ZipRecruiter (ZIP) 10-Q 13 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 05, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-40406
Entity Registrant Name	ZIPRECRUITER, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-2976158
Entity Address, Address Line One	604 Arizona Avenue
Entity Address, City or Town	Santa Monica
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90401
City Area Code	877
Local Phone Number	252-1062
Title of 12(b) Security	Class A common stock, $0.00001 par value per share
Trading Symbol	ZIP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001617553
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		87,498,133
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		30,361,349

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash	$ 745,393	$ 254,621
Accounts receivable, net of allowances of $3,482 and $3,325 at March 31, 2022 and December 31, 2021, respectively	51,680	41,657
Prepaid expenses and other assets	10,599	9,721
Deferred commissions, current portion	4,608	4,640
Total current assets	812,280	310,639
Property and equipment, net	9,050	8,702
Operating lease right-of-use assets	15,900	18,515
Internal use software, net	14,466	13,657
Deferred commissions, net of current portion	3,962	4,011
Goodwill	1,724	1,724
Deferred tax assets, net	43,388	38,029
Other assets	1,151	3,342
Total assets	901,921	398,619
Current liabilities
Accounts payable	22,000	24,862
Accrued expenses	72,371	86,213
Accrued interest	5,957	0
Deferred revenue	25,498	23,253
Operating lease liabilities, current portion	6,033	6,109
Other current liabilities	5,735	2,457
Total current liabilities	137,594	142,894
Operating lease liabilities, net of current portion	17,530	19,179
Long-term borrowings	540,862	0
Other long-term liabilities	2,318	1,578
Total liabilities	698,304	163,651
Commitments and contingencies (Note 7)
Stockholders' equity
Preferred Stock, $0.00001 par value; 50,000 shares authorized as of March 31, 2022 and December 31, 2021; no shares issued and outstanding as of March 31, 2022 and December 31, 2021	0	0
Class B treasury stock, 195 shares outstanding as of March 31, 2022 and December 31, 2021	(644)	(644)
Additional paid-in capital	263,627	303,395
Accumulated deficit	(59,367)	(67,784)
Total stockholders' equity	203,617	234,968
Total liabilities and stockholders' equity	901,921	398,619
Common Class A
Stockholders' equity
Common stock	1	1
Common Class B
Stockholders' equity
Common stock	$ 0	$ 0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Accounts receivable, allowance for credit loss, current	$ 3,482	$ 3,325
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, authorized (in shares)	50,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.00001
Common stock, authorized (in shares)	1,450,000,000
Treasury stock (in shares)	195,000	195,000
Common Class A
Stockholders' equity
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	700,000,000	700,000,000
Common stock, issued (in shares)	87,380,000	87,843,000
Common stock, outstanding (in shares)	87,380,000	87,843,000
Common Class B
Stockholders' equity
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	700,000,000	700,000,000
Common stock, issued (in shares)	30,557,000	30,571,000
Common stock, outstanding (in shares)	30,362,000	30,376,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 227,260	$ 125,372
Cost of revenue	21,606	15,961
Gross profit	205,654	109,411
Operating expenses
Sales and marketing	137,590	63,476
Research and development	29,644	17,015
General and administrative	24,196	12,454
Total operating expenses	191,430	92,945
Income from operations	14,224	16,466
Other income (expense)
Interest expense	(6,285)	(209)
Sublease income	0	292
Other income (expense), net	(25)	94
Total other income (expense), net	(6,310)	177
Income before income taxes	7,914	16,643
Income tax expense (benefit)	(503)	3,245
Net income	8,417	13,398
Less: Accretion of redeemable convertible preferred stock	0	(997)
Less: Undistributed earnings attributable to participating securities	0	(2,913)
Net income attributable to Class A and Class B common stockholders	$ 8,417	$ 9,488
Net income per share attributable to Class A and Class B common stockholders:
Basic (in dollars per share)	$ 0.07	$ 0.12
Diluted (in dollars per share)	$ 0.07	$ 0.10
Weighted average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic (in shares)	118,806	78,834
Diluted (in shares)	127,050	98,435

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Series A Preferred Stock	Series B Preferred Stock	Common Class ACommon Stock	Common Class BCommon Stock
Beginning balance (in shares) at Dec. 31, 2020					2,271	6,031
Beginning balance at Dec. 31, 2020					$ 87,118	$ 49,738
Redeemable Convertible Preferred Stock
Accretion of redeemable convertible preferred stock					$ 961	$ 36
Ending balance (in shares) at Mar. 31, 2021					2,271	6,031
Ending balance at Mar. 31, 2021					$ 88,079	$ 49,774
Beginning balance (in shares) at Dec. 31, 2020		(195)					0	78,283
Beginning balance at Dec. 31, 2020	$ (50,296)	$ (644)	$ 21,732	$ (71,384)			$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)								1,965
Issuance of common stock upon exercise of options	3,660		3,660
Stock-based compensation	1,290		1,290
Repurchase and retirement of common stock (in shares)								(50)
Repurchase and retirement of common stock	(450)		(450)
Accretion of redeemable convertible preferred stock	(997)		(997)
Net income	13,398			13,398
Ending balance (in shares) at Mar. 31, 2021		(195)					0	80,198
Ending balance at Mar. 31, 2021	(33,395)	$ (644)	25,235	(57,986)			$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2021					0	0
Beginning balance at Dec. 31, 2021					$ 0	$ 0
Ending balance (in shares) at Mar. 31, 2022					0	0
Ending balance at Mar. 31, 2022					$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2021		(195)					87,843	30,571
Beginning balance at Dec. 31, 2021	234,968	$ (644)	303,395	(67,784)			$ 1	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class B stock to Class A stock (in shares)							1,446	(1,446)
Conversion of Class B stock to Class A stock	0		0
Issuance of common stock upon exercise of options (in shares)								1,180
Issuance of common stock upon exercise of options	2,078		2,078
Issuance of common stock upon the vesting and settlement of restricted stock units (in shares)							354	433
Stock-based compensation	21,112		21,112
Shares withheld related to net share settlement (in shares)							(133)	(181)
Shares withheld related to net share settlement	(5,902)		(5,902)
Stock issued under employee stock purchase plan (in shares)							290
Shares issued under employee stock purchase plan	5,293		5,293
Repurchase and retirement of common stock (in shares)							(2,420)
Repurchase and retirement of common stock	(62,349)		(62,349)
Net income	8,417			8,417
Ending balance (in shares) at Mar. 31, 2022		(195)					87,380	30,557
Ending balance at Mar. 31, 2022	$ 203,617	$ (644)	$ 263,627	$ (59,367)			$ 1	$ 0

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net income	$ 8,417	$ 13,398
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	20,494	1,226
Depreciation and amortization	2,485	2,302
Provision for bad debts	758	244
Deferred income taxes	(5,359)	3,151
Non-cash lease expense	1,304	1,473
Other	1,619	0
Change in operating assets and liabilities:
Accounts receivable	(10,781)	(5,149)
Prepaid expenses and other current assets	(991)	(1,087)
Deferred commissions, net	81	122
Other assets	2,129	59
Accounts payable	(2,882)	(2,191)
Accrued expenses and other liabilities	(9,306)	5,078
Accrued interest	5,957	0
Deferred revenue	2,234	4,259
Operating lease liabilities	(1,726)	(731)
Net cash provided by operating activities	14,433	22,154
Cash flows from investing activities
Purchases of property and equipment	(986)	(1,131)
Capitalized internal use software costs	(2,530)	(2,124)
Net cash used in investing activities	(3,516)	(3,255)
Cash flows from financing activities
Proceeds from issuance of senior unsecured notes	550,000	0
Payment of senior unsecured notes’ issuance fees	(9,378)	0
Payment for net settlement of taxes on restricted stock units	(5,902)	0
Repurchase of common stock	(62,349)	(450)
Proceeds from exercise of stock options	2,191	2,077
Proceeds from issuance of stock under employee stock purchase plan	5,293	0
Net cash provided by financing activities	479,855	1,627
Net increase in cash	490,772	20,526
Beginning of period	254,621	114,539
End of period	745,393	135,065
Supplemental disclosure of non-cash activities
Capitalized assets included in accounts payable and accrued expenses	1,019	2,084
Stock-based compensation capitalized for software	618	64
In-transit proceeds from exercise of stock options	16	2,547
Accretion of redeemable convertible preferred stock	$ 0	$ 997

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of BusinessZipRecruiter, Inc. was incorporated in the state of Delaware on June 29, 2010. Hereinafter, ZipRecruiter, Inc. and its wholly owned subsidiaries ZipRecruiter Israel Ltd., ZipRecruiter UK Ltd., and ZipRecruiter Canada Ltd. are collectively referred to as “ZipRecruiter” or the “Company.” The Company is a two-sided marketplace that enables employers and job seekers to connect with one another online to fill job opportunities.

Basis of Presentation, Principl

Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies	Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, certain information and disclosures normally included in consolidated financial statements presented in accordance with U.S. GAAP have been condensed or omitted. 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. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “2021 Form 10-K”). The condensed consolidated balance sheet as of December 31, 2021 has been derived from the Company’s audited consolidated financial statements. Certain reclassifications have been made to prior year presentation to conform to current year presentation. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the condensed consolidated financial statements. There have been no changes in the Company’s accounting policies from those disclosed in the Company’s audited consolidated financial statements and the related notes included in the 2021 Form 10-K. The operating results for the three months ended March 31, 2022 are not necessarily indicative of the results expected for the full year ending December 31, 2022 or any future period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. 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 date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates include revenue recognition, estimates relating to the measurement of operating lease right-of-use (“ROU”) assets and operating lease liabilities, determination of the fair value of stock-based awards, valuation of common stock in periods prior to becoming a public company, collectability of accounts receivable, impairment of long-lived assets, including goodwill, carrying value and useful lives of property and equipment and internal-use software, the amortization period for deferred commission costs, and income taxes. By their nature, estimates are subject to an inherent degree of uncertainty and actual results could differ from those estimates. The impact of the Coronavirus pandemic (“COVID-19”) continues to evolve. As a result, many of the Company’s estimates and assumptions require increased judgment and carry a higher degree of variability and volatility. As of the date these condensed consolidated financial statements are issued, the Company is not aware of any specific event or circumstance that would require an update to the Company’s estimates or judgments, or change to the carrying value of the Company’s assets or liabilities. However, these estimates and judgments may change as new events occur and additional information is obtained, which may result in changes being recognized in the consolidated financial statements in future periods. Actual results could differ from those estimates and any such differences may have a material impact on the financial statements. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Accounting standards describe a fair value hierarchy based on the following three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: - Level 1 — Quoted prices in active markets for identical assets, liabilities, or funds. - Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. - Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable, and accrued expenses, approximate fair value because of their short-term maturities, except for the Company’s senior unsecured notes which are valued based on quoted prices for the notes in an inactive market. The value of the notes represents a Level 2 input in the fair value hierarchy. Certain assets, including goodwill and operating leases, are also subject to measurement at fair value on a non-recurring basis using Level 3 or Level 2 inputs, but only when they are deemed to be impaired. As of March 31, 2022 and December 31, 2021, no material impairments were identified on those assets required to be measured at fair value on a non-recurring basis. Segments and Geographic Information The Company operates as a single operating segment. The Company’s Chief Operating Decision Maker, the CEO, regularly reviews financial information presented on a consolidated basis for purposes of assessing financial performance and allocating resources. During the three months ended March 31, 2022 and 2021, respectively, revenue from countries outside of the United States was not material. In addition, property and equipment and operating lease ROU assets outside of the United States were not material as of March 31, 2022 and December 31, 2021, respectively. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and accounts receivable. The Company maintains its cash accounts with large financial institutions and at times, the cash accounts may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses in such accounts. One customer accounted for 15% and 16% of the Company's outstanding accounts receivable as of March 31, 2022 and December 31, 2021, respectively. The Company closely monitors the financial condition of the foregoing customer, which has been in good credit standing. No other customer individually accounted for 10% or more of the Company's outstanding accounts receivable as of March 31, 2022 and December 31, 2021, respectively. As such, the Company does not consider the concentration of its accounts receivable to be a material risk. For the three months ended March 31, 2022 and 2021, there were no customers that individually represented 10% or more of revenue. The Company uses third parties to collect its credit card receivables and believes risk related to its credit card processors is minimal. Recent Accounting Pronouncements Accounting Pronouncements Not Yet Adopted As an emerging growth company (“EGC”), the Company is allowed by the Jumpstart Our Business Startups Act to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing model for measuring the allowance for credit losses for financial assets measured at amortized cost (including accounts receivable) to a model that is based on the expected losses rather than incurred losses. Under the new credit loss model, lifetime expected credit losses on such financial assets are measured and recognized at each reporting date based on historical, current, and forecasted information. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, and in April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. These ASUs provide supplemental guidance and clarification to ASU 2016-13 and must be adopted concurrently with the adoption of ASU 2016-13, cumulatively referred to as “Topic 326.” As an EGC, this guidance is effective for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of the adoption of this update on its condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of income tax accounting guidance. As an EGC, this guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted, including adoption in an interim period. An entity that elects to early adopt ASU 2019-12 in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The Company is currently evaluating the effects of the adoption of this update on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Basic and diluted net income per share are computed using the two-class method as required when there are participating securities and multiple classes of common stock. Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Prior to May 14, 2021, when the Company’s Series A preferred stock and Series B preferred stock converted into shares of Class B common stock, the Company’s redeemable convertible preferred stock were participating securities as the holders of the redeemable convertible preferred stock were entitled to participate in dividends with common stock. In periods of net income, net income after deducting the accretion of redeemable convertible preferred stock was attributed to common stockholders and participating securities based on their participation rights. Net losses after deducting the accretion of redeemable convertible preferred stock are not allocated to the participating securities as the participating securities do not have a contractual obligation to share in any losses. In April 2021, the Company filed its amended and restated certificate of incorporation, which resulted in the creation of Class A common stock and Class B common stock. As the liquidation and dividend rights are identical for Class A and Class B common stock (see Note 8), the undistributed earnings under the two-class method are allocated on a proportional basis and the resulting net income per share attributable to common stockholders is, therefore, the same for both Class A and Class B common stock on an individual or combined basis. The following table presents the Company’s basic net income per share (in thousands, except per share amounts): Three Months Ended 2022 2021 Net income per share, basic: Net income $ 8,417 $ 13,398 Less: Accretion of redeemable convertible preferred stock — (997) Less: Undistributed earnings attributable to participating securities — (2,913) Net income attributable to Class A and Class B common stockholders $ 8,417 $ 9,488 Weighted average shares of Class A and Class B common stock outstanding 118,806 78,834 Net income per share attributable to Class A and Class B common stockholders, basic $ 0.07 $ 0.12 The Company computes diluted net income per share under the two-class method where income is reallocated between common stock, potential common stock and participating securities. Potential common stock includes stock options and restricted stock units (“RSUs”) computed using the treasury stock method and the conversion of the convertible notes and accrued interest using the if converted method. The following table presents the Company’s diluted net income per share (in thousands, except per share amounts): Three Months Ended 2022 2021 Net income per share, diluted: Numerator: Net income attributable to Class A and Class B common stockholders $ 8,417 $ 9,488 Add: Reallocation of net income attributable to participating securities — 466 Interest on convertible notes with related parties, net of tax — 129 Net income attributable to Class A and Class B common stockholders, diluted $ 8,417 $ 10,083 Denominator: Weighted average shares of Class A and Class B common stock outstanding, basic 118,806 78,834 Effect of dilutive securities: Options to purchase common stock 7,960 15,774 Convertible notes with related parties — 3,827 Restricted stock units 284 — Weighted average shares of Class A and Class B common stock outstanding, diluted 127,050 98,435 Net income per share attributable to Class A and Class B common stockholders, diluted $ 0.07 $ 0.10 The following table presents the weighted average number of potentially dilutive common stock equivalents excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive (in thousands): Three Months Ended 2022 2021 Options to purchase common stock 62 10 Restricted stock units 4,859 5,559 Unvested early exercise common stock — 2 Employee stock purchase plan 224 — Total shares excluded from diluted net income per share 5,145 5,571

Revenue Information

Revenue Information	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue Information	Revenue Information The Company disaggregates revenue into two streams: subscription revenue and performance-based revenue. The following table presents the Company’s revenue streams (in thousands): Three Months Ended 2022 2021 Subscription $ 174,823 $ 100,504 Performance-based 52,437 24,868 Total revenue $ 227,260 $ 125,372 The Company recognized $21.9 million and $12.5 million of revenue during the three months ended March 31, 2022 and 2021, respectively, that was included in the deferred revenue balances as of December 31, 2021 and 2020, respectively. As of March 31, 2022 and December 31, 2021, the Company had no contract assets. Performance Obligations No revenue was recognized during the three months ended March 31, 2022 and 2021 from performance obligations satisfied in previous periods.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, December 31, 2022 2021 Accrued marketing $ 28,745 $ 22,493 Accrued partner expenses 11,122 8,457 Accrued compensation and benefits 11,180 26,621 Accrued commissions 6,122 5,790 Accrued non-income taxes 4,570 11,250 Accrued refunds and customer liabilities 3,797 3,646 Other accrued expenses 6,835 7,956 Total accrued expenses $ 72,371 $ 86,213

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt Credit Facility In April 2021, the Company terminated its Second Amended and Restated Loan and Security Agreement dated September 2, 2020 and entered into a new $250.0 million credit facility agreement with a syndicate of banks. The new credit facility has a maturity date of April 30, 2026 and bears interest at a rate based upon the Company’s Net Leverage Ratio. The Company’s Net Leverage Ratio is defined as total debt less total cash and permitted investments outstanding at period end, with a maximum total cash and permitted investments adjustment of $550.0 million, divided by the trailing twelve months of earnings, adjusted for items such as non-cash expenses and other nonrecurring transactions. The Company is also obligated to pay other customary fees including a commitment fee on a quarterly basis based on amounts committed but unused under the new credit facility at a rate between 0.25% to 0.35%, depending on the Company’s Net Leverage Ratio. The new credit facility is collateralized by security interests in substantially all of the Company’s assets and includes customary events of default such as non-payment of principal, non-payment of interest or fees, inaccuracy of representations and warranties, violation of certain covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments against the Company, and a change of control. The occurrence of an event of default could result in the acceleration of the obligations under the new credit facility. The new credit facility agreement contains customary representations, warranties, affirmative covenants, such as financial statement reporting requirements, negative covenants, and financial covenants, such as maintenance of certain net leverage ratio requirements. The negative covenants include restrictions that, among other things, restrict the Company’s ability to incur liens and indebtedness, make certain investments, declare dividends, dispose of, transfer or sell assets, make stock repurchases and consummate certain other matters, all subject to certain exceptions. On November 19, 2021, the Company entered into an amendment to the new credit agreement with a syndicate of banks and the lenders named therein (the “Credit Agreement”), to amend certain other provisions under the Credit Agreement relating to how letters of credit denominated in currencies other than U.S. Dollars are valued under the Credit Agreement. On January 10, 2022, the Company entered into a Second Amendment to the Credit Agreement (the “Second Amendment”) with a syndicate of banks and the lenders named therein. The Second Amendment increased the maximum amount of liquidity (including cash and permitted investments) that may be netted against the Company’s total indebtedness from $100.0 million to $550.0 million for purposes of calculating the Company’s total Net Leverage Ratio under the Credit Agreement. The Company was in compliance with the financial covenants as of March 31, 2022. The Company had no amounts outstanding under the Credit Agreement as of March 31, 2022. The amount available under the credit facility as of March 31, 2022 was $244.1 million, which is the credit limit less letters of credit outstanding of $5.9 million. Issuance of Senior Unsecured Notes On January 12, 2022, the Company issued an aggregate principal amount of $550.0 million senior unsecured notes due 2030 (the “Notes”) in a private placement. The Notes and the guarantees are senior unsecured obligations of ZipRecruiter, Inc. The Notes were issued pursuant to an indenture dated as of January 12, 2022 (the “Indenture”) between the Company and the trustee. Pursuant to the Indenture, the Notes will mature on January 15, 2030 and bear interest at a rate of 5% per year. Interest on the Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2022. Unpaid amounts are included within accrued interest in the Company’s condensed consolidated balance sheets. The Indenture contains certain customary negative covenants, including but not limited to, limitations on the incurrence of debt, liens, consolidations or mergers, and asset sales. The Indenture also contains customary events of default. At its sole discretion, the Company has the option to redeem all or a part of the Notes as follows: (i) At any time prior to January 15, 2025, the Company may redeem all or part of the Notes, at its option, at a redemption price equal to 100% of the principal amount plus a make-whole premium as defined in the Indenture, and any accrued and unpaid interest, if any; and (ii) At any time on or after January 15, 2025, the Company may redeem all or any portion of the Notes, at the redemption prices equal to the percentage of principal amount set forth below, plus accrued and unpaid interest, if any, if redeemed during the twelve-month period beginning on January 15 of the year indicated below: Year Percentage 2025 102.50 % 2026 101.25 % 2027 and thereafter 100.00 % Prior to January 15, 2025, the Company has the option to redeem up to 40% of the aggregate principal amount of the Notes from net cash proceeds from certain equity offerings at a redemption price equal to 105% of the principal amount of the Notes to be redeemed plus any accrued and unpaid interest. Upon the occurrence of a change of control triggering event (as defined in the Indenture), the Company must offer to repurchase the Notes at a repurchase price equal to 101% of the aggregate principal amount of the Notes to be repurchased, and any accrued and unpaid interest. The Company includes its Notes, net of debt issuance costs, within long-term borrowings in its condensed consolidated balance sheets. The Company accounts for the debt issuance costs incurred related to the Notes using the effective interest method, under which the debt issuance costs are amortized as interest expense until the applicable maturity date. As of March 31, 2022, the Company had a carrying amount of approximately $9.1 million of debt issuance costs related to the Notes. For the three months ended March 31, 2022, the Company recognized $6.1 million in interest expense related to the senior unsecured notes with an effective interest rate of 5.26%. Such interest expense includes $0.2 million related to the amortization of debt issuance costs. The aggregate fair value of the Company’s senior unsecured notes as of March 31, 2022 was estimated to be approximately $536.9 million, and is valued based on quoted prices for the notes in an inactive market, which represents a Level 2 input in the fair value hierarchy.

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. If the Company determines that it is probable that a loss has been incurred and the amount is reasonably estimable, the Company will record a liability. However, if the Company determines that a contingent loss is reasonably possible and the loss or range of loss can be estimated, the Company will disclose the possible loss in the condensed consolidated financial statements. Legal costs relating to loss contingencies are expensed as incurred. In April 2019, the Company was named as a defendant in a putative class action lawsuit filed by a former employee in the Los Angeles Superior Court alleging that the Company violated the Fair Credit Reporting Act as well as owed certain compensation to employees. In January 2020, the former employee filed a related representative action in the Los Angeles Superior Court under the Private Attorney General Act alleging similar claims regarding compensation owed to employees. In January 2021, the Company filed a motion for summary judgment or, in the alternative, summary adjudication, which was granted in part and denied in part. At the date these condensed consolidated financial statements were issued, the parties had agreed to settle the lawsuit for an immaterial amount and accordingly, the Company recorded a liability within accrued expenses as of March 31, 2022. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scopes and terms to customers, investors, directors and officers with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or from certain claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has the Company been sued in connection with these indemnification arrangements. As of March 31, 2022, the Company has not accrued a liability for these indemnification arrangements because the likelihood of incurring a payment obligation, if any, in connection with these indemnification arrangements is neither probable nor reasonably estimable. Non-income Taxes The Company collects and remits sales and use, value added and other taxes (“non-income taxes”) relating to the sale of the Company’s services in various jurisdictions. The Company accrues non-income taxes that may result from examinations by, or any anticipated negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, then the reasonably possible loss is disclosed. Due to the inherent complexity and uncertainty of these matters and judicial process in certain jurisdictions, the final outcome may be materially different from the Company’s expectations.

Common Stock and Redeemable Con

Common Stock and Redeemable Convertible Preferred Stock	3 Months Ended
	Mar. 31, 2022
Equity and Temporary Equity [Abstract]
Common Stock and Redeemable Convertible Preferred Stock	Common Stock and Redeemable Convertible Preferred Stock Common stock The Company is authorized to issue a total of 1.45 billion shares consisting of 700 million shares of Class A common stock, 700 million shares of Class B common stock, and 50 million shares of preferred stock all with a par value per share of $0.00001. The Class A common stock is entitled to one vote per share and the Class B common stock is entitled to twenty votes per share. The Class A and Class B common stock have the same dividend and liquidation rights. The Class B common stock converts to Class A common stock at any time at the option of the holder. Additionally, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, except for certain transfers described in the amended and restated certificate of incorporation. Redeemable Convertible Preferred Stock In April 2021, the Company amended and restated its certificate of incorporation such that the redeemable convertible preferred stock would automatically convert into shares of common stock upon the effectiveness of the Company’s registration statement related to the direct listing of its Class A common stock on the New York Stock Exchange (the “Direct Listing”).

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Share Repurchase Program	Share Repurchase Program In February 2022, the Company’s board of directors authorized the Company to repurchase up to $100.0 million of its outstanding common stock. The Company may repurchase shares of common stock through open market or privately negotiated transactions, block purchases, or pursuant to one or more Rule 10b5-1 plans. The share repurchase program has no expiration date and will continue until otherwise suspended, terminated, or modified at any time for any reason by the board of directors. The share repurchase program does not obligate the Company to repurchase shares of common stock. There is no minimum or maximum number of shares to be repurchased under the program. The timing and actual number of shares repurchased will depend on a variety of factors including price, market conditions, corporate and regulatory requirements, and other investment opportunities. In March 2022, the Company repurchased approximately 0.6 million shares of its Class A common stock through open market purchases at an aggregate cost of $12.3 million. Thereafter, the Company entered into an accelerated share repurchase agreement (“ASR”) with Goldman Sachs & Co. LLC (“Goldman Sachs”) to repurchase an aggregate of $50.0 million in shares of the Company’s Class A common stock. The Company made an initial payment of $50.0 million t o Goldman Sachs and r eceived an initial delivery of 1.8 million shares of its Class A common stock which represented $40.0 million (or 80%) of the ASR. The final number of shares to be repurchased will be based on the volume-weighted average price of the Company’s Class A common stock during the term of the ASR, less fees paid to the bank. The final settlement of the ASR occurred during the second quarter of 2022. The ASR transaction is effectuated pursuant to the Company’s previously announced $100.0 million share repurchase program. Approximately $37.7 million in shares of the Company’s Class A common stock remains available for future repurchases under the Company’s $100.0 million share repurchase program after completion of the ASR. All shares repurchased under the share repurchase program were immediately retired. Repurchased shares reduced the Company’s outstanding shares and its weighted average number of common shares outstanding for purposes of calculating basic and diluted earnings per share.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Total stock-based compensation expense is recorded in the Condensed Consolidated Statements of Operations as follows (in thousands): Three Months Ended 2022 2021 Cost of revenue $ 216 $ 16 Sales and marketing 2,628 99 Research and development 8,670 825 General and administrative 8,980 286 Total stock-based compensation $ 20,494 $ 1,226 Equity Incentive Plans Prior to adoption of the 2021 Equity Incentive Plan (the “2021 Plan”), the Company granted awards under the 2012 Equity Incentive Plan (the “2012 Plan”) or 2014 Equity Incentive Plan (the “2014 Plan”, and together with the 2012 Plan, the “Prior Plans”). All awards currently are granted from the 2021 Plan. However, the Prior Plans continue to govern the terms and conditions of the outstanding awards previously granted under the 2012 Plan and 2014 Plan. Under the amended and restated certificate of incorporation, all outstanding options to purchase common stock became options to purchase an equivalent number of shares of Class B common stock and all RSUs became RSUs for an equivalent number of shares of Class B common stock under the Prior Plans. In April 2021, the Company adopted the 2021 Plan, which became effective on May 14, 2021 in connection with the Direct Listing. The 2021 Plan permits the grant of incentive stock options to employees and the grant of non-qualified stock options, restricted stock, restricted stock awards, RSUs, stock appreciation rights, performance units, performance shares and stock bonus awards to the Company’s employees, directors, and consultants. Under the 2021 Plan, as of March 31, 2022, 12.4 million shares were reserved for issuance of Class A common stock. The number of shares initially reserved for issuance pursuant to awards under the 2021 Plan will be increased by (i) (a) any reserved shares not issued or subject to outstanding awards granted under the Prior Plans that cease to be subject to such awards by forfeiture or otherwise after the effective date, (b) shares issued under the Prior Plans before or after the effective date pursuant to the exercise of stock options that are, after the effective date, forfeited, (c) shares issued under the Prior Plans that are repurchased by the Company at the original purchase price or are otherwise forfeited, and (d) shares that are subject to stock options or other awards under the Prior Plans that are used to pay the exercise price of a stock option or withheld to satisfy the tax withholding obligations related to any award and (ii) an annual increase on January 1st of each year beginning in 2022 through 2031, by the lesser of (a) 5% of the number of shares of all classes of the Company’s common stock issued and outstanding on December 31 immediately prior to the date of increase or (b) such number of shares determined by the board of directors. During the three months ended March 31, 2022, 2.1 million RSUs and no stock options were issued under the 2021 Plan. 2021 Employee Stock Purchase Plan In August 2021, the Company launched the 2021 Employee Stock Purchase Plan (the “ESPP”). The ESPP provides for concurrent six-month offering and purchase periods beginning February 15 and August 15 of each year. On January 1 of each of year, 2022 through 2031, the aggregate number of shares of Class A common stock reserved for issuance under the ESPP shall be increased automatically by the number of shares equal to 1% of the total number of outstanding shares of Class A common stock and shares of preferred stock of the Company (on an as converted to common stock basis) on the immediately preceding December 31; provided that the board of directors or compensation committee may in its sole discretion reduce the amount of the increase in any particular year. As of March 31, 2022, 2.2 million shares were reserved for issuance of Class A common stock. The ESPP allows eligible employees the option to purchase shares of the Company's Class A common stock at a 15% discount through payroll deductions of their eligible compensation, subject to certain plan limitations. On each purchase date, eligible employees can purchase the Company’s Class A common stock at a price per share equal to 85% of the lesser of the fair market value of the Company’s Class A common stock on (i) the offering date or (ii) the purchase date. The purchase date is the last day of any concurrent offering and purchase period. During the three months ended March 31, 2022, 0.3 million shares of Class A common stock were purchased under the ESPP for an aggregate amount of $5.3 million. In the three months ended March 31, 2022, total stock-based compensation expense of $0.8 million was recognized related to the ESPP. As of March 31, 2022, there was $0.8 million of unrecognized stock-based compensation expense that is expected to be recognized over the remaining term of the offering period ending August 14, 2022. As of March 31, 2022, the Company recorded a liability of $1.1 million related to the accumulated payroll deductions, which are refundable to employees who withdraw from the ESPP. This amount is included within accrued expenses in the accompanying Condensed Consolidated Balance Sheets. Stock Options A summary of the Company’s stock option activity under the Prior Plans and the 2021 Plan (collectively, the “Plans”) for the three months ended March 31, 2022 is as follows (in thousands, except weighted average information): Number of Options Outstanding Weighted Average Exercise Price Per Share Outstanding at December 31, 2021 9,841 $ 2.27 Granted — — Exercised (1,180) 1.79 Forfeited/Canceled (14) 2.96 Outstanding at March 31, 2022 8,647 $ 2.33 Exercisable at March 31, 2022 7,921 $ 2.23 As of March 31, 2022, total remaining stock-based compensation expense for unvested stock options is $5.8 million, which is expected to be recognized over a weighted average period of 1.3 years. Restricted Stock Units The Company has granted RSUs to certain employees and directors of the Company. The granted RSUs vest upon the satisfaction of both a time-based service condition and a liquidity event requirement. The time-based service condition for these awards is generally satisfied over four years. On April 19, 2021, the Company’s board of directors waived the liquidity event performance condition for the RSUs then outstanding so those that had satisfied the service condition would vest upon the earlier of the first day of trading of the Company’s common stock on the New York Stock Exchange, or March 15, 2022. On April 19, 2021, the Company also granted the CEO Performance Award, which provides for a grant of 1.4 million RSUs. The CEO Performance Award vests upon achieving stock price targets as well as satisfying certain minimum service requirements. During the three months ended March 31, 2022, the Company recorded stock-based compensation expense of $1.5 million related to the CEO Performance Award. For all RSUs, excluding the CEO Performance Award, the Company recorded stock-based compensation expense of $17.7 million during the three months ended March 31, 2022. During the three months ended March 31, 2021 and prior to the Direct Listing, the Company concluded that the liquidity event performance condition described above for the RSUs was not probable of being satisfied. As a result, the Company did not recognize any compensation cost during the three months ended March 31, 2021 for any RSUs granted. A summary of the Company’s RSU activity for the three months ended March 31, 2022 is as follows (in thousands, except weighted average information): Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2021 7,532 $ 24.20 Granted 2,069 20.56 Vested (787) 18.08 Forfeited/Canceled (196) 20.79 Unvested at March 31, 2022 8,618 $ 20.38

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computes its provision (benefit) for income taxes by applying the estimated annual effective tax rate to pretax income or loss and adjusts the provision for discrete tax items recorded in the period. The Company recorded an income tax benefit of $0.5 million and income tax expense of $3.2 million for the three months ended March 31, 2022 and 2021, respectively. The effective tax rate for the three months ended March 31, 2022 and 2021 was (6)% and 19%, respectively.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn May 2022, subsequent to period end, the purchase period for the ASR ended and an additional 0.4 million shares were delivered to the Company. In total, 2.2 million shares were purchased by the Company under the ASR at a volume weighted-average price of $23.09 per share net of fees.

Basis of Presentation, Princi_2

Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, certain information and disclosures normally included in consolidated financial statements presented in accordance with U.S. GAAP have been condensed or omitted. 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. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “2021 Form 10-K”). The condensed consolidated balance sheet as of December 31, 2021 has been derived from the Company’s audited consolidated financial statements. Certain reclassifications have been made to prior year presentation to conform to current year presentation. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the condensed consolidated financial statements. There have been no changes in the Company’s accounting policies from those disclosed in the Company’s audited consolidated financial statements and the related notes included in the 2021 Form 10-K.
Use of Estimates	The preparation of condensed consolidated financial statements in conformity with U.S. 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 date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates include revenue recognition, estimates relating to the measurement of operating lease right-of-use (“ROU”) assets and operating lease liabilities, determination of the fair value of stock-based awards, valuation of common stock in periods prior to becoming a public company, collectability of accounts receivable, impairment of long-lived assets, including goodwill, carrying value and useful lives of property and equipment and internal-use software, the amortization period for deferred commission costs, and income taxes. By their nature, estimates are subject to an inherent degree of uncertainty and actual results could differ from those estimates. The impact of the Coronavirus pandemic (“COVID-19”) continues to evolve. As a result, many of the Company’s estimates and assumptions require increased judgment and carry a higher degree of variability and volatility.
Fair Value Measurements	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Accounting standards describe a fair value hierarchy based on the following three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: - Level 1 — Quoted prices in active markets for identical assets, liabilities, or funds. - Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. - Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable, and accrued expenses, approximate fair value because of their short-term maturities, except for the Company’s senior unsecured notes which are valued based on quoted prices for the notes in an inactive market. The value of the notes represents a Level 2 input in the fair value hierarchy. Certain assets, including goodwill and operating leases, are also subject to measurement at fair value on a non-recurring basis using Level 3 or Level 2 inputs, but only when they are deemed to be impaired. As of March 31, 2022 and December 31, 2021, no material impairments were identified on those assets required to be measured at fair value on a non-recurring basis.
Segments and Geographic Information	The Company operates as a single operating segment. The Company’s Chief Operating Decision Maker, the CEO, regularly reviews financial information presented on a consolidated basis for purposes of assessing financial performance and allocating resources.
Recent Accounting Pronouncements	Accounting Pronouncements Not Yet Adopted As an emerging growth company (“EGC”), the Company is allowed by the Jumpstart Our Business Startups Act to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing model for measuring the allowance for credit losses for financial assets measured at amortized cost (including accounts receivable) to a model that is based on the expected losses rather than incurred losses. Under the new credit loss model, lifetime expected credit losses on such financial assets are measured and recognized at each reporting date based on historical, current, and forecasted information. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, and in April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. These ASUs provide supplemental guidance and clarification to ASU 2016-13 and must be adopted concurrently with the adoption of ASU 2016-13, cumulatively referred to as “Topic 326.” As an EGC, this guidance is effective for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of the adoption of this update on its condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of income tax accounting guidance. As an EGC, this guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted, including adoption in an interim period. An entity that elects to early adopt ASU 2019-12 in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The Company is currently evaluating the effects of the adoption of this update on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements
Earnings Per Share	Basic and diluted net income per share are computed using the two-class method as required when there are participating securities and multiple classes of common stock. Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Prior to May 14, 2021, when the Company’s Series A preferred stock and Series B preferred stock converted into shares of Class B common stock, the Company’s redeemable convertible preferred stock were participating securities as the holders of the redeemable convertible preferred stock were entitled to participate in dividends with common stock. In periods of net income, net income after deducting the accretion of redeemable convertible preferred stock was attributed to common stockholders and participating securities based on their participation rights. Net losses after deducting the accretion of redeemable convertible preferred stock are not allocated to the participating securities as the participating securities do not have a contractual obligation to share in any losses.

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method	The following table presents the Company’s basic net income per share (in thousands, except per share amounts): Three Months Ended 2022 2021 Net income per share, basic: Net income $ 8,417 $ 13,398 Less: Accretion of redeemable convertible preferred stock — (997) Less: Undistributed earnings attributable to participating securities — (2,913) Net income attributable to Class A and Class B common stockholders $ 8,417 $ 9,488 Weighted average shares of Class A and Class B common stock outstanding 118,806 78,834 Net income per share attributable to Class A and Class B common stockholders, basic $ 0.07 $ 0.12
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method	The following table presents the Company’s diluted net income per share (in thousands, except per share amounts): Three Months Ended 2022 2021 Net income per share, diluted: Numerator: Net income attributable to Class A and Class B common stockholders $ 8,417 $ 9,488 Add: Reallocation of net income attributable to participating securities — 466 Interest on convertible notes with related parties, net of tax — 129 Net income attributable to Class A and Class B common stockholders, diluted $ 8,417 $ 10,083 Denominator: Weighted average shares of Class A and Class B common stock outstanding, basic 118,806 78,834 Effect of dilutive securities: Options to purchase common stock 7,960 15,774 Convertible notes with related parties — 3,827 Restricted stock units 284 — Weighted average shares of Class A and Class B common stock outstanding, diluted 127,050 98,435 Net income per share attributable to Class A and Class B common stockholders, diluted $ 0.07 $ 0.10
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table presents the weighted average number of potentially dilutive common stock equivalents excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive (in thousands): Three Months Ended 2022 2021 Options to purchase common stock 62 10 Restricted stock units 4,859 5,559 Unvested early exercise common stock — 2 Employee stock purchase plan 224 — Total shares excluded from diluted net income per share 5,145 5,571

Revenue Information (Tables)

Revenue Information (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents the Company’s revenue streams (in thousands): Three Months Ended 2022 2021 Subscription $ 174,823 $ 100,504 Performance-based 52,437 24,868 Total revenue $ 227,260 $ 125,372

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued expenses consist of the following (in thousands): March 31, December 31, 2022 2021 Accrued marketing $ 28,745 $ 22,493 Accrued partner expenses 11,122 8,457 Accrued compensation and benefits 11,180 26,621 Accrued commissions 6,122 5,790 Accrued non-income taxes 4,570 11,250 Accrued refunds and customer liabilities 3,797 3,646 Other accrued expenses 6,835 7,956 Total accrued expenses $ 72,371 $ 86,213

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt Instrument Redemption	At any time on or after January 15, 2025, the Company may redeem all or any portion of the Notes, at the redemption prices equal to the percentage of principal amount set forth below, plus accrued and unpaid interest, if any, if redeemed during the twelve-month period beginning on January 15 of the year indicated below: Year Percentage 2025 102.50 % 2026 101.25 % 2027 and thereafter 100.00 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Expensed and Capitalized, Amount	Total stock-based compensation expense is recorded in the Condensed Consolidated Statements of Operations as follows (in thousands): Three Months Ended 2022 2021 Cost of revenue $ 216 $ 16 Sales and marketing 2,628 99 Research and development 8,670 825 General and administrative 8,980 286 Total stock-based compensation $ 20,494 $ 1,226
Schedule of Stock Options Roll Forward	A summary of the Company’s stock option activity under the Prior Plans and the 2021 Plan (collectively, the “Plans”) for the three months ended March 31, 2022 is as follows (in thousands, except weighted average information): Number of Options Outstanding Weighted Average Exercise Price Per Share Outstanding at December 31, 2021 9,841 $ 2.27 Granted — — Exercised (1,180) 1.79 Forfeited/Canceled (14) 2.96 Outstanding at March 31, 2022 8,647 $ 2.33 Exercisable at March 31, 2022 7,921 $ 2.23
Schedule of Nonvested Restricted Stock Units Activity	A summary of the Company’s RSU activity for the three months ended March 31, 2022 is as follows (in thousands, except weighted average information): Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2021 7,532 $ 24.20 Granted 2,069 20.56 Vested (787) 18.08 Forfeited/Canceled (196) 20.79 Unvested at March 31, 2022 8,618 $ 20.38

Basis of Presentation, Princi_3

Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Details) - segment	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Concentration Risk [Line Items]
Number of operating segments	1
Accounts Receivable Benchmark | Customer Concentration Risk | Customer One
Concentration Risk [Line Items]
Concentration risk (as a percent)	15.00%	16.00%

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net income per share, basic:
Net income	$ 8,417	$ 13,398
Less: Accretion of redeemable convertible preferred stock	0	(997)
Less: Undistributed earnings attributable to participating securities	0	(2,913)
Net income attributable to Class A and Class B common stockholders	$ 8,417	$ 9,488
Weighted average shares of Class A and Class B common stock outstanding (in shares)	118,806	78,834
Net income (loss) per share attributable to Class A and Class B common stockholders, basic (in dollars per share)	$ 0.07	$ 0.12

Net Income Per Share - Schedu_2

Net Income Per Share - Schedule of Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income attributable to Class A and Class B common stockholders	$ 8,417	$ 9,488
Reallocation of net income attributable to participating securities	0	466
Interest on convertible notes with related parties, net of tax		129
Net income attributable to Class A and Class B common stockholders, diluted	$ 8,417	$ 10,083
Denominator:
Weighted average shares of Class A and Class B common stock outstanding (in shares)	118,806	78,834
Effect of dilutive securities:
Convertible notes with related parties (in shares)	0	3,827
Weighted average shares of Class A and Class B common stock outstanding, diluted (in shares)	127,050	98,435
Net income (loss) per share attributable to Class A and Class B common stockholders - diluted (in dollars per share)	$ 0.07	$ 0.10
Options to purchase common stock
Effect of dilutive securities:
Share based payment arrangements (in shares)	7,960	15,774
Restricted stock units
Effect of dilutive securities:
Share based payment arrangements (in shares)	284	0

Net Income Per Share - Schedu_3

Net Income Per Share - Schedule of Antidilutive Options (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share (in shares)	5,145	5,571
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share (in shares)	62	10
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share (in shares)	4,859	5,559
Unvested early exercise common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share (in shares)	0	2
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share (in shares)	224	0

Revenue Information - Narrative

Revenue Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2022USD ($)revenueStream	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Number of revenue streams | revenueStream	2
Revenue that was included in deferred revenue balances	$ 21,900,000	$ 12,500,000
Contract assets	0		$ 0
Revenue recognized from performance obligations satisfied in previous periods	$ 0	$ 0

Revenue Information - Schedule

Revenue Information - Schedule of Revenue Streams (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 227,260	$ 125,372
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	174,823	100,504
Performance-based
Disaggregation of Revenue [Line Items]
Total revenue	$ 52,437	$ 24,868

Revenue Information - Performan

Revenue Information - Performance Obligations (Details) $ in Millions	Mar. 31, 2022USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	9 months

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued marketing	$ 28,745	$ 22,493
Accrued partner expenses	11,122	8,457
Accrued compensation and benefits	11,180	26,621
Accrued commissions	6,122	5,790
Accrued non-income taxes	4,570	11,250
Accrued refunds and customer liabilities	3,797	3,646
Other accrued expenses	6,835	7,956
Total accrued expenses	$ 72,371	$ 86,213

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	Jan. 12, 2022	Apr. 30, 2021	Mar. 31, 2022	Jan. 10, 2022
Line of Credit Facility [Line Items]
Debt agreement, maximum amount of liquidity		$ 100,000,000		$ 550,000,000
Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility		250,000,000
Maximum cash and permitted investments adjustment		$ 550,000,000
Line of credit, amount available			$ 244,100,000
Line of Credit | Minimum
Line of Credit Facility [Line Items]
Commitment fee (as a percent)		0.25%
Line of Credit | Maximum
Line of Credit Facility [Line Items]
Commitment fee (as a percent)		0.35%
Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term debt outstanding			0
Line of Credit | Letter of Credit
Line of Credit Facility [Line Items]
Long-term debt outstanding			5,900,000
Senior Notes | Senior Notes Due 2030
Line of Credit Facility [Line Items]
Convertible notes issued	$ 550,000,000
Debt instrument, stated rate (as a percent)	5.00%
Redemption price (as a percent)	100.00%
Redemption price as a percent of principal amount redeemed (as a percent)	40.00%
Debt issuance costs			9,100,000
Interest expense			$ 6,100,000
Effective interest rate (as a percent)			5.26%
Amortization of debt issuance costs			$ 200,000
Senior Notes | Senior Notes Due 2030 | Fair Value, Inputs, Level 2
Line of Credit Facility [Line Items]
Fair value of debt			$ 536,900,000
Senior Notes | Senior Notes Due 2030 | Debt Instrument, Redemption, Period Four
Line of Credit Facility [Line Items]
Redemption price (as a percent)	105.00%
Senior Notes | Senior Notes Due 2030 | Debt Instrument, Redemption, Period Five
Line of Credit Facility [Line Items]
Redemption price (as a percent)	101.00%

Debt - Schedule of Redemption P

Debt - Schedule of Redemption Percentages (Details) - Senior Notes Due 2030 - Senior Notes	Jan. 12, 2022
Line of Credit Facility [Line Items]
Redemption price (as a percent)	100.00%
2025
Line of Credit Facility [Line Items]
Redemption price (as a percent)	102.50%
2026
Line of Credit Facility [Line Items]
Redemption price (as a percent)	101.25%
2027 and thereafter
Line of Credit Facility [Line Items]
Redemption price (as a percent)	100.00%

Commitment and Contingencies (D

Commitment and Contingencies (Details)	Mar. 31, 2022USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accrued liability for indemnification arrangements	$ 0

Common Stock and Redeemable C_2

Common Stock and Redeemable Convertible Preferred Stock (Details)	May 14, 2021shares	Mar. 31, 2022vote$ / sharesshares	Dec. 31, 2021$ / sharesshares
Class of Stock [Line Items]
Common stock, authorized (in shares)		1,450,000,000
Preferred stock, authorized (in shares)		50,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.00001
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.00001	$ 0.00001
Common Class A
Class of Stock [Line Items]
Common stock, authorized (in shares)		700,000,000	700,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.00001	$ 0.00001
Number of votes entitled per share | vote		1
Common Class B
Class of Stock [Line Items]
Common stock, authorized (in shares)		700,000,000	700,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.00001	$ 0.00001
Number of votes entitled per share | vote		20
Common Class B | Common Stock
Class of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock (in shares)	24,200,000

Share Repurchase Program (Detai

Share Repurchase Program (Details) - USD ($) shares in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Feb. 28, 2022
Accelerated Share Repurchases [Line Items]
Authorized amount for repurchase				$ 100,000,000
Repurchase of common stock		$ 62,349,000	$ 450,000
Stock repurchase program, remaining authorized amount for future purchase	$ 37,700,000	37,700,000
Common Class A
Accelerated Share Repurchases [Line Items]
Common shares repurchased (in shares)	0.6
Common shares repurchased, amount	$ 12,300,000
Accelerated Share Repurchase Agreement
Accelerated Share Repurchases [Line Items]
Common shares repurchased (in shares)	1.8
Repurchase of common stock	$ 50,000,000
Amount repurchased of ASR	$ 40,000,000
Accelerated share repurchase program, amount representing total amount (as a percent)	80.00%
Accelerated Share Repurchase Agreement | Common Class A
Accelerated Share Repurchases [Line Items]
Authorized amount for repurchase	$ 50,000,000	$ 50,000,000

Stock-Based Compensation - Tota

Stock-Based Compensation - Total Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 20,494	$ 1,226
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	216	16
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,628	99
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	8,670	825
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 8,980	$ 286

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	Apr. 19, 2021	Aug. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	May 14, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total remaining stock-based compensation expense for unvested stock options			$ 5,800
Stock based compensation, weighted average period of recognition			1 year 3 months 18 days
Total stock-based compensation			$ 20,494	$ 1,226
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance (in shares)			2,200,000
Shares purchased under ESPP (in shares)			300,000
Aggregate amount of shares purchased			$ 5,300
Equity Incentive Plan 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares initially reserved for issuance (in shares)			12,400,000
Shares reserved for issuance as a percent of common stock issued and outstanding (as a percent)					5.00%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total remaining stock-based compensation expense for unvested stock options			$ 800
Stock based compensation expense expected to be recognized during first offering period			800
Accrued employee stock purchase plan contribution			$ 1,100
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation, weighted average period of recognition			1 year 8 months 12 days
Service period			4 years
Restricted stock units granted (in shares)			2,069,000
Total stock-based compensation			$ 17,700
Unrecognized stock based compensation expense			$ 170,400
Restricted stock units | Equity Incentive Plan 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted under 2021 Plan (in shares)			2,100,000
Restricted stock units | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation, weighted average period of recognition			3 years 2 months 12 days
Restricted stock units granted (in shares)	1,400,000
Total stock-based compensation			$ 1,500
Unrecognized stock based compensation expense			$ 17,800
Options to purchase common stock | Equity Incentive Plan 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted under 2021 Plan (in shares)			0
Employee stock purchase plan | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP, concurrent offering and purchase period		6 months
Increase in common stock reserved for issuance (as a percent)		1.00%
ESPP discount percentage from market price, beginning of purchase period (as a percent)		15.00%
ESPP purchase price of common stock, percent of market price (as a percent)		85.00%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - Equity Incentive Plans, 2012, 2014, 2021	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Number of Options Outstanding
Beginning balance (in shares) | shares	9,841,000
Granted (in shares) | shares	0
Exercised (in shares) | shares	(1,180,000)
Forfeited/cancelled (in shares) | shares	(14,000)
Ending balance (in shares) | shares	8,647,000
Exercisable (in shares) | shares	7,921,000
Weighted Average Exercise Price Per Share
Beginning balance, outstanding (in dollars per share) | $ / shares	$ 2.27
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	1.79
Forfeited/Cancelled (in dollars per share) | $ / shares	2.96
Ending balance, outstanding (in dollars per share) | $ / shares	2.33
Exercisable (in dollars per share) | $ / shares	$ 2.23

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted stock units	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Number of Shares
Beginning balance (in shares) | shares	7,532,000
Granted (in shares) | shares	2,069,000
Vested (in shares) | shares	(787,000)
Forfeited/Canceled (in shares) | shares	(196,000)
Ending balance (in shares) | shares	8,618,000
Weighted Average Grant Date Fair Value Per Share
Beginning balance (in dollars per share) | $ / shares	$ 24.20
Granted (in dollars per share) | $ / shares	20.56
Vested (in dollars per share) | $ / shares	18.08
Forfeited/Canceled (in dollars per share) | $ / shares	20.79
Ending balance (in dollars per share) | $ / shares	$ 20.38

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (503)	$ 3,245
Effective income tax rate (as a percent)	(6.00%)	19.00%

Subsequent Events (Details)

Subsequent Events (Details) - Accelerated Share Repurchase Agreement - $ / shares shares in Millions	1 Months Ended		3 Months Ended
	May 31, 2022	Mar. 31, 2022	May 31, 2022
Subsequent Event [Line Items]
Common shares repurchased (in shares)		1.8
Subsequent Event | Forecast
Subsequent Event [Line Items]
Common shares repurchased (in shares)	0.4		2.2
Volume weighted-average price (in dollars per share)			$ 23,090,000