ZipRecruiter (ZIP) 10-Q 9 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 03, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001617553
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		76,673,216
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		22,633,316

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 282,500	$ 283,043
Marketable securities	230,481	237,074
Accounts receivable, net of allowances of $3,316 and $3,859 at March 31, 2024 and December 31, 2023, respectively	26,255	27,247
Prepaid expenses and other assets	7,913	9,853
Deferred commissions, current portion	4,982	5,071
Total current assets	552,131	562,288
Property and equipment, net	5,755	6,213
Operating lease right-of-use assets	8,990	8,744
Internal-use software, net	18,359	18,609
Deferred commissions, net of current portion	3,901	4,114
Goodwill	1,724	1,724
Deferred tax assets, net	70,736	57,050
Other assets	848	758
Total assets	662,444	659,500
Current liabilities
Accounts payable	9,846	11,839
Accrued expenses	34,982	41,741
Accrued interest	5,935	12,837
Deferred revenue	13,019	12,860
Operating lease liabilities, current portion	4,959	4,429
Other current liabilities	14,384	1,164
Total current liabilities	83,125	84,870
Operating lease liabilities, net of current portion	8,120	8,721
Long-term borrowings, net	542,840	542,577
Other long-term liabilities	15,709	14,967
Total liabilities	649,794	651,135
Commitments and contingencies (Note 7)
Stockholders' equity
Preferred Stock, $0.00001 par value; 50,000 shares authorized as of March 31, 2024 and December 31, 2023; no shares issued and outstanding as of March 31, 2024 and December 31, 2023	0	0
Class B treasury stock, 195 shares outstanding as of March 31, 2024 and December 31, 2023	(644)	(644)
Additional paid-in capital	25,396	14,526
Accumulated deficit	(12,036)	(5,531)
Accumulated other comprehensive income (loss)	(67)	13
Total stockholders' equity	12,650	8,365
Total liabilities and stockholders' equity	662,444	659,500
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, 2024	Dec. 31, 2023
Current assets
Accounts receivable, allowance for credit loss, current	$ 3,316	$ 3,859
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
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)	76,647,000	76,173,000
Common stock, outstanding (in shares)	76,647,000	76,173,000
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)	22,829,000
Common stock, outstanding (in shares)	22,634,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 122,239	$ 183,749
Cost of revenue	13,321	20,622
Gross profit	108,918	163,127
Operating expenses
Sales and marketing	54,693	88,352
Research and development	36,076	38,294
General and administrative	19,055	25,521
Total operating expenses	109,824	152,167
Income (loss) from operations	(906)	10,960
Other income (expense)
Interest expense	(7,356)	(7,341)
Other income (expense), net	4,879	5,022
Total other income (expense), net	(2,477)	(2,319)
Income (loss) before income taxes	(3,383)	8,641
Income tax expense	3,122	3,630
Net income (loss)	$ (6,505)	$ 5,011
Net income (loss) per share:
Basic (in dollars per share)	$ (0.07)	$ 0.05
Diluted (in dollars per share)	$ (0.07)	$ 0.05
Weighted average shares used in computing net income (loss) per share:
Basic (in shares)	98,962	104,261
Diluted (in shares)	98,962	109,984

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (6,505)	$ 5,011
Other comprehensive income (loss), net of tax:
Change in unrealized gains (losses) on available-for-sale debt securities	(80)	161
Total other comprehensive income (loss)	(80)	161
Total comprehensive income (loss)	$ (6,585)	$ 5,172

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Common Class A	Common Class A Common Stock	Common Class B	Common Class B Common Stock	Common Class B Treasury Stock
Beginning balance (in shares) at Dec. 31, 2022						74,320		30,379
Beginning balance at Dec. 31, 2022	$ 28,620	$ 35,926	$ (6,290)	$ (373)		$ 1		$ 0	$ (644)
Beginning balance (in shares) at Dec. 31, 2022									(195)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class B common stock to Class A common stock (in shares)						4,568		(4,568)
Issuance of common stock upon exercise of options (in shares)						6		658
Issuance of common stock upon exercise of options	1,298	1,298
Issuance of common stock upon the vesting and settlement of RSUs (in shares)						525		269
Stock-based compensation	22,088	22,088
Shares withheld related to net share settlement (in shares)						(191)		(109)
Shares withheld related to net share settlement	(4,511)	(4,511)
Shares issued under employee stock purchase plan (in shares)						237
Shares issued under employee stock purchase plan	4,221	4,221
Repurchase and retirement of common stock (in shares)						(3,806)
Repurchase and retirement of common stock	(60,292)	(59,022)	(1,270)
Share repurchase excise tax	(459)		(459)
Net income (loss)	5,011		5,011
Other comprehensive income (loss)	161			161
Ending balance (in shares) at Mar. 31, 2023						75,659		26,629
Ending balance at Mar. 31, 2023	(3,863)	0	(3,008)	(212)		$ 1		$ 0	$ (644)
Ending balance (in shares) at Mar. 31, 2023									(195)
Beginning balance (in shares) at Dec. 31, 2023					76,173	76,173		22,829
Beginning balance at Dec. 31, 2023	$ 8,365	14,526	(5,531)	13		$ 1		$ 0	$ (644)
Beginning balance (in shares) at Dec. 31, 2023	(195)								(195)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class B common stock to Class A common stock (in shares)						232		(232)
Issuance of common stock upon exercise of options (in shares)						5		165
Issuance of common stock upon exercise of options	$ 309	309
Issuance of common stock upon the vesting and settlement of RSUs (in shares)						870		118
Stock-based compensation	19,147	19,147
Shares withheld related to net share settlement (in shares)						(331)		(51)
Shares withheld related to net share settlement	(4,795)	(4,795)
Shares issued under employee stock purchase plan (in shares)						210
Shares issued under employee stock purchase plan	2,582	2,582
Repurchase and retirement of common stock (in shares)						(512)
Repurchase and retirement of common stock	(6,373)	(6,373)
Net income (loss)	(6,505)		(6,505)
Other comprehensive income (loss)	(80)			(80)
Ending balance (in shares) at Mar. 31, 2024					76,647	76,647	22,634	22,829
Ending balance at Mar. 31, 2024	$ 12,650	$ 25,396	$ (12,036)	$ (67)		$ 1		$ 0	$ (644)
Ending balance (in shares) at Mar. 31, 2024	(195)								(195)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income (loss)	$ (6,505)	$ 5,011
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation expense	18,576	21,571
Depreciation and amortization	3,110	2,731
Provision for bad debts	(558)	912
Deferred income taxes	(13,686)	(4,607)
Non-cash lease expense	986	1,031
Amortization and accretion of marketable securities	(2,564)	(3,020)
Other	1,112	313
Change in operating assets and liabilities:
Accounts receivable	1,550	7,247
Prepaid expenses and other assets	1,978	2,429
Deferred commissions, net	302	70
Other assets	202	106
Accounts payable	(2,014)	(5,019)
Accrued expenses and other liabilities	7,613	(13,899)
Accrued interest	(6,902)	(6,902)
Deferred revenue	152	(95)
Operating lease liabilities	(1,319)	(1,509)
Net cash provided by operating activities	2,033	6,370
Cash flows from investing activities
Purchases of property and equipment	(126)	(414)
Capitalized internal-use software costs	(2,870)	(3,068)
Purchases of marketable securities	(142,717)	(117,122)
Paydowns, maturities, and redemptions of marketable securities	151,452	158,623
Net cash provided by investing activities	5,739	38,019
Cash flows from financing activities
Repurchase of common stock	(6,373)	(58,740)
Proceeds from exercise of stock options	271	1,787
Payments of tax withholdings on net settlement of equity awards	(4,795)	(4,511)
Proceeds from issuance of stock under employee stock purchase plan	2,582	4,221
Net cash used in financing activities	(8,315)	(57,243)
Net decrease in cash and cash equivalents	(543)	(12,854)
Beginning of period	283,043	227,380
End of period	$ 282,500	$ 214,526

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business ZipRecruiter, 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, 2024
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 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 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, 2023 (the “2023 Form 10-K”). The condensed consolidated balance sheet as of December 31, 2023 has been derived from the Company’s audited consolidated financial statements. Certain reclassifications have been made to the presentation of the prior year to conform to the presentation of the current year. In the opinion of the Company’s management, the 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 2023 Form 10-K. The operating results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024 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 amounts reported in the condensed consolidated financial statements and footnotes thereto. Actual results could differ from those estimates. Investments The Company classifies and accounts for its money market mutual funds which have readily determinable fair values as equity securities, and it carries such securities at fair value with unrealized gains and losses reported in other income (expense), net in its condensed consolidated statements of operations. The Company classifies and accounts for its debt securities as available-for-sale, and it carries such securities at fair value with unrealized gains and losses reported net of tax as a separate component of stockholders' equity in accumulated other comprehensive income (loss). During the three months ended March 31, 2024 and 2023, in connection with its available-for-sale debt securities, the Company recorded pre-tax unrealized losses of $0.1 million and pre-tax unrealized gains of $0.2 million in other comprehensive income (loss), respectively, with no associated tax expense. The Company determines any realized gains and losses on the sale of its available-for-sale debt securities using a specific identification method, and it records such gains and losses through other income (expense), net in its condensed consolidated statements of operations. During the three months ended March 31, 2024 and 2023, the Company did not have any sales of its available-for-sale debt securities and consequently, did not reclassify any amounts out of accumulated other comprehensive income (loss) into other income (expense), net in the condensed consolidated statements of operations. 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. Revenue is attributed to geographic regions based on locations where services are provided to the Company’s customers. Foreign countries outside of the United States, in aggregate, accounted for less than 2% of the Company’s revenue for the three months ended March 31, 2024 and 2023. In addition, long-lived assets outside of the United States were not material as of March 31, 2024 and December 31, 2023. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, 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. The Company monitors the relative credit standing of the financial institutions with which it transacts and limits its credit exposure to any singular entity. Accordingly, the Company believes minimal credit risk exists with respect to these cash balances. The Company invests only in highly rated debt and equity securities. The Company believes the financial institutions that hold its investments are financially sound, and accordingly, are subject to minimal credit risk. One customer accounted for 11% of the Company’s outstanding accounts receivable as of March 31, 2024, and a separate customer accounted for 10% of the Company’s outstanding accounts receivable as of December 31, 2023. The Company closely monitors the financial condition of the foregoing customers, which have 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, 2024 and December 31, 2023. The Company does not consider the concentration of its accounts receivable to be a material risk. For the three months ended March 31, 2024 and 2023, 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. Share Repurchase Program All shares repurchased under the Company’s share repurchase program are purchased for immediate retirement. Repurchased shares reduce the Company’s outstanding shares and its weighted average number of common shares outstanding for purposes of calculating basic and diluted earnings per share. All excess of repurchase price over par value for shares repurchased is allocated to retained earnings to the extent the Company has retained earnings. If the Company has an accumulated deficit, all excess of repurchase price over par value for shares repurchased is allocated first to additional paid-in capital, to the extent the Company has additional paid-in capital, until depleted, and then to accumulated deficit in the Company’s condensed consolidated statements of changes in stockholders' equity (deficit). 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. For more information on the Company’s share repurchase program, please see Note 9. Recent Accounting Pronouncements Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosure requirements about a public entity’s reportable segments and significant segment expenses. This update also expands the interim segment disclosure requirements. Public entities that have a single reportable segment will be required to provide on both an interim and annual basis all the disclosures required by Topic 280, including those added by the amendments in ASU 2023-07. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the effects of the adoption of this update on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which intends to enhance the transparency and decision usefulness of income tax disclosures, primarily through expanding disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the effects of the adoption of this update on its consolidated financial statements.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Net Income (Loss) Per Share The following table presents the Company’s basic net income (loss) per share (in thousands, except per share amounts): Three Months Ended 2024 2023 Net income (loss) per share, basic: Net income (loss) $ (6,505) $ 5,011 Weighted average shares of Class A and Class B common stock outstanding 98,962 104,261 Net income (loss) per share, basic $ (0.07) $ 0.05 The following table presents the Company’s diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended 2024 2023 Net income (loss) per share, diluted: Numerator: Net income (loss) $ (6,505) $ 5,011 Denominator: Weighted average shares of Class A and Class B common stock outstanding, basic 98,962 104,261 Effect of dilutive securities: Options to purchase common stock — 5,345 Unvested restricted stock units — 372 Employee stock purchase plan — 6 Weighted average shares of Class A and Class B common stock outstanding, diluted 98,962 109,984 Net income (loss) per share, diluted $ (0.07) $ 0.05 The weighted average number of potentially dilutive common stock equivalents of 12.6 million and 5.9 million were excluded from the computation of diluted net income (loss) per share during the three months ended March 31, 2024 and 2023, respectively, because their inclusion would have been anti-dilutive. In April 2021, the Company granted a restricted stock unit (“RSU”) award (the “CEO Performance Award”), which included service, market, and performance-based vesting conditions. The CEO Performance Award is excluded from the above table because none of the market conditions had been met as of March 31, 2023. Additionally, in December 2023, the Company entered into a Cancellation Agreement with the CEO, which provided for the cancellation of the 1.4 million RSUs included in the CEO Performance Award. For more information on the Cancellation Agreement, please see Note 10.

Revenue Information

Revenue Information	3 Months Ended
	Mar. 31, 2024
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 2024 2023 Subscription $ 96,561 $ 143,101 Performance-based 25,678 40,648 Total revenue $ 122,239 $ 183,749 The Company recognized $12.1 million and $18.6 million of revenue during the three months ended March 31, 2024 and 2023, respectively, that was included in the deferred revenue balances as of December 31, 2023 and 2022, respectively. As of March 31, 2024 and December 31, 2023, the Company had no contract assets. Performance Obligations No revenue was recognized during the three months ended March 31, 2024 and 2023 from performance obligations satisfied in previous periods.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, December 31, 2024 2023 Accrued compensation and benefits $ 9,100 $ 17,895 Accrued marketing 9,436 8,133 Accrued commissions 4,479 3,740 Accrued partner expenses 1,867 2,255 Accrued refunds and customer liabilities 2,361 2,179 Other accrued expenses 7,739 7,539 Total accrued expenses $ 34,982 $ 41,741

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt Credit Facility The Company has a $250.0 million credit facility which matures in April 2026. The Company had no amounts outstanding under its credit facility and was in compliance with the financial covenants as of March 31, 2024. The amount available under the credit facility as of March 31, 2024 was $245.6 million, which is the credit limit less letters of credit outstanding of $4.4 million. Senior Unsecured Notes On January 12, 2022, the Company issued an aggregate principal amount of $550.0 million senior unsecured notes (the “Notes”) in a private placement. 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. Unpaid interest amounts are included within accrued interest in the Company’s condensed consolidated balance sheets. At its sole discretion, the Company has the option to redeem the Notes at any time in whole or in part at specified redemption prices. The Company includes its Notes, net of debt issuance costs, within long-term borrowings in its condensed consolidated balance sheets. As of March 31, 2024, the Company had a carrying amount of approximately $7.2 million of debt issuance costs related to the Notes. For both the three months ended March 31, 2024 and 2023, the Company recognized $7.1 million in interest expense related to the Notes, with an effective interest rate of 5.4% for both quarters. Such

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2024
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. Indemnification

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Financial Instruments	Financial Instruments Fair Value Measurements The following table presents the Company’s financial assets measured at fair value on a recurring basis, as well as the amortized cost basis and gross unrealized gains and losses of those assets as of March 31, 2024 (in thousands): Balance Sheet Classification Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Level 1: Cash $ 226,200 $ — $ — $ 226,200 $ 226,200 $ — Money market mutual funds 18,100 — — 18,100 18,100 — U.S. treasury securities 143,368 1 (26) 143,343 7,982 135,361 Subtotal 387,668 1 (26) 387,643 252,282 135,361 Level 2: Commercial paper 36,829 1 — 36,830 5,495 31,335 Certificates of deposit 3,243 — — 3,243 — 3,243 Corporate notes and obligations 76,847 3 (40) 76,810 24,723 52,087 Asset-backed securities 8,461 1 (7) 8,455 — 8,455 Subtotal 125,380 5 (47) 125,338 30,218 95,120 Total cash, cash equivalents, and marketable securities $ 513,048 $ 6 $ (73) $ 512,981 $ 282,500 $ 230,481 As of December 31, 2023, the Company’s financial assets consisted of the following (in thousands): Balance Sheet Classification Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Level 1: Cash $ 237,104 $ — $ — $ 237,104 $ 237,104 $ — Money market mutual funds 23,762 — — 23,762 23,762 — U.S. treasury securities 138,893 38 (8) 138,923 — 138,923 Subtotal 399,759 38 (8) 399,789 260,866 138,923 Level 2: Commercial paper 25,899 — — 25,899 6,495 19,404 Certificates of deposit 7,768 — — 7,768 3,010 4,758 Corporate notes and obligations 71,545 12 (21) 71,536 12,672 58,864 Asset-backed securities 7,319 7 (10) 7,316 — 7,316 U.S. agency securities 7,814 — (5) 7,809 — 7,809 Subtotal 120,345 19 (36) 120,328 22,177 98,151 Total cash, cash equivalents, and marketable securities $ 520,104 $ 57 $ (44) $ 520,117 $ 283,043 $ 237,074 The Company’s money market mutual funds and treasury securities are measured at fair value using quoted prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. The fair values of the Company’s Level 2 commercial paper and certificates of deposit are determined using quoted prices in markets that are not active or using model-driven valuations employing significant inputs derived from observable market data. The fair values of the Company’s Level 2 corporate notes and obligations, asset-backed securities, and U.S. agency securities are determined using an evaluated price based on a compilation of reported market information, such as benchmark yield curves, credit spreads and estimated default rates. The carrying amounts of the Company’s remaining financial instruments not discussed in the above table, including accounts receivable and accounts payable, approximate fair value because of their short-term maturities, except for the Company’s senior unsecured notes which are valued on a quarterly basis for disclosure purposes only based on quoted prices for the Notes in less active markets and categorized accordingly as Level 2 in the fair value hierarchy. The aggregate fair value of the Notes was estimated to be approximately $486.1 million as of March 31, 2024 and approximately $478.5 million as of December 31, 2023. Equity Securities The Company’s investments in equity securities consist primarily of money market mutual funds. During the three months ended March 31, 2024 and 2023, the Company recorded no material unrealized gains or losses in connection with its money market mutual funds held as of March 31, 2024. Available-for-sale Debt Securities The following table summarizes the fair value of the Company’s available-for-sale debt securities by contractual maturity as of March 31, 2024 (in thousands): Due within 1 year $ 265,286 Due after 1 year through 5 years 3,395 Total available-for-sale debt securities $ 268,681 Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. The following table summarizes the available-for-sale debt securities which have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of March 31, 2024 (in thousands): Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities $ 3,363 $ (3) $ 692 $ (4) $ 4,055 $ (7) Corporate notes and obligations 56,943 (40) — — 56,943 (40) U.S. treasury securities 106,634 (26) — — 106,634 (26) Total available-for-sale debt securities $ 166,940 $ (69) $ 692 $ (4) $ 167,632 $ (73) The following table summarizes the available-for-sale debt securities which have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of December 31, 2023 (in thousands): Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities $ 3,211 $ (6) $ 1,027 $ (4) $ 4,238 $ (10) Corporate notes and obligations 40,527 (21) — — 40,527 (21) U.S. treasury securities 7,397 (8) — — 7,397 (8) U.S. agency securities 7,809 (5) — — 7,809 (5) Total available-for-sale debt securities $ 58,944 $ (40) $ 1,027 $ (4) $ 59,971 $ (44) The Company did not recognize any credit losses for its available-for-sale debt securities during the three months ended March 31, 2024 and 2023. The Company had no ending allowance balances for credit losses as of March 31, 2024 or December 31, 2023.

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Share Repurchase Program	Share Repurchase Program The Company’s board of directors authorized the Company to repurchase up to $550.0 million of outstanding shares of its common stock pursuant to a share repurchase program (the “Program”). Under the Program, 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 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. During the three months ended March 31, 2024, the Company repurchased an aggregate 0.5 million shares of its Class A common stock for an aggregate purchase price of $6.4 million under the Program through open market purchases. Approximately $57.0 million remains available for future repurchases of Class A common stock under the Program as of March 31, 2024.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2024
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 2024 2023 Cost of revenue $ 173 $ 227 Sales and marketing 2,832 3,618 Research and development 9,460 9,787 General and administrative 6,111 7,939 Total stock-based compensation $ 18,576 $ 21,571 Equity Incentive Plan and Employee Stock Purchase Plan Under the Company’s 2021 Equity Incentive Plan, as of March 31, 2024, 30.8 million shares of Class A common stock were authorized, of which 17.3 million shares of Class A common stock were available for future issuance. The number of shares reserved for issuance was increased in January 2024 pursuant to the evergreen provisions set forth in the 2021 Equity Incentive Plan. Under the Company’s 2021 Employee Stock Purchase Plan (the “ESPP”), as of March 31, 2024, 3.7 million shares of Class A common stock were authorized. The number of shares reserved for issuance was increased in January 2024 pursuant to the evergreen provisions set forth in the ESPP. The ESPP provides for concurrent six-month offering and purchase periods beginning February 15 and August 15 of each year. During the three months ended March 31, 2024, 0.2 million shares of Class A common stock were purchased under the ESPP for an aggregate amount of $2.6 million. As of March 31, 2024, the Company recorded a liability of $0.7 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 condensed consolidated balance sheets. Stock Options A summary of the Company’s stock option activity for the three months ended March 31, 2024 is as follows (in thousands, except weighted average information): Number of Options Outstanding Weighted Average Exercise Price Per Share Outstanding at December 31, 2023 5,159 $ 2.27 Granted — — Exercised (170) 1.82 Forfeited/Canceled (3) 2.00 Outstanding at March 31, 2024 4,986 $ 2.29 Exercisable at March 31, 2024 4,939 $ 2.29 As of March 31, 2024, total remaining stock-based compensation expense for unvested stock options is $0.8 million, which is expected to be recognized over a weighted average period of 0.5 years. Restricted Stock Units On April 19, 2021, the Company granted the CEO Performance Award, which provided for a grant of 1.4 million RSUs consisting of five vesting tranches with a vesting schedule based upon achieving stock price targets as well as satisfying certain minimum service requirements. On December 21, 2023, the Company entered into the Cancellation Agreement with the CEO, which provided for the cancellation of the 1.4 million market-based RSUs included in the CEO Performance Award. As of the date of the Cancellation Agreement, none of the stock price targets set forth in the CEO Performance Award had been met and all of the RSUs were unvested. The cancellation resulted in an acceleration of $7.5 million in unrecognized stock-based compensation expense from future periods into the fourth quarter of 2023. Accordingly, the Company recorded no stock-based compensation expense related to the CEO Performance Award during the three months ended March 31, 2024. During the three months ended March 31, 2023, 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 $18.6 million and $19.2 million during the three months ended March 31, 2024 and 2023, respectively. A summary of the Company’s RSU activity for the three months ended March 31, 2024 is as follows (in thousands, except weighted average information): Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2023 6,675 $ 20.36 Granted 3,395 12.61 Vested (988) 19.60 Forfeited/Canceled (200) 20.52 Unvested at March 31, 2024 8,882 $ 17.47

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computes its provision 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 income tax expense, effective tax rates, and statutory federal income tax rates for the three months ended March 31, 2024 and 2023 were as follows (in thousands, except percentages): Three Months Ended 2024 2023 Income tax expense $ 3,122 $ 3,630 Effective tax rate (92.3) % 42.0 % Statutory federal income tax rate 21 % 21 % The effective tax rate of (92.3)% for the three months ended March 31, 2024 differed from the U.S. federal statutory tax rate of 21% primarily due to state taxes, tax detriments relating to the settlement of RSUs, certain non-deductible expenses including limitations on the amount of deductible officer compensation, and net tax benefits from research and development tax credits. The effective tax rate of 42.0% for the three months ended March 31, 2023 differed from the U.S. federal statutory tax rate of 21% primarily due to tax detriments relating to the settlement of RSUs, certain non-deductible expenses, including limitations on the amount of deductible officer compensation, and net tax benefits from research and development tax credits.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income (loss)	$ (6,505)	$ 5,011

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Lora Bartolome [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 4, 2024, Lora Bartolome, our Senior Vice President, Accounting and Controller, adopted a Rule 10b5-1 Plan for the potential sale of up to 32,361 shares of common stock. The plan’s expiration date is June 30, 2025.
Name	Lora Bartolome
Title	Senior Vice President, Accounting and Controller
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 4, 2024
Termination Date	June 30, 2025
Arrangement Duration	483 days
Aggregate Available	32,361

Basis of Presentation, Princi_2

Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	The 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 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, 2023 (the “2023 Form 10-K”). The condensed consolidated balance sheet as of December 31, 2023 has been derived from the Company’s audited consolidated financial statements. Certain reclassifications have been made to the presentation of the prior year to conform to the presentation of the current year. In the opinion of the Company’s management, the 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 2023 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 amounts reported in the condensed consolidated financial statements and footnotes thereto. Actual results could differ from those estimates.
Investments	The Company classifies and accounts for its money market mutual funds which have readily determinable fair values as equity securities, and it carries such securities at fair value with unrealized gains and losses reported in other income (expense), net in its condensed consolidated statements of operations. The Company classifies and accounts for its debt securities as available-for-sale, and it carries such securities at fair value with unrealized gains and losses reported net of tax as a separate component of stockholders' equity in accumulated other comprehensive income (loss). During the three months ended March 31, 2024 and 2023, in connection with its available-for-sale debt securities, the Company recorded pre-tax unrealized losses of $0.1 million and pre-tax unrealized gains of $0.2 million in other comprehensive income (loss), respectively, with no associated tax expense. The Company determines any realized gains and losses on the sale of its available-for-sale debt securities using a specific identification method, and it records such gains and losses through other income (expense), net in its condensed consolidated statements of operations. During the three months ended March 31, 2024 and 2023, the Company did not have any sales of its available-for-sale debt securities and consequently, did not reclassify any amounts out of accumulated other comprehensive income (loss) into other income (expense), net in the condensed consolidated statements of operations.
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. Revenue is attributed to geographic regions based on locations where services are provided to the Company’s customers. Foreign countries outside of the United States, in aggregate, accounted for less than 2% of the Company’s revenue for the three months ended March 31, 2024 and 2023. In addition, long-lived assets outside of the United States were not material as of March 31, 2024 and December 31, 2023.
Concentration of Credit Risk	Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, 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. The Company monitors the relative credit standing of the financial institutions with which it transacts and limits its credit exposure to any singular entity. Accordingly, the Company believes minimal credit risk exists with respect to these cash balances. The Company invests only in highly rated debt and equity securities. The Company believes the financial institutions that hold its investments are financially sound, and accordingly, are subject to minimal credit risk.
Share Repurchase Program	All shares repurchased under the Company’s share repurchase program are purchased for immediate retirement. Repurchased shares reduce the Company’s outstanding shares and its weighted average number of common shares outstanding for purposes of calculating basic and diluted earnings per share. All excess of repurchase price over par value for shares repurchased is allocated to retained earnings to the extent the Company has retained earnings. If the Company has an accumulated deficit, all excess of repurchase price over par value for shares repurchased is allocated first to additional paid-in capital, to the extent the Company has additional paid-in capital, until depleted, and then to accumulated deficit in the Company’s condensed consolidated statements of changes in stockholders' equity (deficit).
Recent Accounting Pronouncements	Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosure requirements about a public entity’s reportable segments and significant segment expenses. This update also expands the interim segment disclosure requirements. Public entities that have a single reportable segment will be required to provide on both an interim and annual basis all the disclosures required by Topic 280, including those added by the amendments in ASU 2023-07. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the effects of the adoption of this update on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which intends to enhance the transparency and decision usefulness of income tax disclosures, primarily through expanding disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the effects of the adoption of this update on its consolidated financial statements.

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
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 (loss) per share (in thousands, except per share amounts): Three Months Ended 2024 2023 Net income (loss) per share, basic: Net income (loss) $ (6,505) $ 5,011 Weighted average shares of Class A and Class B common stock outstanding 98,962 104,261 Net income (loss) per share, basic $ (0.07) $ 0.05
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method	The following table presents the Company’s diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended 2024 2023 Net income (loss) per share, diluted: Numerator: Net income (loss) $ (6,505) $ 5,011 Denominator: Weighted average shares of Class A and Class B common stock outstanding, basic 98,962 104,261 Effect of dilutive securities: Options to purchase common stock — 5,345 Unvested restricted stock units — 372 Employee stock purchase plan — 6 Weighted average shares of Class A and Class B common stock outstanding, diluted 98,962 109,984 Net income (loss) per share, diluted $ (0.07) $ 0.05

Revenue Information (Tables)

Revenue Information (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	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 2024 2023 Subscription $ 96,561 $ 143,101 Performance-based 25,678 40,648 Total revenue $ 122,239 $ 183,749

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consist of the following (in thousands): March 31, December 31, 2024 2023 Accrued compensation and benefits $ 9,100 $ 17,895 Accrued marketing 9,436 8,133 Accrued commissions 4,479 3,740 Accrued partner expenses 1,867 2,255 Accrued refunds and customer liabilities 2,361 2,179 Other accrued expenses 7,739 7,539 Total accrued expenses $ 34,982 $ 41,741

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis	The following table presents the Company’s financial assets measured at fair value on a recurring basis, as well as the amortized cost basis and gross unrealized gains and losses of those assets as of March 31, 2024 (in thousands): Balance Sheet Classification Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Level 1: Cash $ 226,200 $ — $ — $ 226,200 $ 226,200 $ — Money market mutual funds 18,100 — — 18,100 18,100 — U.S. treasury securities 143,368 1 (26) 143,343 7,982 135,361 Subtotal 387,668 1 (26) 387,643 252,282 135,361 Level 2: Commercial paper 36,829 1 — 36,830 5,495 31,335 Certificates of deposit 3,243 — — 3,243 — 3,243 Corporate notes and obligations 76,847 3 (40) 76,810 24,723 52,087 Asset-backed securities 8,461 1 (7) 8,455 — 8,455 Subtotal 125,380 5 (47) 125,338 30,218 95,120 Total cash, cash equivalents, and marketable securities $ 513,048 $ 6 $ (73) $ 512,981 $ 282,500 $ 230,481 As of December 31, 2023, the Company’s financial assets consisted of the following (in thousands): Balance Sheet Classification Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Level 1: Cash $ 237,104 $ — $ — $ 237,104 $ 237,104 $ — Money market mutual funds 23,762 — — 23,762 23,762 — U.S. treasury securities 138,893 38 (8) 138,923 — 138,923 Subtotal 399,759 38 (8) 399,789 260,866 138,923 Level 2: Commercial paper 25,899 — — 25,899 6,495 19,404 Certificates of deposit 7,768 — — 7,768 3,010 4,758 Corporate notes and obligations 71,545 12 (21) 71,536 12,672 58,864 Asset-backed securities 7,319 7 (10) 7,316 — 7,316 U.S. agency securities 7,814 — (5) 7,809 — 7,809 Subtotal 120,345 19 (36) 120,328 22,177 98,151 Total cash, cash equivalents, and marketable securities $ 520,104 $ 57 $ (44) $ 520,117 $ 283,043 $ 237,074
Schedule of Investments Classified by Contractual Maturity Date	The following table summarizes the fair value of the Company’s available-for-sale debt securities by contractual maturity as of March 31, 2024 (in thousands): Due within 1 year $ 265,286 Due after 1 year through 5 years 3,395 Total available-for-sale debt securities $ 268,681
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value	The following table summarizes the available-for-sale debt securities which have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of March 31, 2024 (in thousands): Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities $ 3,363 $ (3) $ 692 $ (4) $ 4,055 $ (7) Corporate notes and obligations 56,943 (40) — — 56,943 (40) U.S. treasury securities 106,634 (26) — — 106,634 (26) Total available-for-sale debt securities $ 166,940 $ (69) $ 692 $ (4) $ 167,632 $ (73) The following table summarizes the available-for-sale debt securities which have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of December 31, 2023 (in thousands): Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities $ 3,211 $ (6) $ 1,027 $ (4) $ 4,238 $ (10) Corporate notes and obligations 40,527 (21) — — 40,527 (21) U.S. treasury securities 7,397 (8) — — 7,397 (8) U.S. agency securities 7,809 (5) — — 7,809 (5) Total available-for-sale debt securities $ 58,944 $ (40) $ 1,027 $ (4) $ 59,971 $ (44)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of 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 2024 2023 Cost of revenue $ 173 $ 227 Sales and marketing 2,832 3,618 Research and development 9,460 9,787 General and administrative 6,111 7,939 Total stock-based compensation $ 18,576 $ 21,571
Schedule of Stock Options Roll Forward	A summary of the Company’s stock option activity for the three months ended March 31, 2024 is as follows (in thousands, except weighted average information): Number of Options Outstanding Weighted Average Exercise Price Per Share Outstanding at December 31, 2023 5,159 $ 2.27 Granted — — Exercised (170) 1.82 Forfeited/Canceled (3) 2.00 Outstanding at March 31, 2024 4,986 $ 2.29 Exercisable at March 31, 2024 4,939 $ 2.29
Schedule of Nonvested Restricted Stock Units Activity	A summary of the Company’s RSU activity for the three months ended March 31, 2024 is as follows (in thousands, except weighted average information): Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2023 6,675 $ 20.36 Granted 3,395 12.61 Vested (988) 19.60 Forfeited/Canceled (200) 20.52 Unvested at March 31, 2024 8,882 $ 17.47

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The Company computes its provision 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 income tax expense, effective tax rates, and statutory federal income tax rates for the three months ended March 31, 2024 and 2023 were as follows (in thousands, except percentages): Three Months Ended 2024 2023 Income tax expense $ 3,122 $ 3,630 Effective tax rate (92.3) % 42.0 % Statutory federal income tax rate 21 % 21 %

Basis of Presentation, Princi_3

Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Class of Stock [Line Items]
Gain (loss) recognized in other comprehensive income	$ (100,000)	$ 200,000
Associated tax benefit	0	0
Sales of marketable securities	$ 0	$ 0
Revenue Benchmark | Geographic Concentration Risk | Non-US
Class of Stock [Line Items]
Concentration risk (as a percent)	2%	2%
Customer One | Accounts Receivable | Customer Concentration Risk
Class of Stock [Line Items]
Concentration risk (as a percent)	11%		10%

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net income (loss) per share, basic:
Net income (loss)	$ (6,505)	$ 5,011
Weighted average shares of Class A and Class B common stock outstanding, basic (in shares)	98,962	104,261
Net income (loss) per share, basic (in dollars per share)	$ (0.07)	$ 0.05

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Schedule of Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income (loss)	$ (6,505)	$ 5,011
Denominator:
Weighted average shares of Class A and Class B common stock outstanding, basic (in shares)	98,962	104,261
Effect of dilutive securities:
Weighted average shares of Class A and Class B common stock outstanding, diluted (in shares)	98,962	109,984
Net income (loss) per share, diluted (in dollars per share)	$ (0.07)	$ 0.05
Options to purchase common stock
Effect of dilutive securities:
Share based payment arrangements (in shares)	0	5,345
Unvested restricted stock units
Effect of dilutive securities:
Share based payment arrangements (in shares)	0	372
Employee stock purchase plan
Effect of dilutive securities:
Share based payment arrangements (in shares)	0	6

Net Income (Loss) Per Share - N

Net Income (Loss) Per Share - Narrative (Details) - shares shares in Millions		1 Months Ended	3 Months Ended
	Dec. 21, 2023	Dec. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income per share (in shares)			12.6	5.9
Chief Executive Officer | Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares cancelled (in shares)	1.4	1.4

Net Income (Loss) Per Share -_3

Net Income (Loss) Per Share - Schedule of Antidilutive Options (Details) - shares shares in Millions		1 Months Ended	3 Months Ended
	Dec. 21, 2023	Dec. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income per share (in shares)			12.6	5.9
Chief Executive Officer | Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares cancelled (in shares)	1.4	1.4

Revenue Information - Schedule

Revenue Information - Schedule of Revenue Streams (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) revenueStream	Mar. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Number of revenue streams | revenueStream	2
Disaggregation of Revenue [Line Items]
Total revenue	$ 122,239	$ 183,749
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	96,561	143,101
Performance-based
Disaggregation of Revenue [Line Items]
Total revenue	$ 25,678	$ 40,648

Revenue Information - Narrative

Revenue Information - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue that was included in deferred revenue balances	$ 12,100,000	$ 18,600,000
Contract assets	0		$ 0
Revenue recognized from performance obligations satisfied in previous periods	$ 0	$ 0

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 9,100	$ 17,895
Accrued marketing	9,436	8,133
Accrued commissions	4,479	3,740
Accrued partner expenses	1,867	2,255
Accrued refunds and customer liabilities	2,361	2,179
Other accrued expenses	7,739	7,539
Total accrued expenses	$ 34,982	$ 41,741

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Jan. 12, 2022
Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility	$ 250,000,000
Line of credit, amount available	245,600,000
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	4,400,000
Senior Notes
Line of Credit Facility [Line Items]
Debt issuance costs	7,200,000
Senior Notes | Senior Notes Due 2030
Line of Credit Facility [Line Items]
Convertible notes issued			$ 550,000,000
Debt instrument, interest rate (as a percent)			5%
Interest expense	$ 7,100,000	$ 7,100,000
Effective interest rate (as a percent)	5.40%	5.40%
Amortization of issuance costs for credit facility	$ 300,000	$ 200,000

Commitment and Contingencies -

Commitment and Contingencies - Narrative (Details)	Mar. 31, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accrued liability for indemnification arrangements	$ 0

Financial Instruments - Amortiz

Financial Instruments - Amortized Cost, Unrealized Gains and Losses, and Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Fair Value	$ 268,681
Cash and Cash Equivalents	282,500	$ 283,043
Marketable securities	230,481	237,074
Fair Value, Recurring
Debt Securities, Available-for-Sale [Line Items]
Total cash, cash equivalents, and marketable securities	513,048	520,104
Gross Unrealized Gains	6	57
Gross Unrealized Losses	(73)	(44)
Total cash, cash equivalents, and marketable securities	512,981	520,117
Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents	252,282	260,866
Marketable securities	135,361	138,923
Fair Value, Inputs, Level 1 | Fair Value, Recurring
Debt Securities, Available-for-Sale [Line Items]
Total cash, cash equivalents, and marketable securities	387,668	399,759
Gross Unrealized Gains	1	38
Gross Unrealized Losses	(26)	(8)
Total cash, cash equivalents, and marketable securities	387,643	399,789
Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents	30,218	22,177
Marketable securities	95,120	98,151
Fair Value, Inputs, Level 2 | Commercial paper
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents	5,495	6,495
Marketable securities	31,335	19,404
Fair Value, Inputs, Level 2 | Certificates of deposit
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents	0	3,010
Marketable securities	3,243	4,758
Fair Value, Inputs, Level 2 | Corporate notes and obligations
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents	24,723	12,672
Marketable securities	52,087	58,864
Fair Value, Inputs, Level 2 | Asset-backed securities
Debt Securities, Available-for-Sale [Line Items]
Marketable securities	8,455	7,316
Fair Value, Inputs, Level 2 | U.S. agency securities
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents		0
Marketable securities		7,809
Fair Value, Inputs, Level 2 | Fair Value, Recurring
Debt Securities, Available-for-Sale [Line Items]
Total cash, cash equivalents, and marketable securities	125,380	120,345
Gross Unrealized Gains	5	19
Gross Unrealized Losses	(47)	(36)
Total cash, cash equivalents, and marketable securities	125,338	120,328
Fair Value, Inputs, Level 2 | Fair Value, Recurring | Commercial paper
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost Basis	36,829	25,899
Fair Value	36,830	25,899
Fair Value, Inputs, Level 2 | Fair Value, Recurring | Certificates of deposit
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost Basis	3,243	7,768
Fair Value	3,243	7,768
Fair Value, Inputs, Level 2 | Fair Value, Recurring | Corporate notes and obligations
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost Basis	76,847	71,545
Gross Unrealized Gains	3	12
Gross Unrealized Losses	(40)	(21)
Fair Value	76,810	71,536
Fair Value, Inputs, Level 2 | Fair Value, Recurring | Asset-backed securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost Basis	8,461	7,319
Gross Unrealized Gains	1	7
Gross Unrealized Losses	(7)	(10)
Fair Value	8,455	7,316
Fair Value, Inputs, Level 2 | Fair Value, Recurring | U.S. agency securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost Basis		7,814
Gross Unrealized Gains		0
Gross Unrealized Losses		(5)
Fair Value		7,809
Cash | Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents	226,200	237,104
Cash | Fair Value, Inputs, Level 1 | Fair Value, Recurring
Debt Securities, Available-for-Sale [Line Items]
Cash and cash equivalent	226,200	237,104
Money market mutual funds | Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents	18,100	23,762
Money market mutual funds | Fair Value, Inputs, Level 1 | Fair Value, Recurring
Debt Securities, Available-for-Sale [Line Items]
Cash and cash equivalent	18,100	23,762
U.S. treasury securities | Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Line Items]
Cash and Cash Equivalents	7,982	0
Marketable securities	135,361	138,923
U.S. treasury securities | Fair Value, Inputs, Level 1 | Fair Value, Recurring
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost Basis	143,368	138,893
Gross Unrealized Gains	1	38
Gross Unrealized Losses	(26)	(8)
Fair Value	$ 143,343	$ 138,923

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Credit losses recorded for available-for-sale debt securities	$ 0	$ 0
Sales of marketable securities	0	0
Fair Value, Nonrecurring
Debt Securities, Available-for-Sale [Line Items]
Unrealized gains (losses) on equity securities	0	$ 0
Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Line Items]
Fair value of debt	$ 486,100,000		$ 478,500,000

Financial Instruments - Availab

Financial Instruments - Available-for-sale Debt Securities by Contractual Maturity (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Available-for-Sale Securities, Debt Maturities [Abstract]
Due within 1 year	$ 265,286
Due after 1 year through 5 years	3,395
Total available-for-sale debt securities	$ 268,681

Financial Instruments - Avail_2

Financial Instruments - Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months	$ 166,940	$ 58,944
Fair Value, 12 Months or Greater	692	1,027
Fair Value, Total	167,632	59,971
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Gross Unrealized Losses, Less Than 12 Months	(69)	(40)
Gross Unrealized Losses, 12 Months or Greater	(4)	(4)
Gross Unrealized Losses, Total	(73)	(44)
Asset-backed securities
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months	3,363	3,211
Fair Value, 12 Months or Greater	692	1,027
Fair Value, Total	4,055	4,238
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Gross Unrealized Losses, Less Than 12 Months	(3)	(6)
Gross Unrealized Losses, 12 Months or Greater	(4)	(4)
Gross Unrealized Losses, Total	(7)	(10)
Corporate notes and obligations
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months	56,943	40,527
Fair Value, 12 Months or Greater	0	0
Fair Value, Total	56,943	40,527
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Gross Unrealized Losses, Less Than 12 Months	(40)	(21)
Gross Unrealized Losses, 12 Months or Greater	0	0
Gross Unrealized Losses, Total	(40)	(21)
U.S. treasury securities
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months	106,634	7,397
Fair Value, 12 Months or Greater	0	0
Fair Value, Total	106,634	7,397
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Gross Unrealized Losses, Less Than 12 Months	(26)	(8)
Gross Unrealized Losses, 12 Months or Greater	0	0
Gross Unrealized Losses, Total	$ (26)	(8)
U.S. agency securities
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract]
Fair Value, Less Than 12 Months		7,809
Fair Value, 12 Months or Greater		0
Fair Value, Total		7,809
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Gross Unrealized Losses, Less Than 12 Months		(5)
Gross Unrealized Losses, 12 Months or Greater		0
Gross Unrealized Losses, Total		$ (5)

Share Repurchase Program (Detai

Share Repurchase Program (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) shares
Accelerated Share Repurchases [Line Items]
Authorized amount for repurchase	$ 550,000,000
Common Class A
Accelerated Share Repurchases [Line Items]
Stock repurchase program, remaining authorized amount for future purchase	$ 57,000,000
Common Class A | Open Market Purchases
Accelerated Share Repurchases [Line Items]
Common shares repurchased (in shares) | shares	500,000
Common shares repurchased, amount	$ 6,400,000

Stock-Based Compensation - Tota

Stock-Based Compensation - Total Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 18,576	$ 21,571
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	173	227
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,832	3,618
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	9,460	9,787
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 6,111	$ 7,939

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details)			1 Months Ended	3 Months Ended
	Dec. 21, 2023 shares	Apr. 19, 2021 tranche shares	Dec. 31, 2023 shares	Mar. 31, 2024 USD ($) shares	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total remaining stock-based compensation expense for unvested stock options | $				$ 800,000
Stock based compensation, weighted average period of recognition				6 months
Total stock-based compensation | $				$ 18,576,000		$ 21,571,000
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation, weighted average period of recognition				1 year 6 months
Restricted stock units granted (in shares) | shares				3,395,000
Total stock-based compensation | $				$ 18,600,000		19,200,000
Unrecognized stock based compensation expense | $				149,100,000
Chief Executive Officer | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares) | shares		1,400,000
Number of vesting tranches | tranche		5
Shares cancelled (in shares) | shares	1,400,000		1,400,000
Total stock-based compensation | $				$ 0	$ 7,500,000	$ 1,500,000
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares initially reserved for issuance (in shares) | shares				3,700,000
Shares purchased under ESPP (in shares) | shares				200,000
Aggregate amount of shares purchased | $				$ 2,600,000
Equity Incentive Plan 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares) | shares				30,800,000
Shares initially reserved for issuance (in shares) | shares				17,300,000
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other accrued expenses | $				$ 700,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - Equity Incentive Plans, 2012, 2014, 2021 shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Options Outstanding
Beginning balance (in shares) | shares	5,159
Granted (in shares) | shares	0
Exercised (in shares) | shares	(170)
Forfeited/canceled (in shares) | shares	(3)
Ending balance (in shares) | shares	4,986
Exercisable (in shares) | shares	4,939
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	1.82
Forfeited/Canceled (in dollars per share) | $ / shares	2
Ending balance, outstanding (in dollars per share) | $ / shares	2.29
Exercisable (in dollars per share) | $ / shares	$ 2.29

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Shares
Beginning balance (in shares) | shares	6,675,000
Granted (in shares) | shares	3,395,000
Vested (in shares) | shares	(988,000)
Forfeited/Canceled (in shares) | shares	(200,000)
Ending balance (in shares) | shares	8,882,000
Weighted Average Grant Date Fair Value Per Share
Beginning balance (in dollars per share) | $ / shares	$ 20.36
Granted (in dollars per share) | $ / shares	12.61
Vested (in dollars per share) | $ / shares	19.60
Forfeited/Canceled (in dollars per share) | $ / shares	20.52
Ending balance (in dollars per share) | $ / shares	$ 17.47

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,122	$ 3,630
Effective tax rate	(92.30%)	42%
Statutory federal income tax rate	21%	21%