Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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, $0.00001 par value per share | |
Trading Symbol | ZIP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001617553 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 76,705,159 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,633,316 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 271,688 | $ 283,043 |
Marketable securities | 251,651 | 237,074 |
Accounts receivable, net of allowances of $2,202 and $3,859 at June 30, 2024 and December 31, 2023, respectively | 27,829 | 27,247 |
Prepaid expenses and other assets | 12,683 | 9,853 |
Deferred commissions, current portion | 4,796 | 5,071 |
Total current assets | 568,647 | 562,288 |
Property and equipment, net | 5,336 | 6,213 |
Operating lease right-of-use assets | 8,015 | 8,744 |
Internal-use software, net | 19,484 | 18,609 |
Deferred commissions, net of current portion | 3,565 | 4,114 |
Goodwill | 1,724 | 1,724 |
Deferred tax assets, net | 57,909 | 57,050 |
Other assets | 593 | 758 |
Total assets | 665,273 | 659,500 |
Current liabilities | ||
Accounts payable | 7,549 | 11,839 |
Accrued expenses | 38,074 | 41,741 |
Accrued interest | 12,837 | 12,837 |
Deferred revenue | 12,471 | 12,860 |
Operating lease liabilities, current portion | 4,699 | 4,429 |
Other current liabilities | 141 | 1,164 |
Total current liabilities | 75,771 | 84,870 |
Operating lease liabilities, net of current portion | 7,047 | 8,721 |
Long-term borrowings, net | 543,106 | 542,577 |
Other long-term liabilities | 14,918 | 14,967 |
Total liabilities | 640,842 | 651,135 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Preferred Stock, $0.00001 par value; 50,000 shares authorized as of June 30, 2024 and December 31, 2023; no shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 0 | 0 |
Class B treasury stock, 195 shares outstanding as of June 30, 2024 and December 31, 2023 | (644) | (644) |
Additional paid-in capital | 30,147 | 14,526 |
Accumulated deficit | (5,022) | (5,531) |
Accumulated other comprehensive income (loss) | (51) | 13 |
Total stockholders' equity | 24,431 | 8,365 |
Total liabilities and stockholders' equity | 665,273 | 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Accounts receivable, allowance for credit loss, current | $ 2,202 | $ 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) | 76,544,000 | 76,173,000 |
Common stock, outstanding (in shares) | 76,544,000 | 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 | 22,829,000 |
Common stock, outstanding (in shares) | 22,634,000 | 22,634,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 123,658 | $ 170,421 | $ 245,897 | $ 354,170 |
Cost of revenue | 12,943 | 15,676 | 26,264 | 36,298 |
Gross profit | 110,715 | 154,745 | 219,633 | 317,872 |
Operating expenses | ||||
Sales and marketing | 51,464 | 72,171 | 106,157 | 160,523 |
Research and development | 33,310 | 38,617 | 69,386 | 76,911 |
General and administrative | 16,518 | 21,433 | 35,573 | 46,954 |
Total operating expenses | 101,292 | 132,221 | 211,116 | 284,388 |
Income from operations | 9,423 | 22,524 | 8,517 | 33,484 |
Other income (expense) | ||||
Interest expense | (7,361) | (7,346) | (14,717) | (14,687) |
Other income (expense), net | 5,599 | 5,014 | 10,478 | 10,036 |
Total other income (expense), net | (1,762) | (2,332) | (4,239) | (4,651) |
Income before income taxes | 7,661 | 20,192 | 4,278 | 28,833 |
Income tax expense | 647 | 5,812 | 3,769 | 9,442 |
Net income | $ 7,014 | $ 14,380 | $ 509 | $ 19,391 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.07 | $ 0.14 | $ 0.01 | $ 0.19 |
Diluted (in dollars per share) | $ 0.07 | $ 0.14 | $ 0 | $ 0.18 |
Weighted average shares used in computing net income per share: | ||||
Basic (in shares) | 99,171 | 100,212 | 99,066 | 102,225 |
Diluted (in shares) | 103,045 | 105,419 | 103,208 | 107,690 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,014 | $ 14,380 | $ 509 | $ 19,391 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gains (losses) on available-for-sale debt securities | 16 | (64) | (64) | 97 |
Total other comprehensive income (loss) | 16 | (64) | (64) | 97 |
Total comprehensive income | $ 7,030 | $ 14,316 | $ 445 | $ 19,488 |
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 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) | ||||||
Net income | 5,011 | 5,011 | |||||||
Other comprehensive income (loss) | 161 | 161 | |||||||
Share repurchase excise tax | (459) | (459) | |||||||
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, 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] | |||||||||
Net income | 19,391 | ||||||||
Other comprehensive income (loss) | 97 | ||||||||
Ending balance (in shares) at Jun. 30, 2023 | 73,418 | 26,629 | |||||||
Ending balance at Jun. 30, 2023 | (25,852) | 0 | (24,933) | (276) | $ 1 | $ 0 | $ (644) | ||
Ending balance (in shares) at Jun. 30, 2023 | (195) | ||||||||
Beginning balance (in shares) at Mar. 31, 2023 | 75,659 | 26,629 | |||||||
Beginning balance at Mar. 31, 2023 | (3,863) | 0 | (3,008) | (212) | $ 1 | $ 0 | $ (644) | ||
Beginning balance (in shares) at Mar. 31, 2023 | (195) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Conversion of Class B common stock to Class A common stock (in shares) | 558 | (558) | |||||||
Issuance of common stock upon exercise of options (in shares) | 6 | 449 | |||||||
Issuance of common stock upon exercise of options | 1,224 | 1,224 | |||||||
Issuance of common stock upon the vesting and settlement of RSUs (in shares) | 570 | 198 | |||||||
Stock-based compensation | 18,040 | 18,040 | |||||||
Shares withheld related to net share settlement (in shares) | (187) | (89) | |||||||
Shares withheld related to net share settlement | (4,585) | (4,585) | |||||||
Repurchase and retirement of common stock (in shares) | (3,188) | ||||||||
Repurchase and retirement of common stock | (50,592) | (14,679) | (35,913) | ||||||
Net income | 14,380 | 14,380 | |||||||
Other comprehensive income (loss) | (64) | (64) | |||||||
Share repurchase excise tax | (392) | (392) | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 73,418 | 26,629 | |||||||
Ending balance at Jun. 30, 2023 | (25,852) | 0 | (24,933) | (276) | $ 1 | $ 0 | $ (644) | ||
Ending balance (in shares) at Jun. 30, 2023 | (195) | ||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 76,173 | 76,173 | 22,634 | 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 | (6,505) | (6,505) | |||||||
Other comprehensive income (loss) | (80) | (80) | |||||||
Ending balance (in shares) at Mar. 31, 2024 | 76,647 | 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) | ||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 76,173 | 76,173 | 22,634 | 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] | |||||||||
Net income | $ 509 | ||||||||
Other comprehensive income (loss) | (64) | ||||||||
Ending balance (in shares) at Jun. 30, 2024 | 76,544 | 76,544 | 22,634 | 22,829 | |||||
Ending balance at Jun. 30, 2024 | $ 24,431 | 30,147 | (5,022) | (51) | $ 1 | $ 0 | $ (644) | ||
Ending balance (in shares) at Jun. 30, 2024 | (195) | (195) | |||||||
Beginning balance (in shares) at Mar. 31, 2024 | 76,647 | 22,829 | |||||||
Beginning balance at Mar. 31, 2024 | $ 12,650 | 25,396 | (12,036) | (67) | $ 1 | $ 0 | $ (644) | ||
Beginning balance (in shares) at Mar. 31, 2024 | (195) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Conversion of Class B common stock to Class A common stock (in shares) | 211 | (211) | |||||||
Issuance of common stock upon exercise of options (in shares) | 5 | 162 | |||||||
Issuance of common stock upon exercise of options | 372 | 372 | |||||||
Issuance of common stock upon the vesting and settlement of RSUs (in shares) | 861 | 105 | |||||||
Stock-based compensation | 16,325 | 16,325 | |||||||
Shares withheld related to net share settlement (in shares) | (294) | (53) | |||||||
Shares withheld related to net share settlement | (3,286) | (3,286) | |||||||
Repurchase and retirement of common stock (in shares) | (886) | (3) | |||||||
Repurchase and retirement of common stock | (8,660) | (8,660) | |||||||
Net income | 7,014 | 7,014 | |||||||
Other comprehensive income (loss) | 16 | 16 | |||||||
Ending balance (in shares) at Jun. 30, 2024 | 76,544 | 76,544 | 22,634 | 22,829 | |||||
Ending balance at Jun. 30, 2024 | $ 24,431 | $ 30,147 | $ (5,022) | $ (51) | $ 1 | $ 0 | $ (644) | ||
Ending balance (in shares) at Jun. 30, 2024 | (195) | (195) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income | $ 509 | $ 19,391 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 34,165 | 39,210 |
Depreciation and amortization | 5,947 | 5,840 |
Provision (recovery) for bad debts | (415) | 1,288 |
Deferred income taxes | (859) | (8,300) |
Non-cash lease expense | 1,961 | 2,102 |
Amortization and accretion of marketable securities | (5,256) | (5,800) |
Other | 1,712 | 826 |
Change in operating assets and liabilities: | ||
Accounts receivable | (167) | 10,234 |
Prepaid expenses and other assets | (2,790) | 2,204 |
Deferred commissions, net | 824 | 230 |
Other assets | 482 | 113 |
Accounts payable | (4,324) | (8,470) |
Accrued expenses and other liabilities | (4,842) | (14,233) |
Accrued interest | 0 | (155) |
Deferred revenue | (398) | (1,913) |
Operating lease liabilities | (2,652) | (3,114) |
Net cash provided by operating activities | 23,897 | 39,453 |
Cash flows from investing activities | ||
Purchases of property and equipment | (283) | (452) |
Capitalized internal-use software costs | (5,250) | (5,218) |
Purchases of marketable securities | (297,822) | (201,768) |
Paydowns, maturities, and redemptions of marketable securities | 287,994 | 292,017 |
Net cash provided by (used in) investing activities | (15,361) | 84,579 |
Cash flows from financing activities | ||
Repurchase of common stock | (15,008) | (110,884) |
Proceeds from exercise of stock options | 616 | 3,010 |
Payments of tax withholdings on net settlement of equity awards | (8,081) | (9,096) |
Proceeds from issuance of stock under employee stock purchase plan | 2,582 | 4,221 |
Net cash used in financing activities | (19,891) | (112,749) |
Net increase (decrease) in cash and cash equivalents | (11,355) | 11,283 |
Beginning of period | 283,043 | 227,380 |
End of period | $ 271,688 | $ 238,663 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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). In connection with its available-for-sale debt securities, the Company recorded immaterial pre-tax unrealized gains and losses during the three and six months ended June 30, 2024 and 2023, in other comprehensive income (loss) 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 and six months ended June 30, 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 and six months ended June 30, 2024 and 2023. In addition, long-lived assets outside of the United States were not material as of June 30, 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 12% and 10% of the Company’s outstanding accounts receivable as of June 30, 2024 and December 31, 2023, respectively. Additionally, a separate customer accounted for 10% of the Company’s outstanding accounts receivable as of June 30, 2024. 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 June 30, 2024 and December 31, 2023. The Company does not consider the concentration of its accounts receivable to be a material risk. For the three and six months ended June 30, 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 Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table presents the Company’s basic net income per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income per share, basic: Net income $ 7,014 $ 14,380 $ 509 $ 19,391 Weighted average shares of Class A and Class B common stock outstanding 99,171 100,212 99,066 102,225 Net income per share, basic $ 0.07 $ 0.14 $ 0.01 $ 0.19 The following table presents the Company’s diluted net income per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income per share, diluted: Numerator: Net income $ 7,014 $ 14,380 $ 509 $ 19,391 Denominator: Weighted average shares of Class A and Class B common stock outstanding, basic 99,171 100,212 99,066 102,225 Effect of dilutive securities: Options to purchase common stock 3,758 4,877 3,957 5,111 Unvested restricted stock units 90 330 165 351 Employee stock purchase plan 26 — 20 3 Weighted average shares of Class A and Class B common stock outstanding, diluted 103,045 105,419 103,208 107,690 Net income per share, diluted $ 0.07 $ 0.14 $ 0.00 $ 0.18 The weighted average number of potentially dilutive common stock equivalents of 8.0 million and 6.8 million were excluded from the computation of diluted net income per share during the three and six months ended June 30, 2024, respectively, because their inclusion would have been anti-dilutive. The weighted average number of potentially dilutive common stock equivalents of 6.7 million and 6.3 million were excluded from the computation of diluted net income per share during the three and six months ended June 30, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Subscription $ 96,427 $ 137,067 $ 192,988 $ 280,168 Performance-based 27,231 33,354 52,909 74,002 Total revenue $ 123,658 $ 170,421 $ 245,897 $ 354,170 The Company recognized $12.2 million and $18.7 million of revenue during the three months ended June 30, 2024 and 2023, respectively, that was included in the deferred revenue balances as of March 31, 2024 and 2023, respectively. The Company recognized $12.5 million and $19.1 million of revenue during the six months ended June 30, 2024 and 2023, respectively, that was included in the deferred revenue balances as of December 31, 2023 and 2022, respectively. As of June 30, 2024 and December 31, 2023, the Company had no contract assets. Performance Obligations An immaterial amount of revenue was recognized during the three and six months ended June 30, 2024 from performance obligations satisfied in previous periods. No revenue was recognized during the three and six months ended June 30, 2023 from performance obligations satisfied in previous periods. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): June 30, December 31, 2024 2023 Accrued compensation and benefits $ 13,652 $ 17,895 Accrued marketing 8,177 8,133 Accrued commissions 3,686 3,740 Accrued partner expenses 2,001 2,255 Accrued refunds and customer liabilities 2,195 2,179 Other accrued expenses 8,363 7,539 Total accrued expenses $ 38,074 $ 41,741 |
Debt
Debt | 6 Months Ended |
Jun. 30, 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 June 30, 2024. The amount available under the credit facility as of June 30, 2024 was $247.4 million, which is the credit limit less letters of credit outstanding of $2.6 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 June 30, 2024, the Company had a carrying amount of approximately $6.9 million of debt issuance costs related to the Notes. For both the three months ended June 30, 2024 and 2023, the Company recognized $7.1 million in interest expense related to the Notes, and for both the six months ended June 30, 2024 and 2023, the Company recognized $14.3 million in interest expense related to the Notes, with an effective interest rate of 5.4% for all periods. Such interest expense includes $0.3 million related to the amortization of debt issuance costs for both the three months ended June 30, 2024 and 2023, and $0.5 million related to the amortization of debt issuance costs for both the six months ended June 30, 2024 and 2023. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ 232,702 $ — $ — $ 232,702 $ 232,702 $ — Money market mutual funds 14,713 — — 14,713 14,713 — U.S. treasury securities 113,742 2 (13) 113,731 — 113,731 Subtotal 361,157 2 (13) 361,146 247,415 113,731 Level 2: Commercial paper 38,778 — — 38,778 6,397 32,381 Certificates of deposit 11,875 — — 11,875 — 11,875 Corporate notes and obligations 88,322 2 (40) 88,284 15,798 72,486 Asset-backed securities 23,259 2 (5) 23,256 2,078 21,178 Subtotal 162,234 4 (45) 162,193 24,273 137,920 Total cash, cash equivalents, and marketable securities $ 523,391 $ 6 $ (58) $ 523,339 $ 271,688 $ 251,651 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 $477.1 million as of June 30, 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 and six months ended June 30, 2024 and 2023, the Company recorded no material unrealized gains or losses in connection with its money market mutual funds held as of June 30, 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 June 30, 2024 (in thousands): Due within 1 year $ 265,541 Due after 1 year through 5 years 10,383 Total available-for-sale debt securities $ 275,924 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 June 30, 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 $ 15,271 $ (4) $ 814 $ (1) $ 16,085 $ (5) Corporate notes and obligations 74,719 (40) — — 74,719 (40) U.S. treasury securities 94,120 (13) — — 94,120 (13) Total available-for-sale debt securities $ 184,110 $ (57) $ 814 $ (1) $ 184,924 $ (58) 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 and six months ended June 30, 2024 and 2023. The Company had no ending allowance balances for credit losses as of June 30, 2024 or December 31, 2023. |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2024, the Company repurchased an aggregate 1.4 million shares of its Class A common stock for an aggregate purchase price of $15.0 million under the Program through open market purchases. Approximately $48.4 million remains available for future repurchases of Class A common stock under the Program as of June 30, 2024. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Cost of revenue $ 161 $ 97 $ 334 $ 324 Sales and marketing 2,595 2,881 5,427 6,499 Research and development 8,447 7,978 17,907 17,765 General and administrative 4,386 6,683 10,497 14,622 Total stock-based compensation $ 15,589 $ 17,639 $ 34,165 $ 39,210 Equity Incentive Plan and Employee Stock Purchase Plan Under the Company’s 2021 Equity Incentive Plan, as of June 30, 2024, 30.8 million shares of Class A common stock were authorized, of which 17.8 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 June 30, 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 June 30, 2024, no shares of Class A common stock were purchased under the ESPP. During the six months ended June 30, 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 June 30, 2024, the Company recorded a liability of $1.2 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 six months ended June 30, 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 (337) 2.03 Forfeited/Canceled (6) 2.00 Outstanding at June 30, 2024 4,816 $ 2.29 Exercisable at June 30, 2024 4,791 $ 2.29 As of June 30, 2024, total remaining stock-based compensation expense for unvested stock options is $0.5 million, which is expected to be recognized over a weighted average period of 0.4 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 and six months ended June 30, 2024. During the three and six months ended June 30, 2023, the Company recorded stock-based compensation expense of $1.5 million and $3.0 million, respectively, related to the CEO Performance Award. For all RSUs, excluding the CEO Performance Award, the Company recorded stock-based compensation expense of $16.1 million and $34.7 million during the three and six months ended June 30, 2024, respectively, and $15.4 million and $34.6 million during the three and six months ended June 30, 2023, respectively. A summary of the Company’s RSU activity for the six months ended June 30, 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 3,666 12.41 Vested (1,954) 19.33 Forfeited/Canceled (1,016) 18.25 Unvested at June 30, 2024 7,371 $ 16.97 As of June 30, 2024, total unrecognized stock-based compensation expense for unvested RSUs was $121.5 million, which is expected to be recognized over a weighted average period of 1.4 years. The Company had no outstanding performance-based RSUs as of June 30, 2024. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2024 and 2023 were as follows (in thousands, except percentages): Three Months Ended Six Months Ended 2024 2023 2024 2023 Income tax expense $ 647 $ 5,812 $ 3,769 $ 9,442 Effective tax rate 8.4 % 28.8 % 88.1 % 32.7 % Statutory federal income tax rate 21 % 21 % 21 % 21 % The effective tax rate for the three and six months ended June 30, 2024 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, state taxes, and net tax benefits from research and development tax credits. The effective tax rate for the three and six months ended June 30, 2023 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, partially offset by net tax benefits from research and development tax credits. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Increase to Credit Facility On July 8, 2024, the Company entered into a supplement to its credit facility agreement which increased the aggregate revolving commitments available under the credit facility from $250.0 million to $290.0 million. Breakroom Acquisition On July 23, 2024, the Company acquired all of the outstanding share capital in Poplar Technologies Limited (d/b/a Breakroom) (“Breakroom”). Breakroom is a UK-based employee review platform focused on the next generation of frontline workers. The Company believes there is an opportunity with Breakroom to complement its employment sites in the United States. Upon the close of the transaction, the Company paid $12.6 million in cash. In addition, approximately $3.9 million is expected to be paid out to certain employees and non-employee shareholders of Breakroom up to three years post-closing of this transaction. Such additional payments are subject to customary holdback provisions, with such payments to employees also being conditioned upon each such individual’s continued employment with the Company, which will be expensed as incurred. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 7,014 | $ (6,505) | $ 14,380 | $ 5,011 | $ 509 | $ 19,391 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Qasim Saifee [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the quarter ended June 30, 2024, the trading plan for Qasim Saifee, our prior Chief Operating Officer, was terminated in connection with his resignation from our company on April 8, 2024. | |
Name | Qasim Saifee | |
Title | Chief Operating Officer | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | April 8, 2024 |
Basis of Presentation, Princi_2
Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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). In connection with its available-for-sale debt securities, the Company recorded immaterial pre-tax unrealized gains and losses during the three and six months ended June 30, 2024 and 2023, in other comprehensive income (loss) 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 and six months ended June 30, 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 and six months ended June 30, 2024 and 2023. In addition, long-lived assets outside of the United States were not material as of June 30, 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 Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income per share, basic: Net income $ 7,014 $ 14,380 $ 509 $ 19,391 Weighted average shares of Class A and Class B common stock outstanding 99,171 100,212 99,066 102,225 Net income per share, basic $ 0.07 $ 0.14 $ 0.01 $ 0.19 |
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 Six Months Ended 2024 2023 2024 2023 Net income per share, diluted: Numerator: Net income $ 7,014 $ 14,380 $ 509 $ 19,391 Denominator: Weighted average shares of Class A and Class B common stock outstanding, basic 99,171 100,212 99,066 102,225 Effect of dilutive securities: Options to purchase common stock 3,758 4,877 3,957 5,111 Unvested restricted stock units 90 330 165 351 Employee stock purchase plan 26 — 20 3 Weighted average shares of Class A and Class B common stock outstanding, diluted 103,045 105,419 103,208 107,690 Net income per share, diluted $ 0.07 $ 0.14 $ 0.00 $ 0.18 |
Revenue Information (Tables)
Revenue Information (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Subscription $ 96,427 $ 137,067 $ 192,988 $ 280,168 Performance-based 27,231 33,354 52,909 74,002 Total revenue $ 123,658 $ 170,421 $ 245,897 $ 354,170 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): June 30, December 31, 2024 2023 Accrued compensation and benefits $ 13,652 $ 17,895 Accrued marketing 8,177 8,133 Accrued commissions 3,686 3,740 Accrued partner expenses 2,001 2,255 Accrued refunds and customer liabilities 2,195 2,179 Other accrued expenses 8,363 7,539 Total accrued expenses $ 38,074 $ 41,741 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ 232,702 $ — $ — $ 232,702 $ 232,702 $ — Money market mutual funds 14,713 — — 14,713 14,713 — U.S. treasury securities 113,742 2 (13) 113,731 — 113,731 Subtotal 361,157 2 (13) 361,146 247,415 113,731 Level 2: Commercial paper 38,778 — — 38,778 6,397 32,381 Certificates of deposit 11,875 — — 11,875 — 11,875 Corporate notes and obligations 88,322 2 (40) 88,284 15,798 72,486 Asset-backed securities 23,259 2 (5) 23,256 2,078 21,178 Subtotal 162,234 4 (45) 162,193 24,273 137,920 Total cash, cash equivalents, and marketable securities $ 523,391 $ 6 $ (58) $ 523,339 $ 271,688 $ 251,651 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 June 30, 2024 (in thousands): Due within 1 year $ 265,541 Due after 1 year through 5 years 10,383 Total available-for-sale debt securities $ 275,924 |
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 June 30, 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 $ 15,271 $ (4) $ 814 $ (1) $ 16,085 $ (5) Corporate notes and obligations 74,719 (40) — — 74,719 (40) U.S. treasury securities 94,120 (13) — — 94,120 (13) Total available-for-sale debt securities $ 184,110 $ (57) $ 814 $ (1) $ 184,924 $ (58) 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) | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Cost of revenue $ 161 $ 97 $ 334 $ 324 Sales and marketing 2,595 2,881 5,427 6,499 Research and development 8,447 7,978 17,907 17,765 General and administrative 4,386 6,683 10,497 14,622 Total stock-based compensation $ 15,589 $ 17,639 $ 34,165 $ 39,210 |
Schedule of Stock Options Roll Forward | A summary of the Company’s stock option activity for the six months ended June 30, 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 (337) 2.03 Forfeited/Canceled (6) 2.00 Outstanding at June 30, 2024 4,816 $ 2.29 Exercisable at June 30, 2024 4,791 $ 2.29 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the Company’s RSU activity for the six months ended June 30, 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 3,666 12.41 Vested (1,954) 19.33 Forfeited/Canceled (1,016) 18.25 Unvested at June 30, 2024 7,371 $ 16.97 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2024 and 2023 were as follows (in thousands, except percentages): Three Months Ended Six Months Ended 2024 2023 2024 2023 Income tax expense $ 647 $ 5,812 $ 3,769 $ 9,442 Effective tax rate 8.4 % 28.8 % 88.1 % 32.7 % Statutory federal income tax rate 21 % 21 % 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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Class of Stock [Line Items] | |||||
Gain (loss) recognized in other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 | |
Associated tax expenses | 0 | 0 | |||
Sales of marketable securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Revenue Benchmark | Geographic Concentration Risk | Non-US | |||||
Class of Stock [Line Items] | |||||
Concentration risk (as a percent) | 2% | 2% | 2% | 2% | |
Customer One | Accounts Receivable | Customer Concentration Risk | |||||
Class of Stock [Line Items] | |||||
Concentration risk (as a percent) | 12% | 10% | |||
Customer Two | Accounts Receivable | Customer Concentration Risk | |||||
Class of Stock [Line Items] | |||||
Concentration risk (as a percent) | 10% |
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 | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net income per share, basic: | ||||||
Net income | $ 7,014 | $ (6,505) | $ 14,380 | $ 5,011 | $ 509 | $ 19,391 |
Weighted average shares of Class A and Class B common stock outstanding, basic (in shares) | 99,171 | 100,212 | 99,066 | 102,225 | ||
Net income per share, basic (in dollars per share) | $ 0.07 | $ 0.14 | $ 0.01 | $ 0.19 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net income | $ 7,014 | $ 14,380 | $ 509 | $ 19,391 |
Denominator: | ||||
Weighted average shares of Class A and Class B common stock outstanding, basic (in shares) | 99,171 | 100,212 | 99,066 | 102,225 |
Effect of dilutive securities: | ||||
Weighted average shares of Class A and Class B common stock outstanding, diluted (in shares) | 103,045 | 105,419 | 103,208 | 107,690 |
Net income per share, diluted (in dollars per share) | $ 0.07 | $ 0.14 | $ 0 | $ 0.18 |
Options to purchase common stock | ||||
Effect of dilutive securities: | ||||
Share based payment arrangements (in shares) | 3,758 | 4,877 | 3,957 | 5,111 |
Unvested restricted stock units | ||||
Effect of dilutive securities: | ||||
Share based payment arrangements (in shares) | 90 | 330 | 165 | 351 |
Employee stock purchase plan | ||||
Effect of dilutive securities: | ||||
Share based payment arrangements (in shares) | 26 | 0 | 20 | 3 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total shares excluded from diluted net income per share (in shares) | 8 | 6.7 | 6.8 | 6.3 | |
Chief Executive Officer | Unvested restricted stock units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares cancelled (in shares) | 1.4 |
Revenue Information - Schedule
Revenue Information - Schedule of Revenue Streams (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) revenueStream | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) revenueStream | Jun. 30, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||||
Number of revenue streams | revenueStream | 2 | 2 | ||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 123,658 | $ 170,421 | $ 245,897 | $ 354,170 |
Subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 96,427 | 137,067 | 192,988 | 280,168 |
Performance-based | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 27,231 | $ 33,354 | $ 52,909 | $ 74,002 |
Revenue Information - Narrative
Revenue Information - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue that was included in deferred revenue balances | $ 12,200,000 | $ 18,700,000 | $ 12,500,000 | $ 19,100,000 | |
Contract assets | 0 | 0 | $ 0 | ||
Revenue recognized from performance obligations satisfied in previous periods | $ 0 | $ 0 | $ 0 | $ 0 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 13,652 | $ 17,895 |
Accrued marketing | 8,177 | 8,133 |
Accrued commissions | 3,686 | 3,740 |
Accrued partner expenses | 2,001 | 2,255 |
Accrued refunds and customer liabilities | 2,195 | 2,179 |
Other accrued expenses | 8,363 | 7,539 |
Total accrued expenses | $ 38,074 | $ 41,741 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jan. 12, 2022 | |
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility | $ 250 | $ 250 | |||
Line of credit, amount available | 247.4 | 247.4 | |||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt outstanding | 0 | 0 | |||
Line of Credit | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt outstanding | 2.6 | 2.6 | |||
Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Debt issuance costs | 6.9 | 6.9 | |||
Senior Notes | Senior Notes Due 2030 | |||||
Line of Credit Facility [Line Items] | |||||
Convertible notes issued | $ 550 | ||||
Debt instrument, interest rate (as a percent) | 5% | ||||
Interest expense | $ 7.1 | $ 7.1 | $ 14.3 | $ 14.3 | |
Effective interest rate (as a percent) | 5.40% | 5.40% | 5.40% | 5.40% | |
Amortization of issuance costs for credit facility | $ 0.3 | $ 0.3 | $ 0.5 | $ 0.5 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) | Jun. 30, 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Fair Value | $ 275,924 | |
Cash and Cash Equivalents | 271,688 | $ 283,043 |
Marketable securities | 251,651 | 237,074 |
Fair Value, Recurring | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total cash, cash equivalents, and marketable securities | 523,391 | 520,104 |
Gross Unrealized Gains | 6 | 57 |
Gross Unrealized Losses | (58) | (44) |
Total cash, cash equivalents, and marketable securities | 523,339 | 520,117 |
Level 1: | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 247,415 | 260,866 |
Marketable securities | 113,731 | 138,923 |
Level 1: | Fair Value, Recurring | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total cash, cash equivalents, and marketable securities | 361,157 | 399,759 |
Gross Unrealized Gains | 2 | 38 |
Gross Unrealized Losses | (13) | (8) |
Total cash, cash equivalents, and marketable securities | 361,146 | 399,789 |
Level 2: | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 24,273 | 22,177 |
Marketable securities | 137,920 | 98,151 |
Level 2: | Commercial paper | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 6,397 | 6,495 |
Marketable securities | 32,381 | 19,404 |
Level 2: | Certificates of deposit | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 0 | 3,010 |
Marketable securities | 11,875 | 4,758 |
Level 2: | Corporate notes and obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 15,798 | 12,672 |
Marketable securities | 72,486 | 58,864 |
Level 2: | Asset-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 2,078 | 0 |
Marketable securities | 21,178 | 7,316 |
Level 2: | U.S. agency securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 0 | |
Marketable securities | 7,809 | |
Level 2: | Fair Value, Recurring | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total cash, cash equivalents, and marketable securities | 162,234 | 120,345 |
Gross Unrealized Gains | 4 | 19 |
Gross Unrealized Losses | (45) | (36) |
Total cash, cash equivalents, and marketable securities | 162,193 | 120,328 |
Level 2: | Fair Value, Recurring | Commercial paper | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost Basis | 38,778 | 25,899 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 38,778 | 25,899 |
Level 2: | Fair Value, Recurring | Certificates of deposit | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost Basis | 11,875 | 7,768 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 11,875 | 7,768 |
Level 2: | Fair Value, Recurring | Corporate notes and obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost Basis | 88,322 | 71,545 |
Gross Unrealized Gains | 2 | 12 |
Gross Unrealized Losses | (40) | (21) |
Fair Value | 88,284 | 71,536 |
Level 2: | Fair Value, Recurring | Asset-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost Basis | 23,259 | 7,319 |
Gross Unrealized Gains | 2 | 7 |
Gross Unrealized Losses | (5) | (10) |
Fair Value | 23,256 | 7,316 |
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 | Level 1: | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 232,702 | 237,104 |
Marketable securities | 0 | 0 |
Cash | Level 1: | Fair Value, Recurring | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalent | 232,702 | 237,104 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Money market mutual funds | Level 1: | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 14,713 | 23,762 |
Marketable securities | 0 | 0 |
Money market mutual funds | Level 1: | Fair Value, Recurring | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalent | 14,713 | 23,762 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
U.S. treasury securities | Level 1: | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Marketable securities | 113,731 | 138,923 |
U.S. treasury securities | Level 1: | Fair Value, Recurring | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost Basis | 113,742 | 138,893 |
Gross Unrealized Gains | 2 | 38 |
Gross Unrealized Losses | (13) | (8) |
Fair Value | $ 113,731 | $ 138,923 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | |||||
Credit losses recorded for available-for-sale debt securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Financing Receivable, Allowance for Credit Loss | 0 | 0 | $ 0 | ||
Sales of marketable securities | 0 | 0 | 0 | 0 | |
Fair Value, Nonrecurring | |||||
Debt Securities, Available-for-Sale [Line Items] | |||||
Unrealized gains (losses) on equity securities | 0 | $ 0 | 0 | $ 0 | |
Level 2: | |||||
Debt Securities, Available-for-Sale [Line Items] | |||||
Fair value of debt | $ 477,100,000 | $ 477,100,000 | $ 478,500,000 |
Financial Instruments - Availab
Financial Instruments - Available-for-sale Debt Securities by Contractual Maturity (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Available-for-Sale Securities, Debt Maturities [Abstract] | |
Due within 1 year | $ 265,541 |
Due after 1 year through 5 years | 10,383 |
Total available-for-sale debt securities | $ 275,924 |
Financial Instruments - Avail_2
Financial Instruments - Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Fair Value, Less Than 12 Months | $ 184,110 | $ 58,944 |
Fair Value, 12 Months or Greater | 814 | 1,027 |
Fair Value, Total | 184,924 | 59,971 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Gross Unrealized Losses, Less Than 12 Months | (57) | (40) |
Gross Unrealized Losses, 12 Months or Greater | (1) | (4) |
Gross Unrealized Losses, Total | (58) | (44) |
Asset-backed securities | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Fair Value, Less Than 12 Months | 15,271 | 3,211 |
Fair Value, 12 Months or Greater | 814 | 1,027 |
Fair Value, Total | 16,085 | 4,238 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Gross Unrealized Losses, Less Than 12 Months | (4) | (6) |
Gross Unrealized Losses, 12 Months or Greater | (1) | (4) |
Gross Unrealized Losses, Total | (5) | (10) |
Corporate notes and obligations | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | ||
Fair Value, Less Than 12 Months | 74,719 | 40,527 |
Fair Value, 12 Months or Greater | 0 | 0 |
Fair Value, Total | 74,719 | 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 | 94,120 | 7,397 |
Fair Value, 12 Months or Greater | 0 | 0 |
Fair Value, Total | 94,120 | 7,397 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Gross Unrealized Losses, Less Than 12 Months | (13) | (8) |
Gross Unrealized Losses, 12 Months or Greater | 0 | 0 |
Gross Unrealized Losses, Total | $ (13) | (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) shares in Millions | 6 Months Ended |
Jun. 30, 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 | $ 48,400,000 |
Common Class A | Open Market Purchases | |
Accelerated Share Repurchases [Line Items] | |
Common shares repurchased (in shares) | shares | 1.4 |
Common shares repurchased, amount | $ 15,000,000 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 15,589 | $ 17,639 | $ 34,165 | $ 39,210 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 161 | 97 | 334 | 324 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 2,595 | 2,881 | 5,427 | 6,499 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 8,447 | 7,978 | 17,907 | 17,765 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 4,386 | $ 6,683 | $ 10,497 | $ 14,622 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 21, 2023 shares | Apr. 19, 2021 tranche shares | Jun. 30, 2024 USD ($) shares | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total remaining stock-based compensation expense for unvested stock options | $ 500 | $ 500 | |||||
Stock based compensation, weighted average period of recognition | 4 months 24 days | ||||||
Total stock-based compensation | 15,589 | $ 17,639 | $ 34,165 | $ 39,210 | |||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation, weighted average period of recognition | 1 year 4 months 24 days | ||||||
Restricted stock units granted (in shares) | shares | 3,666,000 | ||||||
Total stock-based compensation | 16,100 | 15,400 | $ 34,700 | 34,600 | |||
Unrecognized stock based compensation expense | 121,500 | 121,500 | |||||
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 | 1,400,000 | |||||
Number of vesting tranches | tranche | 5 | ||||||
Total stock-based compensation | $ 0 | $ 7,500 | $ 1,500 | $ 0 | $ 3,000 | ||
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 | 3,700,000 | |||||
Shares purchased under ESPP (in shares) | shares | 0 | 200,000 | |||||
Aggregate amount of shares purchased | $ 2,600 | ||||||
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 | 30,800,000 | |||||
Shares initially reserved for issuance (in shares) | shares | 17,800,000 | 17,800,000 | |||||
ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Other accrued expenses | $ 1,200 | $ 1,200 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Equity Incentive Plans, 2012, 2014, 2021 - $ / shares shares in Thousands | 6 Months Ended |
Jun. 30, 2024 | |
Number of Options Outstanding | |
Beginning balance (in shares) | 5,159 |
Granted (in shares) | 0 |
Exercised (in shares) | (337) |
Forfeited/canceled (in shares) | (6) |
Ending balance (in shares) | 4,816 |
Exercisable (in shares) | 4,791 |
Weighted Average Exercise Price Per Share | |
Beginning balance, outstanding (in dollars per share) | $ 2.27 |
Granted (in dollars per share) | 0 |
Exercised (in dollars per share) | 2.03 |
Forfeited/Canceled (in dollars per share) | 2 |
Ending balance, outstanding (in dollars per share) | 2.29 |
Exercisable (in dollars per share) | $ 2.29 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 6,675,000 |
Granted (in shares) | shares | 3,666,000 |
Vested (in shares) | shares | (1,954,000) |
Forfeited/Canceled (in shares) | shares | (1,016,000) |
Ending balance (in shares) | shares | 7,371,000 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 20.36 |
Granted (in dollars per share) | $ / shares | 12.41 |
Vested (in dollars per share) | $ / shares | 19.33 |
Forfeited/Canceled (in dollars per share) | $ / shares | 18.25 |
Ending balance (in dollars per share) | $ / shares | $ 16.97 |
Income Taxes - Schedule of Esti
Income Taxes - Schedule of Estimated Annual Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 647 | $ 5,812 | $ 3,769 | $ 9,442 |
Effective tax rate | 8.40% | 28.80% | 88.10% | 32.70% |
Statutory federal income tax rate | 21% | 21% | 21% | 21% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal income tax rate | 21% | 21% | 21% | 21% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jul. 23, 2024 | Jul. 08, 2024 | Jun. 30, 2024 |
Subsequent Event | Breakroom Acquisition | |||
Subsequent Event [Line Items] | |||
Payments to acquire businesses, gross | $ 12.6 | ||
Business combination, consideration transferred, liabilities incurred | $ 3.9 | ||
Payout period | 3 years | ||
Line of Credit | |||
Subsequent Event [Line Items] | |||
Line of credit facility | $ 250 | ||
Line of Credit | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Line of credit facility | $ 290 |