Health Catalyst (HCAT) 10-Q 7 Aug 24 2024 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2024	Aug. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-38993
Entity Registrant Name	HEALTH CATALYST, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-3337483
Entity Address, Address Line One	10897 South River Front Parkway #300
Entity Address, City or Town	South Jordan
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84095
City Area Code	801
Local Phone Number	708-6800
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	HCAT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		60,470,248
Entity Central Index Key	0001636422
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents		$ 201,895	$ 106,276
Short-term investments		106,361	211,452
Accounts receivable, net	[1]	54,898	60,290
Prepaid expenses and other assets		12,913	15,379
Total current assets		376,067	393,397
Property and equipment, net		25,555	25,712
Intangible assets, net		66,763	73,384
Operating lease right-of-use assets		11,627	13,927
Goodwill		206,295	190,652
Other assets		5,413	4,742
Total assets		691,720	701,814
Current liabilities:
Accounts payable		10,599	6,641
Accrued liabilities		18,048	23,282
Deferred revenue	[1]	56,355	55,753
Operating lease liabilities		3,335	3,358
Contingent consideration liabilities		894	0
Convertible senior notes, net		228,793	0
Total current liabilities		318,024	89,034
Convertible senior notes, net of current portion		0	228,034
Deferred revenue, net of current portion		51	77
Operating lease liabilities, net of current portion		16,540	17,676
Other liabilities		103	74
Total liabilities		334,718	334,895
Commitments and contingencies (Note 15)
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 25,000,000 shares authorized and no shares issued and outstanding as of June 30, 2024 and December 31, 2023		0	0
Common stock, $0.001 par value per share, and additional paid-in capital; 500,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 60,075,178 and 58,295,491 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		1,508,437	1,484,056
Accumulated deficit		(1,151,273)	(1,117,170)
Accumulated other comprehensive income (loss)		(162)	33
Total stockholders’ equity		357,002	366,919
Total liabilities and stockholders’ equity		$ 691,720	$ 701,814
[1]Includes amounts attributable to related party transactions. See Note 17 for further details.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	60,075,178	58,295,491
Common stock, shares outstanding (in shares)	60,075,178	58,295,491

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue:
Total revenue	[1]	$ 75,902	$ 73,213	$ 150,625	$ 147,081
Cost of revenue, excluding depreciation and amortization:
Total cost of revenue, excluding depreciation and amortization		40,060	39,438	78,577	77,742
Operating expenses:
Sales and marketing		12,745	16,397	31,803	34,966
Research and development		13,884	17,590	28,755	34,672
General and administrative		14,363	23,671	28,927	47,504
Depreciation and amortization		10,657	10,735	21,182	21,729
Total operating expenses		51,649	68,393	110,667	138,871
Loss from operations		(15,807)	(34,618)	(38,619)	(69,532)
Interest and other income, net		2,361	2,090	4,699	3,883
Loss before income taxes		(13,446)	(32,528)	(33,920)	(65,649)
Income tax provision		70	85	183	154
Net loss		$ (13,516)	$ (32,613)	$ (34,103)	$ (65,803)
Net loss per share, basic (in USD per share)		$ (0.23)	$ (0.58)	$ (0.58)	$ (1.18)
Net loss per share, diluted (in USD per share)		$ (0.23)	$ (0.58)	$ (0.58)	$ (1.18)
Weighted-average shares outstanding used in calculating net loss per share, basic (in shares)		59,303,791	55,976,870	58,947,653	55,732,211
Weighted-average shares outstanding used in calculating net loss per share, diluted (in shares)		59,303,791	55,976,870	58,947,653	55,732,211
Technology
Revenue:
Total revenue	[1]	$ 47,635	$ 47,324	$ 94,601	$ 94,510
Cost of revenue, excluding depreciation and amortization:
Total cost of revenue, excluding depreciation and amortization		16,067	15,859	31,382	30,586
Professional services
Revenue:
Total revenue	[1]	28,267	25,889	56,024	52,571
Cost of revenue, excluding depreciation and amortization:
Total cost of revenue, excluding depreciation and amortization		$ 23,993	$ 23,579	$ 47,195	$ 47,156
[1]Includes amounts attributable to related party transactions. See Note 17 for further details.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (13,516)	$ (32,613)	$ (34,103)	$ (65,803)
Other comprehensive income (loss):
Change in net unrealized gains (losses) on available for sale investments	(38)	107	(168)	455
Change in foreign currency translation adjustment	0	(16)	(27)	(11)
Comprehensive loss	$ (13,554)	$ (32,522)	$ (34,298)	$ (65,359)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock and Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2022		55,261,922
Beginning balance at Dec. 31, 2022	$ 425,010	$ 1,424,681	$ (999,023)	$ (648)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of restricted stock units and restricted shares (in shares)		1,056,852
Issuance of common stock under employee stock purchase plan (in shares)	2,206	$ 2,206
Issuance of common stock under employee stock purchase plan		244,133
Exercise of stock options (in shares)		123,761
Exercise of stock options	897	$ 897
Repurchase of common stock (in shares)		(145,027)
Repurchase of common stock	(1,808)	$ (1,808)
Stock-based compensation	28,921	$ 28,921
Issuance of common stock related to acquisitions	0
Net loss	(65,803)		(65,803)
Other comprehensive income (loss)	444			444
Ending balance (in shares) at Jun. 30, 2023		56,541,641
Ending balance at Jun. 30, 2023	389,867	$ 1,454,897	(1,064,826)	(204)
Beginning balance (in shares) at Mar. 31, 2023		55,843,457
Beginning balance at Mar. 31, 2023	405,146	$ 1,437,654	(1,032,213)	(295)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of restricted stock units and restricted shares (in shares)		428,165
Issuance of common stock under employee stock purchase plan (in shares)	2,206	$ 2,206
Issuance of common stock under employee stock purchase plan		244,133
Exercise of stock options (in shares)		25,886
Exercise of stock options	170	$ 170
Stock-based compensation	14,867	$ 14,867
Net loss	(32,613)		(32,613)
Other comprehensive income (loss)	91			91
Ending balance (in shares) at Jun. 30, 2023		56,541,641
Ending balance at Jun. 30, 2023	$ 389,867	$ 1,454,897	(1,064,826)	(204)
Beginning balance (in shares) at Dec. 31, 2023	58,295,491	58,295,491
Beginning balance at Dec. 31, 2023	$ 366,919	$ 1,484,056	(1,117,170)	33
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of restricted stock units and restricted shares (in shares)		1,106,851
Issuance of common stock under employee stock purchase plan (in shares)	$ 1,431	$ 1,431
Issuance of common stock under employee stock purchase plan		263,482
Exercise of stock options (in shares)	20,764	20,764
Exercise of stock options	$ 130	$ 130
Stock-based compensation	20,236	$ 20,236
Issuance of common stock related to acquisitions (in shares)		388,590
Issuance of common stock related to acquisitions	2,584	$ 2,584
Net loss	(34,103)		(34,103)
Other comprehensive income (loss)	$ (195)			(195)
Ending balance (in shares) at Jun. 30, 2024	60,075,178	60,075,178
Ending balance at Jun. 30, 2024	$ 357,002	$ 1,508,437	(1,151,273)	(162)
Beginning balance (in shares) at Mar. 31, 2024		58,956,132
Beginning balance at Mar. 31, 2024	357,210	$ 1,495,091	(1,137,757)	(124)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of restricted stock units and restricted shares (in shares)		449,272
Issuance of common stock under employee stock purchase plan (in shares)	1,431	$ 1,431
Issuance of common stock under employee stock purchase plan		263,482
Exercise of stock options (in shares)		17,702
Exercise of stock options	110	$ 110
Stock-based compensation	9,221	$ 9,221
Issuance of common stock related to acquisitions (in shares)		388,590
Issuance of common stock related to acquisitions	2,584	$ 2,584
Net loss	(13,516)		(13,516)
Other comprehensive income (loss)	$ (38)			(38)
Ending balance (in shares) at Jun. 30, 2024	60,075,178	60,075,178
Ending balance at Jun. 30, 2024	$ 357,002	$ 1,508,437	$ (1,151,273)	$ (162)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net loss	$ (34,103)	$ (65,803)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation expense	19,804	28,513
Depreciation and amortization	21,182	21,729
Impairment of long-lived assets	2,200	2,681
Non-cash operating lease expense	1,434	1,537
Amortization of debt discount and issuance costs	759	754
Investment discount and premium accretion	(3,148)	(3,999)
Provision for expected credit losses	3,438	1,527
Deferred tax provision	16	4
Other	12	31
Change in operating assets and liabilities:
Accounts receivable, net	2,047	(5,936)
Prepaid expenses and other assets	1,922	321
Accounts payable, accrued liabilities, and other liabilities	(2,380)	(1,295)
Deferred revenue	501	4,554
Operating lease liabilities	(1,806)	(1,772)
Net cash provided by (used in) operating activities	11,878	(17,154)
Cash flows from investing activities
Proceeds from the sale and maturity of short-term investments	158,200	188,600
Purchase of short-term investments	(50,197)	(165,188)
Acquisition of businesses, net of cash acquired	(18,659)	0
Capitalization of internal-use software	(6,287)	(6,389)
Purchase of intangible assets	(365)	(968)
Purchases of property and equipment	(498)	(832)
Proceeds from the sale of property and equipment	7	11
Net cash provided by investing activities	82,201	15,234
Cash flows from financing activities
Proceeds from employee stock purchase plan	1,431	2,206
Proceeds from exercise of stock options	130	897
Repurchase of common stock	0	(1,808)
Net cash provided by financing activities	1,561	1,295
Effect of exchange rate changes on cash and cash equivalents	(21)	2
Net increase (decrease) in cash and cash equivalents	95,619	(623)
Cash and cash equivalents at beginning of period	106,276	116,312
Cash and cash equivalents at end of period	201,895	115,689
Supplemental disclosures of non-cash investing and financing information
Common stock issued in connection with acquisitions	2,584	0
Operating lease right-of-use assets obtained in exchange for operating lease obligations	0	2,033
Purchase of intangible assets included in accounts payable and accrued liabilities	0	1,310
Stock-based compensation capitalized as internal-use software	432	408
Capitalized internal-use software included in accounts payable and accrued liabilities	216	295
Purchase of property and equipment included in accounts payable and accrued liabilities	$ 105	$ 46

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Description of Business and Summary of Significant Accounting Policies Nature of operations Health Catalyst, Inc. (Health Catalyst) was incorporated under the laws of Delaware in September 2011. We are a leading provider of data and analytics technology and services to healthcare organizations. Our Solution comprises our cloud-based data platform, software analytics applications, and professional services expertise. Our clients, which are primarily healthcare providers, use our Solution to manage their data, derive analytical insights to operate their organization, and produce measurable clinical, financial, and operational improvements. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the applicable regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2023 included in our Annual Report on Form 10-K. Interim unaudited condensed consolidated financial statements The accompanying interim condensed consolidated balance sheet as of June 30, 2024, the interim condensed consolidated statements of operations for the three and six months ended June 30, 2024 and 2023, our interim condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2024 and 2023, and our interim condensed consolidated statements of cash flows for the six months ended June 30, 2024 and 2023 are unaudited. Our condensed consolidated balance sheet as of December 31, 2023 was derived from audited financial statements, but does not include all disclosures required by GAAP. Our interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with our annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, its operations and cash flows for the periods presented. The historical results are not necessarily indicative of future results, and the results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year or any other period. Principles of consolidation The condensed consolidated financial statements include the accounts of Health Catalyst and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. Use of estimates The preparation of financial statements in conformity with GAAP requires us 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 financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, reserves for expected credit losses, useful lives of property and equipment, capitalization and estimated useful life of internal-use software, impairment assessments of goodwill, intangible assets, and other long-lived assets, fair value of financial instruments, deferred tax assets, stock-based compensation, contingent consideration, the period of benefit for deferred contract acquisition costs, the incremental borrowing rate used for operating leases, and tax uncertainties. Actual results could differ significantly from those estimates. Segment reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is evaluated by the chief operating decision maker (CODM) in assessing performance and making decisions regarding resource allocation. We operate our business in two operating segments that also represent our reportable segments. Our segments are (1) technology and (2) professional services. The CODM uses Adjusted Gross Profit (defined as revenue less cost of revenue that excludes depreciation, amortization, stock-based compensation expense, and certain other operating expenses) as the measure of our profit. Net loss per share Basic net loss per share is calculated by dividing net loss by the weighted average number of shares of common stock outstanding. Diluted net loss per share is calculated by giving effect to all potentially dilutive common stock equivalents outstanding for the period, when dilutive. For purposes of this calculation, stock options, restricted stock units (RSUs), performance-based restricted stock units (PRSUs), convertible senior notes, restricted shares, and purchase rights committed under the employee stock purchase plan are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as the effect is anti-dilutive. Revenue recognition We derive our revenue primarily from technology subscriptions and professional services. We determine revenue recognition by applying the following steps: • Identification of the contract, or contracts, with a client; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy the performance obligation. We recognize revenue net of any taxes collected from clients and subsequently remitted to governmental authorities. Technology revenue Technology revenue primarily consists of subscription fees charged to clients for access to use our technology. We provide clients access to our technology through either an all-access or limited-access, modular subscription. The majority of our subscription arrangements are cloud-based and do not provide clients the right to take possession of the technology or contain a significant penalty if the client were to take possession of the technology. Revenue from cloud-based subscriptions is recognized ratably over the contract term beginning on the date that the service is made available to the client. Our subscription contracts generally have a three Subscriptions that allow the client to take software on-premise without significant penalty are treated as time-based licenses. These arrangements generally include access to technology, access to unspecified future products, and maintenance and support. Revenue for upfront access to our technology library is recognized at a point in time when the technology is made available to the client. Revenue for access to unspecified future products included in time-based license subscriptions is recognized ratably over the contract term beginning on the date that the access is made available to the client. Professional services revenue Professional services revenue primarily includes data and analytics services, domain expertise services, Tech-enabled Managed Services, and implementation services. Professional services arrangements typically include a fee for making full-time equivalent (FTE) services available to our clients on a monthly basis. FTE services generally consist of a blend of analytic engineers, analysts, and data scientists based on the domain expertise needed to best serve our clients. Professional services are typically considered distinct from the technology offerings and revenue is generally recognized as the service is provided using the “right to invoice” practical expedient. Contracts with multiple performance obligations Many of our contracts include multiple performance obligations. We account for performance obligations separately if they are capable of being distinct within the context of the contract. In these circumstances, the transaction price is allocated to separate performance obligations on a relative standalone selling price basis. We determine standalone selling prices based on the observable price a good or service is sold for separately when available. In cases where standalone selling prices are not directly observable, based on information available, we utilize the expected cost plus a margin, adjusted market assessment, or residual estimation method. We consider all information available including our overall pricing objectives, market conditions, and other factors, which may include client demographics and the types of users. Standalone selling prices are not directly observable for our all-access and limited-access technology arrangements, which are composed of cloud-based subscriptions, time-based licenses, and perpetual licenses. For these technology arrangements, we generally use the residual method due to a limited number of standalone transactions and/or prices that are highly variable. Variable consideration We have also entered into at-risk and shared savings arrangements with certain clients whereby we receive variable consideration based on the achievement of measurable improvements that may include cost savings or performance against metrics. For these arrangements, we estimate revenue using the most likely amount that we will receive. Estimates are based on our historical experience and best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. Due to the nature of our arrangements, certain estimates may be constrained until the uncertainty is further resolved. Contract balances Contract assets resulting from services performed prior to invoicing clients are recorded as unbilled accounts receivable and are presented on our condensed consolidated balance sheets in aggregate with accounts receivable. Unbilled accounts receivable generally become billable at contractually specified dates or upon the attainment of contractually defined milestones. As of June 30, 2024 and December 31, 2023, the unbilled accounts receivable included in accounts receivable on our condensed consolidated balance sheets was $6.5 million and $4.7 million, respectively. We record contract liabilities as deferred revenue when cash payments are received or due in advance of performance. Deferred revenue primarily relates to the advance consideration received from the client. As of June 30, 2024 and December 31, 2023, the total of current and non-current deferred revenue on our condensed consolidated balance sheets was $56.4 million and $55.8 million, respectively. Deferred costs We capitalize sales commissions and associated fringe costs, such as benefits and payroll taxes, paid to direct sales personnel and other incremental costs of obtaining contracts with clients, provided we expect to recover those costs. We determine that costs should be deferred based on our sales compensation plans when the commissions are incremental and would not have occurred absent the client contract. As of June 30, 2024 and December 31, 2023, $2.2 million and $2.2 million, respectively, of deferred contract acquisition costs are expected to be amortized within the next 12 months and are included in prepaid expenses and other assets on the condensed consolidated balance sheets. As of June 30, 2024 and December 31, 2023, the remaining $2.9 million and $3.3 million, respectively, of deferred contract acquisition costs are included in non-current other assets. Commissions paid upon the initial acquisition of a contract are amortized on a straight-line basis over an estimated period of benefit of four years. Amortization is recognized on a straight-line basis commensurate with the pattern of revenue recognition. The period of benefit was estimated by considering factors such as estimated average client life, the rate of technological change in our subscription service, and the impact of competition in our industry. As our average client life significantly exceeded the rate of change in our technology, we concluded that the rate of change in the technology underlying our subscription service was the most significant factor in determining the period of benefit for which the asset relates. In evaluating the rate of change in our technology, we considered the competition in our industry, our commitment to continuous innovation, and the frequency of product, platform, and technology updates. We determined that the impact of competition in our industry is reflected in the period of benefit through the rate of technological change. Amortization of deferred contract acquisition costs was $0.6 million and $0.5 million for the three months ended June 30, 2024 and 2023, respectively, and $1.3 million and $1.0 for the six months ended June 30, 2024 and 2023, respectively, and is included within sales and marketing expense in the condensed consolidated statements of operations. We defer certain costs to fulfill a contract when the costs are expected to be recovered, are directly related to in-process contracts, and enhance resources that will be used in satisfying performance obligations in the future. These deferred fulfillment costs primarily consist of employee compensation incurred as part of the implementation of new contracts. Amortization of deferred fulfillment costs is included within cost of revenue in the condensed consolidated statements of operations. We periodically review these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. Cost of revenue, excluding depreciation and amortization Cost of technology revenue primarily consists of costs associated with hosting and supporting our technology, including third-party cloud computing and hosting costs, license and revenue share fees, contractor costs, and salary and related personnel costs for our cloud services and support teams. Cost of professional services revenue primarily consists of salary and related personnel costs, travel-related costs, and independent contractor costs. Cost of revenue in the interim condensed consolidated statements of operations excludes costs related to depreciation and amortization. Cash and cash equivalents We consider all highly liquid investments purchased with a remaining maturity of three months or less at the time of acquisition to be cash equivalents. Short-term investments Our investment policy limits investments to highly-rated instruments. We classify and account for our short-term investments as available for sale securities as we may sell these securities at any time for use in our current operations or for other purposes, even prior to maturity. As a result, we classify our short-term investments, including securities with contractual maturities beyond twelve months, within current assets in the condensed consolidated balance sheets. Accounts receivable Accounts receivable are non-interest bearing and are recorded at the original invoiced amount less an allowance for credit losses based on the probability of future collections. Our allowance is based on our estimate of expected credit losses for outstanding trade accounts receivables and unbilled receivables. We determine expected credit losses based on historical write-off experience, an analysis of the aging of outstanding receivables, client payment patterns, the establishment of specific reserves for clients in an adverse financial condition, and our expectations of changes in macroeconomic conditions, including high interest rates and high inflation, that may impact the collectability of outstanding receivables. We reassess the adequacy of the allowance for credit losses each reporting period. The following table presents a rollforward of the allowance for credit losses (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Allowance for credit losses at the beginning of period $ 6,500 $ 3,800 $ 4,105 $ 2,300 Provision for expected credit losses 1,033 13 3,438 1,527 Less: Write-offs, net of recoveries (933) (13) (943) (27) Allowance for credit losses at the end of period $ 6,600 $ 3,800 $ 6,600 $ 3,800 Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets and operating lease liabilities in our condensed consolidated balance sheets. We have adopted the short-term lease recognition exemption policy. All of our leasing commitments are classified either as operating leases or otherwise qualify as short-term leases with lease terms of 12 months or less. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our lease contracts do not have a readily determinable implicit rate, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of lease payments. The incremental borrowing rate is the estimated rate incurred to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes any lease payments made and excludes lease executory costs. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise the applicable option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable costs related to our leased office space, such as maintenance and utilities based on actual usage, are not included in the measurement of right-of-use assets and lease liabilities, but are expensed as incurred. Property and equipment Property and equipment are stated at historical cost less accumulated depreciation. Repairs and maintenance costs that do not extend the useful life or improve the related assets are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful life of each asset category is as follows: Computer equipment 2-3 years Furniture and fixtures 3-5 years Leasehold improvements Lesser of lease term or estimated useful life Computer software 2-5 years Capitalized internal-use software costs 2-5 years When there are indicators of potential impairment, we evaluate the recoverability of the carrying values by comparing the carrying amount of the applicable asset group to the estimated undiscounted future cash flows expected to be generated by the asset group over the remaining useful life of the primary asset, plus any terminal value, in the asset group. If the carrying amount of the asset group exceeds those estimated future net cash flows, an impairment charge is recognized based on the amount by which the carrying value of the long-lived assets exceeds the fair value of the assets. Intangible assets Intangible assets include developed technologies, client relationships, client contracts, and trademarks that were acquired in business combinations and asset acquisitions. Intangible assets also include the purchase of third-party computer software. The intangible assets are amortized using the straight-line method over the assets’ estimated useful lives. The estimated useful life of each asset category is as follows: Developed technologies 3-10 years Client relationships and contract backlog 2-7 years Computer software licenses 1-5 years Trademarks 1-5 years Goodwill We record goodwill as the difference between the aggregate consideration paid for a business combination and the fair value of the identifiable net tangible and intangible assets acquired. Goodwill includes the know-how of the assembled workforce, the ability of the workforce to further improve technology and product offerings, client relationships, and the expected cash flows resulting from these efforts. Goodwill may also include expected synergies resulting from the complementary strategic fit these businesses bring to existing operations. Goodwill is assessed for impairment annually on October 31 or more frequently if indicators of impairment are present or circumstances suggest that impairment may exist. Our first step in the goodwill impairment test is a qualitative analysis of factors that could be indicators of potential impairment. Judgment in the assessment of qualitative factors of impairment may include changes in business climate, market conditions, or other events impacting the reporting unit. Next, if a quantitative analysis is necessary, we compare the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, the goodwill of the reporting unit is not considered impaired. Performing a quantitative goodwill impairment test includes the determination of the fair value of a reporting unit, which requires management to use significant judgment and estimation. The significant estimation is primarily due to the judgmental nature of the inputs to the valuation models used to measure the fair value of the reporting units, as well as the sensitivity of the respective fair values to the underlying significant assumptions. Typical methods to derive the fair value of reporting units include using the income or market approaches. The significant assumptions used to form the basis of the estimates include, among others, the selection of valuation methodologies, estimates of expected revenue, including revenue growth rates, and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, and the selection of appropriate market comparable companies. Many of these significant assumptions are forward-looking and could be affected by future economic and market conditions. If a quantitative analysis is necessary, we typically engage the assistance of a valuation specialist in concluding on fair value measurements in connection with determining the fair values of our reporting units. If the carrying amount of the reporting unit exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. There was no impairment of goodwill for the three and six months ended June 30, 2024 and 2023. Business combinations The results of businesses acquired in a business combination are included in our condensed consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair value on the acquisition date. Any excess consideration transferred over the fair value of the identifiable assets acquired and liabilities assumed is recognized as goodwill. We perform valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination in order to record the tangible and intangible assets acquired and liabilities assumed based on our best estimate of fair value. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies. Significant estimation is required in determining the fair value of the client-related intangible assets and technology-related intangible assets. The significant estimation is primarily due to the judgmental nature of the inputs to the valuation models used to measure the fair value of these intangible assets, as well as the sensitivity of the respective fair values to the underlying significant assumptions. We typically use the income approach or cost approach to measure the fair value of intangible assets. The significant assumptions used to form the basis of the estimates included the number of engineer hours required to develop technology, expected revenue including revenue growth rates, rate and timing of obsolescence, royalty rates and earnings before interest, taxes, depreciation and amortization (EBITDA) margin used in the estimate for client relationships, and backlog. Many of these significant assumptions were forward-looking and could be affected by future economic and market conditions. We engage the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of material assets acquired and liabilities assumed in a business combination. For the three and six months ended June 30, 2024, we expensed $2.1 million and $2.5 million, respectively, of transaction costs associated with business combinations. There were no transaction costs associated with business combinations during the six months ended June 30, 2023. The costs were expensed as incurred and are included in general and administrative expense in our condensed consolidated statements of operations. Contingent consideration liabilities Our acquisition consideration in business combinations may include an estimate for contingent consideration that will be paid if certain earn-out performance targets are met. The resulting contingent consideration liabilities are categorized as a Level 3 fair value measurement because we estimate projections during the earn-out period utilizing unobservable inputs, including various potential pay-out scenarios based on billings and revenue-related earn-out targets. Changes to the unobservable inputs could have a material impact on our condensed consolidated financial statements. We generally value the expected contingent consideration and the corresponding liabilities using the Monte Carlo method or Black-Scholes model based on estimates of potential payment scenarios. Probabilities are applied to each potential scenario and the resulting values are discounted using a rate that considers weighted average cost of capital as well as a specific risk premium associated with the riskiness of the earn-out itself, the related projections, projected payment dates, and volatility in the fair value of our common stock. The fair value of the contingent consideration is remeasured each reporting period. The portion of the contingent consideration liabilities that will be settled in shares of our common stock is classified as a component of non-current liabilities in our condensed consolidated balance sheets, while the portion to be paid in cash is classified as a component of current liabilities. Changes to the contingent consideration liabilities are reflected as part of general and administrative expense in our condensed consolidated statements of operations. Advertising costs All advertising costs are expensed as incurred. For the three months ended June 30, 2024 and 2023, we incurred $0.3 million and $1.0 million of advertising costs, respectively, and $3.7 million and $1.2 million for the six months ended June 30, 2024 and 2023. Development costs and internal-use software For technology products that are developed to be sold externally, we determined that technological feasibility is reached shortly before the products are ready for general release. Any costs associated with software development between the time technological feasibility is reached and general release are inconsequential. We capitalize certain development costs incurred in connection with our internal-use software. These capitalized costs are primarily related to the software platforms that are hosted by us and accessed by our clients on a subscription basis. Costs incurred in the preliminary stages of development are expensed as incurred as research and development costs. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. We also capitalize costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as part of property and equipment. Maintenance and training costs are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life with amortization included in depreciation and amortization expense in our condensed consolidated statements of operations. Stock-based compensation Stock-based awards, including stock options, restricted stock units, performance-based restricted stock units, and restricted shares are measured and recognized in our condensed consolidated financial statements based on the fair value of the award on the grant date or, when applicable, the modification date. The grant date fair value of our stock-based awards is typically determined using the market closing price of our common stock on the date of grant; however, we also consider whether any adjustments are required when the market closing price does not reflect certain material non-public information that we know but is unavailable to marketplace participants on the date of grant. We record forfeitures of stock-based awards as the actual forfeitures occur. For awards subject to performance conditions, we record expense when the performance condition becomes probable. Each reporting period we evaluate the probability of achieving the performance criteria, estimate the number of shares that are expected to vest, and adjust the related compensation expense accordingly. For awards subject to market conditions, we estimate the fair value as of the grant date using a Monte Carlo simulation valuation model which requires the use of various assumptions, including historic stock price volatility and risk-free interest rates as of the valuation date corresponding to the length of time remaining in the performance period. Stock-based compensation expense for awards with market conditions is recognized over the requisite service period using the accelerated attribution method and is not reversed if the market condition is not met. Stock-based compensation expense related to purchase rights issued under the 2019 Health Catalyst Employee Stock Purchase Plan (ESPP) is based on the Black-Scholes option-pricing model fair value of the estimated number of awards as of the beginning of the offering period. Stock-based compensation expense is recognized using the straight-line method over the offering period. The measurement date for non-employee awards is the date of grant. The compensation expense for non-employees is recognized, without changes in the fair value of the award, in the same period and in the same manner as though we had paid cash for the services, which is typically the vesting period of the respective award. Restructuring costs We define restructuring costs as expenses directly associated with restructuring activities. Such costs include severance and related tax and benefit expenses from workforce reductions, impairment of discontinued capitalized software projects, and other miscellaneous charges. We record team member-related severance costs when there is a substantive plan in place and the related costs are probable and estimable. For one-time termination benefits for team members (i.e., no substantive plan or future service requirement), the cost is recorded when the terms of the one-time termination benefits are communicated to the impacted team members and the amount can be reasonably estimated. Income taxes Deferred income tax balances are accounted for using the asset and liability method and reflect the effects of temporary differences between the financial reporting and tax bases of our assets and liabilities using enacted tax rates expected to apply when taxes are actually paid or recovered. In addition, deferred tax assets and liabilities are recorded for net operating loss (NOL) and tax credit carryforwards. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction,

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business Combinations	Business Combinations The business acquisition discussed below is included in our results of operations from the date of acquisition . 2024 Acquisition of Carevive Systems, Inc. On May 24, 2024, we acquired Carevive Systems, Inc. (Carevive), a leading oncology-focused health technology company centered on understanding and improving the experience of patients with cancer. We accounted for the acquisition of Carevive as a business combination. Oncology providers and life science researchers use Carevive’s flagship platform and/or Carevive data in routine clinical practice for treatment care planning, clinical trial screening, care coordination, remote patient monitoring, and/or post-treatment care. The acquisition consideration transferred was $22.1 million and was comprised of estimated net cash consideration of $18.6 million, Health Catalyst common shares with a fair value of $2.6 million, and contingent consideration based on certain earn-out performance targets for Carevive during an earn-out period ending on June 30, 2025, with an initial fair value of $0.9 million. The purchase resulted in Health Catalyst acquiring 100% ownership in Carevive. The following table summarizes the preliminary acquisition-date fair value of consideration transferred and the identifiable assets purchased and liabilities assumed as part of our acquisition of Carevive (in thousands): Assets acquired: Accounts receivable $ 96 Prepaid expenses and other assets 64 Client relationships 2,700 Developed technology 4,800 Trademarks 300 Total assets acquired 7,960 Less liabilities assumed: Accrued and other current liabilities 1,389 Deferred revenue 76 Total liabilities assumed 1,465 Total assets acquired, net 6,495 Goodwill 15,643 Total consideration transferred, net of cash acquired $ 22,138 The acquired intangible assets were valued utilizing either an income approach or a cost approach as deemed most applicable, and include client relationships, developed technology, and trademarks that will be amortized on a straight-line basis over their estimated useful lives of seven years, four years, and three years, respectively. The resulting goodwill from the Carevive acquisition was fully allocated to the technology reporting unit and is not deductible for income tax purposes. The preliminary allocation of the consideration transferred is subject to potential adjustments. Balances subject to adjustment are primarily tax-related matters, including the tax basis of assets acquired and liabilities assumed. During the measurement period, we may record adjustments to the provisional amounts recognized in our initial accounting for the acquisition. We expect the allocation of the consideration transferred to be final within the measurement period (up to one year from the acquisition date). There were no measurement period adjustments recorded during the three months ended June 30, 2024. Pro forma financial information has not been presented for the Carevive acquisition as the impact to our consolidated financial statements was not material. The amount of revenue attributable to the acquired business of Carevive was not material to our consolidated statement of operations for the three and six months ended June 30, 2024. Income (loss) information for Carevive after the acquisition date through June 30, 2024 is not presented as the Carevive business was integrated into our operations immediately following the acquisition and is impracticable to quantify. In addition to the purchase price, we agreed to make cash retention payments in an aggregate amount of up to $1.8 million to continuing Carevive team members, a portion of which is variable based upon the achievement of earn-out performance targets. The retention payments are generally subject to vesting based upon continued employment over a required service period. Such amounts are recorded as post-combination compensation expense and recognized on a straight-line basis over the relevant vesting terms. During the three months ended June 30, 2024, we recognized compensation expense of $0.8 million related to these retention payments. 2023 Acquisition of Electronic Registry Systems, Inc. On October 2, 2023, we acquired Electronic Registry Systems, Inc. (ERS) , a cloud-based provider of clinical registry development and data management software based in Cincinnati, Ohio. We accounted for the acquisition of ERS as a business combination. ERS provides cancer registry compliance and informatics services to enable customers to achieve their cancer center clinical and business objectives with a goal of improving cancer care for every patient, including through its CRStar platform. The acquisition consideration transferred comprised of net cash consideration of $11.4 million. The purchase resulted in Health Catalyst acquiring 100% ownership in ERS. An additional 175,901 shares of our common stock subject to a restriction agreement (restricted shares) were issued pursuant to the terms of the acquisition agreement. The vesting of these restricted shares was originally subject to eighteen months of continued employment with cliff vesting upon the eighteen The value of these restricted sha res was originally scheduled to be recognized as post-combination stock-based compensation expense on a straight-line basis over the vesting term, but due to workforce reductions made as part of the 2023 Restructuring Plan (as defined below), the ERS restricted shares fully vested in February 2024, resulting in an acceleration of the related stock-based compensation expense. Refer to Note 13-Stock-Based Compensation for additional details related to our stock-based compensation. The following table summarizes the preliminary acquisition-date fair value of consideration transferred and the identifiable assets purchased and liabilities assumed as part of our acquisition of ERS (in thousands): Assets acquired: Accounts receivable $ 478 Prepaid expenses and other assets 73 Client relationships 5,300 Developed technology 3,100 Trademarks 100 Total assets acquired 9,051 Less liabilities assumed: Accrued and other current liabilities 78 Deferred revenue 2,251 Total liabilities assumed 2,329 Total assets acquired, net 6,722 Goodwill 4,670 Total consideration transferred, net of cash acquired $ 11,392 The acquired intangible assets were valued utilizing either an income approach or a cost approach as deemed most applicable, and include client relationships, developed technology, and trademarks that will be amortized on a straight-line basis over their estimated useful lives of seven years, four years, and two years, respectively. The resulting goodwill from the ERS acquisition was fully allocated to the technology reporting unit and is deductible for income tax purposes.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregation of Revenue The following table represents Health Catalyst’s revenue disaggregated by type of arrangement (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Recurring technology $ 47,635 $ 47,324 $ 94,601 $ 94,153 One-time technology (i.e., perpetual license) — — — 357 Professional services 28,267 25,889 56,024 52,571 Total revenue $ 75,902 $ 73,213 $ 150,625 $ 147,081 Revenue related to contracts with clients located in the United States was 97.9% and 98.4% for the three months ended June 30, 2024 and 2023, respectively, and 97.9% and 98.2% for the six months ended June 30, 2024 and 2023, respectively. Deferred revenue includes advance client payments and billings in excess of revenue recognized. For the three months ended June 30, 2024 and 2023, 44% and 50%, respectively, of the revenue recognized was included in deferred revenue at the beginning of the period. For the six months ended June 30, 2024 and 2023, 28% and 30%, respectively, of the revenue recognized was included in deferred revenue at the beginning of the period. three

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets We operate our business in two operating segments that also represent our reporting units. Our reporting units are organized based on our technology and professional services. We have not incurred any goodwill impairment charges. Goodwill by reporting unit is as follows (in thousands): As of As of 2024 2023 (unaudited) Technology $ 205,513 $ 189,870 Professional services 782 782 Total goodwill $ 206,295 $ 190,652 As of June 30, 2024, intangible assets consisted of the following (in thousands): Cost Accumulated Amortization Net (unaudited) Developed technologies $ 108,729 $ (87,257) $ 21,472 Client relationships and contracts 92,764 (50,815) 41,949 Computer software licenses 11,005 (8,659) 2,346 Trademarks 3,120 (2,124) 996 Total intangible assets $ 215,618 $ (148,855) $ 66,763 Amortization expense of acquired intangible assets was $7.5 million and $7.5 million for the three months ended June 30, 2024 and 2023, respectively, and $14.8 million and $15.3 million for the six months ended June 30, 2024 and 2023, respectively. Amortization expense for intangible assets is included in depreciation and amortization in our condensed consolidated statements of operations. We have not incurred any intangible asset impairment charges for the three and six months ended June 30, 2024 and 2023. As of December 31, 2023, intangible assets consisted of the following (in thousands): Cost Accumulated Amortization Net Developed technologies $ 103,929 $ (79,057) $ 24,872 Client relationships and contracts 90,064 (45,230) 44,834 Computer software licenses 10,680 (7,933) 2,747 Trademarks 2,820 (1,889) 931 Total intangible assets $ 207,493 $ (134,109) $ 73,384

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following (in thousands): As of As of 2024 2023 (unaudited) Computer equipment $ 9,649 $ 9,638 Leasehold improvements 8,247 8,814 Furniture and fixtures 3,735 3,735 Capitalized internal-use software costs 37,106 30,771 Computer software 111 111 Total property and equipment 58,848 53,069 Less: accumulated depreciation (33,293) (27,357) Property and equipment, net $ 25,555 $ 25,712 Our long-lived assets are located in the United States. Depreciation expense totaled $3.1 million and $3.2 million for the three months ended June 30, 2024 and 2023, respectively, and $6.4 million and $6.4 million for the six months ended June 30, 2024 and 2023, respectively. Depreciation expense includes the amortization of capitalized internal-use software costs. During each of the six months ended June 30, 2024 and 2023, we impaired $0.7 million of leasehold improvements related to our corporate office space designated for subleasing. Refer to Note 9 for additional details. We capitalized $3.6 million and $3.2 million of internal-use software costs for the three months ended June 30, 2024 and 2023, respectively, and $6.4 million and $6.6 million for the six months ended June 30, 2024 and 2023, respectively. We incurred $2.3 million and $2.1 million of capitalized internal-use software cost amortization expense for the three months ended June 30, 2024 and 2023, respectively, and $4.7 million and $4.3 million for the six months ended June 30, 2024 and 2023, respectively.

Short-term Investments

Short-term Investments	6 Months Ended
	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Short-term Investments	Short-term Investments We classify our short-term investments as available for sale. Available-for-sale securities are recorded on our condensed consolidated balance sheets at fair market value and any unrealized gains or losses are reported as part of other comprehensive loss on the condensed consolidated statements of comprehensive loss. We determine realized gains or losses on the sales of investments through the specific identification method and record such gains or losses as part of interest and other expense, net on the condensed consolidated statements of operations. We did not have any material realized gains or losses on investments during the three and six months ended June 30, 2024 and 2023. We measure the fair value of investments on a recurring basis. The following table summarizes, by major security type, our cash equivalents and short-term investments that are measured at fair value on a recurring basis as of June 30, 2024 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Short-term Investments (unaudited) Money market funds $ 196,717 $ — $ — $ 196,717 $ 196,717 $ — U.S. treasury notes 48,435 — (29) 48,406 — 48,406 Commercial paper 12,917 — (14) 12,903 — 12,903 Corporate bonds 45,090 — (38) 45,052 — 45,052 Total $ 303,159 $ — $ (81) $ 303,078 $ 196,717 $ 106,361 The following table summarizes, by major security type, our cash equivalents and short-term investments that are measured at fair value on a recurring basis as of December 31, 2023 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Short-term Investments Money market funds $ 99,779 $ — $ — $ 99,779 $ 99,779 $ — U.S. treasury notes 65,856 68 — 65,924 — 65,924 Commercial paper 85,358 — (18) 85,340 — 85,340 Corporate bonds 43,746 49 — 43,795 — 43,795 U.S. agency securities 16,405 — (12) 16,393 — 16,393 Total $ 311,144 $ 117 $ (30) $ 311,231 $ 99,779 $ 211,452 The following table presents the contractual maturities of our short-term investments as of June 30, 2024 and December 31, 2023 (in thousands): As of June 30, 2024 As of December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value (unaudited) Due within one year $ 106,442 $ 106,361 $ 211,365 $ 211,452 Total $ 106,442 $ 106,361 $ 211,365 $ 211,452 Accrued interest receivables related to our available-for-sale securities of $1.2 million and $0.9 million as of June 30, 2024 and December 31, 2023, respectively, were included within prepaid expenses and other assets on our condensed consolidated balance sheets. On a quarterly basis we evaluate unrealized losses on our available-for-sale debt securities and the related accrued interest receivables to determine whether a decline in the fair value below the amortized cost basis is due to credit-related factors or noncredit-related factors. We do not intend to sell investments that are in an unrealized loss position and it is not likely that we will be required to sell any investments before recovery of their amortized cost basis. As of June 30, 2024 and December 31, 2023, there were no material unrealized losses due to expected credit loss-related factors.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 were as follows (in thousands): June 30, 2024 Level 1 Level 2 Level 3 Total (unaudited) Money market funds $ 196,717 $ — $ — $ 196,717 U.S. Treasury notes 48,406 — — 48,406 Commercial paper — 12,903 — 12,903 Corporate bonds — 45,052 — 45,052 Contingent consideration liabilities — — (894) (894) Total $ 245,123 $ 57,955 $ (894) $ 302,184 Assets measured at fair value on a recurring basis as of December 31, 2023 were as follows (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Money market funds $ 99,779 $ — $ — $ 99,779 U.S. Treasury notes 65,924 — — 65,924 Commercial paper — 85,339 — 85,339 Corporate bonds — 43,796 — 43,796 U.S. agency securities — 16,393 — 16,393 Total $ 165,703 $ 145,528 $ — $ 311,231 There were no transfers between Level 1 and Level 2 of the fair value measurement hierarchy during the three and six months ended June 30, 2024 and 2023. Convertible senior notes As of June 30, 2024 and December 31, 2023, the estimated fair value of our convertible senior notes, with aggregate principal totaling $230.0 million, was $225.4 million and $218.7 million, respectively. We estimate the fair value based on quoted market prices in an inactive market on the last trading day of the reporting period (Level 2). These convertible senior notes are recorded at face value less unamortized debt discount and transaction costs on our condensed consolidated balance sheets. Refer to Note 10—Convertible Senior Notes for further information. Nonrecurring fair value measurements We recorded impairment charges of $2.2 million and $2.7 million related to the impairment of ROU assets and leasehold improvements associated with office space designated for subleasing during the six months ended June 30, 2024 and 2023. These impairment charges were derived from the difference between the carrying value and the fair value of the relevant asset groups. The fair value of these asset groups was estimated using a discounted cash flow analysis of the office space designated for subleasing and included certain unobservable (Level 3) inputs, including the anticipated future sublease terms and rates. Level 3 fair value measurements The Carevive acquisition consideration included an initial estimate for contingent consideration based on certain revenue-based earn-out performance targets for Carevive during an earn-out period that ends on June 30, 2025. The Carevive contingent consideration is capped at $10 million and will be paid in cash to the extent achieved. We value Carevive’s expected contingent consideration and the corresponding liability using the Black-Scholes valuation method based on estimates of potential pay-out scenarios. The outstanding contingent consideration liability is categorized as Level 3 fair value measurements and is remeasured as of each reporting period. The aggregate intrinsic value of the revenue-based earn-out contingent consideration liability is zero based on a point estimate of our internal forecasting of the ultimate earn-out that will be earned as of June 30, 2024. The recurring Level 3 fair value measurements of the contingent consideration liability include the other following significant inputs: Valuation Method Fair Value Market Price of Revenue Risk Revenue Volatility Expected Term (years) Risk-free interest rate (unaudited) Revenue-based earn-out liability Black-Scholes $ 0.9 million 9.1% 20% 1.4 5.2% The following table sets forth a summary of the changes in the estimated fair value of the contingent consideration liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (unaudited) Balance as of January 1, 2024 $ — Initial contingent consideration liability from Carevive acquisition (see Note 2) 894 Change in fair value of contingent consideration liability — Balance as of June 30, 2024 $ 894

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities As of June 30, 2024 and December 31, 2023, accrued liabilities consisted of the following (in thousands): As of As of 2024 2023 (unaudited) Accrued compensation and benefit expenses $ 8,456 $ 11,680 Restructuring liabilities (1) 345 2,355 Other accrued liabilities 9,247 9,247 Total accrued liabilities $ 18,048 $ 23,282 __________________ (1) Restructuring liabilities include severance and other team member costs from workforce reductions. For additional details, refer to Note 19 in these condensed consolidated financial statements.

Leases

Leases	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Leases	Leases We lease office space under operating leases that expire between 2024 and 2031. The terms of the leases provide for rental payments on a graduated scale, options to renew the leases ( one Components of lease expense (income) are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease expense $ 666 $ 777 $ 1,294 $ 1,574 Short-term lease expense 31 25 64 41 Sublease income (339) (189) (654) (627) Total $ 358 $ 613 $ 704 $ 988 We also incur immaterial variable costs related to our leased office space, such as maintenance and utilities based on actual usage, which are not included in the measurement of right-of-use assets and lease liabilities, but are expensed as incurred. During the six months ended June 30, 2024 and 2023, we identified asset impairment indicators for multiple of our corporate office spaces designated for subleasing. We performed a recoverability test of the relevant asset group, comprised of operating lease ROU and other related assets, and determined that the carrying value of this asset group was not fully recoverable. As a result, we measured and recognized total impairment charges of $2.2 million and $2.7 million during the six months ended June 30, 2024 and 2023, respectively, representing the amount by which the carrying value exceeded the estimated fair value of this asset group. The impairment charges were recorded as part of general and administrative expense in our condensed consolidated statements of operations. During the six months ended June 30, 2024, $1.5 million of the impairment charge was allocated to ROU assets and the remaining $0.7 million was allocated to leasehold improvements, while during the six months ended June 30, 2023, $2.0 million of the impairment charge was allocated to ROU assets and the remaining $0.7 million was allocated to leasehold improvements.

Convertible Senior Notes

Convertible Senior Notes	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes Convertible senior notes On April 14, 2020, we issued $230.0 million in aggregate principal amount of 2.50% Convertible Senior Notes due 2025 (Notes), in a private placement to qualified institutional buyers exempt from registration under the Securities Act (Note Offering). The net proceeds from the issuance of the Notes were approximately $222.5 million, after deducting the initial purchasers’ discounts and offering expenses payable by us. The Notes are governed by an indenture (the Indenture) between us, as the issuer, and U.S. Bank National Association, as trustee. The Notes are our senior, unsecured obligations and accrue interest payable semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2020, at a rate of 2.50% per year. The Notes will mature on April 15, 2025, unless earlier converted, redeemed, or repurchased. The Indenture does not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. On or after April 20, 2023, we may redeem, for cash, all or a portion of the Notes, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. The Notes have an initial conversion rate of 32.6797 shares of our common stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $30.60 per share of our common stock). Following certain corporate events that occur prior to the maturity date, we will increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture, holders of the Notes may require the Company to repurchase for cash all or a portion of their Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest. Holders of the Notes may convert all or any portion of their Notes at any time prior to the close of business on October 14, 2024, in integral multiples of $1,000 principal amount, only under the following circumstances: • During any calendar quarter commencing after the calendar quarter ended on June 30, 2020 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • During the five business day period after any five consecutive trading day period (the measurement period) in which the trading price as defined in the Indenture per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; • If we call such notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • Upon the occurrence of specified corporate events described in the Indenture. On or after October 15, 2024, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at the conversion rate at any time irrespective of the foregoing circumstances. Upon conversion, holders will receive cash, shares of our common stock or a combination of cash and shares of common stock, at our election. As of June 30, 2024, the conditions allowing holders of the Notes to convert were not met. The Notes are therefore not currently convertible. However, due to the April 2025 maturity date now being within twelve months, the Notes are classified as a current liability on our condensed consolidated balance sheet. The interest expense recognized related to the Notes was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Contractual interest expense $ 1,453 $ 1,443 $ 2,903 $ 2,884 Amortization of debt issuance costs and discount 380 377 759 754 Total $ 1,833 $ 1,820 $ 3,662 $ 3,638 The net carrying value of the liability component of the Notes was as follows (in thousands): June 30, 2024 (unaudited) Principal $ 230,000 Less: Unamortized issuance costs (1,207) Net carrying amount $ 228,793 Based on the closing price of our common stock of $6.39 per share on the last trading day of the period ended June 30, 2024, the if-converted value of the Notes was less than their respective principal amounts. Capped calls On April 8, 2020, concurrently with the pricing of the Notes, we entered into privately negotiated capped call transactions (Base Capped Calls) with certain option counterparties. In addition, in connection with the initial purchasers’ exercise in full of their option to purchase additional Notes, on April 9, 2020, we entered into additional capped call transactions (together with the Base Capped Calls, the Capped Calls) with each of the option counterparties. We used approximately $21.7 million of the net proceeds from the Note Offering to pay the cost of the Capped Calls and allocated issuance costs. The Capped Calls have initial cap prices of $42.00 per share, subject to certain adjustments. The Capped Calls are expected generally to reduce the potential dilution to our common stock upon any conversion of Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to the cap price. The Capped Calls are separate transactions that we entered into with the option counterparties, and are not part of the terms of the Notes. As the Capped Call transactions are considered indexed to our own stock and are considered equity classified, they were recorded in stockholders’ equity and are not accounted for as derivatives. The cost incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital on our condensed consolidated balance sheets.

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2024
Stockholders' Equity Note [Abstract]
Stockholders’ Equity	Stockholders’ Equity Preferred stock Our board of directors has the authority, without further action by our stockholders, to issue up to 25,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, and privileges thereof, including voting rights. As of June 30, 2024 and December 31, 2023, no shares of this preferred stock were issued and outstanding. Common stock We had 500,000,000 shares of common stock, par value $0.001 per share, authorized, of which 60,075,178 and 58,530,880 shares were legally issued and outstanding as of June 30, 2024 and December 31, 2023, respectively. The shares legally issued and outstanding as of June 30, 2024 and December 31, 2023 included zero shares and 235,389 shares, respectively, issued pursuant acquisition agreements, which are subject to a restriction agreement and were unvested, and as such, for accounting purposes they were not considered to be outstanding common stock shares. Each share of common stock has the right to one vote on all matters submitted to a vote of stockholders. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid on our common stock through June 30, 2024. Share repurchase plan During the third quarter of 2022, our board of directors authorized a share repurchase program to repurchase up to $40.0 million of our outstanding shares of common stock (Share Repurchase Plan). There were no share repurchases during the first or second quarter of 2024. During the first quarter of 2023, we repurchased and retired 145,027 shares of our common stock for $1.8 million at an average purchase price of $12.45 per share. This is in addition to the 709,139 shares of common stock we repurchased and retired for $8.4 million at an average purchase price of $11.81 per share during the third quarter of 2022. The total remaining authorization for future shares of common stock repurchases under our Share Repurchase Plan is $29.8 million as of June 30, 2024.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Net loss per share, basic and diluted Numerator: Net loss $ (13,516) $ (32,613) $ (34,103) $ (65,803) Denominator: Weighted-average shares outstanding used in calculating net loss per share, basic and diluted 59,303,791 55,976,870 58,947,653 55,732,211 Net loss per share, basic and diluted $ (0.23) $ (0.58) $ (0.58) $ (1.18) During the three and six months ended June 30, 2024 and 2023, we incurred net losses and, therefore, the effect of our stock options, restricted stock units, performance-based restricted stock units, convertible senior notes, employee stock purchase plan, and restricted shares were not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The calculation of diluted net loss per share does not include the effect of the following potentially outstanding shares of common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net loss per share when the effect would have been anti-dilutive: As of June 30, 2024 2023 (unaudited) Common stock options 1,081,901 1,416,040 Restricted stock units 4,089,192 4,470,398 Performance-based restricted stock units 525,677 215,363 Shares related to convertible senior notes 7,516,331 7,516,331 Restricted shares — 413,791 Total potentially dilutive securities 13,213,101 14,031,923 In connection with the offering of our convertible senior notes, we entered into Capped Calls with initial caps on the conversion price of $42.00 per share, which are excluded from the calculation of diluted earnings per share, as they would be anti-dilutive.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation In 2011, our board of directors adopted the Health Catalyst, Inc. 2011 Stock Incentive Plan (2011 Plan), which provided for the direct award, sale of shares, and granting of RSUs and options for our common stock to our directors, team members, or consultants. In connection with our initial public offering (IPO), our board of directors adopted the 2019 Stock Option and Incentive Plan (2019 Plan). The 2019 Plan provides flexibility to our compensation committee to use various equity-based incentive awards as compensation tools to motivate our workforce, including the grant of incentive and non-statutory stock options, restricted and unrestricted stock, RSUs, and stock appreciation rights to our directors, team members, or consultants. We initially reserved 2,756,607 shares of our common stock (2,500,000 under the 2019 Plan and 256,607 shares under the 2011 Plan) that were available immediately prior to the IPO registration date. The 2019 Plan provides that the number of shares reserved available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2020, by 5% of the outstanding number of shares of our common stock on the immediately preceding December 31, or such lesser number of shares as determined by our compensation committee. As of January 1, 2024, there were an additional 2,926,544 shares reserved for issuance under the 2019 Plan. As of June 30, 2024 and December 31, 2023, there were 23,644,211 and 20,717,667 shares authorized for grant, respectively, and 4,865,662 and 3,831,444 shares available for grant under the 2019 Plan, respectively. The following two tables summarize our total stock-based compensation expense by award type and where the stock-based compensation expense was recorded in our condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Restricted stock units $ 8,067 $ 11,837 $ 16,410 $ 22,940 Performance-based restricted stock units 637 408 850 711 Employee stock purchase plan 262 525 562 1,107 Restricted shares — 1,858 1,969 3,695 Options — 1 13 60 Total stock-based compensation $ 8,966 $ 14,629 $ 19,804 $ 28,513 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Cost of revenue $ 1,740 $ 2,476 $ 3,437 $ 4,666 Sales and marketing 2,452 5,458 6,442 10,900 Research and development 1,676 3,077 3,520 5,750 General and administrative 3,098 3,618 6,405 7,197 Total stock-based compensation $ 8,966 $ 14,629 $ 19,804 $ 28,513 Stock options There were no stock options granted during the six months ended June 30, 2024 or 2023. A summary of the share option activity under the 2019 Plan for the six months ended June 30, 2024, is as follows: Time-Based Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value (unaudited) Outstanding at January 1, 2024 1,396,452 $ 11.70 Options exercised (20,764) 6.26 Options cancelled/forfeited (293,787) 9.72 Outstanding at June 30, 2024 1,081,901 $ 11.93 3.5 $ — Vested and expected to vest as of June 30, 2024 1,081,901 $ 11.93 3.5 $ — Vested and exercisable as of June 30, 2024 1,081,901 $ 11.93 3.5 $ — The aggregate intrinsic value of stock options exercised was less than $0.1 million for the six months ended June 30, 2024. All of our outstanding stock options are fully vested and there is no longer any related unrecognized compensation expense. Restricted stock units (RSUs) The service-based condition for restricted stock units (RSUs) is generally satisfied over four years with a cliff vesting period of one year and quarterly vesting thereafter. The following table sets forth the outstanding RSUs and related activity for the six months ended June 30, 2024: Restricted Stock Units Weighted Average Grant Date Fair Value (unaudited) Unvested and outstanding at January 1, 2024 3,111,584 $ 19.16 RSUs granted 2,072,313 8.56 RSUs vested (829,093) 22.30 RSUs forfeited (265,612) 16.59 Unvested and outstanding at June 30, 2024 4,089,192 $ 13.32 During the six months ended June 30, 2024 and 2023, we granted RSUs with a weighted-average grant date fair value of $8.56 and $11.84, respectively, which represents the weighted-average closing price of our common stock on the grant date. The total grant date fair value of RSUs vested during the six months ended June 30, 2024 and 2023 was $18.5 million and $23.8 million, respectively. As of June 30, 2024, we had $48.5 million of unrecognized stock-based compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of 2.2 years. Performance-based restricted stock units (PRSUs) 2024 Executive PRSUs During the six months ended June 30, 2024, certain named executive officers and other leadership team members were granted executive PRSUs with a three-year measurement period that include service conditions, performance conditions, and market conditions. The vesting of these PRSUs will be determined based on market-based targets for total shareholder return (TSR) achievement (weighted 25%) and financial performance targets for revenue growth rate achievement (weighted 25%) and Adjusted EBITDA margin achievement (weighted 50%). These PRSUs may vest in an amount up to the amount granted, subject to satisfaction of the pre-established targets. The number of PRSUs that will vest for the 2024, 2025, and 2026 vesting periods will be calculated as follows: (i) the market/performance achievement for the applicable vesting period, multiplied by (ii) approximately 33.33% of the PRSUs for each of the 2024, 2025, and 2026 vesting periods, each rounded to the nearest whole share. 2023 Executive PRSUs During the six months ended June 30, 2024, certain named executive officers and other leadership team members were granted executive PRSUs with a three-year measurement period that include service conditions, performance conditions, and market conditions. The vesting of these PRSUs will be determined based on market-based targets for total shareholder return (TSR) achievement and financial performance targets for revenue growth rate achievement and Adjusted EBITDA margin achievement. Each of the three market and performance targets are weighted equally and these PRSUs may vest in an amount up to the amount granted, subject to satisfaction of the pre-established targets. The number of PRSUs that will vest in 2023, 2024, and 2025 will be calculated as follows: (i) the market/performance achievement for the applicable vesting period, multiplied by (ii) approximately 33.33% of the PRSUs for each of the 2023, 2024, and 2025 vesting periods, each rounded to the nearest whole share. The fair value of the market-based tranches included in the executive PRSUs were estimated on the date of grants using the Monte Carlo simulation valuation model with the following assumptions for the six months ended June 30, 2024 and 2023: Six Months Ended Six Months Ended (unaudited) Expected volatility 65.5% 61.7% Expected term (in years) 1-3 1-3 Risk-free interest rate 4.33% - 4.91% 4.38% - 5.01% Expected dividends — — The following table sets forth the outstanding PRSUs, including executive PRSUs with market-based tranches, and related activity for the six months ended June 30, 2024: Performance-based Restricted Stock Units Weighted Average Grant Date Fair Value (unaudited) Unvested and outstanding at January 1, 2024 188,533 $ 12.99 PRSUs granted 445,000 9.45 PRSUs vested (42,369) 13.40 PRSUs forfeited (65,487) 12.77 Unvested and outstanding at June 30, 2024 525,677 $ 9.99 During the six months ended June 30, 2024 and 2023, we granted PRSUs with a weighted-average grant date fair value of $9.45 and $12.62, respectively, which represents the weighted-average closing price of our common stock on the grant date for performance-based tranches and the estimated grant date fair value using a Monte Carlo simulation valuation model for market-based tranches. The total grant date fair value of PRSUs vested during the six months ended June 30, 2024 and 2023 was $0.6 million and $4.8 million, respectively. As of June 30, 2024, we had $3.4 million of unrecognized stock-based compensation expense related to outstanding PRSUs expected to be recognized over a remaining weighted-average period of 1.7 years. Employee stock purchase plan In connection with our IPO in July 2019, our board of directors adopted the ESPP and a total of 750,000 shares of common stock were initially reserved for issuance under the ESPP. The number of shares of common stock available for issuance under the ESPP will be increased on the first day of each calendar year beginning January 1, 2020 and each year thereafter until the ESPP terminates. The number of shares of common stock reserved and available for issuance under the ESPP shall be cumulatively increased by the least of (i) 750,000 shares, (ii) one percent of the number of shares of common stock issued and outstanding on the immediately preceding December 31, and (iii) such lesser number of shares of common stock as determined by the ESPP Administrator. As of January 1, 2024, the number of shares of common stock available for issuance under the ESPP increased by 585,308 shares. The ESPP generally provides for six-month offering periods. The offering periods generally start on the first trading day after June 30 and December 31 of each year. The ESPP permits participants to elect to purchase shares of common stock through fixed percentage contributions from eligible compensation during each offering period, not to exceed 15% of the eligible compensation a participant receives during an offering period or accrue at a rate which exceeds $25,000 of the fair value of the stock (determined on the option grant date(s)) for each calendar year. A participant may purchase the lowest of (i) a number of shares of common stock determined by dividing such participant’s accumulated payroll deductions on the exercise date by the option price, (ii) 2,500 shares, or (iii) such other lesser maximum number of shares as shall have been established by the ESPP Administrator in advance of the offering period. Amounts deducted and accumulated by the participant will be used to purchase shares of common stock at the end of each offering period. The purchase price of the shares will be 85% of the lower of the fair value of common stock on the first trading day of each offering period or on the purchase date. Participants may end their participation at any time during an offering period and will be paid their accumulated contributions that have not been used to purchase shares of common stock. Participation ends automatically upon termination of employment. The fair value of the purchase right for the ESPP option component is estimated on the date of grant using the Black-Scholes model with the following assumptions for the three months ended June 30, 2024 and 2023: Six Months Ended June 30, 2024 2023 (unaudited) Expected volatility 55.5% 99.4% Expected term (in months) 6 6 Risk-free interest rate 5.24% 4.77% Expected dividends — — During the six months ended June 30, 2024, we issued 263,482 shares under the ESPP, with a weighted-average purchase price of $5.43. Total cash proceeds from the purchase of shares under the ESPP during the six months ended June 30, 2024 were $1.4 million. As of June 30, 2024, 1,791,984 shares were available for future issuance under the ESPP. Restricted shares issued in connection with business combinations As part of the KPI Ninja acquisition that closed on February 24, 2022, 356,919 shares of our common stock were issued pursuant to the terms of the acquisition agreement and are considered a stock-based compensation arrangement subject to a restriction agreement. The vesting of those shares was subject to continuous service with 25% vesting upon each six-month anniversary of the acquisition close date, with the final vesting date as of February 24, 2024. As part of the ARMUS acquisition that closed on April 29, 2022, 235,330 shares of our common stock were issued pursuant to the terms of the acquisition agreement and are considered a stock-based compensation arrangement subject to a restriction agreement. The vesting of those shares was subject to eighteen months of continuous service with cliff vesting upon the eighteen-month anniversary of the acquisition close date, or October 29, 2023. As part of the ERS acquisition that closed on October 2, 2023, 175,901 shares of our common stock were issued pursuant to the terms of the acquisition agreement and are considered a stock-based compensation arrangement subject to a restriction agreement. The vesting of those shares was originally subject to eighteen months of continuous service with cliff vesting upon the eighteen-month anniversary of the acquisition close date. However, due to workforce reductions made as part of the 2023 Restructuring Plan, the ERS restricted shares were fully vested in February 2024, resulting in an acceleration of the related stock-based compensation expense. As of June 30, 2024, all of our previously issued shares of restricted stock are fully vested and there is no longer any related unrecognized compensation expense.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, we update our estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, we make a cumulative adjustment in such period. The quarterly tax provision and the estimate of our annual effective tax rate are subject to variation due to several factors, including variability in our loss before income taxes, the mix of jurisdictions to which such income or loss relates, changes in how we conduct business, and tax law developments. For the six months ended June 30, 2024 and 2023, our estimated effective tax rate was (0.5)% and (0.2)%, respectively. The variations between our estimated effective tax rate and the U.S. statutory rate are primarily due to our full valuation allowance. We consider all available evidence to evaluate the recovery of deferred tax assets, including historical levels of income, legislative developments, and risks associated with estimates of future taxable income. We have provided a full valuation allowance for our net deferred tax assets as of June 30, 2024 and December 31, 2023, due to the uncertainty surrounding the future realization of such assets and the cumulative losses we have generated. We recognize tax benefits from uncertain tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We believe that we have provided adequate reserves for income tax uncertainties in all open tax years. We do not anticipate material changes in the total amount of our unrecognized tax benefits within 12 months of the reporting date.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation 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 the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. We are involved in legal proceedings from time to time that arise in the normal course of business. In the opinion of management, such routine claims and lawsuits are not significant, and we do not expect them to have a material adverse effect on our business, financial condition, results of operations, or liquidity, except as noted below. We were party to the proceedings set forth below. On December 21, 2020, Pascal Metrics, Inc. (Pascal Metrics) filed a complaint against the Company in the Delaware Chancery Court (as amended, Complaint) alleging that the Company misappropriated alleged trade secrets of Pascal Metrics and seeking monetary damages. The Complaint focused upon Patient Safety Monitor. On June 15, 2023, we entered into a settlement and mutual release agreement (Settlement Agreement) with Pascal Metrics and agreed to pay $18.8 million without admission of any wrongdoing, resolving the litigation amongst the parties. The Settlement Agreement provided us with a broad intellectual property license of the alleged trade secrets that were the subject matter of the Complaint. The Complaint was dismissed with prejudice on June 20, 2023 and the settlement amount was paid on June 27, 2023. During the three and six months ended June 30, 2023 we recorded $9.6 million and $21.3 million, respectively, of litigation charges related to the Complaint that were recorded as part of general and administrative expense in our condensed consolidated statements of operations. There were no similar litigation charges recorded during the three and six months ended June 30, 2024.

Deferred Revenue and Performanc

Deferred Revenue and Performance Obligations	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Deferred Revenue and Performance Obligations	Revenue Disaggregation of Revenue The following table represents Health Catalyst’s revenue disaggregated by type of arrangement (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Recurring technology $ 47,635 $ 47,324 $ 94,601 $ 94,153 One-time technology (i.e., perpetual license) — — — 357 Professional services 28,267 25,889 56,024 52,571 Total revenue $ 75,902 $ 73,213 $ 150,625 $ 147,081 Revenue related to contracts with clients located in the United States was 97.9% and 98.4% for the three months ended June 30, 2024 and 2023, respectively, and 97.9% and 98.2% for the six months ended June 30, 2024 and 2023, respectively. Deferred revenue includes advance client payments and billings in excess of revenue recognized. For the three months ended June 30, 2024 and 2023, 44% and 50%, respectively, of the revenue recognized was included in deferred revenue at the beginning of the period. For the six months ended June 30, 2024 and 2023, 28% and 30%, respectively, of the revenue recognized was included in deferred revenue at the beginning of the period. three

Related Parties

Related Parties	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
Related Parties	Related Parties We have entered into arrangements with a client, Carle Health, and a member of the client’s executive leadership team began serving on our board of directors effective July 1, 2023 and currently serves on our board of directors. We recognized revenue from this related party of $4.1 million and $8.2 million for the three and six months ended June 30, 2024. As of June 30, 2024 and December 31, 2023, we had receivables from this related party of $0.5 million and $1.9 million, respectively, and deferred revenue with this related party of $0.5 million and $0.1 million, respectively. We have revenue arrangements with clients that are also our investors. None of these clients hold a significant amount of ownership in our equity interests.

Segments

Segments	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Segments	Segments We operate our business in two operating segments that also represent our reportable segments. Our business is organized based on our technology offerings and professional services. Accordingly, our segments are: • Technology – Our technology segment (Technology) includes our data platform, analytics applications, and support services and generates revenue primarily from contracts that are cloud-based subscription arrangements, time-based license arrangements, and maintenance and support fees; and • Professional Services – Our professional services segment (Professional Services) is generally the combination of analytics, implementation, strategic advisory, outsource, and improvement services to deliver expertise to our clients to more fully configure and utilize the benefits of our Technology offerings. Revenue and cost of revenue generally are directly attributed to our segments. All segment revenue is from our external clients. Asset and other balance sheet information at the segment level is not reported to our Chief Operating Decision Maker. Segment revenue and Adjusted Gross Profit for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Revenue Technology $ 47,635 $ 47,324 $ 94,601 $ 94,510 Professional Services 28,267 25,889 56,024 52,571 Total $ 75,902 $ 73,213 $ 150,625 $ 147,081 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Adjusted Gross Profit Technology $ 32,063 $ 32,031 $ 64,223 $ 64,989 Professional Services 5,740 4,392 11,899 9,806 Total reportable segments Adjusted Gross Profit 37,803 36,423 76,122 74,795 Less Adjusted Gross Profit reconciling items: Stock-based compensation (1,740) (2,476) (3,437) (4,666) Acquisition-related costs, net (1) (221) (172) (377) (344) Restructuring costs — — (260) (446) Less other reconciling items: Sales and marketing (12,745) (16,397) (31,803) (34,966) Research and development (13,884) (17,590) (28,755) (34,672) General and administrative (14,363) (23,671) (28,927) (47,504) Depreciation and amortization (10,657) (10,735) (21,182) (21,729) Interest and other income (expense), net 2,361 2,090 4,699 3,883 Loss before income taxes $ (13,446) $ (32,528) $ (33,920) $ (65,649) ____________________ (1) Acquisition-related costs, net include deferred retention expenses attributable to the Carevive, ARMUS, and KPI Ninja acquisitions.

Restructuring Costs

Restructuring Costs	6 Months Ended
	Jun. 30, 2024
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs 2023 Restructuring Plan During the quarter and year ended December 31, 2023, our board of directors authorized a reduction of our global workforce as part of a restructuring plan intended to optimize our cost structure and focus our investment of resources in key priority areas to align with strategic changes (2023 Restructuring Plan). As part of the 2023 Restructuring Plan, we significantly reduced headcount throughout both our professional services and technology segments, including among our senior leadership team. The restructuring costs primarily related to severance and other team member costs from workforce reductions and impairment of a discontinued capitalized internal-use software project. The following table summarizes our 2023 Restructuring Plan costs by financial statement line item for the six months ended June 30, 2024 (in thousands), of which less than $0.3 million related to the three months ended June 30, 2024. Six Months Ended June 30, 2024 Severance and Other Team Member Costs Impairment Charges (1) Total (unaudited) Cost of revenue, excluding depreciation and amortization: Technology $ 79 $ — $ 79 Professional services 181 — 181 Sales and marketing 449 — 449 Research and development 443 — 443 General and administrative 936 — 936 Total $ 2,088 $ — $ 2,088 2023 Restructuring Plan cumulative charges incurred $ 8,240 $ 615 $ 8,855 ____________________ (1) Consists of impairment of a discontinued internal-use software project as part of the 2023 Restructuring Plan. Restructuring liabilities related to the 2023 Restructuring Plan are included as a component of accrued liabilities on our condensed consolidated balance sheets. The following table summarizes our current year restructuring-related activities, including costs incurred, cash payments, and the resulting liability balances (in thousands): Restructuring Liabilities (unaudited) Balance as of December 31, 2023 $ 2,355 Severance and other restructuring costs 1,813 Cash payments (3,157) Balance as of March 31, 2024 $ 1,011 Severance and other restructuring costs 275 Cash payments (941) Balance as of June 30, 2024 $ 345 Our restructuring activities as part of the 2023 Restructuring Plan are substantially complete, but there may be some additional immaterial restructuring costs during the remainder of 2024. Restructuring initiatives are under evaluation which may affect the amount and expected timing of restructuring costs and associated payments. 2022 Restructuring Plan During the third quarter of 2022, we initiated a restructuring plan (2022 Restructuring Plan) to optimize our cost structure and focus our investment of resources in key priority areas to align with strategic changes. As part of the 2022 Restructuring Plan, we significantly reduced investment in our life sciences business unit, which is generally part of the technology segment, and also reduced headcount throughout the Company, including among our senior leadership team. The restructuring costs primarily related to severance and other team member costs from workforce reductions, impairment of discontinued capitalized internal-use software projects, and other miscellaneous charges. We substantially completed all actions under the 2022 Restructuring Plan in early 2023 and, as of December 31, 2023, the related restructuring liabilities were completely settled through cash outlays made to impacted team members. The following table summarizes our 2022 Restructuring Plan costs by financial statement line item for the six months ended June 30, 2023 (in thousands). We had no restructuring costs for the three months ended June 30, 2023. Six Months Ended June 30, 2023 (unaudited) Severance and Other Team Member Costs Impairment Charges (1) Other (2) Total Cost of revenue, excluding depreciation and amortization: Technology $ 12 $ — $ — $ 12 Professional services 434 — — 434 Sales and marketing 1,190 — 15 1,205 Research and development 286 — — 286 General and administrative 94 — 24 118 Total $ 2,016 $ — $ 39 $ 2,055 2022 Restructuring Plan final, cumulative charges incurred through December 31, 2023 $ 8,071 $ 1,225 $ 1,184 $ 10,480 ____________________ (1) Consists of impairment of a discontinued internal-use software project as part of the 2022 Restructuring Plan. (2) Includes other minor miscellaneous charges associated with the restructuring plan.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Credit Agreement On July 16, 2024 (Closing Date), we entered into a credit agreement with Silver Point Finance, LLC, as administrative agent and collateral agent, and the lenders from time to time party thereto. The credit agreement provides a five-year term loan facility in an aggregate principal amount of up to $225 million, consisting of an initial term loan in the aggregate principal amount of $125 million, which was funded in full on the Closing Date, and a delayed draw term loan facility in the aggregate principal amount of $100 million, which was undrawn as of the Closing Date. We have the option to draw up to $40 million under the delayed draw facility within six months after the Closing Date and up to an additional $60 million under the delayed draw facility within eighteen months after the Closing Date, in each case, subject to satisfaction of certain conditions, including a minimum liquidity threshold and a maximum recurring revenue ratio. Borrowings under the credit agreement are expected to bear interest at a rate per annum equal to the secured overnight financing rate plus 6.5%. Commencing with the quarter ending on December 31, 2024, we are required to make quarterly principal payments in an amount equal to 0.25% of the aggregate original principal amount, and the final maturity date of the term loans is July 16, 2029. The net proceeds from the initial term loan will be used, together with cash on hand, (i) to repurchase, repay, and/or pay amounts of cash due upon conversion of any or all of the Notes at any time on or prior to the maturity of the Notes and (ii) for working capital and general corporate purposes. The proceeds from the delayed draw term loan facility, if any, will be used to fund our inorganic growth strategy through permitted acquisitions (including deferred purchase price or similar arrangements related thereto) and to pay fees, costs, and expenses in connection therewith. We are required prepay the term loans upon the occurrence of certain events, and we may voluntarily prepay the term loans, in whole or in part, at any time, subject to certain notice requirements and prepayment amounts. Prior to July 16, 2028, such mandatory prepayments or voluntary prepayments are subject to a prepayment premium ranging from 1.0% to 3.0% plus a make whole amount depending on the year of such prepayment. We are also required to pay a commitment fee on the unutilized commitments under the delayed draw term loan facility ranging from 1.5% to 2.5% per year depending on the year and the unutilized delayed draw term loan. Our obligations under the credit agreement and the other loan documents are required to be guaranteed by all of our present and future domestic and foreign subsidiaries, subject to certain exceptions (Guarantors). All obligations under the credit agreement and the other loan documents are secured by a first priority perfected lien on, and security interest in, substantially all of our and our Guarantor’s present and future assets, subject to certain exceptions. The credit agreement contains various representations and warranties, affirmative covenants, and negative covenants, including covenants that restrict our and our subsidiaries’ ability to take certain actions including, among other things and subject to certain exceptions, the incurrence of debt, the granting of liens, engaging in mergers and other fundamental changes, the making of investments, entering into transactions with affiliates, the payment of dividends and other restricted payments, the prepayment of other indebtedness and the sale of assets. We are also required to comply with a minimum liquidity threshold, a maximum recurring revenue-based leverage ratio, and a maximum EBITDA-based leverage ratio. The credit agreement also includes various events of default, including, among others: non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross-default to other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of security interests or invalidity of loan documents, certain ERISA events, unsatisfied or unstayed judgments and change of control. Upon the occurrence of an event of default, the administrative agent and the lenders may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the credit agreement and the related loan documents, including proceeding against the collateral securing such borrowings. Lumeon Acquisition On August 1, 2024, we acquired Lumeon Ltd. (Lumeon), a digital health company dedicated to helping provider organizations mend broken care coordination processes through automated care orchestration, for preliminary consideration of approximately $37.5 million in cash and $2.5 million of our common stock, plus a potential recurring revenue-based earn-out of up to $25 million that, if achieved, would be paid solely in cash. Given the recent timing of the closing of this business combination, we are in the process of identifying and measuring the value of the assets acquired and liabilities assumed. We plan to disclose the preliminary purchase price allocation estimates and other related information in our Quarterly Report on Form 10-Q for the quarter ending September 30, 2024.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (13,516)	$ (32,613)	$ (34,103)	$ (65,803)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		During the three months ended June 30, 2024, the following directors or officers of the Company adopted a “Rule 10b5-1 trading arrangement”, as defined in Item 408(a) of Regulation S-K: Name and Title Type of Trading Arrangement Date Adopted Expiration Date Duration (1) Total Shares to be Sold Duncan Gallagher, Director Rule 10b5-1 Trading Arrangement 5/26/2024 12/31/2024 219 9,000 __________________ (1) The Rule 10b5-1 trading arrangement permits transactions through and including the earlier to occur of (a) completion of all sales or (b) the expiration date listed in the table.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Duncan Gallagher [Member]
Trading Arrangements, by Individual
Name	Duncan Gallagher
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	5/26/2024
Expiration Date	12/31/2024
Arrangement Duration	219 days
Aggregate Available	9,000	9,000

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the applicable regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2023 included in our Annual Report on Form 10-K.
Principles of consolidation	Principles of consolidation The condensed consolidated financial statements include the accounts of Health Catalyst and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires us 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 financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, reserves for expected credit losses, useful lives of property and equipment, capitalization and estimated useful life of internal-use software, impairment assessments of goodwill, intangible assets, and other long-lived assets, fair value of financial instruments, deferred tax assets, stock-based compensation, contingent consideration, the period of benefit for deferred contract acquisition costs, the incremental borrowing rate used for operating leases, and tax uncertainties. Actual results could differ significantly from those estimates.
Segment reporting	Segment reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is evaluated by the chief operating decision maker (CODM) in assessing performance and making decisions regarding resource allocation. We operate our business in two operating segments that also represent our reportable segments. Our segments are (1) technology and (2) professional services. The CODM uses Adjusted Gross Profit (defined as revenue less cost of revenue that excludes depreciation, amortization, stock-based compensation expense, and certain other operating expenses) as the measure of our profit.
Net loss per share	Net loss per share Basic net loss per share is calculated by dividing net loss by the weighted average number of shares of common stock outstanding. Diluted net loss per share is calculated by giving effect to all potentially dilutive common stock equivalents outstanding for the period, when dilutive. For purposes of this calculation, stock options, restricted stock units (RSUs), performance-based restricted stock units (PRSUs), convertible senior notes, restricted shares, and purchase rights committed under the employee stock purchase plan are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as the effect is anti-dilutive.
Revenue recognition	Revenue recognition We derive our revenue primarily from technology subscriptions and professional services. We determine revenue recognition by applying the following steps: • Identification of the contract, or contracts, with a client; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, we satisfy the performance obligation. We recognize revenue net of any taxes collected from clients and subsequently remitted to governmental authorities. Technology revenue Technology revenue primarily consists of subscription fees charged to clients for access to use our technology. We provide clients access to our technology through either an all-access or limited-access, modular subscription. The majority of our subscription arrangements are cloud-based and do not provide clients the right to take possession of the technology or contain a significant penalty if the client were to take possession of the technology. Revenue from cloud-based subscriptions is recognized ratably over the contract term beginning on the date that the service is made available to the client. Our subscription contracts generally have a three Subscriptions that allow the client to take software on-premise without significant penalty are treated as time-based licenses. These arrangements generally include access to technology, access to unspecified future products, and maintenance and support. Revenue for upfront access to our technology library is recognized at a point in time when the technology is made available to the client. Revenue for access to unspecified future products included in time-based license subscriptions is recognized ratably over the contract term beginning on the date that the access is made available to the client. Professional services revenue Professional services revenue primarily includes data and analytics services, domain expertise services, Tech-enabled Managed Services, and implementation services. Professional services arrangements typically include a fee for making full-time equivalent (FTE) services available to our clients on a monthly basis. FTE services generally consist of a blend of analytic engineers, analysts, and data scientists based on the domain expertise needed to best serve our clients. Professional services are typically considered distinct from the technology offerings and revenue is generally recognized as the service is provided using the “right to invoice” practical expedient. Contracts with multiple performance obligations Many of our contracts include multiple performance obligations. We account for performance obligations separately if they are capable of being distinct within the context of the contract. In these circumstances, the transaction price is allocated to separate performance obligations on a relative standalone selling price basis. We determine standalone selling prices based on the observable price a good or service is sold for separately when available. In cases where standalone selling prices are not directly observable, based on information available, we utilize the expected cost plus a margin, adjusted market assessment, or residual estimation method. We consider all information available including our overall pricing objectives, market conditions, and other factors, which may include client demographics and the types of users. Standalone selling prices are not directly observable for our all-access and limited-access technology arrangements, which are composed of cloud-based subscriptions, time-based licenses, and perpetual licenses. For these technology arrangements, we generally use the residual method due to a limited number of standalone transactions and/or prices that are highly variable. Variable consideration We have also entered into at-risk and shared savings arrangements with certain clients whereby we receive variable consideration based on the achievement of measurable improvements that may include cost savings or performance against metrics. For these arrangements, we estimate revenue using the most likely amount that we will receive. Estimates are based on our historical experience and best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. Due to the nature of our arrangements, certain estimates may be constrained until the uncertainty is further resolved. Contract balances Contract assets resulting from services performed prior to invoicing clients are recorded as unbilled accounts receivable and are presented on our condensed consolidated balance sheets in aggregate with accounts receivable. Unbilled accounts receivable generally become billable at contractually specified dates or upon the attainment of contractually defined milestones. As of June 30, 2024 and December 31, 2023, the unbilled accounts receivable included in accounts receivable on our condensed consolidated balance sheets was $6.5 million and $4.7 million, respectively. We record contract liabilities as deferred revenue when cash payments are received or due in advance of performance. Deferred revenue primarily relates to the advance consideration received from the client. As of June 30, 2024 and December 31, 2023, the total of current and non-current deferred revenue on our condensed consolidated balance sheets was $56.4 million and $55.8 million, respectively. Deferred costs We capitalize sales commissions and associated fringe costs, such as benefits and payroll taxes, paid to direct sales personnel and other incremental costs of obtaining contracts with clients, provided we expect to recover those costs. We determine that costs should be deferred based on our sales compensation plans when the commissions are incremental and would not have occurred absent the client contract. As of June 30, 2024 and December 31, 2023, $2.2 million and $2.2 million, respectively, of deferred contract acquisition costs are expected to be amortized within the next 12 months and are included in prepaid expenses and other assets on the condensed consolidated balance sheets. As of June 30, 2024 and December 31, 2023, the remaining $2.9 million and $3.3 million, respectively, of deferred contract acquisition costs are included in non-current other assets. Commissions paid upon the initial acquisition of a contract are amortized on a straight-line basis over an estimated period of benefit of four years. Amortization is recognized on a straight-line basis commensurate with the pattern of revenue recognition. The period of benefit was estimated by considering factors such as estimated average client life, the rate of technological change in our subscription service, and the impact of competition in our industry. As our average client life significantly exceeded the rate of change in our technology, we concluded that the rate of change in the technology underlying our subscription service was the most significant factor in determining the period of benefit for which the asset relates. In evaluating the rate of change in our technology, we considered the competition in our industry, our commitment to continuous innovation, and the frequency of product, platform, and technology updates. We determined that the impact of competition in our industry is reflected in the period of benefit through the rate of technological change. Amortization of deferred contract acquisition costs was $0.6 million and $0.5 million for the three months ended June 30, 2024 and 2023, respectively, and $1.3 million and $1.0 for the six months ended June 30, 2024 and 2023, respectively, and is included within sales and marketing expense in the condensed consolidated statements of operations. We defer certain costs to fulfill a contract when the costs are expected to be recovered, are directly related to in-process contracts, and enhance resources that will be used in satisfying performance obligations in the future. These deferred fulfillment costs primarily consist of employee compensation incurred as part of the implementation of new contracts. Amortization of deferred fulfillment costs is included within cost of revenue in the condensed consolidated statements of operations. We periodically review these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. Cost of revenue, excluding depreciation and amortization Cost of technology revenue primarily consists of costs associated with hosting and supporting our technology, including third-party cloud computing and hosting costs, license and revenue share fees, contractor costs, and salary and related personnel costs for our cloud services and support teams. Cost of professional services revenue primarily consists of salary and related personnel costs, travel-related costs, and independent contractor costs. Cost of revenue in the interim condensed consolidated statements of operations excludes costs related to depreciation and amortization.
Cash and cash equivalents	Cash and cash equivalents We consider all highly liquid investments purchased with a remaining maturity of three months or less at the time of acquisition to be cash equivalents.
Short-term investments	Short-term investments
Accounts receivable	Accounts receivable Accounts receivable are non-interest bearing and are recorded at the original invoiced amount less an allowance for credit losses based on the probability of future collections. Our allowance is based on our estimate of expected credit losses for outstanding trade accounts receivables and unbilled receivables.
Leases	Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets and operating lease liabilities in our condensed consolidated balance sheets. We have adopted the short-term lease recognition exemption policy. All of our leasing commitments are classified either as operating leases or otherwise qualify as short-term leases with lease terms of 12 months or less. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our lease contracts do not have a readily determinable implicit rate, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of lease payments. The incremental borrowing rate is the estimated rate incurred to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes any lease payments made and excludes lease executory costs. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise the applicable option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable costs related to our leased office space, such as maintenance and utilities based on actual usage, are not included in the measurement of right-of-use assets and lease liabilities, but are expensed as incurred.
Property and equipment	Property and equipment Property and equipment are stated at historical cost less accumulated depreciation. Repairs and maintenance costs that do not extend the useful life or improve the related assets are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful life of each asset category is as follows: Computer equipment 2-3 years Furniture and fixtures 3-5 years Leasehold improvements Lesser of lease term or estimated useful life Computer software 2-5 years Capitalized internal-use software costs 2-5 years When there are indicators of potential impairment, we evaluate the recoverability of the carrying values by comparing the carrying amount of the applicable asset group to the estimated undiscounted future cash flows expected to be generated by the asset group over the remaining useful life of the primary asset, plus any terminal value, in the asset group. If the carrying amount of the asset group exceeds those estimated future net cash flows, an impairment charge is recognized based on the amount by which the carrying value of the long-lived assets exceeds the fair value of the assets.
Intangible assets	Intangible assets Intangible assets include developed technologies, client relationships, client contracts, and trademarks that were acquired in business combinations and asset acquisitions. Intangible assets also include the purchase of third-party computer software. The intangible assets are amortized using the straight-line method over the assets’ estimated useful lives. The estimated useful life of each asset category is as follows: Developed technologies 3-10 years Client relationships and contract backlog 2-7 years Computer software licenses 1-5 years Trademarks 1-5 years
Goodwill	Goodwill We record goodwill as the difference between the aggregate consideration paid for a business combination and the fair value of the identifiable net tangible and intangible assets acquired. Goodwill includes the know-how of the assembled workforce, the ability of the workforce to further improve technology and product offerings, client relationships, and the expected cash flows resulting from these efforts. Goodwill may also include expected synergies resulting from the complementary strategic fit these businesses bring to existing operations. Goodwill is assessed for impairment annually on October 31 or more frequently if indicators of impairment are present or circumstances suggest that impairment may exist. Our first step in the goodwill impairment test is a qualitative analysis of factors that could be indicators of potential impairment. Judgment in the assessment of qualitative factors of impairment may include changes in business climate, market conditions, or other events impacting the reporting unit. Next, if a quantitative analysis is necessary, we compare the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, the goodwill of the reporting unit is not considered impaired. Performing a quantitative goodwill impairment test includes the determination of the fair value of a reporting unit, which requires management to use significant judgment and estimation. The significant estimation is primarily due to the judgmental nature of the inputs to the valuation models used to measure the fair value of the reporting units, as well as the sensitivity of the respective fair values to the underlying significant assumptions. Typical methods to derive the fair value of reporting units include using the income or market approaches.
Business combinations/Contingent consideration liabilities	Business combinations The results of businesses acquired in a business combination are included in our condensed consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair value on the acquisition date. Any excess consideration transferred over the fair value of the identifiable assets acquired and liabilities assumed is recognized as goodwill. We perform valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination in order to record the tangible and intangible assets acquired and liabilities assumed based on our best estimate of fair value. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies. Significant estimation is required in determining the fair value of the client-related intangible assets and technology-related intangible assets. The significant estimation is primarily due to the judgmental nature of the inputs to the valuation models used to measure the fair value of these intangible assets, as well as the sensitivity of the respective fair values to the underlying significant assumptions. We typically use the income approach or cost approach to measure the fair value of intangible assets. The significant assumptions used to form the basis of the estimates included the number of engineer hours required to develop technology, expected revenue including revenue growth rates, rate and timing of obsolescence, royalty rates and earnings before interest, taxes, depreciation and amortization (EBITDA) margin used in the estimate for client relationships, and backlog. Many of these significant assumptions were forward-looking and could be affected by future economic and market conditions. We engage the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of material assets acquired and liabilities assumed in a business combination. Contingent consideration liabilities Our acquisition consideration in business combinations may include an estimate for contingent consideration that will be paid if certain earn-out performance targets are met. The resulting contingent consideration liabilities are categorized as a Level 3 fair value measurement because we estimate projections during the earn-out period utilizing unobservable inputs, including various potential pay-out scenarios based on billings and revenue-related earn-out targets. Changes to the unobservable inputs could have a material impact on our condensed consolidated financial statements. We generally value the expected contingent consideration and the corresponding liabilities using the Monte Carlo method or Black-Scholes model based on estimates of potential payment scenarios. Probabilities are applied to each potential scenario and the resulting values are discounted using a rate that considers weighted average cost of capital as well as a specific risk premium associated with the riskiness of the earn-out itself, the related projections, projected payment dates, and volatility in the fair value of our common stock. The fair value of the contingent consideration is remeasured each reporting period. The portion of the contingent consideration liabilities that will be settled in shares of our common stock is classified as a component of non-current liabilities in our condensed consolidated balance sheets, while the portion to be paid in cash is classified as a component of current liabilities. Changes to the contingent consideration liabilities are reflected as part of general and administrative expense in our condensed consolidated statements of operations.
Advertising costs	Advertising costs
Development costs and internal-use software	Development costs and internal-use software For technology products that are developed to be sold externally, we determined that technological feasibility is reached shortly before the products are ready for general release. Any costs associated with software development between the time technological feasibility is reached and general release are inconsequential.
Stock-based compensation	Stock-based compensation Stock-based awards, including stock options, restricted stock units, performance-based restricted stock units, and restricted shares are measured and recognized in our condensed consolidated financial statements based on the fair value of the award on the grant date or, when applicable, the modification date. The grant date fair value of our stock-based awards is typically determined using the market closing price of our common stock on the date of grant; however, we also consider whether any adjustments are required when the market closing price does not reflect certain material non-public information that we know but is unavailable to marketplace participants on the date of grant. We record forfeitures of stock-based awards as the actual forfeitures occur. For awards subject to performance conditions, we record expense when the performance condition becomes probable. Each reporting period we evaluate the probability of achieving the performance criteria, estimate the number of shares that are expected to vest, and adjust the related compensation expense accordingly. For awards subject to market conditions, we estimate the fair value as of the grant date using a Monte Carlo simulation valuation model which requires the use of various assumptions, including historic stock price volatility and risk-free interest rates as of the valuation date corresponding to the length of time remaining in the performance period. Stock-based compensation expense for awards with market conditions is recognized over the requisite service period using the accelerated attribution method and is not reversed if the market condition is not met. Stock-based compensation expense related to purchase rights issued under the 2019 Health Catalyst Employee Stock Purchase Plan (ESPP) is based on the Black-Scholes option-pricing model fair value of the estimated number of awards as of the beginning of the offering period. Stock-based compensation expense is recognized using the straight-line method over the offering period. The measurement date for non-employee awards is the date of grant. The compensation expense for non-employees is recognized, without changes in the fair value of the award, in the same period and in the same manner as though we had paid cash for the services, which is typically the vesting period of the respective award.
Restructuring costs	Restructuring costs
Income taxes	Income taxes Deferred income tax balances are accounted for using the asset and liability method and reflect the effects of temporary differences between the financial reporting and tax bases of our assets and liabilities using enacted tax rates expected to apply when taxes are actually paid or recovered. In addition, deferred tax assets and liabilities are recorded for net operating loss (NOL) and tax credit carryforwards. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction, and the carry-forward periods available for the utilization of deferred tax assets. We use a two-step approach to recognize and measure uncertain income tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained upon audit. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement. We do not currently accrue interest and penalties related to unrecognized tax benefits within the provision for income taxes because the impact would be immaterial due to our net operating losses and tax credit carryforwards. Significant judgment is required to evaluate uncertain tax positions. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. We evaluate our uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit, and effective settlement of audit issues. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and results of operations.
Fair value of financial instruments	Fair value of financial instruments The carrying amounts reported in our condensed consolidated balance sheets for cash, receivables, accounts payable, and current accrued expenses approximate fair values because of the immediate or short-term maturity of these financial instruments. The carrying value of operating lease liabilities and convertible senior notes approximate fair value based on interest rates available for debt with similar terms at June 30, 2024 and December 31, 2023. Money market funds and short-term investments are measured at fair value on a recurring basis. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1- Quoted prices in active markets for identical assets or liabilities. • Level 2- Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3- Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. All of our financial instruments are valued using quoted prices in active markets or based on other observable inputs. For Level 2 securities, we use a third-party pricing service which provides documentation on an ongoing basis that includes, among other things, pricing information with respect to reference data, methodology, inputs summarized by asset class, pricing application, and corroborative information. Our contingent consideration liabilities are categorized as a Level 3 fair value measurement because we estimate projections during the earn out period utilizing various potential pay-out scenarios.
Foreign currency	Foreign currency The functional currency of our international subsidiaries is generally their local currency. We translate these subsidiaries’ financial statements into U.S. dollars using month-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. We record translation gains and losses in accumulated other comprehensive loss in stockholders’ equity. We record foreign exchange gains and losses in interest and other expense, net. Our net foreign exchange gains and losses were not material for the periods presented.
Recent accounting pronouncements not yet adopted	Recent accounting pronouncements not yet adopted In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280) . This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the CODM and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740) . The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year ending December 31, 2025.

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Schedule of Allowance For Accounts Receivable	We reassess the adequacy of the allowance for credit losses each reporting period. The following table presents a rollforward of the allowance for credit losses (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Allowance for credit losses at the beginning of period $ 6,500 $ 3,800 $ 4,105 $ 2,300 Provision for expected credit losses 1,033 13 3,438 1,527 Less: Write-offs, net of recoveries (933) (13) (943) (27) Allowance for credit losses at the end of period $ 6,600 $ 3,800 $ 6,600 $ 3,800
Schedule of Property and Equipment, Useful Life	The estimated useful life of each asset category is as follows: Computer equipment 2-3 years Furniture and fixtures 3-5 years Leasehold improvements Lesser of lease term or estimated useful life Computer software 2-5 years Capitalized internal-use software costs 2-5 years Property and equipment consisted of the following (in thousands): As of As of 2024 2023 (unaudited) Computer equipment $ 9,649 $ 9,638 Leasehold improvements 8,247 8,814 Furniture and fixtures 3,735 3,735 Capitalized internal-use software costs 37,106 30,771 Computer software 111 111 Total property and equipment 58,848 53,069 Less: accumulated depreciation (33,293) (27,357) Property and equipment, net $ 25,555 $ 25,712
Schedule of Intangible Asset, Useful Life	The estimated useful life of each asset category is as follows: Developed technologies 3-10 years Client relationships and contract backlog 2-7 years Computer software licenses 1-5 years Trademarks 1-5 years As of June 30, 2024, intangible assets consisted of the following (in thousands): Cost Accumulated Amortization Net (unaudited) Developed technologies $ 108,729 $ (87,257) $ 21,472 Client relationships and contracts 92,764 (50,815) 41,949 Computer software licenses 11,005 (8,659) 2,346 Trademarks 3,120 (2,124) 996 Total intangible assets $ 215,618 $ (148,855) $ 66,763 As of December 31, 2023, intangible assets consisted of the following (in thousands): Cost Accumulated Amortization Net Developed technologies $ 103,929 $ (79,057) $ 24,872 Client relationships and contracts 90,064 (45,230) 44,834 Computer software licenses 10,680 (7,933) 2,747 Trademarks 2,820 (1,889) 931 Total intangible assets $ 207,493 $ (134,109) $ 73,384

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary acquisition-date fair value of consideration transferred and the identifiable assets purchased and liabilities assumed as part of our acquisition of Carevive (in thousands): Assets acquired: Accounts receivable $ 96 Prepaid expenses and other assets 64 Client relationships 2,700 Developed technology 4,800 Trademarks 300 Total assets acquired 7,960 Less liabilities assumed: Accrued and other current liabilities 1,389 Deferred revenue 76 Total liabilities assumed 1,465 Total assets acquired, net 6,495 Goodwill 15,643 Total consideration transferred, net of cash acquired $ 22,138 The following table summarizes the preliminary acquisition-date fair value of consideration transferred and the identifiable assets purchased and liabilities assumed as part of our acquisition of ERS (in thousands): Assets acquired: Accounts receivable $ 478 Prepaid expenses and other assets 73 Client relationships 5,300 Developed technology 3,100 Trademarks 100 Total assets acquired 9,051 Less liabilities assumed: Accrued and other current liabilities 78 Deferred revenue 2,251 Total liabilities assumed 2,329 Total assets acquired, net 6,722 Goodwill 4,670 Total consideration transferred, net of cash acquired $ 11,392

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Revenue	The following table represents Health Catalyst’s revenue disaggregated by type of arrangement (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Recurring technology $ 47,635 $ 47,324 $ 94,601 $ 94,153 One-time technology (i.e., perpetual license) — — — 357 Professional services 28,267 25,889 56,024 52,571 Total revenue $ 75,902 $ 73,213 $ 150,625 $ 147,081

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill by Reporting Unit	Goodwill by reporting unit is as follows (in thousands): As of As of 2024 2023 (unaudited) Technology $ 205,513 $ 189,870 Professional services 782 782 Total goodwill $ 206,295 $ 190,652
Schedule of Intangible Assets	The estimated useful life of each asset category is as follows: Developed technologies 3-10 years Client relationships and contract backlog 2-7 years Computer software licenses 1-5 years Trademarks 1-5 years As of June 30, 2024, intangible assets consisted of the following (in thousands): Cost Accumulated Amortization Net (unaudited) Developed technologies $ 108,729 $ (87,257) $ 21,472 Client relationships and contracts 92,764 (50,815) 41,949 Computer software licenses 11,005 (8,659) 2,346 Trademarks 3,120 (2,124) 996 Total intangible assets $ 215,618 $ (148,855) $ 66,763 As of December 31, 2023, intangible assets consisted of the following (in thousands): Cost Accumulated Amortization Net Developed technologies $ 103,929 $ (79,057) $ 24,872 Client relationships and contracts 90,064 (45,230) 44,834 Computer software licenses 10,680 (7,933) 2,747 Trademarks 2,820 (1,889) 931 Total intangible assets $ 207,493 $ (134,109) $ 73,384

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	The estimated useful life of each asset category is as follows: Computer equipment 2-3 years Furniture and fixtures 3-5 years Leasehold improvements Lesser of lease term or estimated useful life Computer software 2-5 years Capitalized internal-use software costs 2-5 years Property and equipment consisted of the following (in thousands): As of As of 2024 2023 (unaudited) Computer equipment $ 9,649 $ 9,638 Leasehold improvements 8,247 8,814 Furniture and fixtures 3,735 3,735 Capitalized internal-use software costs 37,106 30,771 Computer software 111 111 Total property and equipment 58,848 53,069 Less: accumulated depreciation (33,293) (27,357) Property and equipment, net $ 25,555 $ 25,712

Short-term Investments (Tables)

Short-term Investments (Tables)	6 Months Ended
	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Cash Equivalents and Short-Term Investments Measured at Fair Value	The following table summarizes, by major security type, our cash equivalents and short-term investments that are measured at fair value on a recurring basis as of June 30, 2024 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Short-term Investments (unaudited) Money market funds $ 196,717 $ — $ — $ 196,717 $ 196,717 $ — U.S. treasury notes 48,435 — (29) 48,406 — 48,406 Commercial paper 12,917 — (14) 12,903 — 12,903 Corporate bonds 45,090 — (38) 45,052 — 45,052 Total $ 303,159 $ — $ (81) $ 303,078 $ 196,717 $ 106,361 The following table summarizes, by major security type, our cash equivalents and short-term investments that are measured at fair value on a recurring basis as of December 31, 2023 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Short-term Investments Money market funds $ 99,779 $ — $ — $ 99,779 $ 99,779 $ — U.S. treasury notes 65,856 68 — 65,924 — 65,924 Commercial paper 85,358 — (18) 85,340 — 85,340 Corporate bonds 43,746 49 — 43,795 — 43,795 U.S. agency securities 16,405 — (12) 16,393 — 16,393 Total $ 311,144 $ 117 $ (30) $ 311,231 $ 99,779 $ 211,452 The following table presents the contractual maturities of our short-term investments as of June 30, 2024 and December 31, 2023 (in thousands): As of June 30, 2024 As of December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value (unaudited) Due within one year $ 106,442 $ 106,361 $ 211,365 $ 211,452 Total $ 106,442 $ 106,361 $ 211,365 $ 211,452

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value Assets and liabilities Measured on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 were as follows (in thousands): June 30, 2024 Level 1 Level 2 Level 3 Total (unaudited) Money market funds $ 196,717 $ — $ — $ 196,717 U.S. Treasury notes 48,406 — — 48,406 Commercial paper — 12,903 — 12,903 Corporate bonds — 45,052 — 45,052 Contingent consideration liabilities — — (894) (894) Total $ 245,123 $ 57,955 $ (894) $ 302,184 Assets measured at fair value on a recurring basis as of December 31, 2023 were as follows (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Money market funds $ 99,779 $ — $ — $ 99,779 U.S. Treasury notes 65,924 — — 65,924 Commercial paper — 85,339 — 85,339 Corporate bonds — 43,796 — 43,796 U.S. agency securities — 16,393 — 16,393 Total $ 165,703 $ 145,528 $ — $ 311,231
Schedule of Fair Value Measurement Inputs and Valuation Techniques	The recurring Level 3 fair value measurements of the contingent consideration liability include the other following significant inputs: Valuation Method Fair Value Market Price of Revenue Risk Revenue Volatility Expected Term (years) Risk-free interest rate (unaudited) Revenue-based earn-out liability Black-Scholes $ 0.9 million 9.1% 20% 1.4 5.2% The fair value of the market-based tranches included in the executive PRSUs were estimated on the date of grants using the Monte Carlo simulation valuation model with the following assumptions for the six months ended June 30, 2024 and 2023: Six Months Ended Six Months Ended (unaudited) Expected volatility 65.5% 61.7% Expected term (in years) 1-3 1-3 Risk-free interest rate 4.33% - 4.91% 4.38% - 5.01% Expected dividends — —
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table sets forth a summary of the changes in the estimated fair value of the contingent consideration liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (unaudited) Balance as of January 1, 2024 $ — Initial contingent consideration liability from Carevive acquisition (see Note 2) 894 Change in fair value of contingent consideration liability — Balance as of June 30, 2024 $ 894

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	As of June 30, 2024 and December 31, 2023, accrued liabilities consisted of the following (in thousands): As of As of 2024 2023 (unaudited) Accrued compensation and benefit expenses $ 8,456 $ 11,680 Restructuring liabilities (1) 345 2,355 Other accrued liabilities 9,247 9,247 Total accrued liabilities $ 18,048 $ 23,282 __________________ (1) Restructuring liabilities include severance and other team member costs from workforce reductions. For additional details, refer to Note 19 in these condensed consolidated financial statements.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of Lease Expense (Income)	Components of lease expense (income) are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease expense $ 666 $ 777 $ 1,294 $ 1,574 Short-term lease expense 31 25 64 41 Sublease income (339) (189) (654) (627) Total $ 358 $ 613 $ 704 $ 988

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Convertible Debt	The interest expense recognized related to the Notes was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Contractual interest expense $ 1,453 $ 1,443 $ 2,903 $ 2,884 Amortization of debt issuance costs and discount 380 377 759 754 Total $ 1,833 $ 1,820 $ 3,662 $ 3,638 The net carrying value of the liability component of the Notes was as follows (in thousands): June 30, 2024 (unaudited) Principal $ 230,000 Less: Unamortized issuance costs (1,207) Net carrying amount $ 228,793

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of The Calculation of Basic and Diluted Net Loss Per Share Attributable To Common Stockholders	The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Net loss per share, basic and diluted Numerator: Net loss $ (13,516) $ (32,613) $ (34,103) $ (65,803) Denominator: Weighted-average shares outstanding used in calculating net loss per share, basic and diluted 59,303,791 55,976,870 58,947,653 55,732,211 Net loss per share, basic and diluted $ (0.23) $ (0.58) $ (0.58) $ (1.18)
Schedule of Share Totals With a Potentially Dilutive Impact	The calculation of diluted net loss per share does not include the effect of the following potentially outstanding shares of common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net loss per share when the effect would have been anti-dilutive: As of June 30, 2024 2023 (unaudited) Common stock options 1,081,901 1,416,040 Restricted stock units 4,089,192 4,470,398 Performance-based restricted stock units 525,677 215,363 Shares related to convertible senior notes 7,516,331 7,516,331 Restricted shares — 413,791 Total potentially dilutive securities 13,213,101 14,031,923

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-based Compensation Expense	The following two tables summarize our total stock-based compensation expense by award type and where the stock-based compensation expense was recorded in our condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Restricted stock units $ 8,067 $ 11,837 $ 16,410 $ 22,940 Performance-based restricted stock units 637 408 850 711 Employee stock purchase plan 262 525 562 1,107 Restricted shares — 1,858 1,969 3,695 Options — 1 13 60 Total stock-based compensation $ 8,966 $ 14,629 $ 19,804 $ 28,513 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Cost of revenue $ 1,740 $ 2,476 $ 3,437 $ 4,666 Sales and marketing 2,452 5,458 6,442 10,900 Research and development 1,676 3,077 3,520 5,750 General and administrative 3,098 3,618 6,405 7,197 Total stock-based compensation $ 8,966 $ 14,629 $ 19,804 $ 28,513
Schedule of Information Related to Stock Options	A summary of the share option activity under the 2019 Plan for the six months ended June 30, 2024, is as follows: Time-Based Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value (unaudited) Outstanding at January 1, 2024 1,396,452 $ 11.70 Options exercised (20,764) 6.26 Options cancelled/forfeited (293,787) 9.72 Outstanding at June 30, 2024 1,081,901 $ 11.93 3.5 $ — Vested and expected to vest as of June 30, 2024 1,081,901 $ 11.93 3.5 $ — Vested and exercisable as of June 30, 2024 1,081,901 $ 11.93 3.5 $ —
Schedule of Outstanding RSUs and Related Activity	The following table sets forth the outstanding RSUs and related activity for the six months ended June 30, 2024: Restricted Stock Units Weighted Average Grant Date Fair Value (unaudited) Unvested and outstanding at January 1, 2024 3,111,584 $ 19.16 RSUs granted 2,072,313 8.56 RSUs vested (829,093) 22.30 RSUs forfeited (265,612) 16.59 Unvested and outstanding at June 30, 2024 4,089,192 $ 13.32 The following table sets forth the outstanding PRSUs, including executive PRSUs with market-based tranches, and related activity for the six months ended June 30, 2024: Performance-based Restricted Stock Units Weighted Average Grant Date Fair Value (unaudited) Unvested and outstanding at January 1, 2024 188,533 $ 12.99 PRSUs granted 445,000 9.45 PRSUs vested (42,369) 13.40 PRSUs forfeited (65,487) 12.77 Unvested and outstanding at June 30, 2024 525,677 $ 9.99
Schedule of Fair Value Measurement Inputs and Valuation Techniques	The recurring Level 3 fair value measurements of the contingent consideration liability include the other following significant inputs: Valuation Method Fair Value Market Price of Revenue Risk Revenue Volatility Expected Term (years) Risk-free interest rate (unaudited) Revenue-based earn-out liability Black-Scholes $ 0.9 million 9.1% 20% 1.4 5.2% The fair value of the market-based tranches included in the executive PRSUs were estimated on the date of grants using the Monte Carlo simulation valuation model with the following assumptions for the six months ended June 30, 2024 and 2023: Six Months Ended Six Months Ended (unaudited) Expected volatility 65.5% 61.7% Expected term (in years) 1-3 1-3 Risk-free interest rate 4.33% - 4.91% 4.38% - 5.01% Expected dividends — —
Schedule of Employee Stock Purchase Plan	The fair value of the purchase right for the ESPP option component is estimated on the date of grant using the Black-Scholes model with the following assumptions for the three months ended June 30, 2024 and 2023: Six Months Ended June 30, 2024 2023 (unaudited) Expected volatility 55.5% 99.4% Expected term (in months) 6 6 Risk-free interest rate 5.24% 4.77% Expected dividends — —

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Segment Revenue	Segment revenue and Adjusted Gross Profit for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Revenue Technology $ 47,635 $ 47,324 $ 94,601 $ 94,510 Professional Services 28,267 25,889 56,024 52,571 Total $ 75,902 $ 73,213 $ 150,625 $ 147,081
Schedule of Segment Adjusted Gross Profit	Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Adjusted Gross Profit Technology $ 32,063 $ 32,031 $ 64,223 $ 64,989 Professional Services 5,740 4,392 11,899 9,806 Total reportable segments Adjusted Gross Profit 37,803 36,423 76,122 74,795 Less Adjusted Gross Profit reconciling items: Stock-based compensation (1,740) (2,476) (3,437) (4,666) Acquisition-related costs, net (1) (221) (172) (377) (344) Restructuring costs — — (260) (446) Less other reconciling items: Sales and marketing (12,745) (16,397) (31,803) (34,966) Research and development (13,884) (17,590) (28,755) (34,672) General and administrative (14,363) (23,671) (28,927) (47,504) Depreciation and amortization (10,657) (10,735) (21,182) (21,729) Interest and other income (expense), net 2,361 2,090 4,699 3,883 Loss before income taxes $ (13,446) $ (32,528) $ (33,920) $ (65,649) ____________________ (1) Acquisition-related costs, net include deferred retention expenses attributable to the Carevive, ARMUS, and KPI Ninja acquisitions.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	6 Months Ended
	Jun. 30, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Costs	The following table summarizes our 2023 Restructuring Plan costs by financial statement line item for the six months ended June 30, 2024 (in thousands), of which less than $0.3 million related to the three months ended June 30, 2024. Six Months Ended June 30, 2024 Severance and Other Team Member Costs Impairment Charges (1) Total (unaudited) Cost of revenue, excluding depreciation and amortization: Technology $ 79 $ — $ 79 Professional services 181 — 181 Sales and marketing 449 — 449 Research and development 443 — 443 General and administrative 936 — 936 Total $ 2,088 $ — $ 2,088 2023 Restructuring Plan cumulative charges incurred $ 8,240 $ 615 $ 8,855 ____________________ (1) Consists of impairment of a discontinued internal-use software project as part of the 2023 Restructuring Plan. The following table summarizes our 2022 Restructuring Plan costs by financial statement line item for the six months ended June 30, 2023 (in thousands). We had no restructuring costs for the three months ended June 30, 2023. Six Months Ended June 30, 2023 (unaudited) Severance and Other Team Member Costs Impairment Charges (1) Other (2) Total Cost of revenue, excluding depreciation and amortization: Technology $ 12 $ — $ — $ 12 Professional services 434 — — 434 Sales and marketing 1,190 — 15 1,205 Research and development 286 — — 286 General and administrative 94 — 24 118 Total $ 2,016 $ — $ 39 $ 2,055 2022 Restructuring Plan final, cumulative charges incurred through December 31, 2023 $ 8,071 $ 1,225 $ 1,184 $ 10,480 ____________________ (1) Consists of impairment of a discontinued internal-use software project as part of the 2022 Restructuring Plan. (2) Includes other minor miscellaneous charges associated with the restructuring plan.
Schedule of Restructuring-Related Charges and Related Liability	The following table summarizes our current year restructuring-related activities, including costs incurred, cash payments, and the resulting liability balances (in thousands): Restructuring Liabilities (unaudited) Balance as of December 31, 2023 $ 2,355 Severance and other restructuring costs 1,813 Cash payments (3,157) Balance as of March 31, 2024 $ 1,011 Severance and other restructuring costs 275 Cash payments (941) Balance as of June 30, 2024 $ 345

Description of Business and S_4

Description of Business and Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Property, Plant and Equipment [Line Items]
Number of operating segments | segment			2
Number of reportable segments | segment			2
Unbilled accounts receivable	$ 6,500,000		$ 6,500,000		$ 4,700,000
Deferred revenue	56,400,000		56,400,000		55,800,000
Capitalized contract cost, net, current	$ 2,200,000		$ 2,200,000		2,200,000
Capitalized contract cost, amortization period	12 months		12 months
Capitalized contract cost, net, noncurrent	$ 2,900,000		$ 2,900,000		$ 3,300,000
Estimated period of benefit			4 years
Amortization of deferred contract acquisition costs	600,000	$ 500,000	$ 1,300,000	$ 1,000,000
Impairment losses recorded on deferred contract costs	0	0	0	0
Goodwill impairment	0	0	0	0
Acquisition transaction costs	2,100,000		2,500,000	0
Advertising expense	$ 300,000	$ 1,000,000	$ 3,700,000	$ 1,200,000
Technology and professional services
Property, Plant and Equipment [Line Items]
Allowed termination period			1 year
Subscription contracts, days notice of termination			90 days
Minimum | Technology and professional services
Property, Plant and Equipment [Line Items]
Service contract term			3 years
Maximum | Technology and professional services
Property, Plant and Equipment [Line Items]
Service contract term			5 years
Subscription contract, term			5 years

Description of Business and S_5

Description of Business and Summary of Significant Accounting Policies - Allowance For Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at the beginning of period	$ 6,500	$ 3,800	$ 4,105	$ 2,300
Provision for expected credit losses	1,033	13	3,438	1,527
Less: Write-offs, net of recoveries	(933)	(13)	(943)	(27)
Allowance for credit losses at the end of period	$ 6,600	$ 3,800	$ 6,600	$ 3,800

Description of Business and S_6

Description of Business and Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful Life (Details)	Jun. 30, 2024
Computer equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	2 years
Computer equipment | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	5 years
Computer software | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	2 years
Computer software | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	5 years
Capitalized internal-use software costs | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	2 years
Capitalized internal-use software costs | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	5 years

Description of Business and S_7

Description of Business and Summary of Significant Accounting Policies - Schedule of Intangible Assets Useful Life (Details)	Jun. 30, 2024
Developed technologies | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Developed technologies | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years
Client relationships and contract backlog | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	2 years
Client relationships and contract backlog | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	7 years
Computer software licenses | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year
Computer software licenses | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years
Trademarks | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year
Trademarks | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years

Business Combinations - Narrati

Business Combinations - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended	6 Months Ended
	May 24, 2024	Oct. 02, 2023	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023
Business Acquisition [Line Items]
Acquisition of businesses, net of cash acquired				$ 18,659	$ 0
Carevive Systems, Inc.
Business Acquisition [Line Items]
Consideration	$ 22,100
Acquisition of businesses, net of cash acquired	18,600
Fair value	2,600
Revenue-based earn-out liability	$ 900
Percentage interest acquired	100%
Cash retention payment	$ 1,800		$ 800
Carevive Systems, Inc. | Client relationships
Business Acquisition [Line Items]
Estimated useful life	7 years
Carevive Systems, Inc. | Developed technologies
Business Acquisition [Line Items]
Estimated useful life	4 years
Carevive Systems, Inc. | Trademarks
Business Acquisition [Line Items]
Estimated useful life	3 years
ERS Corporation
Business Acquisition [Line Items]
Acquisition of businesses, net of cash acquired		$ 11,400
Percentage interest acquired		100%
ERS Corporation | Client relationships
Business Acquisition [Line Items]
Estimated useful life		7 years
ERS Corporation | Developed technologies
Business Acquisition [Line Items]
Estimated useful life		4 years
ERS Corporation | Trademarks
Business Acquisition [Line Items]
Estimated useful life		2 years
ERS Corporation | Restricted shares
Business Acquisition [Line Items]
Number of restricted shares issued (in shares)		175,901
Service period (in years)		18 months

Business Combinations - Schedul

Business Combinations - Schedule of Recognized Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2024	May 24, 2024	Dec. 31, 2023	Oct. 02, 2023
Less liabilities assumed:
Goodwill	$ 206,295		$ 190,652
Carevive Systems, Inc.
Assets acquired:
Accounts receivable		$ 96
Prepaid expenses and other assets		64
Total assets acquired		7,960
Less liabilities assumed:
Accrued and other current liabilities		1,389
Deferred revenue		76
Total liabilities assumed		1,465
Total assets acquired, net		6,495
Goodwill		15,643
Total consideration transferred, net of cash acquired		22,138
Carevive Systems, Inc. | Client relationships
Assets acquired:
Intangible assets		2,700
Carevive Systems, Inc. | Developed technology
Assets acquired:
Intangible assets		4,800
Carevive Systems, Inc. | Trademarks
Assets acquired:
Intangible assets		$ 300
ERS Corporation
Assets acquired:
Accounts receivable				$ 478
Prepaid expenses and other assets				73
Total assets acquired				9,051
Less liabilities assumed:
Accrued and other current liabilities				78
Deferred revenue				2,251
Total liabilities assumed				2,329
Total assets acquired, net				6,722
Goodwill				4,670
Total consideration transferred, net of cash acquired				11,392
ERS Corporation | Client relationships
Assets acquired:
Intangible assets				5,300
ERS Corporation | Developed technology
Assets acquired:
Intangible assets				3,100
ERS Corporation | Trademarks
Assets acquired:
Intangible assets				$ 100

Revenue - Schedule of Revenue D

Revenue - Schedule of Revenue Disaggregated by Type of Arrangement (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	[1]	$ 75,902	$ 73,213	$ 150,625	$ 147,081
Recurring technology
Disaggregation of Revenue [Line Items]
Revenue		47,635	47,324	94,601	94,153
One-time technology (i.e., perpetual license)
Disaggregation of Revenue [Line Items]
Revenue		0	0	0	357
Professional services
Disaggregation of Revenue [Line Items]
Revenue	[1]	$ 28,267	$ 25,889	$ 56,024	$ 52,571
[1]Includes amounts attributable to related party transactions. See Note 17 for further details.

Revenue - Narrative (Details)

Revenue - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | UNITED STATES
Disaggregation of Revenue [Line Items]
Revenue related to contracts with customers (percentage)	97.90%	98.40%	97.90%	98.20%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of operating segments			2
Number of reportable segments			2
Amortization of intangible assets | $	$ 7.5	$ 7.5	$ 14.8	$ 15.3

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Goodwill by Reporting Unit (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill [Line Items]
Goodwill	$ 206,295	$ 190,652
Technology
Goodwill [Line Items]
Goodwill	205,513	189,870
Professional Services
Goodwill [Line Items]
Goodwill	$ 782	$ 782

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Cost	$ 215,618	$ 207,493
Accumulated Amortization	(148,855)	(134,109)
Net	66,763	73,384
Developed technologies
Finite-Lived Intangible Assets [Line Items]
Cost	108,729	103,929
Accumulated Amortization	(87,257)	(79,057)
Net	21,472	24,872
Client relationships and contracts
Finite-Lived Intangible Assets [Line Items]
Cost	92,764	90,064
Accumulated Amortization	(50,815)	(45,230)
Net	41,949	44,834
Computer software licenses
Finite-Lived Intangible Assets [Line Items]
Cost	11,005	10,680
Accumulated Amortization	(8,659)	(7,933)
Net	2,346	2,747
Trademarks
Finite-Lived Intangible Assets [Line Items]
Cost	3,120	2,820
Accumulated Amortization	(2,124)	(1,889)
Net	$ 996	$ 931

Property and Equipment - Compon

Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment	$ 58,848	$ 53,069
Less: accumulated depreciation	(33,293)	(27,357)
Property and equipment, net	25,555	25,712
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment	9,649	9,638
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	8,247	8,814
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	3,735	3,735
Capitalized internal-use software costs
Property, Plant and Equipment [Line Items]
Property and equipment	37,106	30,771
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment	$ 111	$ 111

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 3,100	$ 3,200	$ 6,400	$ 6,400
Impairment of long-lived assets			2,200	2,681
Capitalized computer software, additions	3,600	3,200	6,400	6,600
Capitalized computer software, amortization	$ 2,300	$ 2,100	4,700	4,300
Leasehold Improvements And Furniture And Fixtures
Property, Plant and Equipment [Line Items]
Impairment of long-lived assets			$ 700	$ 700

Short-term Investments - Cash E

Short-term Investments - Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 303,159	$ 311,144
Unrealized Gains	0	117
Unrealized Losses	(81)	(30)
Fair Value	303,078	311,231
Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value	196,717	99,779
Short-term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	106,442	211,365
Fair Value	106,361	211,452
Money market funds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	196,717	99,779
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	196,717	99,779
Money market funds | Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value	196,717	99,779
Money market funds | Short-term Investments
Debt Securities, Available-for-sale [Line Items]
Fair Value	0	0
U.S. treasury notes
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	48,435	65,856
Unrealized Gains	0	68
Unrealized Losses	(29)	0
Fair Value	48,406	65,924
U.S. treasury notes | Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value	0	0
U.S. treasury notes | Short-term Investments
Debt Securities, Available-for-sale [Line Items]
Fair Value	48,406	65,924
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	12,917	85,358
Unrealized Gains	0	0
Unrealized Losses	(14)	(18)
Fair Value	12,903	85,340
Commercial paper | Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value	0	0
Commercial paper | Short-term Investments
Debt Securities, Available-for-sale [Line Items]
Fair Value	12,903	85,340
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	45,090	43,746
Unrealized Gains	0	49
Unrealized Losses	(38)	0
Fair Value	45,052	43,795
Corporate bonds | Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value	0	0
Corporate bonds | Short-term Investments
Debt Securities, Available-for-sale [Line Items]
Fair Value	$ 45,052	43,795
U.S. agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		16,405
Unrealized Gains		0
Unrealized Losses		(12)
Fair Value		16,393
U.S. agency securities | Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value		0
U.S. agency securities | Short-term Investments
Debt Securities, Available-for-sale [Line Items]
Fair Value		$ 16,393

Short-term Investments - Short-

Short-term Investments - Short-Term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Amortized Cost
Amortized Cost	$ 303,159	$ 311,144
Fair Value
Fair Value	303,078	311,231
Short-term Investments
Amortized Cost
Amortized cost, due within one year	106,442	211,365
Amortized Cost	106,442	211,365
Fair Value
Fair value, due within one year	106,361	211,452
Fair Value	$ 106,361	$ 211,452

Short-term Investments - Narrat

Short-term Investments - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Interest receivable	$ 1.2	$ 0.9

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	$ 303,078	$ 311,231
Money market funds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	196,717	99,779
U.S. Treasury notes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	48,406	65,924
Commercial paper
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	12,903	85,340
Corporate bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	45,052	43,795
U.S. agency securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value		16,393
Fair Value, Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent consideration liabilities	(894)
Total	302,184	311,231
Fair Value, Recurring | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent consideration liabilities	0
Total	245,123	165,703
Fair Value, Recurring | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent consideration liabilities	0
Total	57,955	145,528
Fair Value, Recurring | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent consideration liabilities	(894)
Total	(894)	0
Fair Value, Recurring | Money market funds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Money market funds	196,717	99,779
Fair Value, Recurring | Money market funds | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Money market funds	196,717	99,779
Fair Value, Recurring | Money market funds | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Money market funds	0	0
Fair Value, Recurring | Money market funds | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Money market funds	0	0
Fair Value, Recurring | U.S. Treasury notes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	48,406	65,924
Fair Value, Recurring | U.S. Treasury notes | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	48,406	65,924
Fair Value, Recurring | U.S. Treasury notes | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	0	0
Fair Value, Recurring | U.S. Treasury notes | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	0	0
Fair Value, Recurring | Commercial paper
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	12,903	85,339
Fair Value, Recurring | Commercial paper | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	0	0
Fair Value, Recurring | Commercial paper | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	12,903	85,339
Fair Value, Recurring | Commercial paper | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	0	0
Fair Value, Recurring | Corporate bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	45,052	43,796
Fair Value, Recurring | Corporate bonds | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	0	0
Fair Value, Recurring | Corporate bonds | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	45,052	43,796
Fair Value, Recurring | Corporate bonds | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value	$ 0	0
Fair Value, Recurring | U.S. agency securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value		16,393
Fair Value, Recurring | U.S. agency securities | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value		0
Fair Value, Recurring | U.S. agency securities | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value		16,393
Fair Value, Recurring | U.S. agency securities | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value		$ 0

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Apr. 14, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amount borrowed				$ 1,000
Impairment of long-lived assets	$ 2,200,000	$ 2,681,000
Carevive Systems, Inc.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent consideration cap	10,000,000
Aggregate intrinsic value of contingent consideration liability	0
Right Of Use Assets Leasehold Improvements And Furniture And Fixtures
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impairment of long-lived assets	2,200,000	$ 2,700,000
Senior Notes Due 2025 | Convertible Notes Payable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amount borrowed	230,000,000		$ 230,000,000	$ 230,000,000
Estimated fair value of convertible senior notes	$ 225,400,000		$ 218,700,000

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Fair Value Measurements of Contingent Consideration Liabilities (Details) - Fair Value, Recurring $ in Thousands	Jun. 30, 2024 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Revenue-based earn-out liability	$ 894
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Revenue-based earn-out liability	894
Level 3 | Black-Scholes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Revenue-based earn-out liability	$ 900
Level 3 | Market Price of Revenue Risk | Black-Scholes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement Input	0.091
Level 3 | Revenue Volatility | Black-Scholes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement Input	0.20
Level 3 | Expected Term (years) | Black-Scholes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement Input	1.4
Level 3 | Risk-free interest rate | Black-Scholes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement Input	0.052

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Schedule of Contingent Consideration (Details) - Contingent Consideration Liability - Level 3 - Fair Value, Recurring $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance as of January 1, 2024	$ 0
Initial contingent consideration liability from Carevive acquisition (see Note 2)	894
Change in fair value of contingent consideration liabilities	0
Balance as of June 30, 2024	$ 894

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued compensation and benefit expenses	$ 8,456	$ 11,680
Restructuring liabilities	345	2,355
Other accrued liabilities	9,247	9,247
Total accrued liabilities	$ 18,048	$ 23,282

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023
Lessee, Lease, Description [Line Items]
Impairment of long-lived assets		$ 2,200	$ 2,681
Right Of Use Assets Leasehold Improvements And Furniture And Fixtures
Lessee, Lease, Description [Line Items]
Impairment of long-lived assets		2,200	2,700
Right Of Use Asset
Lessee, Lease, Description [Line Items]
Impairment of long-lived assets		1,500	2,000
Leasehold Improvements And Furniture And Fixtures
Lessee, Lease, Description [Line Items]
Impairment of long-lived assets		$ 700	$ 700
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	1 year	1 year
Sublease Term	60 months
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	5 years	5 years
Sublease Term	90 months

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease expense	$ 666	$ 777	$ 1,294	$ 1,574
Short-term lease expense	31	25	64	41
Sublease income	(339)	(189)	(654)	(627)
Total	$ 358	$ 613	$ 704	$ 988

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details)			6 Months Ended
	Apr. 14, 2020 USD ($) d $ / shares	Apr. 09, 2020 USD ($)	Jun. 30, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($)	Apr. 08, 2020 $ / instrument
Line of Credit Facility [Line Items]
Amount borrowed	$ 1,000
Share price (in USD per share) | $ / shares			$ 6.39
Cash Flow Hedging | Capped Call | Designated as Hedging Instrument
Line of Credit Facility [Line Items]
Derivative, cost of hedge		$ 21,700,000
Cap price (in USD per share) | $ / instrument					42
Senior Notes Due 2025 | Convertible Notes Payable
Line of Credit Facility [Line Items]
Amount borrowed	$ 230,000,000		$ 230,000,000	$ 230,000,000
Basis rate (in percentage)	2.50%
Proceeds from issuance of debt	$ 222,500,000
Debt instrument, convertible, threshold percentage of stock price trigger	130%
Threshold trading days | d	20
Threshold consecutive trading days | d	30
Redemption price, percentage	100%
Conversion rate			0.03267970
Conversion price (in USD per share) | $ / shares	$ 30.60
Senior Notes Due 2025 | Convertible Notes Payable | Debt Instrument Convertible Sale Price Of Stock Threshold
Line of Credit Facility [Line Items]
Debt instrument, convertible, threshold percentage of stock price trigger	98%
Threshold trading days | d	5

Convertible Senior Notes - Inte

Convertible Senior Notes - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Line of Credit Facility [Line Items]
Amortization of debt issuance costs and discount			$ 759	$ 754
Senior Notes Due 2025 | Convertible Notes Payable
Line of Credit Facility [Line Items]
Contractual interest expense	$ 1,453	$ 1,443	2,903	2,884
Amortization of debt issuance costs and discount	380	377	759	754
Total	$ 1,833	$ 1,820	$ 3,662	$ 3,638

Convertible Senior Notes - Net

Convertible Senior Notes - Net Carrying Value Of the Liability (Details) - Senior Notes Due 2025 - Convertible Notes Payable $ in Thousands	Jun. 30, 2024 USD ($)
Line of Credit Facility [Line Items]
Principal	$ 230,000
Less: Unamortized issuance costs	(1,207)
Net carrying amount	$ 228,793

Stockholders_ Equity (Details)

Stockholders’ Equity (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2024 USD ($) vote $ / shares shares	Mar. 31, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) vote $ / shares shares	Dec. 31, 2023 $ / shares shares
Schedule of the Effects of the Tender Offer Repurchase Price Over the Estimated Fair Value of the Common Stock Redeemed [Line Items]
Preferred stock, shares authorized (in shares)	25,000,000			25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0			0	0
Preferred stock, shares outstanding (in shares)	0			0	0
Common stock, shares authorized (in shares)	500,000,000			500,000,000	500,000,000
Common stock, par value (in USD per share) | $ / shares	$ 0.001			$ 0.001	$ 0.001
Shares outstanding (in shares)	60,075,178			60,075,178	58,530,880
Shares issued (in shares)	60,075,178			60,075,178	58,530,880
Stockholders vote | vote	1			1
Dividends | $				$ 0
Share Repurchase Plan
Schedule of the Effects of the Tender Offer Repurchase Price Over the Estimated Fair Value of the Common Stock Redeemed [Line Items]
Share repurchase plan, authorized amount | $			$ 40,000,000
Repurchase of common stock (in shares)	0
Treasury stock, shares, acquired (in shares)		145,027	709,139
Treasury stock, shares, retired (in shares)		145,027	709,139
Treasury stock, value, acquired, cost method | $		$ 1,800,000	$ 8,400,000
Treasury stock, retired, cost method, amount | $		$ 1,800,000
Treasury stock acquired, average cost per share (in USD per share) | $ / shares		$ 12.45	$ 11.81
Stock repurchase program, remaining authorized repurchase amount | $	$ 29,800,000			$ 29,800,000
Vitalware L L C | Able Health Inc
Schedule of the Effects of the Tender Offer Repurchase Price Over the Estimated Fair Value of the Common Stock Redeemed [Line Items]
Shares outstanding (in shares)	0			0	235,389
Shares issued (in shares)	0			0	235,389

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of the Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net loss	$ (13,516)	$ (32,613)	$ (34,103)	$ (65,803)
Denominator:
Weighted-average shares outstanding used in calculating net loss per share, basic (in shares)	59,303,791	55,976,870	58,947,653	55,732,211
Weighted-average shares outstanding used in calculating net loss per share, diluted (in shares)	59,303,791	55,976,870	58,947,653	55,732,211
Net loss per share, basic (in USD per share)	$ (0.23)	$ (0.58)	$ (0.58)	$ (1.18)
Net loss per share, diluted (in USD per share)	$ (0.23)	$ (0.58)	$ (0.58)	$ (1.18)

Net Loss Per Share - Schedule_2

Net Loss Per Share - Schedule of Share Totals with a Potentially Dilutive Impact (Details)	6 Months Ended
	Jun. 30, 2024 $ / instrument shares	Jun. 30, 2023 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares with a potentially dilutive impact (in shares)	13,213,101	14,031,923
Capped Call | Cash Flow Hedging | Designated as Hedging Instrument
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Cap price (in USD per share) | $ / instrument	42
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares with a potentially dilutive impact (in shares)	1,081,901	1,416,040
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares with a potentially dilutive impact (in shares)	4,089,192	4,470,398
Performance-based restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares with a potentially dilutive impact (in shares)	525,677	215,363
Shares related to convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares with a potentially dilutive impact (in shares)	7,516,331	7,516,331
Restricted shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares with a potentially dilutive impact (in shares)	0	413,791

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	6 Months Ended
	Oct. 02, 2023	Apr. 29, 2022	Feb. 24, 2022	Jul. 31, 2019	Jun. 30, 2024	Jun. 30, 2023	Jan. 01, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)					0	0
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares exercised in period					$ 100
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cliff vesting period					4 years
Granted (in USD per share)					$ 8.56	$ 11.84
Total grant-date fair value of stock options vested					$ 18,500	$ 23,800
Unrecognized stock-based compensation expense related to RSUs					$ 48,500
Nonvested awards, period for recognition					2 years 2 months 12 days
Restricted stock units | Vesting period one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cliff vesting period					1 year
Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in USD per share)					$ 9.45	$ 12.62
Total grant-date fair value of stock options vested					$ 600	$ 4,800
Unrecognized stock-based compensation expense related to RSUs					$ 3,400
Nonvested awards, period for recognition					1 year 8 months 12 days
Measurement period (in years)					3 years
Performance-based restricted stock units | Weighted Average | Measurement Input, Total Shareholder Return
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent					25%
Performance-based restricted stock units | Weighted Average | Revenue Volatility
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent					25%
Performance-based restricted stock units | Weighted Average | Measurement Input, EBITDA Multiple
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent					50%
Performance-based restricted stock units | Vesting period one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent					33.33%
Performance-based restricted stock units | Vesting period two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent					33.33%
Performance-based restricted stock units | Vesting period three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent					33.33%
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)				750,000
Percentage increase of the number of common stock shares (in percentage)				1%
Shares available for grant (in shares)					1,791,984		585,308
Total grant-date fair value of stock options vested					$ 1,400
ESPP share increase in period (in shares)				750,000
Employee stock purchase plan period					6 months
Maximum employee subscription rate					15%
Maximum purchase value during offering period					$ 25,000
Denominator of lowest purchase of a participant (in shares)					2,500
Purchase price of common stock (in percentage)					85%
Share-based payment award, shares issued in period (in shares)					263,482
Share-based payment award, per share weighted average price of shares purchased (in USD per share)					$ 5.43
Restricted shares | KPI Ninja
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent			25%
Number of restricted shares issued (in shares)			356,919
Release of shares, period			6 months
Restricted shares | ARMUS
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares issued (in shares)	175,901	235,330
Release of shares, period	18 months	18 months
Service period (in years)	18 months	18 months
2011 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)					2,756,607
Number of additional shares authorized (in shares)					256,607
Percentage increase of the number of common stock shares (in percentage)					5%
2019 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)					2,500,000		2,926,544
Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)					23,644,211			20,717,667
Shares available for grant (in shares)					4,865,662			3,831,444

Stock-Based Compensation - Effe

Stock-Based Compensation - Effect of Stock-based Compensation Expense on Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8,966	$ 14,629	$ 19,804	$ 28,513
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,740	2,476	3,437	4,666
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,452	5,458	6,442	10,900
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,676	3,077	3,520	5,750
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3,098	3,618	6,405	7,197
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	8,067	11,837	16,410	22,940
Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	637	408	850	711
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	262	525	562	1,107
Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0	1,858	1,969	3,695
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0	$ 1	$ 13	$ 60

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024
Time-Based Option Shares
Outstanding, beginning (in shares)	1,396,452
Options exercised (in shares)	(20,764)
Options cancelled/forfeited (in shares)	(293,787)
Outstanding, ending (in shares)	1,081,901
Vested and expected to vest, outstanding (in shares)	1,081,901
Vested and exercisable (in shares)	1,081,901
Weighted Average Exercise Price
Outstanding, beginning balance (in USD per share)	$ 11.70
Options exercised (in USD per share)	6.26
Options cancelled/forfeited (in USD per share)	9.72
Outstanding, ending balance (in USD per share)	11.93
Vested and expected to vest (in USD per share)	11.93
Vested and exercisable (in USD per share)	$ 11.93
Weighted Average Remaining Contractual Life in Years
Option shares outstanding, weighted average remaining contractual life in years	3 years 6 months
Vested and expected to vest, weighted average remaining contractual life in years	3 years 6 months
Vested and exercisable, weighted average remaining contractual life in years	3 years 6 months
Aggregate Intrinsic Value
Option shares outstanding, aggregate intrinsic value	$ 0
Option shares vested and expected to vest, aggregate intrinsic value	0
Option shares vested and exercisable, aggregate intrinsic value	$ 0

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit and Phantom Share Units (PSUs) Activity (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Restricted stock units
Number of Shares
Unvested and outstanding, beginning balance (in shares)	3,111,584
Granted (in shares)	2,072,313
Vested (in shares)	(829,093)
Forfeited (in shares)	(265,612)
Unvested and outstanding, ending balance (in shares)	4,089,192
Weighted Average Grant Date Fair Value
Unvested and outstanding, beginning balance, grant date fair value (in USD per share)	$ 19.16
Granted (in USD per share)	8.56	$ 11.84
Vested (in USD per share)	22.30
Forfeited (in USD per share)	16.59
Unvested and outstanding, ending balance, grant date fair value (in USD per share)	$ 13.32
Performance-based restricted stock units
Number of Shares
Unvested and outstanding, beginning balance (in shares)	188,533
Granted (in shares)	445,000
Vested (in shares)	(42,369)
Forfeited (in shares)	(65,487)
Unvested and outstanding, ending balance (in shares)	525,677
Weighted Average Grant Date Fair Value
Unvested and outstanding, beginning balance, grant date fair value (in USD per share)	$ 12.99
Granted (in USD per share)	9.45	$ 12.62
Vested (in USD per share)	13.40
Forfeited (in USD per share)	12.77
Unvested and outstanding, ending balance, grant date fair value (in USD per share)	$ 9.99
Expected volatility	65.50%	61.70%
Risk-free interest rate, minimum	4.33%	4.38%
Risk-free interest rate, maximum	4.91%	5.01%
Expected dividends	$ 0	$ 0
Performance-based restricted stock units | Minimum
Weighted Average Grant Date Fair Value
Expected term (in years)	1 year	1 year
Performance-based restricted stock units | Maximum
Weighted Average Grant Date Fair Value
Expected term (in years)	3 years	3 years

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of the Purchase Right for the ESPP Option Assumptions (Details) - Employee stock purchase plan - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	55.50%	99.40%
Expected term (in months)	6 months	6 months
Risk-free interest rate	5.24%	4.77%
Expected dividends	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate (in percentage)	(0.50%)	(0.20%)

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Jun. 15, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Loss Contingencies [Line Items]
Litigation charges		$ 0	$ 9.6	$ 0	$ 21.3
Settled Litigation
Loss Contingencies [Line Items]
Litigation settlement, amount	$ 18.8

Deferred Revenue and Performa_2

Deferred Revenue and Performance Obligations - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Product Information [Line Items]
Percentage of revenue recognized was included in deferred revenue (in percentage)	44%	50%	28%	30%
Revenue remaining performance obligation amount	$ 310.4		$ 310.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Product Information [Line Items]
Remaining performance obligation (in percentage)	65%		65%
Remaining performance obligation, period	24 months		24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Product Information [Line Items]
Remaining performance obligation, period
Technology and professional services
Product Information [Line Items]
Allowed termination period			1 year
Notice required for termination			90 days
Technology and professional services | Minimum
Product Information [Line Items]
Service contract term			3 years
Technology and professional services | Maximum
Product Information [Line Items]
Service contract term			5 years

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
		Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Accounts receivable, net	[1]	$ 54,898	$ 54,898	$ 60,290
Deferred revenue		56,400	56,400	55,800
Related Party
Related Party Transaction [Line Items]
Related party transactions		4,100	8,200
Accounts receivable, net		500	500	1,900
Deferred revenue		$ 500	$ 500	$ 100
[1]Includes amounts attributable to related party transactions. See Note 17 for further details.

Segments - Narrative (Details)

Segments - Narrative (Details)	6 Months Ended
	Jun. 30, 2024 segment
Segment Reporting [Abstract]
Number of operating segments	2
Number of reportable segments	2

Segments - Scheduled of Segment

Segments - Scheduled of Segment Revenue (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	[1]	$ 75,902	$ 73,213	$ 150,625	$ 147,081
Technology
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue		47,635	47,324	94,601	94,510
Professional Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue		$ 28,267	$ 25,889	$ 56,024	$ 52,571
[1]Includes amounts attributable to related party transactions. See Note 17 for further details.

Segments - Schedule of Segment

Segments - Schedule of Segment Adjusted Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Less Adjusted Gross Profit reconciling items:
Stock-based compensation	$ (8,966)	$ (14,629)	$ (19,804)	$ (28,513)
Acquisition-related costs, net	(2,100)		(2,500)	0
Less other reconciling items:
Sales and marketing	(12,745)	(16,397)	(31,803)	(34,966)
Research and development	(13,884)	(17,590)	(28,755)	(34,672)
General and administrative	(14,363)	(23,671)	(28,927)	(47,504)
Depreciation and amortization	(10,657)	(10,735)	(21,182)	(21,729)
Loss before income taxes	(13,446)	(32,528)	(33,920)	(65,649)
Operating Segments
Adjusted Gross Profit
Gross profit	37,803	36,423	76,122	74,795
Operating Segments | Technology
Adjusted Gross Profit
Gross profit	32,063	32,031	64,223	64,989
Operating Segments | Professional Services
Adjusted Gross Profit
Gross profit	5,740	4,392	11,899	9,806
Segment Reconciling Items
Less Adjusted Gross Profit reconciling items:
Stock-based compensation	(1,740)	(2,476)	(3,437)	(4,666)
Acquisition-related costs, net	(221)	(172)	(377)	(344)
Restructuring costs	0	0	(260)	(446)
Less other reconciling items:
Sales and marketing	(12,745)	(16,397)	(31,803)	(34,966)
Research and development	(13,884)	(17,590)	(28,755)	(34,672)
General and administrative	(14,363)	(23,671)	(28,927)	(47,504)
Depreciation and amortization	(10,657)	(10,735)	(21,182)	(21,729)
Interest and other income (expense), net	$ 2,361	$ 2,090	$ 4,699	$ 3,883

Restructuring Costs - Schedule

Restructuring Costs - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs			$ 2,088
2023 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Impairment Charges			0
Total			2,088
2023 Restructuring Plan | Severance And Other Team Member Costs
Restructuring Cost and Reserve [Line Items]
Cumulative severance costs			8,240
Cumulative asset impairment charges			615
Cumulative restructuring costs and asset impairment charges			8,855
Severance and other restructuring costs	$ 275	$ 1,813
Cash payments	(941)	(3,157)
Restructuring Reserve	$ 345	$ 1,011	345		$ 2,355
2023 Restructuring Plan | Technology
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs			79
Impairment Charges			0
Total			79
2023 Restructuring Plan | Professional Services
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs			181
Impairment Charges			0
Total			181
2023 Restructuring Plan | Sales and marketing
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs			449
Impairment Charges			0
Total			449
2023 Restructuring Plan | Research and development
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs			443
Impairment Charges			0
Total			443
2023 Restructuring Plan | General and administrative
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs			936
Impairment Charges			0
Total			$ 936
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs				$ 2,016
Impairment Charges				0
Other				39
Total				2,055
2022 Restructuring Plan | Severance And Other Team Member Costs
Restructuring Cost and Reserve [Line Items]
Cumulative severance costs				8,071
Cumulative asset impairment charges				1,225
Cumulative other restructuring costs				1,184
Cumulative restructuring costs and asset impairment charges				10,480
2022 Restructuring Plan | Technology
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs				12
Impairment Charges				0
Other				0
Total				12
2022 Restructuring Plan | Professional Services
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs				434
Impairment Charges				0
Other				0
Total				434
2022 Restructuring Plan | Sales and marketing
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs				1,190
Impairment Charges				0
Other				15
Total				1,205
2022 Restructuring Plan | Research and development
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs				286
Impairment Charges				0
Other				0
Total				286
2022 Restructuring Plan | General and administrative
Restructuring Cost and Reserve [Line Items]
Severance and Other Team Member Costs				94
Impairment Charges				0
Other				24
Total				$ 118

Restructuring Costs - Schedul_2

Restructuring Costs - Schedule of Restructuring-Related Charges and Related Liability (Details) - 2023 Restructuring Plan - Severance And Other Team Member Costs - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024
Restructuring Reserve [Roll Forward]
Beginning, balance	$ 1,011	$ 2,355
Severance and other restructuring costs	275	1,813
Cash payments	(941)	(3,157)
Ending, balance	$ 345	$ 1,011

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Aug. 01, 2024	Jul. 16, 2024	Apr. 14, 2020
Subsequent Event [Line Items]
Amount borrowed			$ 1,000
Subsequent Event | Lumeon
Subsequent Event [Line Items]
Payments to acquire businesses, gross	$ 37,500,000
Common shares issued in acquisition, at fair value	2,500,000
Subsequent Event | Maximum | Lumeon
Subsequent Event [Line Items]
Revenue-based earn-out liability	$ 25,000,000
Subsequent Event | Line of Credit | Credit Agreement
Subsequent Event [Line Items]
Credit agreement term		5 years
Maximum borrowing capacity		$ 225,000,000
Interest rate		6.50%
Quarterly principal payment percentage		0.25%
Subsequent Event | Line of Credit | Credit Agreement | Minimum
Subsequent Event [Line Items]
Prepayment of premium percentage		1%
Subsequent Event | Line of Credit | Credit Agreement | Maximum
Subsequent Event [Line Items]
Prepayment of premium percentage		3%
Subsequent Event | Line of Credit | Credit Agreement | Term Loan
Subsequent Event [Line Items]
Amount borrowed		$ 125,000,000
Subsequent Event | Line of Credit | Credit Agreement | Delayed Draw Term Loan (DDTL)
Subsequent Event [Line Items]
Amount borrowed		100,000,000
Option to draw		40,000,000
Additional delayed draw facility		$ 60,000,000
Subsequent Event | Line of Credit | Credit Agreement | Delayed Draw Term Loan (DDTL) | Minimum
Subsequent Event [Line Items]
Option to draw, term		6 months
Unutilized commitment percentage		1.50%
Subsequent Event | Line of Credit | Credit Agreement | Delayed Draw Term Loan (DDTL) | Maximum
Subsequent Event [Line Items]
Option to draw, term		18 months
Unutilized commitment percentage		2.50%