Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2021shares | |
Document And Entity Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2021 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Entity Registrant Name | BigCommerce Holdings, Inc. |
Entity Central Index Key | 0001626450 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Small Business | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity File Number | 001-39423 |
Entity Tax Identification Number | 46-2707656 |
Entity Address Address Line1 | 11305 Four Points Drive Building II, 3rd Floor |
Entity Address City Or Town | Austin |
Entity Address State Or Province | TX |
Entity Interactive Data Current | Yes |
Entity Address Postal Zip Code | 78726 |
City Area Code | 512 |
Local Phone Number | 865-4500 |
Entity Incorporation State Country Code | DE |
Security12b Title | Series 1 common stock, $0.0001 par value per share |
Trading Symbol | BIGC |
Security Exchange Name | NASDAQ |
Series 1 Common Stock | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 69,095,315 |
Series 2 Common Stock | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,200,555 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 189,578 | $ 219,447 |
Restricted cash | 1,158 | 1,160 |
Marketable securities | 18,374 | |
Accounts receivable, net | 26,067 | 22,894 |
Prepaid expenses and other assets | 7,307 | 8,000 |
Deferred commissions | 2,880 | 2,571 |
Total current assets | 245,364 | 254,072 |
Property and equipment, net | 6,896 | 7,122 |
Right-of-use-assets | 11,217 | 11,842 |
Prepaid expenses, net of current portion | 1,275 | |
Deferred commissions, net of current portion | 4,077 | 3,590 |
Total assets | 268,829 | 276,626 |
Current liabilities | ||
Accounts payable | 4,658 | 5,788 |
Accrued liabilities | 2,572 | 3,344 |
Deferred revenue | 13,144 | 11,406 |
Current portion of operating lease liabilities | 3,243 | 3,173 |
Other current liabilities | 16,484 | 22,176 |
Total current liabilities | 40,101 | 45,887 |
Deferred revenue, net of current portion | 1,559 | 1,308 |
Operating lease liabilities, net of current portion | 11,831 | 12,672 |
Total liabilities | 53,491 | 59,867 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value; 500,000 shares Series 1 and, 5,051 shares Series 2 authorized at March 31, 2021 and December 31, 2020; 69,095, and 64,461 shares Series 1 issued and outstanding at March 31, 2021 and December 31, 2020, respectively, and 1,201 and 5,051 shares Series 2 issued and, outstanding at March 31, 2021, and December 31, 2020, respectively. | 7 | 7 |
Additional paid-in capital | 537,266 | 530,143 |
Accumulated deficit | (321,935) | (313,391) |
Total stockholders’ equity | 215,338 | 216,759 |
Total liabilities, convertible preferred stock, and stockholders’ equity (deficit) | 268,829 | 276,626 |
Convertible Preferred Stock | ||
Convertible preferred stock | ||
Convertible preferred stock, $0.0001 par value; 10,000 shares authorized at March 31, 2021 and December 31, 2020; 0 shares issued and outstanding, at March 31, 2021 and December 31, 2020. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Series 1 Common Stock | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 69,095,000 | 64,461,000 |
Common stock, shares outstanding | 69,095,000 | 64,461,000 |
Series 2 Common Stock | ||
Common stock, shares authorized | 5,051,000 | 5,051,000 |
Common stock, shares issued | 1,201,000 | 5,051,000 |
Common stock, shares outstanding | 1,201,000 | 5,051,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 46,660 | $ 33,174 |
Cost of revenue | 9,250 | 7,480 |
Gross profit | 37,410 | 25,694 |
Operating expenses: | ||
Sales and marketing | 20,809 | 15,762 |
Research and development | 13,535 | 10,921 |
General and administrative | 11,608 | 6,466 |
Total operating expenses | 45,952 | 33,149 |
Loss from operations | (8,542) | (7,455) |
Interest income | 12 | 1 |
Interest expense | (762) | |
Change in fair value of financial instruments | 4,413 | |
Other expense | (14) | (203) |
Loss before provision for income taxes | (8,544) | (4,006) |
Provision for income taxes | 17 | |
Net loss | (8,544) | (4,023) |
Dividends and accretion of issuance costs on Series F preferred stock | (1,745) | |
Net loss attributable to common stockholders | $ (8,544) | $ (5,768) |
Basic and diluted net loss per share attributable to common stockholders | $ (0.12) | $ (0.31) |
Weighted average shares used to compute basic and diluted net loss per share attributable to common stockholders | 69,792 | 18,645 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (8,544) | $ (4,023) |
Other comprehensive income (loss): | ||
Total comprehensive loss | $ (8,544) | $ (4,023) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Balance at Dec. 31, 2019 | $ (257,303) | $ (364) | $ 2 | $ 17,244 | $ (274,549) | $ (364) | |
Temporary equity, shares at Dec. 31, 2019 | 102,030 | ||||||
Temporary equity, balance at Dec. 31, 2019 | $ 223,754 | ||||||
Balance, shares at Dec. 31, 2019 | 18,544 | ||||||
Accounting Standards Update [Extensible List] | ASU 2020-06 | ||||||
Exercise of stock options | $ 404 | 404 | |||||
Exercise of stock options, shares | 448 | ||||||
Stock-based compensation | 1,026 | 1,026 | |||||
Accumulated dividend – Series F | (1,727) | (1,727) | |||||
Temporary Equity, Accumulated dividend - Series F | 1,727 | ||||||
Accretion of Series F issuance costs | (18) | (18) | |||||
Temporary Equity, Accretion of Series F issuance costs | $ 18 | ||||||
Warrants issued in connection with debt | 297 | 297 | |||||
Net loss | (4,023) | (4,023) | |||||
Balance at Mar. 31, 2020 | (261,708) | $ 2 | 18,953 | (280,663) | |||
Temporary equity, shares at Mar. 31, 2020 | 102,030 | ||||||
Temporary equity, balance at Mar. 31, 2020 | $ 225,499 | ||||||
Balance, shares at Mar. 31, 2020 | 18,992 | ||||||
Balance at Dec. 31, 2020 | 216,759 | $ 7 | 530,143 | (313,391) | |||
Temporary equity, shares at Dec. 31, 2020 | 0 | ||||||
Temporary equity, balance at Dec. 31, 2020 | |||||||
Balance, shares at Dec. 31, 2020 | 69,512 | ||||||
Exercise of stock options | 1,952 | 1,952 | |||||
Exercise of stock options, shares | 784 | ||||||
Stock-based compensation | 5,171 | 5,171 | |||||
Net loss | (8,544) | (8,544) | |||||
Balance at Mar. 31, 2021 | $ 215,338 | $ 7 | $ 537,266 | $ (321,935) | |||
Temporary equity, shares at Mar. 31, 2021 | 0 | ||||||
Temporary equity, balance at Mar. 31, 2021 | |||||||
Balance, shares at Mar. 31, 2021 | 70,296 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (8,544) | $ (4,023) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 706 | 907 |
Amortization of discount on debt | 118 | |
Stock-based compensation | 5,171 | 1,026 |
Allowance for credit losses | 726 | 589 |
Change in fair value of financial instrument | (4,413) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,899) | (1,466) |
Prepaid expenses | (582) | (1,097) |
Deferred commissions | (796) | (182) |
Accounts payable | (1,130) | 2,146 |
Accrued and other current liabilities | (6,399) | (3,259) |
Deferred revenue | 1,989 | (336) |
Net cash used in operating activities | (12,758) | (9,990) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (480) | (597) |
Purchase of marketable securities | (18,374) | |
Net cash used in investing activities | (18,854) | (597) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 1,741 | 404 |
Proceeds from debt | 40,745 | |
Repayment of debt | (5,600) | |
Net cash provided by financing activities | 1,741 | 35,549 |
Net change in cash and cash equivalents and restricted cash | (29,871) | 24,962 |
Cash and cash equivalents and restricted cash, beginning of period | 220,607 | 9,150 |
Cash and cash equivalents and restricted cash, end of period | 190,736 | 34,112 |
Supplemental cash flow information: | ||
Cash paid for interest | 601 | |
Noncash investing and financing activities: | ||
Issuance of warrants | 297 | |
Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheet to the amounts shown in the statements of cash flows above: | ||
Cash and cash equivalents | 189,578 | 33,026 |
Restricted cash | 1,158 | 1,086 |
Cash and cash equivalents and restricted cash, end of period | $ 190,736 | $ 34,112 |
Overview
Overview | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview | 1. Overview BigCommerce is leading a new era of ecommerce. Our software-as-a-service (“SaaS”) platform simplifies the creation of beautiful, engaging online stores by delivering a unique combination of ease-of-use, enterprise functionality, and flexibility. We power both our customers’ branded ecommerce stores and their cross-channel connections to popular online marketplaces, social networks, and offline point-of-sale systems. We provide a comprehensive platform for launching and scaling an ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integration into third-party services like payments, shipping, and accounting. All our stores run on a single code base and share a global, multi-tenant architecture purpose built for security, high performance, and innovation. Our platform serves stores in a wide variety of sizes, product categories, and purchase types, including business-to-consumer and business-to-business. Our headquarters and principal place of business are in Austin, Texas. We were formed in Australia in December 2003 under the name Interspire Pty Ltd and reorganized into a corporation in Delaware under the name BigCommerce Holdings, Inc. in February 2013. References in these consolidated financial statements to “we,” “us,” “our,” the “Company,” or “BigCommerce” refer to BigCommerce Holdings, Inc. and its subsidiaries, unless otherwise stated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of normal, recurring adjustments, necessary for a fair presentation. Certain information and disclosures normally included in the notes to the annual consolidated financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2020, which are included in the Company's Annual Report on Form 10-K, filed with the SEC on February 26, 2021. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other period. Basis of consolidation The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Our fiscal year ends on December 31. Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires certain financial instruments to be recorded at fair value; requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods. Significant estimates, judgments, and assumptions in these consolidated financial statements include: allocating variable consideration for revenue recognition; the amortization period for deferred commissions; the 2. Summary of significant accounting policies (continued) allowance for credit losses; a determination of the deferred tax asset valuation allowance and the valuation of our common stock used to determine stock-based compensation expense prior to our IPO. Because of the use of estimates inherent in the financial reporting process and given the additional or unforeseen effects from the COVID-19 pandemic, actual results could differ from those estimates, and such differences could be material to our consolidated financial statements. COVID-19, declared a global pandemic by the World Health Organization on March 11, 2020, has caused disruption to the economies and communities of the United States and our target international markets. In the interest of public health, many governments closed physical stores and places of business deemed non-essential. This precipitated a significant shift in shopping behavior from offline to online. Our business has benefited from this shift, both in accelerated sales growth for our existing customers’ stores, and in our sales of new store subscriptions to customers. Nevertheless, we do not have certainty that those trends will continue; the COVID-19 pandemic and the uncertainty it has created in the global economy could materially adversely affect our business, financial condition, and results of operations. Segment and geographic information Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews the financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Accordingly, we have determined that we operate as a single operating and reportable segment. Revenue by geographic region was as follows: Three months ended March 31, (in thousands) 2021 2020 Revenue: Americas – U.S. $ 36,117 $ 26,733 Americas – other 1,734 1,100 EMEA 4,397 2,442 APAC 4,412 2,899 Total revenue $ 46,660 $ 33,174 Long-lived assets by geographic region was as follows: March 31, December 31, (in thousands) 2021 2020 Long-lived assets: Americas – U.S. $ 6,326 $ 6,596 Americas – other — — EMEA — — APAC 570 526 Total long-lived assets $ 6,896 $ 7,122 Cash and cash equivalents We consider all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Cash equivalents consist of money market funds and investment securities and are stated at fair value. Restricted cash We maintain a portion of amounts collected through our online payment processor with the online payment processor as a security deposit for future chargebacks. Additionally, we have amounts on deposit with certain financial institutions that serve as collateral for letters of credit and lease deposits. 2. Summary of significant accounting policies (continued) Marketable securities All marketable securities have been classified as available-for-sale and are carried at estimated fair value. We determine the appropriate classification of our investments in debt securities at the time of purchase. Securities may have stated maturities greater than one year. All marketable securities are considered available to support current operations and are classified as current assets. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value and recognized in other income (expense) in the results of operations. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, an allowance is recorded for the difference between the present value of cash flows expected to be collected and the amortized cost basis of the security. Impairment losses attributable to credit loss factors are charged against the allowance when management believes an available-for-sale security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. Any unrealized losses from declines in fair value below the amortized cost basis as a result of non-credit loss factors is recognized as a component of accumulated other comprehensive (loss) income, along with unrealized gains. Realized gains and losses and declines in fair value, if any, on available-for-sale securities are included in other income (expense) in the results of operations. The cost of securities sold is based on the specific-identification method. Accounts receivable Accounts receivable are stated at net realizable value and include unbilled receivables. Unbilled receivables arise primarily when we provide subscriptions services in advance of billing. Accounts receivable are net of an allowance for credit losses, are not collateralized, and do not bear interest. Payment terms range from due immediately to due within 60 days. The accounts receivable balance included unbilled receivables of $7.5 million at March 31, 2021 and December 31, 2020. We assess the collectability of outstanding accounts receivable on an ongoing basis and maintain an allowance for credit losses for accounts receivable deemed uncollectable. Upon adoption of ASU 2016-13, we analyzed the accounts receivable portfolio for significant risks, historical activity, and an estimate of future collectability to determine the amount that will ultimately be collected. This estimate is analyzed quarterly and adjusted as necessary. Identified risks pertaining to our accounts receivable include the delinquency level, customer type, and current economic environment. Due to the short-term nature of such receivables, the estimate of the amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Adoption of ASU 2016-13 resulted in an increase in the allowance for credit losses of approximately $0.4 million as of January 1, 2020, primarily related to unbilled receivables. The allowance for credit losses consisted of the following: (in thousands) Balance at December 31, 2020 $ 1,992 Provision for expected credit losses 726 Accounts written off (358 ) Balance at March 31, 2021 $ 2,360 Property and equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives or the related lease terms (if shorter). 2. Summary of significant accounting policies (continued) The estimated useful lives of property and equipment are as follows: Estimated Useful Life Computer equipment 3 years Computer software 3 years Furniture and fixtures 5 years Leasehold improvements 1-10 years Maintenance and repairs that do not enhance or extend the asset’s useful life are charged to operating expenses as incurred. The carrying values of property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, we compare the projected undiscounted future cash flows associated with groups of assets used in combination over their estimated useful lives against their respective carrying amounts. If projected undiscounted future cash flows are less than the carrying value of the asset group, impairment is recorded for any excess of the carrying amount over the fair value of those assets in the period in which the determination is made. Research and development and internal use software Research and development expenses consist primarily of personnel and related expenses for our research and development staff, which include: salaries, benefits, bonuses, and stock-based compensation; the cost of certain third-party contractors; and allocated overhead. Expenditures for research and development, other than internal use software costs, are expensed as incurred. Software development costs associated with internal use software, which are incurred during the application development phase and meet other requirements under the guidance are capitalized. To date, software costs eligible for capitalization have not been significant. Leases We determine if an arrangement is a lease or contains a lease at inception. At the commencement date of a lease, we recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term. As our leases typically do not provide an implicit rate, we use our incremental borrowing rate for most leases. The right-of-use (“ROU”) asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred and excludes lease incentives. Lease terms may include options to extend or terminate the lease. We record a ROU asset and a lease liability when it is reasonably certain that we will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term. We also lease office space under short-term arrangements and have elected not to include these arrangements in the ROU asset or lease liabilities. Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that those assets will be realized. To date, we have provided a valuation allowance against all of our deferred tax assets as we believe the objective and verifiable evidence of our historical pretax net losses outweighs any positive evidence of its forecasted future results. We will continue to monitor the positive and negative evidence, and we will adjust the valuation allowance as sufficient objective positive evidence becomes available. We account for uncertain tax positions in accordance with ASC 740, “Income Taxes”, which clarifies the accounting for uncertainty in tax positions. These provisions require recognition of the impact of a tax position in our financial statements only if it is 2. Summary of significant accounting policies (continued) more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Any interest and penalties related to uncertain tax positions will be reflected as a component of income tax expense . Stock-based compensation We issue stock options, restricted stock units ("RSUs") and performance based restricted stock units (“PSUs”). Stock-based compensation related to stock options is measured at the date of grant and is recognized on a straight-line basis over the service period, net of estimated forfeitures. We use the Black-Scholes option-pricing model to estimate the fair value of stock options awarded at the date of grant. Stock-based compensation related to restricted stock units is measured at the date of grant, net of forfeitures, and recognized ratably over the service period. Stock- based compensation related to performance based restricted stock units is measured at the date of grant and recognized using the accelerated attribution method, net of forfeitures, over the remaining service period. Accounting pronouncements In August 2020, the FASB issued ASU No. 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)" which simplifies the accounting for convertible debt instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. In addition, the guidance eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. We adopted this standard on January 1, 2021 using the modified retrospective method. The adoption of this standard did not have any material impact on our financial statements. |
Revenue Recognition and Deferre
Revenue Recognition and Deferred Costs | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition and Deferred Costs | 3. Revenue recognition and deferred costs Revenue recognition Our sources of revenue consist of subscription solutions fees and partner and services fees. These services allow customers to access our hosted software over the contract period. The customer is not allowed to take possession of the software or transfer the software. Our revenue arrangements do not contain general rights of refund in the event of cancellations. The following table disaggregates our revenue by major source: Three months ended March 31, (in thousands) 2021 2020 Subscription solutions $ 32,004 $ 23,554 Partner and services 14,656 9,620 Total revenue $ 46,660 $ 33,174 Subscription solutions Subscription solutions revenue consists primarily of platform subscription fees from all plans. It also includes recurring professional services and sales of SSL certificates. Subscription solutions are charged monthly, quarterly, or annually for our customers to sell their products and process transactions on our platform. Subscription solutions are generally charged per online store and are based on the store’s subscription plan. Monthly subscription fees for Pro and Enterprise plans are adjusted if a customer’s gross merchandise volume or orders processed are above specified plan thresholds on a trailing twelve-month basis. For most subscription solutions arrangements, we have determined we meet the variable consideration allocation exception and, therefore, recognize fixed monthly fees or a pro-rata portion of quarterly or annual fees and any transaction fees as revenue in the month they are earned. A portion of our Enterprise subscription plans include an upfront promotional period in order to incentivize the customer to enter into a subscription arrangement. For these Enterprise arrangements, the total subscription fee is recognized on a straight-line basis over the term of the contract. Professional services, which primarily consist of education packages, launch services, solutions architecting, implementation consulting, and catalog transfer services, are generally billed and recognized as revenue when delivered. 3. Revenue recognition and deferred costs (continued) Contracts with our retail customers are generally month-to-month, while contracts with our enterprise customers generally range from one to three years. Contracts are typically non-cancellable and do not contain refund-type provisions. Revenue is presented net of sales tax and other taxes we collect on behalf of governmental authorities. Partner and services Our partner and services revenue consists of revenue share, partner technology integrations, and marketing services provided to partners. Revenue share relates to fees earned by our partners from customers using our platform, where we have an arrangement with such partner to share such fees as they occur. Revenue share is recognized at the time the earning activity is complete, which is generally monthly. Revenue for partner technology integrations is recorded on a straight-line basis over the life of the contract commencing when the integration has been completed. Fees for marketing services are recognized either at the time the earning activity is complete, or ratably over the length of the contract, depending on the nature of the obligations in the contract. Payments received in advance of services being rendered are recorded as deferred revenue and recognized when the obligation is completed. We also derive revenue from the sales of website themes and applications upon delivery. We recognize revenue share, and revenue from the sales of third-party applications, on a net basis as we have determined that we are the agent in our arrangements with third-party application providers. All other revenue is recognized on a gross basis, as we have determined we are the principal in these arrangements. Contracts with multiple performance obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Our subscription contracts are generally comprised of a single performance obligation to provide access to our platform, but can include additional performance obligations. For contracts with multiple performance obligations where the contracted price differs from the standalone selling price (“SSP”) for any distinct good or service, we may be required to allocate the contract’s transaction price to each performance obligation using our best estimate of SSP. Contracts with our technology solution partners often include multiple performance obligations. In determining whether integration services are distinct from hosting services we consider various factors. These considerations included the level of integration, interdependency, and interrelation between the implementation and hosting service, as well as any promises in the contract. We have concluded that the integration services included in contracts with hosting obligations are not distinct. As a result, we defer any arrangement fees for integration services and recognize such amounts over the life of the hosting obligation. Additional consideration for some partner contracts varies based on the level of customer activity on the platform. We have determined we meet the variable consideration allocation exception and therefore recognize these variable fees in the period they are earned. Judgment is required to determine the SSP for each distinct performance obligation. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The primary method used to estimate SSP is the expected cost-plus margin approach, which considers margins achieved on standalone sales of similar products, market data related to historical margins within an industry, industry sales price averages, market conditions, and profit objectives. Cost of revenue Cost of revenue consists primarily of personnel-related costs, including: stock-based compensation expenses for customer support and professional services personnel; costs of maintaining and securing our infrastructure and platform; amortization expense associated with capitalized internal-use software; and allocation of overhead costs. Deferred revenue Deferred revenue primarily consists of amounts that have been billed to or received from customers in advance of performing the associated services. We recognize revenue from deferred revenue when the services are performed, and the corresponding revenue recognition criteria are met. We recognized $5.7 million of previously deferred revenue during the three months ended March 31, 2021. 3. Revenue recognition and deferred costs (continued) The net increase in the deferred revenue balance for the three months ended March 31, 2021 is primarily due to increases in professional services along with a general increase in SaaS related subscriptions. Amounts recognized from deferred revenue represent primarily revenue from the sale of subscription solutions, integration, and marketing services. As of March 31, 2021, we had $92.9 million of remaining performance obligations, which represents contracted revenue minimums that have not yet been recognized, including amounts that will be invoiced and recognized as revenue in future periods. We expect to recognize Deferred commissions Certain sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are not paid on subscription renewals. We amortize deferred sales commissions ratably over the estimated period of our relationship with customers of approximately four years. Based on historical experience, we determine the average life of our customer relationship by taking into consideration our customer contracts and the estimated technological life of our platform and related significant features. We include amortization of deferred commissions in Sales and marketing expense in the consolidated statements of operations. We periodically review the carrying amount of deferred commissions to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. We did not recognize an impairment of deferred commissions for the three months ended March 31, 2021 and 2020 or the year ended December 31, 2020. Sales commissions of $1.5 million and $0.7 million were deferred for the three months ended March 31, 2021 and 2020, respectively; and deferred commission amortization expense was $0.7 million and $0.5 |
Fair Value Measurements, Cash E
Fair Value Measurements, Cash Equivalents and Marketable Securities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Cash Equivalents and Marketable Securities | 4. Fair value measurements, cash equivalents and marketable securities Financial instruments carried at fair value include cash and cash equivalents, restricted cash, marketable securities, and embedded put options. The carrying amount of accounts receivable approximates fair value due to their relatively short maturities. For assets and liabilities measured at fair value, fair value is the price to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. When determining fair value, we consider the principal or most advantageous market in which it would transact, and assumptions that market participants would use when pricing asset or liabilities. The accounting standard for fair value establishes a fair value hierarchy based on three levels of inputs, the first two of which are considered observable and the last unobservable. The standard requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 – Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Inputs are unobservable that are significant to the fair value of the asset or liability and are developed based on the best information available in the circumstances, which might include our data. The following tables summarize the estimated fair value of our cash equivalents and marketable securities. As of March 31, 2021 (in thousands) (Level 1) (Level 2) (Level 3) Total Financial assets: Money market funds $ 171,802 — — $ 171,802 Corporate securities — 18,374 — 18,374 Total financial assets $ 171,802 $ 18,374 $ — $ 190,176 4. Fair value measurements, cash equivalents and marketable securities (continued) As of December 31, 2020 (in thousands) (Level 1) (Level 2) (Level 3) Total Financial assets: Money market funds $ 196,521 $ — $ — $ 196,521 The following tables summarizes the estimated fair value of our cash equivalents and marketable securities: As of March 31, 2021 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 171,802 $ — $ — $ 171,802 Marketable securities: Corporate securities $ 18,374 — — $ 18,374 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and equipment Property and equipment, which includes software purchased or developed for internal use, is composed of the following: As of March 31, As of December 31, (in thousands) 2021 2020 Computer software $ 2,422 $ 2,347 Computer equipment 8,326 7,938 Furniture and fixtures 2,397 2,379 Leasehold improvements 7,942 7,943 21,087 20,607 Less: accumulated depreciation and amortization (14,191 ) (13,485 ) Property and equipment, net $ 6,896 $ 7,122 Depreciation expense on property and equipment was $0.7 million and $0.9 million for the three months ended March 31, 2021 and 2020, respectively. |
Commitments, Contingencies, and
Commitments, Contingencies, and Leases | 3 Months Ended |
Mar. 31, 2021 | |
Commitments Contingencies And Leases [Abstract] | |
Commitments, Contingencies, and Leases | 6. Commitments, contingencies, and leases Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and that the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. From time to time, we are subject to various claims that arise in the normal course of business. In the opinion of management, we are unaware of any pending or unasserted claims that would have a material adverse effect on our financial position, liquidity, or results. Certain executive officers are entitled to payments in the event of termination of employment in connection with a certain change in control. 6. Commitments, contingencies, and leases (continued) Our certificate of incorporation and certain contractual arrangements provide for indemnification of our officers and directors for certain events or occurrences. We maintain a directors and officers insurance policy to provide coverage in the event of a claim against an officer of director. Historically, we have not been obligated to make any payments for indemnification obligations, and no liabilities have been recorded for these obligations on the consolidated balance sheets as of March 31, 2021 or December 31, 2020. Leases We lease certain facilities under operating lease agreements that expire at various dates through 2028. Some of these arrangements contain renewal options and require us to pay taxes, insurance and maintenance costs. Renewal options were not included in the ROU asset and lease liability calculation. Operating and short-term rent Short-term rent expense was not material for any of the periods presented. Supplemental lease information Cash flow information (in thousands) Three months ended March 31, 2021 2020 Cash paid for operating lease liabilities $ 972 $ 871 Right-of-use assets obtained in exchange for operating lease obligations $ — $ — Operating lease information Three months ended March 31, 2021 2020 Weighted-average remaining lease-term 5.9 years 6.7 years Weighted-average discount rate 5.46 % 5.52 % Future minimum lease payments under non-cancellable operating leases are as follows: (in thousands) March 31, 2021 2021 (April 1st through December 31st) $ 2,971 2022 3,081 2023 2,504 2024 2,255 2025 2,011 Thereafter 4,923 Total minimum lease payments $ 17,745 Less imputed interest (2,671 ) Total lease liabilities $ 15,074 |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | 7. Other liabilities The following table summarizes the components of other current liabilities: As of March 31, (in thousands) 2021 2020 Sales tax payable $ 759 $ 635 Payroll and payroll related expenses 12,415 5,520 Other 3,310 3,241 Other current liabilities $ 16,484 $ 9,396 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt Convertible Term Loans On October 27, 2017, we entered into a contingent convertible debt agreement (the “Convertible Term Loan”) with Silicon Valley Bank (“SVB”) providing for a term loan of $20.0 million. In conjunction with our IPO on August 5, 2020, the bank exercised its purchase right and repaid $1.1 million of previously paid principal. This balance, combined with the unpaid principal balance of $18.9 was converted into 2,179,360 shares of Series 1 common stock. No further borrowings are allowed under this convertible debt agreement. Interest was calculated on the outstanding principal, with interest payable monthly. The initial interest rate was equal to the prime rate and changes to a rate of prime plus 2.0% on and after January 1, 2020, a rate of prime plus 4.0% on and after January 1, 2021, and a rate of prime plus 6.0% on and after January 1, 2022. The weighted-average effective interest rate was 6.2% during the three-month period ended March 31, 2020. Quarterly principal payments of $125 thousand were due and payable from June 1, 2018 through maturity. On February 28, 2020 we entered into a contingent convertible term loan (the “2020 Convertible Loan”) with SVB, providing for a convertible term loan in an amount of $35.0 million. In conjunction with our IPO on August 5, 2020, the outstanding principal balance of $35 million was converted into 3,070,174 shares of Series 1 common stock. No further borrowings are allowed under this convertible debt agreement. Interest was calculated on the outstanding principal, with interest payable monthly. The 2020 Convertible Term Loan bears interest at (a) 4.5% prior to January 1, 2022, (b) 6.5% from January 1, 2022 and prior to January 1, 2023, (c) 8.5% from January 1, 2023 and prior to January 1, 2024, and (d) 10.5% from and after January 1, 2024. In addition to the conversion shares on the outstanding principal, this instrument required a deficiency payment if the value of the conversion shares does not meet an applicable required minimum return of (a) 1.25 if converted within 18 months of the agreement, (b) 1.32 if converted between 18 months and 24 months, and (c) 1.55 if converted between 24 months and maturity. The deficiency payment, at the election of the holder, would be settled either (i) by issuance of additional shares of common stock equal to the difference between the minimum return and the conversion value or (ii) in cash in a single installment in the amount of such difference. Management determined that the required minimum return as defined above represented, in substance, an embedded lenders’ put option designed to provide the investor with a fixed monetary amount, settleable in either additional shares or cash. Management determined that this put option should be separated and accounted for as a derivative primarily because the put option met the net settlement criterion and the settlement provisions were not consistent with a fixed-for-fixed equity instrument. Based on the value of the conversion shares issued to the bank upon completion of the IPO, we met the required minimum return under terms of the 2020 Convertible Term Loan and were not required to provide any additional shares or cash. The put option, with an initial fair value of approximately $4.4 million, was recorded as a derivative liability on the accompanying balance sheet and a corresponding discount to the 2020 Convertible Term Loan. The discount was accreted to interest expense on the consolidated statement of operations over the term of the 2020 Convertible Term Loan using the effective interest method. The net balance outstanding under the terms of this agreement was netted against the outstanding principal balance upon conversion to Series 1 Common Stock upon completion of our IPO. We recorded interest expense related to this instrument of $0.1 million during the three-month period ended March 31, 2020, respectively. The estimated fair value of the put option was determined using a multi-scenario probability weighted expected return method analysis in which the future probability of exit events was weighted for its respective probability. Key assumptions included time to exit event, fair value of common stock, and a discount rate. At March 31, 2020, we determined the put option had no fair value due to an increase in market conditions that would make any amounts due under the redemption feature remote. As a result, we recorded a gain in the amount of $4.4 million in the three-month period ending March 31, 2020, which was recorded in the accompanying consolidated statements of operations. This instrument was extinguished upon the conversion of the 2020 Convertible Term Debt upon completion of our IPO 8. Debt (continued) Credit Facility On October 27, 2017, we amended and restated our loan and security agreement (as amended, the “Credit Facility”) with SVB. The Credit Facility provided a $20.0 million revolving line of credit (the “Revolving Line”) and a $5.0 million term loan (the “2018 Term Loan”). On June 4, 2019, we amended the Credit Facility to increase the Revolving Line by $5.0 million to $25.0 million. On February 28, 2020, we amended and restated our loan and security agreement (the “A&R Credit Facility”) with SVB. The A&R Credit Facility reduces the amount available under the Revolving Line by $5.0 million to $20.0 million with a further reduction in availability to $10.0 million scheduled for September 30, 2020. On Septem ber 29, 2020, we entered into an agreement with SVB to defer the reduction in amounts available under the Revolving Line from $20.0 million to $10.0 million from September 30, 2020 to December 31, 2020. The Revolving Line has a maturity date of October 27, 2021. The Revolving Line bore interest at a rate equal to the prime rate, and the weighted-average effective interest rate 4.8% for the three months ended March 31, 2020. Interest is calculated on the outstanding principal and is payable monthly. As of December 31, 2020, we had no balance outstanding under terms of this agreement and no further borrowings are allowed under this agreement. Borrowings from the 2018 Term Loan mature 36 months after each draw. The 2018 Term Loan bore interest at a rate equal to the prime rate plus 0.25% and, the weighted-average effective interest rate w 5.3% Mezzanine Facility Loan On February 28, 2020, we entered into a mezzanine loan and security agreement (the “Mezzanine Facility”) with WestRiver Innovation Lending Fund VIII, L.P. (“WestRiver”) providing for a term loan of $10.0 million. The Mezzanine Facility maturity date is March 1, 2023. Our obligations under the Mezzanine Facility are secured by substantially all of our assets. The Mezzanine Facility contains restrictive covenants, including limits on additional indebtedness, liens, asset dispositions, dividends, investments, and distributions. Borrowings under the Mezzanine Facility bear interest at the greater of (i) 10.0% or (ii) the prime rate then in effect plus 5.25%. Interest is calculated on the outstanding principal on a 360-day year basis, payable monthly. As of March 31, 2020, we had no balance outstanding under this agreement. We formally terminated the Mezzanine Facility effective as of November 6, 2020. In connection with the Mezzanine Facility, we issued warrants to purchase up to 99,000 shares of common stock with an exercise price of $9.21 per share with the warrants expiring on March 1, 2023. The warrant was exercisable for half of the shares. The warrant did not become exercisable for the remaining half of the shares because we did not draw down under the Mezzanine Facility and our ability to draw down under the Mezzanine Facility terminated. The portion of the warrant that was exercisable was exercised in August 2020 and the portion that did not become exercisable terminated upon the termination of the Mezzanine Facility. Upon issuance of the warrants, we recorded the fair value of the first tranche of warrants at $0.3 million. The value of the warrants issued was recorded as a discount on the carrying value of the debt instruments, which was amortized to interest expense over the life of the debt instruments as an adjustment to (increase in) the effective interest rate. Debt fees Lender fees that were paid upfront to the lenders and debt issuance fees paid to third parties are recorded as a discount from the debt carrying amount and are being amortized to interest expense over the life of the debt. Interest expense related to debt discount amortization was not material for the three months ended March 31, 2020. Net unamortized fees were $0.9 million as of March 31, 2020. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | 9. Stockholders’ equity (deficit) Equity Incentive Plans – Stock Options During the three months ended March 31, 2021, the Company granted an aggregate of 225,346 shares of stock options, with a weighted average exercise price of $59.56 per share. The fair value of options granted was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions (i) expected term of 6.0 years, (ii) expected volatility of 56.2%, (iii) risk-free interest rate 1.09% and (iv) expected dividend yield of 0%. Restricted Stock Units During the three months ended March 31, 2021, we granted an aggregate of 460,510 RSUs with a weighted grant-date fair value of $59.56. The RSUs vest over the requisite service period of 4 years from the date of grant, subject to the continued employment of the employees. Stock-based compensation expense was included in the following line items in the accompanying condensed consolidated statements of operations during the periods presented (in thousands): Three months ended March 31, (in thousands) 2021 2020 Cost of revenue $ 387 $ 73 Sales and marketing 1,579 289 Research and development 1,148 305 General and administrative 2,057 359 Total stock-based compensation expense $ 5,171 $ 1,026 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income taxes Our provision for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items, and any applicable income tax credits. The difference in the 21% U.S. statutory tax rate and the annual forecasted effective tax rate ((.03%) as of Q1 2021) is primarily a result of the jurisdictional mix of earnings and losses as well as valuation allowances offsetting the benefit of forecasted losses in the U.S., Australia, and the United Kingdom. Forecasted tax expense is related to non-U.S. jurisdictions where we are profitable along with state income taxes. The effective tax rates for the three months ended March 31, 2021 and 2020 were 0.00 % and (0.42) % respectively. We file tax returns in the U.S., including various state and local returns, and in other foreign jurisdictions including the Australia and the United Kingdom. We believe adequate provision has been made for all income tax uncertainties. We are not currently under audit in any filing jurisdiction. Fiscal years 2016 through 2019 remain open to examination by the major taxing jurisdictions to which we are subject. Carry forward attributes that were generated in tax years prior to fiscal year 2016 remain open to adjustment until the statute of limitations closes for the tax year in which the attributes are utilized. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 11. Net loss per share Net loss per share Basic and diluted net loss per common share is presented in conformity with the two-class method required for participating securities. Holders of Series F preferred stock were entitled to receive cumulative dividends at the annual rate of 10% compounded quarterly payable prior and in preference to any dividends on any shares of our common stock, subject to certain adjustments as set forth in our certificate of incorporation. In the event a dividend is paid on common stock, the holders of preferred stock were entitled to a proportionate share of any such dividend as if they were holders of common stock (on an as-if converted basis). Accordingly, all of our outstanding series of preferred stock were considered to be participating securities. The holders of our preferred stock did not have a contractual obligation to share in our losses; therefore, no amount of total undistributed loss was allocated to preferred stock. Net loss attributable to common stockholders is calculated as net loss less current period preferred stock dividends. There was no preferred stock outstanding during the three-month period ending March 31, 2021 . 11. Net loss per share (continued) Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, which includes both Series 1 and Series 2 outstanding shares. Because we have reported a net loss for the three months ended March 31, 2021, and 2020, the number of shares used to calculate diluted net loss per share of common stock attributable to common stockholders is the same as the number of shares used to calculate basic net loss per share of common stock attributable to common stockholders for the period presented because the potentially dilutive shares would have been antidilutive if included in the calculation. The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported: Three months ended March 31, (In thousands) 2021 2020 Preferred stock as-converted — 34,442 Stock options outstanding 7,491 9,747 Restricted stock units 1,868 — Warrants to purchase common stock — 411 Convertible debt — 5,250 Total potentially dilutive securities 9,359 49,850 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of normal, recurring adjustments, necessary for a fair presentation. Certain information and disclosures normally included in the notes to the annual consolidated financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2020, which are included in the Company's Annual Report on Form 10-K, filed with the SEC on February 26, 2021. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other period. |
Basis of consolidation | Basis of consolidation The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Our fiscal year ends on December 31. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires certain financial instruments to be recorded at fair value; requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods. Significant estimates, judgments, and assumptions in these consolidated financial statements include: allocating variable consideration for revenue recognition; the amortization period for deferred commissions; the 2. Summary of significant accounting policies (continued) allowance for credit losses; a determination of the deferred tax asset valuation allowance and the valuation of our common stock used to determine stock-based compensation expense prior to our IPO. Because of the use of estimates inherent in the financial reporting process and given the additional or unforeseen effects from the COVID-19 pandemic, actual results could differ from those estimates, and such differences could be material to our consolidated financial statements. COVID-19, declared a global pandemic by the World Health Organization on March 11, 2020, has caused disruption to the economies and communities of the United States and our target international markets. In the interest of public health, many governments closed physical stores and places of business deemed non-essential. This precipitated a significant shift in shopping behavior from offline to online. Our business has benefited from this shift, both in accelerated sales growth for our existing customers’ stores, and in our sales of new store subscriptions to customers. Nevertheless, we do not have certainty that those trends will continue; the COVID-19 pandemic and the uncertainty it has created in the global economy could materially adversely affect our business, financial condition, and results of operations. |
Segment and geographic information | Segment and geographic information Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews the financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Accordingly, we have determined that we operate as a single operating and reportable segment. Revenue by geographic region was as follows: Three months ended March 31, (in thousands) 2021 2020 Revenue: Americas – U.S. $ 36,117 $ 26,733 Americas – other 1,734 1,100 EMEA 4,397 2,442 APAC 4,412 2,899 Total revenue $ 46,660 $ 33,174 Long-lived assets by geographic region was as follows: March 31, December 31, (in thousands) 2021 2020 Long-lived assets: Americas – U.S. $ 6,326 $ 6,596 Americas – other — — EMEA — — APAC 570 526 Total long-lived assets $ 6,896 $ 7,122 |
Cash and cash equivalents | Cash and cash equivalents We consider all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Cash equivalents consist of money market funds and investment securities and are stated at fair value. |
Restricted cash | Restricted cash We maintain a portion of amounts collected through our online payment processor with the online payment processor as a security deposit for future chargebacks. Additionally, we have amounts on deposit with certain financial institutions that serve as collateral for letters of credit and lease deposits. |
Marketable securities | Marketable securities All marketable securities have been classified as available-for-sale and are carried at estimated fair value. We determine the appropriate classification of our investments in debt securities at the time of purchase. Securities may have stated maturities greater than one year. All marketable securities are considered available to support current operations and are classified as current assets. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value and recognized in other income (expense) in the results of operations. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, an allowance is recorded for the difference between the present value of cash flows expected to be collected and the amortized cost basis of the security. Impairment losses attributable to credit loss factors are charged against the allowance when management believes an available-for-sale security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. Any unrealized losses from declines in fair value below the amortized cost basis as a result of non-credit loss factors is recognized as a component of accumulated other comprehensive (loss) income, along with unrealized gains. Realized gains and losses and declines in fair value, if any, on available-for-sale securities are included in other income (expense) in the results of operations. The cost of securities sold is based on the specific-identification method. |
Accounts receivable | Accounts receivable Accounts receivable are stated at net realizable value and include unbilled receivables. Unbilled receivables arise primarily when we provide subscriptions services in advance of billing. Accounts receivable are net of an allowance for credit losses, are not collateralized, and do not bear interest. Payment terms range from due immediately to due within 60 days. The accounts receivable balance included unbilled receivables of $7.5 million at March 31, 2021 and December 31, 2020. We assess the collectability of outstanding accounts receivable on an ongoing basis and maintain an allowance for credit losses for accounts receivable deemed uncollectable. Upon adoption of ASU 2016-13, we analyzed the accounts receivable portfolio for significant risks, historical activity, and an estimate of future collectability to determine the amount that will ultimately be collected. This estimate is analyzed quarterly and adjusted as necessary. Identified risks pertaining to our accounts receivable include the delinquency level, customer type, and current economic environment. Due to the short-term nature of such receivables, the estimate of the amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Adoption of ASU 2016-13 resulted in an increase in the allowance for credit losses of approximately $0.4 million as of January 1, 2020, primarily related to unbilled receivables. The allowance for credit losses consisted of the following: (in thousands) Balance at December 31, 2020 $ 1,992 Provision for expected credit losses 726 Accounts written off (358 ) Balance at March 31, 2021 $ 2,360 |
Property and equipment | Property and equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives or the related lease terms (if shorter). 2. Summary of significant accounting policies (continued) The estimated useful lives of property and equipment are as follows: Estimated Useful Life Computer equipment 3 years Computer software 3 years Furniture and fixtures 5 years Leasehold improvements 1-10 years Maintenance and repairs that do not enhance or extend the asset’s useful life are charged to operating expenses as incurred. The carrying values of property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, we compare the projected undiscounted future cash flows associated with groups of assets used in combination over their estimated useful lives against their respective carrying amounts. If projected undiscounted future cash flows are less than the carrying value of the asset group, impairment is recorded for any excess of the carrying amount over the fair value of those assets in the period in which the determination is made. |
Research and development and internal use software | Research and development and internal use software Research and development expenses consist primarily of personnel and related expenses for our research and development staff, which include: salaries, benefits, bonuses, and stock-based compensation; the cost of certain third-party contractors; and allocated overhead. Expenditures for research and development, other than internal use software costs, are expensed as incurred. Software development costs associated with internal use software, which are incurred during the application development phase and meet other requirements under the guidance are capitalized. To date, software costs eligible for capitalization have not been significant. |
Leases | Leases We determine if an arrangement is a lease or contains a lease at inception. At the commencement date of a lease, we recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term. As our leases typically do not provide an implicit rate, we use our incremental borrowing rate for most leases. The right-of-use (“ROU”) asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred and excludes lease incentives. Lease terms may include options to extend or terminate the lease. We record a ROU asset and a lease liability when it is reasonably certain that we will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term. We also lease office space under short-term arrangements and have elected not to include these arrangements in the ROU asset or lease liabilities. |
Income taxes | Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that those assets will be realized. To date, we have provided a valuation allowance against all of our deferred tax assets as we believe the objective and verifiable evidence of our historical pretax net losses outweighs any positive evidence of its forecasted future results. We will continue to monitor the positive and negative evidence, and we will adjust the valuation allowance as sufficient objective positive evidence becomes available. We account for uncertain tax positions in accordance with ASC 740, “Income Taxes”, which clarifies the accounting for uncertainty in tax positions. These provisions require recognition of the impact of a tax position in our financial statements only if it is 2. Summary of significant accounting policies (continued) more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Any interest and penalties related to uncertain tax positions will be reflected as a component of income tax expense . |
Stock-based compensation | Stock-based compensation We issue stock options, restricted stock units ("RSUs") and performance based restricted stock units (“PSUs”). Stock-based compensation related to stock options is measured at the date of grant and is recognized on a straight-line basis over the service period, net of estimated forfeitures. We use the Black-Scholes option-pricing model to estimate the fair value of stock options awarded at the date of grant. Stock-based compensation related to restricted stock units is measured at the date of grant, net of forfeitures, and recognized ratably over the service period. Stock- based compensation related to performance based restricted stock units is measured at the date of grant and recognized using the accelerated attribution method, net of forfeitures, over the remaining service period. |
Accounting pronouncements | Accounting pronouncements In August 2020, the FASB issued ASU No. 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)" which simplifies the accounting for convertible debt instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. In addition, the guidance eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. We adopted this standard on January 1, 2021 using the modified retrospective method. The adoption of this standard did not have any material impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Geographic Region | Accordingly, we have determined that we operate as a single operating and reportable segment. Revenue by geographic region was as follows: Three months ended March 31, (in thousands) 2021 2020 Revenue: Americas – U.S. $ 36,117 $ 26,733 Americas – other 1,734 1,100 EMEA 4,397 2,442 APAC 4,412 2,899 Total revenue $ 46,660 $ 33,174 |
Schedule of Long-lived Assets by Geographic Region | Long-lived assets by geographic region was as follows: March 31, December 31, (in thousands) 2021 2020 Long-lived assets: Americas – U.S. $ 6,326 $ 6,596 Americas – other — — EMEA — — APAC 570 526 Total long-lived assets $ 6,896 $ 7,122 |
Schedule of Allowance for Credit Losses | The allowance for credit losses consisted of the following: (in thousands) Balance at December 31, 2020 $ 1,992 Provision for expected credit losses 726 Accounts written off (358 ) Balance at March 31, 2021 $ 2,360 |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: Estimated Useful Life Computer equipment 3 years Computer software 3 years Furniture and fixtures 5 years Leasehold improvements 1-10 years |
Revenue Recognition and Defer_2
Revenue Recognition and Deferred Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregate Revenue by Major Source | The following table disaggregates our revenue by major source: Three months ended March 31, (in thousands) 2021 2020 Subscription solutions $ 32,004 $ 23,554 Partner and services 14,656 9,620 Total revenue $ 46,660 $ 33,174 |
Fair Value Measurements, Cash_2
Fair Value Measurements, Cash Equivalents and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Our Cash Equivalents and Marketable Securities | The following tables summarize the estimated fair value of our cash equivalents and marketable securities. As of March 31, 2021 (in thousands) (Level 1) (Level 2) (Level 3) Total Financial assets: Money market funds $ 171,802 — — $ 171,802 Corporate securities — 18,374 — 18,374 Total financial assets $ 171,802 $ 18,374 $ — $ 190,176 4. Fair value measurements, cash equivalents and marketable securities (continued) As of December 31, 2020 (in thousands) (Level 1) (Level 2) (Level 3) Total Financial assets: Money market funds $ 196,521 $ — $ — $ 196,521 The following tables summarizes the estimated fair value of our cash equivalents and marketable securities: As of March 31, 2021 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 171,802 $ — $ — $ 171,802 Marketable securities: Corporate securities $ 18,374 — — $ 18,374 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, which includes software purchased or developed for internal use, is composed of the following: As of March 31, As of December 31, (in thousands) 2021 2020 Computer software $ 2,422 $ 2,347 Computer equipment 8,326 7,938 Furniture and fixtures 2,397 2,379 Leasehold improvements 7,942 7,943 21,087 20,607 Less: accumulated depreciation and amortization (14,191 ) (13,485 ) Property and equipment, net $ 6,896 $ 7,122 |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments Contingencies And Leases [Abstract] | |
Supplemental Lease Information | Supplemental lease information Cash flow information (in thousands) Three months ended March 31, 2021 2020 Cash paid for operating lease liabilities $ 972 $ 871 Right-of-use assets obtained in exchange for operating lease obligations $ — $ — Operating lease information Three months ended March 31, 2021 2020 Weighted-average remaining lease-term 5.9 years 6.7 years Weighted-average discount rate 5.46 % 5.52 % |
Schedule of Future Maturities of Operating Lease Liabilities | Future minimum lease payments under non-cancellable operating leases are as follows: (in thousands) March 31, 2021 2021 (April 1st through December 31st) $ 2,971 2022 3,081 2023 2,504 2024 2,255 2025 2,011 Thereafter 4,923 Total minimum lease payments $ 17,745 Less imputed interest (2,671 ) Total lease liabilities $ 15,074 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Current Liabilities | The following table summarizes the components of other current liabilities: As of March 31, (in thousands) 2021 2020 Sales tax payable $ 759 $ 635 Payroll and payroll related expenses 12,415 5,520 Other 3,310 3,241 Other current liabilities $ 16,484 $ 9,396 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense was included in the following line items in the accompanying condensed consolidated statements of operations during the periods presented (in thousands): Three months ended March 31, (in thousands) 2021 2020 Cost of revenue $ 387 $ 73 Sales and marketing 1,579 289 Research and development 1,148 305 General and administrative 2,057 359 Total stock-based compensation expense $ 5,171 $ 1,026 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Outstanding Excluded from Computation of Diluted Weighted-Average Shares Outstanding | The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported: Three months ended March 31, (In thousands) 2021 2020 Preferred stock as-converted — 34,442 Stock options outstanding 7,491 9,747 Restricted stock units 1,868 — Warrants to purchase common stock — 411 Convertible debt — 5,250 Total potentially dilutive securities 9,359 49,850 |
Overview - Additional Informati
Overview - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Entity incorporation date | Feb. 28, 2013 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | $ 46,660 | $ 33,174 |
Americas - U.S. | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | 36,117 | 26,733 |
Americas - other | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | 1,734 | 1,100 |
EMEA | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | 4,397 | 2,442 |
APAC | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | $ 4,412 | $ 2,899 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 6,896 | $ 7,122 |
Americas - U.S. | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | 6,326 | 6,596 |
APAC | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $ 570 | $ 526 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Summary Of Significant Accounting Policies [Line Items] | |||
Accounts receivable including unbilled receivables | $ 7.5 | $ 7.5 | |
ASU 2016-13 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Increase in the allowance for credit losses | $ 0.4 | ||
ASU 2020-06 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2021 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Account receivable payment terms | Due immediately | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Account receivable payment terms | Due within 60 days |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance For Credit Loss [Abstract] | ||
Beginning Balance | $ 1,992 | |
Allowance for credit losses | 726 | $ 589 |
Accounts written off | (358) | |
Ending Balance | $ 2,360 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Computer Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Computer Software | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 years |
Leasehold Improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 1 year |
Leasehold Improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 10 years |
Revenue Recognition and Defer_3
Revenue Recognition and Deferred Costs - Schedule of Disaggregate Revenue by Major Source (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 46,660 | $ 33,174 |
Subscription Solutions | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 32,004 | 23,554 |
Partner and Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 14,656 | $ 9,620 |
Revenue Recognition and Defer_4
Revenue Recognition and Deferred Costs - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Recognized previously deferred revenue | $ 5,700,000 | ||
Amortization of deferred sales commissions estimated period | 4 years | ||
Impairment of deferred commissions | $ 0 | $ 0 | $ 0 |
Deferred sales commissions | 1,500,000 | 700,000 | |
Deferred commission amortization expense | $ 700,000 | $ 500,000 | |
Subscription Solutions | Minimum | |||
Disaggregation Of Revenue [Line Items] | |||
Contract with customer period | 1 year | ||
Subscription Solutions | Maximum | |||
Disaggregation Of Revenue [Line Items] | |||
Contract with customer period | 3 years |
Revenue Recognition and Defer_5
Revenue Recognition and Deferred Costs - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 92.9 |
Remaining performance obligations, percentage | 56.00% |
Remaining performance obligations, satisfaction period | 12 months |
Revenue, expected recognition period, explanation | We expect to recognize approximately 56% of the remaining performance obligations as revenue in the following 12-month periods, and the remaining balance in the periods thereafter. |
Fair Value Measurements, Cash_3
Fair Value Measurements, Cash Equivalents and Marketable Securities -Summarize the Estimated Fair Value of Our Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Financial assets | $ 190,176 | |
Money market funds | ||
Financial assets: | ||
Financial assets | 171,802 | $ 196,521 |
Amortized Cost | 171,802 | |
Estimated Fair Value | 171,802 | |
Corporate securities | ||
Financial assets: | ||
Financial assets | 18,374 | |
Amortized Cost | 18,374 | |
Estimated Fair Value | 18,374 | |
Level 1 | ||
Financial assets: | ||
Financial assets | 171,802 | |
Level 1 | Money market funds | ||
Financial assets: | ||
Financial assets | 171,802 | $ 196,521 |
Level 2 | ||
Financial assets: | ||
Financial assets | 18,374 | |
Level 2 | Corporate securities | ||
Financial assets: | ||
Financial assets | $ 18,374 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 21,087 | $ 20,607 |
Less: accumulated depreciation and amortization | (14,191) | (13,485) |
Property and equipment, net | 6,896 | 7,122 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,422 | 2,347 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 8,326 | 7,938 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,397 | 2,379 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 7,942 | $ 7,943 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense on property and equipment | $ 0.7 | $ 0.9 |
Commitment, Contingencies, and
Commitment, Contingencies, and Leases - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Commitments Contingencies And Leases [Abstract] | |||
Liability related to indemnification obligations | $ 0 | $ 0 | |
Operating lease, expiration year | 2028 | ||
Operating and short-term rent expense | $ 900,000 | $ 800,000 |
Commitment, Contingencies, an_2
Commitment, Contingencies, and Leases - Schedule of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments Contingencies And Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 972 | $ 871 |
Commitment, Contingencies, an_3
Commitment, Contingencies, and Leases - Schedule of Operating Lease Information (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Commitments Contingencies And Leases [Abstract] | ||
Weighted-average remaining lease-term | 5 years 10 months 24 days | 6 years 8 months 12 days |
Weighted-average discount rate | 5.46% | 5.52% |
Commitment, Contingencies, an_4
Commitment, Contingencies, and Leases - Schedule of Future Maturities of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments Contingencies And Leases [Abstract] | |
2021 (April 1st through December 31st) | $ 2,971 |
2022 | 3,081 |
2023 | 2,504 |
2024 | 2,255 |
2025 | 2,011 |
Thereafter | 4,923 |
Total minimum lease payments | 17,745 |
Less imputed interest | (2,671) |
Total lease liabilities | $ 15,074 |
Other Liabilities - Components
Other Liabilities - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Other Liabilities Disclosure [Abstract] | |||
Sales tax payable | $ 759 | $ 635 | |
Payroll and payroll related expenses | 12,415 | 5,520 | |
Other | 3,310 | 3,241 | |
Other current liabilities | $ 16,484 | $ 22,176 | $ 9,396 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Feb. 28, 2020 | Oct. 27, 2017 | Feb. 28, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 04, 2019 |
Debt Instrument [Line Items] | ||||||||
Gain on fair value of put option | $ 4,413,000 | |||||||
Net unamortized fees | 900,000 | |||||||
Mezzanine Facility | WestRiver | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | ||||||
Credit facility, maturity date | Nov. 6, 2020 | |||||||
Credit facility, outstanding amount | $ 0 | |||||||
Debt instrument, maturity date | Mar. 1, 2023 | |||||||
Credit facility, interest rate terms | Borrowings under the Mezzanine Facility bear interest at the greater of (i) 10.0% or (ii) the prime rate then in effect plus 5.25%. Interest is calculated on the outstanding principal on a 360-day year basis, payable monthly. | |||||||
Warrants, exercise price per share | $ 9.21 | $ 9.21 | ||||||
Warrants expiration date | Mar. 1, 2023 | Mar. 1, 2023 | ||||||
Fair value of warrants issued | $ 300,000 | $ 300,000 | ||||||
Mezzanine Facility | Minimum | WestRiver | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, weighted-average effective interest rate | 10.00% | 10.00% | ||||||
Mezzanine Facility | Maximum | WestRiver | ||||||||
Debt Instrument [Line Items] | ||||||||
Warrants to purchase shares of common stock | 99,000 | 99,000 | ||||||
Revolving Line | A&R Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | $ 10,000,000 | |||||
Credit facility, increase (decrease) in borrowing capacity | $ 5,000,000 | |||||||
Converted Within 18 Months | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion of required minimum return | 1.25 | |||||||
Converted Between 18 Months and 24 Months | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion of required minimum return | 1.32 | |||||||
Converted Between 24 Months and Maturity | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion of required minimum return | 1.55 | |||||||
Silicon Valley Bank | Revolving Line | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 20,000,000 | $ 10,000,000 | $ 20,000,000 | $ 25,000,000 | ||||
Line of credit facility increase the amended | $ 5,000,000 | |||||||
Credit facility, maturity date | Oct. 27, 2021 | |||||||
Credit facility, weighted-average effective interest rate | 4.80% | |||||||
Debt instrument, frequency of payment | monthly | |||||||
Credit facility, outstanding amount | $ 0 | |||||||
Prime Rate | Mezzanine Facility | WestRiver | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 5.25% | |||||||
Convertible Term Loan | Silicon Valley Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | $ 20,000,000 | |||||||
Weighted average interest rate | 6.20% | |||||||
Quarterly principal payments | $ 125,000 | |||||||
Convertible Term Loan | Prime Rate | Silicon Valley Bank | After January 1, 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 2.00% | |||||||
Convertible Term Loan | Prime Rate | Silicon Valley Bank | After January 1, 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 4.00% | |||||||
Convertible Term Loan | Prime Rate | Silicon Valley Bank | After January 1, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 6.00% | |||||||
2020 Convertible Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative liability | $ 4,400,000 | |||||||
Interest expense | $ 100,000 | |||||||
2020 Convertible Loan | Silicon Valley Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | $ 35,000,000 | $ 35,000,000 | ||||||
Initial public offering completion date | Aug. 5, 2020 | |||||||
Conversion of convertible debt into common stock upon initial public offering | $ 35,000,000 | |||||||
Conversion of debt to shares | 3,070,174 | |||||||
2020 Convertible Loan | Prime Rate | Silicon Valley Bank | Prior to January 1, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 4.50% | |||||||
2020 Convertible Loan | Prime Rate | Silicon Valley Bank | From January 1, 2022 and Prior to January 1, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 6.50% | |||||||
2020 Convertible Loan | Prime Rate | Silicon Valley Bank | From January 1, 2023 and Prior to January 1, 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 8.50% | |||||||
2020 Convertible Loan | Prime Rate | Silicon Valley Bank | From and After January 1, 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 10.50% | |||||||
2018 Term Loan | Silicon Valley Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, maturity date | Oct. 1, 2021 | |||||||
Credit facility, weighted-average effective interest rate | 5.30% | |||||||
Debt instrument, frequency of payment | monthly | |||||||
Credit facility, outstanding amount | $ 0 | |||||||
Credit facility, maturity period | 36 months | |||||||
Credit facility, payment commencement date | Oct. 1, 2018 | |||||||
2018 Term Loan | Silicon Valley Bank | Revolving Line | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 5,000,000 | |||||||
2018 Term Loan | Prime Rate | Silicon Valley Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 0.25% | |||||||
Series 1 Common Stock | Convertible Term Loan | Silicon Valley Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Initial public offering completion date | Aug. 5, 2020 | |||||||
Repayment of paid principal amount | $ 1,100,000 | |||||||
Conversion of convertible debt into common stock upon initial public offering | $ 18,900,000 | |||||||
Conversion of debt to shares | 2,179,360 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Class Of Stock [Line Items] | |
Stock options granted | shares | 225,346 |
Weighted average exercise price of stock options granted | $ / shares | $ 59.56 |
Fair value assumptions, expected term | 6 years |
Fair value assumptions, expected volatility rate | 56.20% |
Fair value assumptions, risk-free interest rate | 1.09% |
Fair value assumptions, expected dividend yield | 0.00% |
Restricted Stock Units | |
Class Of Stock [Line Items] | |
Awards granted to employees | shares | 460,510 |
Awards granted to employees, fair value per share | $ / shares | $ 59.56 |
Weighted-average requisite service period | 4 years |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 5,171 | $ 1,026 |
Cost of Revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 387 | 73 |
Sales and Marketing | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,579 | 289 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,148 | 305 |
General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 2,057 | $ 359 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. statutory tax rate | 21.00% | |
Effective tax rate | 0.00% | (0.42%) |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021USD ($)shares | |
Earnings Per Share Basic [Line Items] | |
Total undistributed loss is allocated to preferred stock, diluted | $ | $ 0 |
Total undistributed loss is allocated to preferred stock, basic | $ | $ 0 |
Preferred stock outstanding | shares | 0 |
Series F Preferred Stock | |
Earnings Per Share Basic [Line Items] | |
Dividend rate | 10.00% |
Series 1 Common Stock | |
Earnings Per Share Basic [Line Items] | |
Number of shares converted from Series 2 to Series 1 | shares | 3,900,000 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Antidilutive Securities Outstanding Excluded from Computation of Diluted Weighted-Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 9,359 | 49,850 |
Preferred Stock as-Converted | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 34,442 | |
Stock Options Outstanding | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 7,491 | 9,747 |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 1,868 | |
Warrants to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 411 | |
Convertible Debt | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 5,250 |