | 9,137 |
Other current liabilities | 7,032 | 6,989 |
Accrued expenses and other current liabilities | $ 26,420 | $ 31,247 |
Accrued expenses and other cu_4
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, 2023 | Mar. 31, 2022 | |
Loss Contingency Accrual [Roll Forward] | ||
Balance, beginning of period | $ 2,528 | $ 17,036 |
Amounts charged to (released from) expense | 44 | (1,343) |
Net payments and settlements | 0 | 0 |
Balance, end of period | $ 2,572 | $ 15,693 |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum payments | $ 55.4 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | (2.43%) | (1.30%) |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Accounts receivable, related parties | $ 0 | $ 0.4 | |
Naspers | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 5% | ||
Affiliated Entity | Naspers Ltd. and Other Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 0.3 | $ 0.4 | |
Accounts receivable, related parties | 0.1 | $ 0.1 | |
Affiliated Entity | Certain Vendors | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses, related party | 0.2 | 0.2 | |
Board of Directors | Enterprise Subscription Offering | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 0.1 | $ 0.1 |
Stockholders' equity - Narrativ
Stockholders' equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Jan. 01, 2023 shares | Aug. 24, 2021 $ / shares shares | Mar. 31, 2023 USD ($) segment vote $ / shares shares | Mar. 31, 2022 USD ($) shares | Dec. 31, 2022 $ / shares shares | Oct. 29, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Preferred stock, shares authorized (in 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 | |||||
Unrecognized compensation costs, options | $ | $ 2,200 | |||||
Total shares of common stock reserved (in shares) | 38,343,164 | 31,255,576 | ||||
Stock-based compensation | $ | $ 26,283 | $ 13,342 | ||||
Stock-based compensation capitalized as a software | $ | 2,300 | $ 1,200 | ||||
Tender Offer to Sell Common Stock to an Investor | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ | $ 3,100 | |||||
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) | 9 months 18 days | |||||
Stock options outstanding (in shares) | 9,925,732 | 10,333,771 | ||||
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 | |||||
Granted (in shares) | 0 | 0 | ||||
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 | |||||
Unrecognized compensation costs, excluding options | $ | $ 221,000 | |||||
Restricted stock issued for business combination, grant date fair value (in dollars per share) | $ / shares | $ 16.35 | $ 17.37 | ||||
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] | ||||||
Unrecognized compensation costs, period for recognition (in years) | 2 years 2 months 12 days | |||||
Corporate performance metric attainment percentage | 1 | |||||
Granted (in shares) | 645,833 | |||||
Number of shares right to receive (in shares) | 1 | |||||
Award vesting rights, percentage | 75% | |||||
Unrecognized compensation costs, excluding options | $ | $ 5,600 | |||||
Stock options outstanding (in shares) | 50,000 | |||||
Restricted stock issued for business combination, grant date fair value (in dollars per share) | $ / shares | $ 8.89 | $ 0 | ||||
Performance-Based Awards | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 0% | |||||
Performance-Based Awards | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 150% | |||||
Contingently issuable shares under ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation costs, period for recognition (in years) | 1 year 3 months 18 days | |||||
Unrecognized compensation costs, excluding options | $ | $ 6,500 | |||||
Total shares of common stock reserved (in shares) | 1,450,137 | 2,800,000 | ||||
Minimum annual increase in shares reserved for issuance | 1% | |||||
Number of initial shares reserved | segment | 3 | |||||
Percent of outstanding shares | 300% | |||||
Restricted stock | CorpU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation costs, period for recognition (in years) | 1 year 4 months 24 days | |||||
Unrecognized compensation costs, excluding options | $ | $ 1,000 | |||||
Stock-based compensation | $ | $ 200 | $ 200 | ||||
Restricted stock issued for business combination (in shares) | 61,300 | |||||
Restricted stock issued for business combination, grant date fair value (in dollars per share) | $ / shares | $ 34.14 | |||||
2021 Stock incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares reserved for future issuance (in shares) | 13,800,000 | |||||
Number of shares reserved for future issuance increased (in shares) | 7,250,689 | |||||
Annual percentage increase, term | 0.05 | |||||
Granted (in shares) | 0 | |||||
Stock options outstanding (in shares) | 9,875,732 | 10,283,771 | ||||
Exercisable, weighted average exercise price (in USD per share) | $ / shares | $ 3.92 | |||||
Amended and Restated 2010 Equity Incentive Plan | Performance-Based Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options outstanding (in shares) | 16,666 |
Stockholders' equity - Summary
Stockholders' equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved (in shares) | 38,343,164 | 31,255,576 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 9,925,732 | 10,333,771 |
Restricted Stock Units RSU and Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs outstanding and PSUs (in shares) | 17,713,184 | 16,178,101 |
2021 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options available for future issuance (in shares) | 7,324,533 | 2,814,126 |
2021 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options available for future issuance (in shares) | 3,379,715 | 1,929,578 |
Stockholders' equity - Summar_2
Stockholders' equity - Summary of Stock Option Activity (Details) - 2021 Stock incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Options Outstanding | ||
Outstanding, beginning balance (in shares) | 10,283,771 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (355,516) | |
Canceled (in shares) | (52,523) | |
Outstanding, ending balance (in shares) | 9,875,732 | 10,283,771 |
Vested & expected to vest, awards outstanding (in shares) | 9,875,732 | |
Exercisable, awards outstanding (in shares) | 8,973,521 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in USD per share) | $ 4.18 | |
Granted (in USD per share) | 0 | |
Exercised (in USD per share) | 4.10 | |
Canceled (in USD per share) | 11.28 | |
Outstanding, ending balance (in USD per share) | 4.15 | $ 4.18 |
Vested & expected to vest, weighted average exercise price (in USD per shares) | 4.15 | |
Exercisable, weighted average exercise price (in USD per share) | $ 3.92 | |
Outstanding, weighted average remaining contractual term | 3 years 21 days | 6 years 4 months 17 days |
Outstanding, aggregate intrinsic value | $ 47,212 | $ 66,234 |
Vested & expected to vest, weighted average remaining contractual term | 3 years 21 days | |
Vested & expected to vest, aggregate intrinsic value | $ 47,212 | |
Exercisable, weighted average remaining contractual term | 2 years 10 months 20 days | |
Exercisable, aggregate intrinsic value | $ 44,616 |
Stockholders' equity - Summar_3
Stockholders' equity - Summary of SARs Activity (Details) - Stock Appreciation Rights - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
SARs Outstanding | |||
Outstanding, beginning balance (in shares) | 81,770 | ||
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | ||
Canceled (in shares) | (9,289) | ||
Outstanding, ending balance (in shares) | 72,481 | 81,770 | |
Vested and expected to vest, SARs outstanding (in shares) | 72,481 | ||
Exercisable, SARs outstanding (in shares) | 71,706 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in USD per share) | $ 5.44 | ||
Granted (in USD per share) | 0 | ||
Exercised (in USD per share) | 0 | ||
Canceled (in USD per share) | 6.58 | ||
Outstanding, ending balance (in USD per share) | 5.29 | $ 5.44 | |
Vested and expected to vest, weighted average exercise price (in USD per shares) | 5.29 | ||
Exercisable, weighted average exercise price (in USD per share) | $ 5.28 | ||
Outstanding, weighted average remaining contractual term | 6 months 25 days | 6 years 10 months 24 days | |
Outstanding, aggregate intrinsic value | $ 257 | $ 418 | |
Vested and expected to vest, weighted average remaining contractual term | 6 months 25 days | ||
Vested and expected to vest, aggregate intrinsic value | $ 257 | ||
Exercisable, weighted average remaining contractual term | 6 months | ||
Exercisable, aggregate intrinsic value | $ 254 |
Stockholders' equity - RSU Acti
Stockholders' equity - RSU Activity (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Restricted Stock Units (RSUs) | |
RSUs Outstanding | |
Unvested beginning balance (in shares) | shares | 16,178,101 |
Granted (in shares) | shares | 2,290,999 |
Released (in shares) | shares | (1,257,722) |
Canceled (in shares) | shares | (466,926) |
Unvested ending balance (in shares) | shares | 16,744,452 |
Weighted Average Grant Date Fair Value | |
Unvested beginning balance (in USD per share) | $ / shares | $ 17.37 |
Granted (in USD per share) | $ / shares | 9.84 |
Released (in USD per share) | $ / shares | 17.91 |
Canceled (in USD per share) | $ / shares | 15.48 |
Unvested ending balance (in USD per share) | $ / shares | $ 16.35 |
Performance-Based Awards | |
RSUs Outstanding | |
Unvested beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 645,833 |
Released (in shares) | shares | 0 |
Canceled (in shares) | shares | 0 |
Unvested ending balance (in shares) | shares | 645,833 |
Weighted Average Grant Date Fair Value | |
Unvested beginning balance (in USD per share) | $ / shares | $ 0 |
Granted (in USD per share) | $ / shares | 8.89 |
Released (in USD per share) | $ / shares | 0 |
Canceled (in USD per share) | $ / shares | 0 |
Unvested ending balance (in USD per share) | $ / shares | $ 8.89 |
Stockholders' equity - Stock-Ba
Stockholders' equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 26,283 | $ 13,342 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 1,593 | 840 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 7,277 | 4,137 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 6,294 | 3,334 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 9,911 | 5,031 |
Restructuring charges | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 1,208 | $ 0 |
Net loss per share - Summary of
Net loss per share - Summary of Net Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net loss | $ (44,544) | $ (25,649) |
Net loss | $ (44,544) | $ (25,649) |
Weighted-average shares used in computing net loss per share | ||
Basic (in shares) | 145,737,709 | 139,405,294 |
Diluted (in shares) | 145,737,709 | 139,405,294 |
Net loss per share | ||
Basic (in dollars per share) | $ (0.31) | $ (0.18) |
Diluted (in dollars per share) | $ (0.31) | $ (0.18) |
Net loss per share - Summary _2
Net loss per share - Summary of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities (in shares) | 27,907,143 | 24,313,324 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities (in shares) | 9,925,732 | 19,703,879 |
RSUs, PSUs, and restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities (in shares) | 17,431,152 | 4,168,525 |
Contingently issuable shares under ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive securities (in shares) | 550,259 | 440,920 |
Segment and geographic inform_3
Segment and geographic information - Narrative (Details) - segment | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 2 | 2 |
Number of reportable segments | 2 | 2 |
Segment and geographic inform_4
Segment and geographic information - Summary of Financial Information by Each Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 176,430 | $ 152,223 |
Segment cost of revenue | 76,701 | 66,438 |
Gross profit | 99,729 | 85,785 |
Reconciliation of segment gross profit to gross profit | ||
Amortization of capitalized software | 3,900 | 2,700 |
Amortization of intangible assets | 1,100 | 1,100 |
Depreciation | 800 | 1,200 |
Stock-based compensation | 26,283 | 13,342 |
Gross profit | 99,729 | 85,785 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 176,430 | 152,223 |
Segment cost of revenue | 70,363 | 61,960 |
Gross profit | 106,067 | 90,263 |
Reconciliation of segment gross profit to gross profit | ||
Gross profit | 106,067 | 90,263 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 6,338 | 4,478 |
Reconciliation of segment gross profit to gross profit | ||
Amortization of capitalized software | 3,903 | 2,724 |
Amortization of intangible assets | 725 | 725 |
Depreciation | 117 | 189 |
Stock-based compensation | 1,593 | 840 |
Gross profit | 6,338 | 4,478 |
Enterprise | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 95,242 | 64,911 |
Segment cost of revenue | 32,867 | 22,163 |
Gross profit | 62,375 | 42,748 |
Reconciliation of segment gross profit to gross profit | ||
Gross profit | 62,375 | 42,748 |
Consumer | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 81,188 | 87,312 |
Segment cost of revenue | 37,496 | 39,797 |
Gross profit | 43,692 | 47,515 |
Reconciliation of segment gross profit to gross profit | ||
Gross profit | $ 43,692 | $ 47,515 |
Segment and geographic inform_5
Segment and geographic information - Summary of Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 176,430 | $ 152,223 |
North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 71,707 | 60,588 |
Europe, Middle East, Africa | ||
Segment Reporting Information [Line Items] | ||
Revenue | 54,551 | 47,725 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 38,159 | 33,188 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 12,013 | $ 10,722 |
Segment and geographic inform_6
Segment and geographic information - Summary of Long-lived Assets by Region (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 16,016 | $ 18,338 |
North America | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 11,083 | 12,782 |
Rest of world | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 4,933 | $ 5,556 |
Restructuring charges (Details)
Restructuring charges (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 13, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Reduction in global workforce, percent | 10% | ||
Restructuring charges | $ 10,128 | $ 0 | |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 8,920 |
Restructuring charges - Summary
Restructuring charges - Summary of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 10,128 | $ 0 |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Restructuring charges | 8,920 | |
Settlements | (4,376) | |
Ending balance | 4,544 | |
Share-Based Payment Arrangement | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 1,200 |