Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 08, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EVER | |
Entity Registrant Name | EverQuote, Inc. | |
Entity Central Index Key | 0001640428 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Class A Common Stock, $0.001 Par Value Per Share | |
Entity Address, State or Province | MA | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Entity File Number | 001-38549 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-3101161 | |
Entity Address, Address Line One | 210 Broadway | |
Entity Address, City or Town | Cambridge | |
Entity Address, Postal Zip Code | 02139 | |
City Area Code | 855 | |
Local Phone Number | 522-3444 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,121,059 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,604,278 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 48,620 | $ 37,956 |
Accounts receivable, net | 38,286 | 21,181 |
Commissions receivable, current portion | 3,995 | 4,349 |
Prepaid expenses and other current assets | 4,783 | 5,755 |
Total current assets | 95,684 | 69,241 |
Property and equipment, net | 5,754 | 5,719 |
Goodwill | 21,501 | 21,501 |
Acquired intangible assets, net | 4,652 | 5,188 |
Operating lease right-of-use assets | 1,120 | 1,617 |
Commissions receivable, non-current portion | 6,661 | 7,630 |
Other assets | 29 | 29 |
Total assets | 135,401 | 110,925 |
Current liabilities: | ||
Accounts payable | 33,069 | 17,202 |
Accrued expenses and other current liabilities | 10,646 | 8,784 |
Deferred revenue | 1,870 | 1,872 |
Operating lease liabilities | 1,475 | 2,090 |
Total current liabilities | 47,060 | 29,948 |
Operating lease liabilities, net of current portion | 18 | 70 |
Total liabilities | 47,078 | 30,018 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | ||
Additional paid-in capital | 299,708 | 294,191 |
Accumulated other comprehensive income | 21 | 29 |
Accumulated deficit | (211,441) | (213,348) |
Total stockholders' equity | 88,323 | 80,907 |
Total liabilities and stockholders' equity | 135,401 | 110,925 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 29 | 29 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $ 6 | $ 6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 220,000,000 | 220,000,000 |
Common stock, shares issued | 29,049,361 | 28,574,239 |
Common stock, shares outstanding | 29,049,361 | 28,574,239 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 5,604,278 | 5,604,278 |
Common stock, shares outstanding | 5,604,278 | 5,604,278 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 91,065 | $ 109,220 |
Cost and operating expenses: | ||
Cost of revenue | 5,041 | 5,770 |
Sales and marketing | 70,784 | 90,237 |
Research and development | 6,844 | 7,927 |
General and administrative | 6,630 | 7,830 |
Acquisition-related costs | (113) | |
Total cost and operating expenses | 89,299 | 111,651 |
Income (loss) from operations | 1,766 | (2,431) |
Other income (expense): | ||
Interest income | 386 | 187 |
Other income, net | 41 | 1 |
Total other income, net | 427 | 188 |
Income (loss) before income taxes | 2,193 | (2,243) |
Income tax expense | (286) | (286) |
Net income (loss) | $ 1,907 | $ (2,529) |
Net income (loss) per share: | ||
Basic | $ 0.06 | $ (0.08) |
Diluted | $ 0.05 | $ (0.08) |
Weighted average common shares outstanding: | ||
Basic | 34,387 | 32,892 |
Diluted | 35,608 | 32,892 |
Net Income (Loss) | $ 1,907 | $ (2,529) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (8) | 13 |
Comprehensive income (loss) | $ 1,899 | $ (2,516) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] Class A Common Stock [Member] | Common Stock [Member] Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2022 | $ 107,486 | $ 26 | $ 6 | $ 269,521 | $ (6) | $ (162,061) |
Beginning balance, shares at Dec. 31, 2022 | 26,447,880 | 6,139,774 | ||||
Issuance of common stock upon exercise of stock options | 287 | 287 | ||||
Issuance of common stock upon exercise of stock options, shares | 45,163 | |||||
Net issuance of common stock upon vesting of restricted stock units | (130) | $ 1 | (131) | |||
Net issuance of common stock upon vesting of restricted stock units, shares | 327,943 | |||||
Stock-based compensation expense | 6,509 | 6,509 | ||||
Transfer of Class B common stock to Class A common stock, shares | 535,496 | (535,496) | ||||
Foreign currency translation adjustment | 13 | 13 | ||||
Net Income (Loss) | (2,529) | (2,529) | ||||
Ending balance at Mar. 31, 2023 | 111,636 | $ 27 | $ 6 | 276,186 | 7 | (164,590) |
Ending balance, shares at Mar. 31, 2023 | 27,356,482 | 5,604,278 | ||||
Beginning balance at Dec. 31, 2023 | 80,907 | $ 29 | $ 6 | 294,191 | 29 | (213,348) |
Beginning balance, shares at Dec. 31, 2023 | 28,574,239 | 5,604,278 | ||||
Issuance of common stock upon exercise of stock options | 1,428 | 1,428 | ||||
Issuance of common stock upon exercise of stock options, shares | 179,566 | |||||
Net issuance of common stock upon vesting of restricted stock units | (429) | (429) | ||||
Net issuance of common stock upon vesting of restricted stock units, shares | 295,556 | |||||
Stock-based compensation expense | 4,518 | 4,518 | ||||
Foreign currency translation adjustment | (8) | (8) | ||||
Net Income (Loss) | 1,907 | 1,907 | ||||
Ending balance at Mar. 31, 2024 | $ 88,323 | $ 29 | $ 6 | $ 299,708 | $ 21 | $ (211,441) |
Ending balance, shares at Mar. 31, 2024 | 29,049,361 | 5,604,278 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,907 | $ (2,529) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 1,263 | 1,407 |
Stock-based compensation expense | 4,518 | 6,509 |
Change in fair value of contingent consideration liabilities | (113) | |
Provision for bad debt | 18 | 245 |
Unrealized foreign currency transaction (gains) losses | (4) | 9 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (17,123) | (9,827) |
Prepaid expenses and other current assets | 972 | 1,709 |
Commissions receivable, current and non-current | 1,323 | 595 |
Operating lease right-of-use assets | 497 | 688 |
Other assets | 36 | |
Accounts payable | 15,868 | 4 |
Accrued expenses and other current liabilities | 1,870 | 852 |
Deferred revenue | (2) | 80 |
Operating lease liabilities | (667) | (902) |
Net cash provided by (used in) operating activities | 10,440 | (1,237) |
Cash flows from investing activities: | ||
Acquisition of property and equipment, including costs capitalized for development of internal-use software | (770) | (1,007) |
Net cash used in investing activities | (770) | (1,007) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 1,428 | 287 |
Tax withholding payments related to net share settlement | (429) | (130) |
Net cash provided by financing activities | 999 | 157 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5) | 5 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,664 | (2,082) |
Cash, cash equivalents and restricted cash at beginning of period | 37,956 | 30,835 |
Cash, cash equivalents and restricted cash at end of period | 48,620 | 28,753 |
Supplemental disclosure of non-cash investing information: | ||
Acquisition of property and equipment included in accounts payable and accrued expenses and other current liabilities | $ 25 | $ 67 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 1,907 | $ (2,529) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Rule 10b5-1 Trading Plans The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors for the three months ended March 31, 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1 Plan”), were as follows: Name (Title) Action Taken Type of Trading Arrangement Nature of Trading Duration of Trading Aggregate Number John Shields Board Member ) Adoption March 13, 2024 ) Rule 10b5-1 trading arrangement Sale Until March 6, 2026 , or such earlier date upon which all transactions are completed or expire without execution Up to 16,000 shares Jon Ayotte Chief Accounting Officer ) Adoption March 12, 2024 ) Rule 10b5-1 trading arrangement Sale Until March 12, 2025 , or such earlier date upon which all transactions are completed or expire without execution Up to 8,887 Shares Mira Wilczek Board Member ) Adoption March 15, 2024 ) Rule 10b5-1 trading arrangement Sale Until March 1, 2025 , or such earlier date upon which all transactions are completed or expire without execution Up to 10,000 Shares Julia Brncic General Counsel ) Adoption March 12, 2024 ) Rule 10b5-1 trading arrangement Sale Until March 12, 2025 , or such earlier date upon which all transactions are completed or expire without execution Indeterminable(1) (1) Ms. Brncic's Rule 10b5-1 Trading Plan provides for the sale of an indeterminable number of shares of common stock from the settlement of restricted stock units (“RSUs”). The shares of common stock is unknown as the number will vary based on the extent to which vesting conditions of the RSUs are satisfied, the market price of the Company’s common stock at the time of settlement and the amount of shares that would otherwise be issuable on each settlement date of a covered RSU that are sold or withheld in an amount sufficient to satisfy applicable tax withholding obligations. |
Rule 10b5-1 Trading Arrangement Adoption [Member] | John Shields [Member] | |
Trading Arrangements, by Individual | |
Name | John Shields |
Title | Board Member |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 13, 2024 |
Aggregate Available | 16,000 |
Expiration Date | March 6, 2026 |
Rule 10b5-1 Trading Arrangement Adoption [Member] | Jon Ayotte [Member] | |
Trading Arrangements, by Individual | |
Name | Jon Ayotte |
Title | Chief Accounting Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 12, 2024 |
Aggregate Available | 8,887 |
Expiration Date | March 12, 2025 |
Rule 10b5-1 Trading Arrangement Adoption [Member] | Mira Wilczek [Member] | |
Trading Arrangements, by Individual | |
Name | Mira Wilczek |
Title | Board Member |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Aggregate Available | 10,000 |
Expiration Date | March 1, 2025 |
Rule 10b5-1 Trading Arrangement Adoption [Member] | Julia Brncic [Member] | |
Trading Arrangements, by Individual | |
Name | Julia Brncic |
Title | General Counsel |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 12, 2024 |
Expiration Date | March 12, 2025 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation EverQuote, Inc. (the “Company”) was incorporated in the state of Delaware in 2008. Through its internet websites, the Company operates an online marketplace for consumers shopping for auto, home and renters and life insurance. The Company generates revenue primarily by selling consumer referrals to insurance provider customers, consisting of carriers and agents, and indirect distributors in the United States. The Company also generates revenue from commission fees paid by insurance provider customers for insurance policies it sells to consumers. The Company is subject to a number of risks and uncertainties common to companies in similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, protection of proprietary technology, customer concentration, patent litigation, the need to obtain additional financing to support growth and dependence on third parties and key individuals. The accompanying condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. As of the issuance date of these condensed consolidated financial statements, the Company expects that its cash and cash equivalents will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next 12 months from the issuance date of the condensed consolidated financial statements, without considering borrowing availability under the Company’s revolving line of credit. The Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Financial Information The condensed consolidated balance sheet at December 31, 2023 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 on file with the SEC. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of March 31, 2024 and results of operations for the three months ended March 31, 2024 and 2023 and cash flows for the three months ended March 31, 2024 and 2023 have been made. The Company’s results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2024 or any other period. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition and the valuation of accounts and commissions receivables, the expensing and capitalization of website and software development costs, goodwill and acquired intangible assets, the valuation of contingent consideration liabilities, the valuation of stock-based awards and income taxes. The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, as there are changes in circumstances, facts and experience. Changes in estimates are recorded in periods in which they become known. These estimates may change, as new events occur and additional information is obtained and actual results could differ materially from these estimates. Concentrations of Credit Risk and of Significant Customers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts and commissions receivable. The Company maintains its cash and cash equivalents at accredited financial institutions. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company sells its consumer referrals to insurance provider customers, consisting of carriers and agents, and indirect distributors in the United States and receives commissions from insurance provider customers for insurance policies sold. For the three months ended March 31, 2024 , one customer represented 30 % of total revenue. For the three months ended March 31, 2023 , two customers represented 34 % and 11 %, respectively, of total revenue. As of March 31, 2024 , one customer accounted for 48 % of the total accounts receivable and commissions receivable balance (including current and non-current). As of December 31, 2023, one customer accounted for 42 % of the total accounts and commissions receivable balance (including current and non-current). Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s cash equivalents and contingent consideration liabilities are carried at fair value, determined according to the fair value hierarchy described above (see Note 3). The carrying values of the Company’s accounts receivable, accounts payable and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these assets and liabilities. Commissions receivable are recorded at the estimated constrained lifetime values. Accounts Receivable The Company provides credit to customers in the ordinary course of business and believes its credit policies are prudent and reflect industry practices and business risk. The Company monitors economic conditions to identify facts or circumstances that may indicate that its receivables are at risk of collection. The Company provides an allowance against accounts receivable for estimated losses, if any, that may result from a customer’s inability to pay based on the composition of its accounts receivable, current economic conditions, and historical credit loss activity. Amounts determined to be uncollectible are charged or written-off against the allowance. As of March 31, 2024 and December 31, 2023, the Company’s allowance for credit losses was $ 0.1 million and less than $ 0.1 million, respectively. During the three months ended March 31, 2024 and 2023, the Company wrote off an insignificant amount of uncollectible accounts. Revenue Recognition The Company derives its revenue primarily by selling consumer referrals to its insurance provider customers, including insurance carriers, agents and indirect distributors. The Company also generates revenue from commission fees for the sale of policies, primarily in its automotive insurance vertical, and prior to its exit from health in 2023, in its health insurance vertical. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606 Revenue from Contracts with Customers (“ASC 606”), the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when collectibility of the consideration to which the Company is entitled in exchange for the goods or services it transfers to the customer is determined to be probable. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. Referral Revenue The Company recognizes referral revenue when it satisfies its performance obligations by delivering the referrals to its customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those referrals. Commission Revenue The Company’s commission revenue consists of the estimated constrained lifetime values (the “constrained LTVs”) of commission payments that the Company expects to receive in its automotive insurance vertical, and prior to its exit from health, that it expected to receive in its health insurance vertical, on the sale of insurance policies to consumers and renewals of such policies. Commission revenue is recognized upon satisfaction of the Company’s performance obligation. The Company considers its performance obligation related to commissions for both the initial policy sale and future renewals of the policy to be satisfied upon submission of the policy application. Therefore, a significant portion of the commission revenue the Company records upon satisfaction of its performance obligation is paid by the Company’s insurance provider customer over a multi-year time frame as policyholders renew and pay the insurance provider for their policies. The current portion of commissions receivable consists of estimated commissions on new policies sold and estimated renewal commissions on policies expected to be renewed within one year, while the non-current portion of commissions receivable are commissions for estimated renewals expected to be renewed beyond one year. Commission revenue represented less than 10 % of total revenue in each of the three months ended March 31, 2024 and 2023. Commission revenue from auto insurance carriers consists of constrained LTVs of commission payments the Company expects to receive for selling an insurance policy based on the effective date of the policy. The Company’s estimate of constrained LTVs is based on an analysis of historical commission payment trends for relevant policies to establish an expected lifetime value and incorporates management’s judgment in interpreting those trends to calculate LTVs and to apply constraints to such LTVs. The most significant factor impacting historical trends is average policy duration. The Company applies a constraint to its estimated LTVs to only recognize the amount of variable consideration that it believes is probable that it will be entitled to receive and will not be subject to a significant revenue reversal in the future. To the extent that commission payment trends change or the underlying factors impacting commission payments change, the Company’s estimate of constrained LTVs could be materially impacted. To the extent the Company makes changes to its estimates of constrained LTVs, it recognizes any material impact of the change to commission revenue in the reporting period in which the change is made, including revisions of estimated lifetime commissions either below or in excess of previously estimated constrained LTVs recognized as an adjustment to revenue and the related contract asset. The Company recognizes revenue for new policies by applying the latest estimated constrained LTV for that product. Disaggregated Revenue The Company presents disaggregated revenue from contracts with customers by distribution channel, as the distribution channel impacts the nature and amount of the Company’s revenue, and by vertical market segment. The Company’s direct distribution channel consists of insurance carriers and third-party agents. The Company’s indirect distribution channel consists of insurance aggregators and media networks who purchase referrals with the intent to resell. Revenue generated via the Company’s direct distribution channel is generally higher per referral than revenue generated by the Company’s indirect distribution channels and provides the Company with additional insights and data regarding insurance provider demand and referral performance. Total revenue is comprised of revenue from the following distribution channels: Three Months Ended March 31, 2024 2023 Direct channels 80 % 86 % Indirect channels 20 % 14 % 100 % 100 % Total revenue is comprised of revenue from the following insurance verticals (in thousands): Three Months Ended March 31, 2024 2023 Automotive $ 77,538 $ 89,699 Home and Renters 12,689 9,456 Other 838 10,065 Total Revenue $ 91,065 $ 109,220 The Company has elected to apply the practical expedient in ASC 606 to expense incremental direct costs of obtaining a contract, consisting of sales commissions, as incurred as the expected period of benefit of the sales commissions is one year or less . At March 31, 2024 and December 31, 2023, the Company had not capitalized any costs to obtain any of its contracts. Deferred Revenue Amounts received for referrals prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets. Amounts expected to be recognized as revenue within 12 months of the balance sheet date are classified as current deferred revenue. Deferred revenue was $ 1.9 million as of December 31, 2023. During the three months ended March 31, 2024, the Company recognized revenue of $ 1.2 million that was included in the contract liability balance (deferred revenue) at December 31, 2023. The Company recognizes revenue from deferred revenue by first allocating from the beginning deferred revenue balance to the extent that the beginning deferred revenue balance exceeds the revenue to be recognized. Amounts collected during the period are added to the deferred revenue balance. Commissions Receivable Commissions receivable are contract assets that represent estimated variable consideration for commissions to be received from insurance carriers for performance obligations that have been satisfied. The current portion of commissions receivable are estimated commissions expected to be received within one year, while the non-current portion of commissions receivable are expected to be received beyond one year. The Company assesses impairment for uncollectible consideration when information available indicates it is probable that an asset has been impaired. There were no impairments recorded during the three months ended March 31, 2024 or 2023 . While the Company is exposed to credit losses due to the non-payment by insurance carriers, it considers the risk of this to be remote. Advertising Expense Advertising expense consists of variable costs that are related to attracting consumers to the Company’s marketplace and generating consumer quote requests, including through its verified partner network, and promoting its marketplace to insurance carriers and agents. The Company expenses advertising costs as incurred and such costs are included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2024 and 2023, advertising expense totaled $ 60.2 million and $ 73.6 million, respectively. Recently Adopted Accounting Pronouncements In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820), which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The guidance also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The guidance includes disclosure requirements including the fair value of equity securities subject to contractual sale restrictions included in the balance sheet, the nature and remaining duration of the restriction and circumstances that could cause a lapse in the restriction. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, with early adoption permitted. The amendments in this update are to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. The Company adopted this guidance as of January 1, 2024 , and the adoption did no t have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments The following tables present the Company’s fair value hierarchy for assets that are measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 (in thousands): Fair Value Measurements at March 31, 2024 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 3,251 $ — $ — $ 3,251 Fair Value Measurements at December 31, 2023 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 3,210 $ — $ — $ 3,210 There were no transfers into or out of Level 3 during the three months ended March 31, 2024 or 2023. Money market funds were valued by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. Contingent consideration liabilities are valued by the Company using significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company uses a Monte Carlo simulation model in its estimates of the fair value of the contingent consideration related to the 2021 acquisition of Policy Fuel, LLC and its affiliated entities ("PolicyFuel"). The most significant assumptions and estimates utilized in the model include forecasted revenue (an acquisition specific input) and the market value of the Company’s Class A common stock (an observable input). Other assumptions utilized in the model include equity volatility, revenue volatility and discount rate. The Company assesses these assumptions and estimates on a quarterly basis as additional data impacting the assumptions is obtained. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized as acquisition-related costs within the consolidated statements of operations and comprehensive income (loss). The decrease in fair value of the contingent consideration liabilities of $ 0.1 million during the three months ended March 31, 2023 was primarily due to a change in estimate of forecasted revenue. The fair value of the contingent consideration liabilities was zero at both March 31, 2024 and December 31, 2023. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | 4. Goodwill and Acquired Intangible Assets Goodwill is not amortized, but instead is reviewed for impairment at least annually or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The Company considers its business to be one reporting unit for purposes of performing its goodwill impairment analysis. To date, the Company has had no impairments to goodwill. There were no changes to goodwill for the three months ended March 31, 2024. Acquired intangible assets consisted of the following (in thousands): March 31, 2024 Weighted Average Useful Life Gross Amount Accumulated Carrying Value (in years) Customer relationships 9.0 $ 6,600 $ ( 2,148 ) $ 4,452 Developed technology 3.0 1,700 ( 1,500 ) 200 $ 8,300 $ ( 3,648 ) $ 4,652 December 31, 2023 Weighted Average Useful Life Gross Amount Accumulated Amortization Carrying Value (in years) Customer relationships 9.0 $ 6,600 $ ( 1,748 ) $ 4,852 Developed technology 3.0 1,700 ( 1,364 ) 336 Other identifiable intangible assets 2.0 300 ( 300 ) — $ 8,600 $ ( 3,412 ) $ 5,188 During the three months ended March 31, 2024, the Company updated its estimate of the remaining useful life of customer relationships from 6.6 years to 5 years. Amortization expense will be recognized over the revised remaining useful life. Future amortization expense of the remaining intangible assets as of March 31, 2024 is expected to be as follows (in thousands): Year Ending December 31, 2024 (remaining nine months) $ 1,400 2025 1,126 2026 970 2027 970 2028 186 $ 4,652 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, December 31, 2024 2023 Accrued employee compensation and benefits $ 5,352 $ 5,188 Accrued advertising expenses 3,800 2,285 Other current liabilities 1,494 1,311 $ 10,646 $ 8,784 Accrued employee compensation and benefits included a restructuring liability of $ 0.4 million at December 31, 2023 that was fully paid by March 31, 2024. |
Loan and Security Agreement
Loan and Security Agreement | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Loan and Security Agreement | 6. Loan and Security Agreement The Company has availability to borrow up to $ 25.0 million under its revolving line of credit pursuant to the 2023 Amended Loan Agreement (defined as the Amended and Restated Loan and Security Agreement, dated as of August 7, 2020 between the Company and Western Alliance Bank (the "Lender"), as amended by the Loan and Security Modification Agreement dated as of July 15, 2022, as amended by the Loan and Security Modification Agreement dated as of August 1, 2023, as amended by the Loan and Security Modification Agreement, dated as of August 7, 2023). Pursuant to the 2023 Amended Loan Agreement, borrowings under the revolving line of credit cannot exceed 85 % of eligible accounts receivable balances, bear interest at the greater of 7.0 % or the prime rate as published in The Wall Street Journal and mature on July 15, 2025 . In an event of default, as defined in the 2023 Amended Loan Agreement, and until such event is no longer continuing, the annual interest rate to be charged would be the annual rate otherwise applicable to borrowings under the 2023 Amended Loan Agreement plus 5.00 %. Borrowings are collateralized by substantially all of the Company's assets and property. Under the 2023 Amended Loan Agreement, the Company has agreed to certain affirmative and negative covenants to which it will remain subject until maturity. The covenants include limitations on its ability to incur additional indebtedness and engage in certain fundamental business transactions, such as mergers or acquisitions of other businesses. In addition, under the 2023 Amended Loan Agreement and through the maturity date, the Company is required to maintain a minimum Adjusted Quick Ratio of 1.10 to 1.00 defined as the ratio of (1) the sum of unrestricted cash and cash equivalents held at the Lender plus (y) net accounts receivable reflected on the Company's balance sheet to (2) current liabilities, including all borrowings outstanding under the 2023 Amended Loan Agreement, but excluding the current portion of deferred revenue (in each case determined in accordance with GAAP). At any time the Adjusted Quick Ratio is less than 1.30 to 1.00, the Lender shall have the ability to use the Company's cash receipts to repay outstanding obligations until such time as the Adjusted Quick Ratio is equal to or greater than 1.30 to 1.00 for two consecutive months. As of March 31, 2024 and December 31, 2023, the Company was in compliance with these covenants and had no amounts outstanding under the revolving line of credit. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation 2008 and 2018 Plans The Company has outstanding awards under its 2008 Stock Incentive Plan, as amended (the “2008 Plan”), but is no longer granting awards under this plan. Shares of common stock issued upon exercise of stock options granted prior to September 8, 2017 will be issued as either Class A common stock or Class B common stock. Shares of common stock issued upon exercise of stock options granted after September 8, 2017 will be issued as Class A common stock. The Company’s 2018 Equity Incentive Plan (the “2018 Plan” and, together with the 2008 Plan, the “Plans”) provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards. The number of shares initially reserved for issuance under the 2018 Plan is the sum of 2,149,480 shares of Class A common stock, plus the number of shares (up to 5,028,832 shares) equal to the sum of (i) the 583,056 shares of Class A common stock and Class B common stock that were available for grant under the 2008 Plan upon the effectiveness of the 2018 Plan and (ii) the number of shares of Class A common stock and Class B common stock subject to outstanding awards under the 2008 Plan that expire, terminate or are otherwise surrendered, canceled, forfeited or repurchased by the Company at their original issuance price pursuant to a contractual repurchase right (subject, in the case of incentive stock options, to any limitations of the Internal Revenue Code). The number of shares of Class A common stock that may be issued under the 2018 Plan will automatically increase on the first day of each fiscal year until, and including, the fiscal year ending December 31, 2028, equal to the lowest of (i) 2,500,000 shares of Class A common stock; (ii) 5 % of the sum of the number of shares of Class A common stock and Class B common stock outstanding on the first day of such fiscal year; and (iii) an amount determined by the Company’s board of directors. The shares of common stock underlying any awards that are forfeited, canceled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, repurchased or are otherwise terminated by the Company under the 2018 Plan will be added back to the shares of common stock available for issuance under the 2018 Plan. The number of authorized shares reserved for issuance under the 2018 Plan was increased by 1,708,925 shares effective as of January 1, 2024 in accordance with the provisions of the 2018 Plan described above. As of March 31, 2024, 3,049,855 shares remained available for future grant under the 2018 Plan. Options and restricted stock units (“RSUs”) granted under the Plans vest over periods determined by the board of directors. Options granted under the Plans expire no later than ten years from the date of the grant. The exercise price for stock options granted is not less than the fair value of common shares based on quoted market prices. Certain of the Company’s RSUs are net settled by withholding shares of the Company’s Class A common stock to cover statutory income taxes. During the three months ended March 31, 2024, the Company granted 486,923 service-based RSUs with an aggregate grant date fair value of $ 7.6 million and 327,075 performance-based RSUs with an aggregate grant date fair value of $ 5.1 million under the 2018 Plan. Inducement Grants In connection with the acquisition of PolicyFuel in 2021, the Company granted service- and service- and performance-based RSUs to newly hired employees. The RSUs were approved by the Company’s board of directors and were granted as an inducement material to the new employees entering into employment with the Company in accordance with Nasdaq Rule 5635(c)(4) (the “Inducement Awards”). The Inducement Awards were granted outside of the 2018 Plan. Stock-Based Compensation The Company recorded stock-based compensation expense in the following expense categories of its consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 36 $ 54 Sales and marketing 1,594 2,273 Research and development 1,312 2,374 General and administrative 1,576 1,808 $ 4,518 $ 6,509 As of March 31, 2024, unrecognized compensation expense for RSUs and option awards was $ 26.8 million, which is expected to be recognized over a weighted average period of 2.1 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Leases The Company leases office space under various non-cancelable operating leases. There have been no material changes to the Company’s leases during the three months ended March 31, 2024. For additional information, please read Note 12, Leases, to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. In April 2024, the Company entered into a new lease arrangement for office space in Cambridge, Massachusetts (see Note 12). Indemnification Agreements In the normal course of business, the Company may provide indemnification of varying scope and terms to third parties and enters into commitments and guarantees (“Agreements”) under which it may be required to make payments. The duration of these Agreements varies, and in certain cases, is indefinite. Furthermore, many of these Agreements do not limit the Company’s maximum potential payment exposure. In addition, the Company has entered into indemnification agreements with members of its board of directors and executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Through March 31, 2024, the Company has not incurred any material costs as a result of such indemnifications. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its consolidated financial statements as of March 31, 2024 and December 31, 2023. Legal Proceedings and Other Contingencies The Company is from time to time subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of its business. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on the Company’s consolidated results of operations or financial condition. |
Retirement Plan
Retirement Plan | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Retirement Plan | 9. Retirement Plan The Company has established a defined-contribution plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers all employees who meet defined minimum age and service requirements, and allows participants to defer a portion of their annual compensation on a pre-tax basis. As currently established, the Company is not required to make any contributions to the 401(k) Plan. The Company contributed $ 0.2 million during each of the three months ended March 31, 2024 and 2023 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions The Company has, in the ordinary course of business, entered into arrangements with other companies who have shareholders in common with the Company. Pursuant to these arrangements, related-party affiliates receive payments for providing website visitor referrals. During the three months ended March 31, 2024 and 2023, the Company recorded expense of $ 2.3 million and $ 1.8 million, respectively, related to these arrangements. During the three months ended March 31, 2024 and 2023, the Company paid $ 1.0 million and $ 1.8 million, respectively, related to these arrangements. As of March 31, 2024, and December 31, 2023, amounts due to related-party affiliates totaled $ 1.6 million and $ 0.3 million, respectively, which were included in accounts payable on the condensed consolidated balance sheets. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | 11. Net Income (Loss) per Share Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and unvested restricted stock units. For periods in which the Company reports a net loss, diluted net loss per common share is the same as basic net loss per common share, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The Company has two classes of common stock outstanding: Class A common stock and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one-to-one basis when computing net income (loss) per share. As a result, basic and diluted net income (loss) per share of Class A common stock and Class B common stock are equivalent. A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations are as follows (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Numerator: Net income (loss) $ 1,907 $ ( 2,529 ) Denominator: Weighted average basic common shares outstanding 34,387 32,892 Effect of dilutive securities: Options to purchase common stock 523 — Restricted stock units 698 — Weighted average dilutive common shares outstanding 35,608 32,892 Net income (loss) per share: Basic $ 0.06 $ ( 0.08 ) Diluted $ 0.05 $ ( 0.08 ) The Company excluded the following potential common shares, presented based on weighted average shares outstanding during the periods, from the computation of diluted net income (loss) per share because including them would have had an anti-dilutive effect (in thousands): Three Months Ended March 31, 2024 2023 Options to purchase common stock 419 1,909 Restricted stock units 410 2,560 829 4,469 The tables above do not include shares of Class A common stock issuable upon settlement of contingent consideration for the Company’s 2021 acquisition of PolicyFuel or performance-based awards for which the performance goal had not been met as of period end. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events In April 2024, the Company entered into two agreements to lease office space in Cambridge, Massachusetts through December 2027 for payments totaling $ 3.2 million through 2027. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The condensed consolidated balance sheet at December 31, 2023 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 on file with the SEC. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of March 31, 2024 and results of operations for the three months ended March 31, 2024 and 2023 and cash flows for the three months ended March 31, 2024 and 2023 have been made. The Company’s results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2024 or any other period. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition and the valuation of accounts and commissions receivables, the expensing and capitalization of website and software development costs, goodwill and acquired intangible assets, the valuation of contingent consideration liabilities, the valuation of stock-based awards and income taxes. The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, as there are changes in circumstances, facts and experience. Changes in estimates are recorded in periods in which they become known. These estimates may change, as new events occur and additional information is obtained and actual results could differ materially from these estimates. |
Concentrations of Credit Risk and of Significant Customers | Concentrations of Credit Risk and of Significant Customers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts and commissions receivable. The Company maintains its cash and cash equivalents at accredited financial institutions. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company sells its consumer referrals to insurance provider customers, consisting of carriers and agents, and indirect distributors in the United States and receives commissions from insurance provider customers for insurance policies sold. For the three months ended March 31, 2024 , one customer represented 30 % of total revenue. For the three months ended March 31, 2023 , two customers represented 34 % and 11 %, respectively, of total revenue. As of March 31, 2024 , one customer accounted for 48 % of the total accounts receivable and commissions receivable balance (including current and non-current). As of December 31, 2023, one customer accounted for 42 % of the total accounts and commissions receivable balance (including current and non-current). |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s cash equivalents and contingent consideration liabilities are carried at fair value, determined according to the fair value hierarchy described above (see Note 3). The carrying values of the Company’s accounts receivable, accounts payable and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these assets and liabilities. Commissions receivable are recorded at the estimated constrained lifetime values. |
Accounts Receivable | Accounts Receivable The Company provides credit to customers in the ordinary course of business and believes its credit policies are prudent and reflect industry practices and business risk. The Company monitors economic conditions to identify facts or circumstances that may indicate that its receivables are at risk of collection. The Company provides an allowance against accounts receivable for estimated losses, if any, that may result from a customer’s inability to pay based on the composition of its accounts receivable, current economic conditions, and historical credit loss activity. Amounts determined to be uncollectible are charged or written-off against the allowance. As of March 31, 2024 and December 31, 2023, the Company’s allowance for credit losses was $ 0.1 million and less than $ 0.1 million, respectively. During the three months ended March 31, 2024 and 2023, the Company wrote off an insignificant amount of uncollectible accounts. |
Revenue Recognition | Revenue Recognition The Company derives its revenue primarily by selling consumer referrals to its insurance provider customers, including insurance carriers, agents and indirect distributors. The Company also generates revenue from commission fees for the sale of policies, primarily in its automotive insurance vertical, and prior to its exit from health in 2023, in its health insurance vertical. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606 Revenue from Contracts with Customers (“ASC 606”), the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when collectibility of the consideration to which the Company is entitled in exchange for the goods or services it transfers to the customer is determined to be probable. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. Referral Revenue The Company recognizes referral revenue when it satisfies its performance obligations by delivering the referrals to its customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those referrals. Commission Revenue The Company’s commission revenue consists of the estimated constrained lifetime values (the “constrained LTVs”) of commission payments that the Company expects to receive in its automotive insurance vertical, and prior to its exit from health, that it expected to receive in its health insurance vertical, on the sale of insurance policies to consumers and renewals of such policies. Commission revenue is recognized upon satisfaction of the Company’s performance obligation. The Company considers its performance obligation related to commissions for both the initial policy sale and future renewals of the policy to be satisfied upon submission of the policy application. Therefore, a significant portion of the commission revenue the Company records upon satisfaction of its performance obligation is paid by the Company’s insurance provider customer over a multi-year time frame as policyholders renew and pay the insurance provider for their policies. The current portion of commissions receivable consists of estimated commissions on new policies sold and estimated renewal commissions on policies expected to be renewed within one year, while the non-current portion of commissions receivable are commissions for estimated renewals expected to be renewed beyond one year. Commission revenue represented less than 10 % of total revenue in each of the three months ended March 31, 2024 and 2023. Commission revenue from auto insurance carriers consists of constrained LTVs of commission payments the Company expects to receive for selling an insurance policy based on the effective date of the policy. The Company’s estimate of constrained LTVs is based on an analysis of historical commission payment trends for relevant policies to establish an expected lifetime value and incorporates management’s judgment in interpreting those trends to calculate LTVs and to apply constraints to such LTVs. The most significant factor impacting historical trends is average policy duration. The Company applies a constraint to its estimated LTVs to only recognize the amount of variable consideration that it believes is probable that it will be entitled to receive and will not be subject to a significant revenue reversal in the future. To the extent that commission payment trends change or the underlying factors impacting commission payments change, the Company’s estimate of constrained LTVs could be materially impacted. To the extent the Company makes changes to its estimates of constrained LTVs, it recognizes any material impact of the change to commission revenue in the reporting period in which the change is made, including revisions of estimated lifetime commissions either below or in excess of previously estimated constrained LTVs recognized as an adjustment to revenue and the related contract asset. The Company recognizes revenue for new policies by applying the latest estimated constrained LTV for that product. Disaggregated Revenue The Company presents disaggregated revenue from contracts with customers by distribution channel, as the distribution channel impacts the nature and amount of the Company’s revenue, and by vertical market segment. The Company’s direct distribution channel consists of insurance carriers and third-party agents. The Company’s indirect distribution channel consists of insurance aggregators and media networks who purchase referrals with the intent to resell. Revenue generated via the Company’s direct distribution channel is generally higher per referral than revenue generated by the Company’s indirect distribution channels and provides the Company with additional insights and data regarding insurance provider demand and referral performance. Total revenue is comprised of revenue from the following distribution channels: Three Months Ended March 31, 2024 2023 Direct channels 80 % 86 % Indirect channels 20 % 14 % 100 % 100 % Total revenue is comprised of revenue from the following insurance verticals (in thousands): Three Months Ended March 31, 2024 2023 Automotive $ 77,538 $ 89,699 Home and Renters 12,689 9,456 Other 838 10,065 Total Revenue $ 91,065 $ 109,220 The Company has elected to apply the practical expedient in ASC 606 to expense incremental direct costs of obtaining a contract, consisting of sales commissions, as incurred as the expected period of benefit of the sales commissions is one year or less . At March 31, 2024 and December 31, 2023, the Company had not capitalized any costs to obtain any of its contracts. Deferred Revenue Amounts received for referrals prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets. Amounts expected to be recognized as revenue within 12 months of the balance sheet date are classified as current deferred revenue. Deferred revenue was $ 1.9 million as of December 31, 2023. During the three months ended March 31, 2024, the Company recognized revenue of $ 1.2 million that was included in the contract liability balance (deferred revenue) at December 31, 2023. The Company recognizes revenue from deferred revenue by first allocating from the beginning deferred revenue balance to the extent that the beginning deferred revenue balance exceeds the revenue to be recognized. Amounts collected during the period are added to the deferred revenue balance. |
Commissions Receivable | Commissions Receivable Commissions receivable are contract assets that represent estimated variable consideration for commissions to be received from insurance carriers for performance obligations that have been satisfied. The current portion of commissions receivable are estimated commissions expected to be received within one year, while the non-current portion of commissions receivable are expected to be received beyond one year. The Company assesses impairment for uncollectible consideration when information available indicates it is probable that an asset has been impaired. There were no impairments recorded during the three months ended March 31, 2024 or 2023 . While the Company is exposed to credit losses due to the non-payment by insurance carriers, it considers the risk of this to be remote. |
Advertising Expense | Advertising Expense Advertising expense consists of variable costs that are related to attracting consumers to the Company’s marketplace and generating consumer quote requests, including through its verified partner network, and promoting its marketplace to insurance carriers and agents. The Company expenses advertising costs as incurred and such costs are included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2024 and 2023, advertising expense totaled $ 60.2 million and $ 73.6 million, respectively. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820), which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The guidance also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The guidance includes disclosure requirements including the fair value of equity securities subject to contractual sale restrictions included in the balance sheet, the nature and remaining duration of the restriction and circumstances that could cause a lapse in the restriction. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, with early adoption permitted. The amendments in this update are to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. The Company adopted this guidance as of January 1, 2024 , and the adoption did no t have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | Total revenue is comprised of revenue from the following distribution channels: Three Months Ended March 31, 2024 2023 Direct channels 80 % 86 % Indirect channels 20 % 14 % 100 % 100 % Total revenue is comprised of revenue from the following insurance verticals (in thousands): Three Months Ended March 31, 2024 2023 Automotive $ 77,538 $ 89,699 Home and Renters 12,689 9,456 Other 838 10,065 Total Revenue $ 91,065 $ 109,220 |
Summary of Diluted Net Loss Per Share Attributable to Common Stockholders | The Company excluded the following potential common shares, presented based on weighted average shares outstanding during the periods, from the computation of diluted net income (loss) per share because including them would have had an anti-dilutive effect (in thousands): Three Months Ended March 31, 2024 2023 Options to purchase common stock 419 1,909 Restricted stock units 410 2,560 829 4,469 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Measurements, Recurring and Nonrecurring | The following tables present the Company’s fair value hierarchy for assets that are measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 (in thousands): Fair Value Measurements at March 31, 2024 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 3,251 $ — $ — $ 3,251 Fair Value Measurements at December 31, 2023 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 3,210 $ — $ — $ 3,210 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Intangible Assets | Acquired intangible assets consisted of the following (in thousands): March 31, 2024 Weighted Average Useful Life Gross Amount Accumulated Carrying Value (in years) Customer relationships 9.0 $ 6,600 $ ( 2,148 ) $ 4,452 Developed technology 3.0 1,700 ( 1,500 ) 200 $ 8,300 $ ( 3,648 ) $ 4,652 December 31, 2023 Weighted Average Useful Life Gross Amount Accumulated Amortization Carrying Value (in years) Customer relationships 9.0 $ 6,600 $ ( 1,748 ) $ 4,852 Developed technology 3.0 1,700 ( 1,364 ) 336 Other identifiable intangible assets 2.0 300 ( 300 ) — $ 8,600 $ ( 3,412 ) $ 5,188 During the three months ended March 31, 2024, the Company updated its estimate of the remaining useful life of customer relationships from 6.6 years to 5 years. Amortization expense will be recognized over the revised remaining useful life. |
Summary of Future Amortization Expense of the Intangible Assets | Future amortization expense of the remaining intangible assets as of March 31, 2024 is expected to be as follows (in thousands): Year Ending December 31, 2024 (remaining nine months) $ 1,400 2025 1,126 2026 970 2027 970 2028 186 $ 4,652 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, December 31, 2024 2023 Accrued employee compensation and benefits $ 5,352 $ 5,188 Accrued advertising expenses 3,800 2,285 Other current liabilities 1,494 1,311 $ 10,646 $ 8,784 Accrued employee compensation and benefits included a restructuring liability of $ 0.4 million at December 31, 2023 that was fully paid by March 31, 2024. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense of Statements of Operations and Comprehensive Loss | The Company recorded stock-based compensation expense in the following expense categories of its consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 36 $ 54 Sales and marketing 1,594 2,273 Research and development 1,312 2,374 General and administrative 1,576 1,808 $ 4,518 $ 6,509 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of basic and dilutive net income (loss) per common share | A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations are as follows (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Numerator: Net income (loss) $ 1,907 $ ( 2,529 ) Denominator: Weighted average basic common shares outstanding 34,387 32,892 Effect of dilutive securities: Options to purchase common stock 523 — Restricted stock units 698 — Weighted average dilutive common shares outstanding 35,608 32,892 Net income (loss) per share: Basic $ 0.06 $ ( 0.08 ) Diluted $ 0.05 $ ( 0.08 ) |
Summary of Diluted Net Loss Per Share Attributable to Common Stockholders | The Company excluded the following potential common shares, presented based on weighted average shares outstanding during the periods, from the computation of diluted net income (loss) per share because including them would have had an anti-dilutive effect (in thousands): Three Months Ended March 31, 2024 2023 Options to purchase common stock 419 1,909 Restricted stock units 410 2,560 829 4,469 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) Customers | Mar. 31, 2023 USD ($) Customers | Dec. 31, 2023 USD ($) Customers | |
Significant Accounting Policies [Line Items] | |||
Deferred revenue | $ 1,900 | ||
Contract with customer, liability, revenue recognized | $ 1,200 | ||
Advertising expenses | 60,200 | $ 73,600 | |
Allowance for doubtful accounts | 100 | ||
Asset impairment charges | $ 0 | $ 0 | |
Common stock, conversion features | Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time. | ||
Expected period of benefit of sales commissions, description | one year or less | ||
ASU 2022-03 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2024 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Allowance for doubtful accounts | $ 100 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of major customers | Customers | 1 | 2 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 30% | 34% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 11% | ||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of major customers | Customers | 1 | 1 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer A [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 48% | 42% | |
Commission Fees [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenue percentage | 10% | 10% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Revenue by Distribution Chanel (Detail) - Sales Revenue, Net [Member] | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Product Information [Line Items] | ||
Revenue from Contract with Customer Percentage | 100% | 100% |
Direct channels [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer Percentage | 80% | 86% |
Indirect channels [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer Percentage | 20% | 14% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Disaggregation Of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 91,065 | $ 109,220 |
Automotive [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 77,538 | 89,699 |
Home and Renters [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 12,689 | 9,456 |
Other [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 838 | $ 10,065 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Business consideration, shares issued or issuable | $ 0 | $ 0 |
Fair Value, Recurring [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 3,251 | 3,210 |
Fair Value, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 3,251 | 3,210 |
Fair Value, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 0 | 0 |
Fair Value, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | $ 0 | |
Decrease in fair value of contingent consideration liabilities | $ 113 | ||
Fair value of contingent consideration liabilities | $ 0 | $ 0 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) Units | Dec. 31, 2023 USD ($) | |
Indefinite-Lived Intangible Assets [Line Items] | ||
Impairment loss | $ 0 | |
Number of Reporting Units | Units | 1 | |
Changes to goodwill | $ 0 | |
Gross Amount | 8,300 | $ 8,600 |
Accumulated Amortization | 3,648 | 3,412 |
Carrying Value | $ 4,652 | $ 5,188 |
Customer relationships [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Remaining useful life | 5 years | 6 years 7 months 6 days |
Gross Amount | $ 6,600 | $ 6,600 |
Accumulated Amortization | 2,148 | 1,748 |
Carrying Value | $ 4,452 | $ 4,852 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Summary of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 8,300 | $ 8,600 |
Accumulated Amortization | (3,648) | (3,412) |
Carrying Value | $ 4,652 | $ 5,188 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 9 years | 9 years |
Gross Amount | $ 6,600 | $ 6,600 |
Accumulated Amortization | (2,148) | (1,748) |
Carrying Value | $ 4,452 | $ 4,852 |
Developed Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 3 years | 3 years |
Gross Amount | $ 1,700 | $ 1,700 |
Accumulated Amortization | (1,500) | (1,364) |
Carrying Value | $ 200 | $ 336 |
Other identifiable intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 2 years | |
Gross Amount | $ 300 | |
Accumulated Amortization | $ (300) |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Summary Of Future Amortization Expense Of The Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 (remaining nine months) | $ 1,400 | |
2025 | 1,126 | |
2026 | 970 | |
2027 | 970 | |
2028 | 186 | |
Carrying Value | $ 4,652 | $ 5,188 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 5,352 | $ 5,188 |
Accrued advertising expenses | 3,800 | 2,285 |
Other current liabilities | 1,494 | 1,311 |
Accrued expenses and other current liabilities | $ 10,646 | $ 8,784 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Payables and Accruals [Abstract] | ||
Restructuring liability | $ 0.4 | |
Accrued Employee Compensation and Benefits Included Restructuring Liability | $ 0.4 |
Loan and Security Agreement - A
Loan and Security Agreement - Additional Information (Detail) - 2023 Amended Loan Agreement [Member] - USD ($) | Aug. 07, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | |||
Debt Instrument, Covenant Description | Under the 2023 Amended Loan Agreement, the Company has agreed to certain affirmative and negative covenants to which it will remain subject until maturity. The covenants include limitations on its ability to incur additional indebtedness and engage in certain fundamental business transactions, such as mergers or acquisitions of other businesses. In addition, under the 2023 Amended Loan Agreement and through the maturity date, the Company is required to maintain a minimum Adjusted Quick Ratio of 1.10 to 1.00 defined as the ratio of (1) the sum of unrestricted cash and cash equivalents held at the Lender plus (y) net accounts receivable reflected on the Company's balance sheet to (2) current liabilities, including all borrowings outstanding under the 2023 Amended Loan Agreement, but excluding the current portion of deferred revenue (in each case determined in accordance with GAAP). At any time the Adjusted Quick Ratio is less than 1.30 to 1.00, the Lender shall have the ability to use the Company's cash receipts to repay outstanding obligations until such time as the Adjusted Quick Ratio is equal to or greater than 1.30 to 1.00 for two consecutive months. | ||
In Event of Default [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Increase (Decrease) | 5% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | $ 25,000,000 | ||
Maximum percentage borrowings of eligible accounts receivable | 85% | ||
Debt instrument, interest rate description | bear interest at the greater of 7.0% or the prime rate | ||
Debt Instrument, Maturity Date | Jul. 15, 2025 | ||
Revolving line of credit outstanding amount | $ 0 | $ 0 | |
Revolving Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2024 | Jun. 27, 2018 | Mar. 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to RSUs and option awards | $ 26.8 | ||
Compensation expense, expected recognition period | 2 years 1 month 6 days | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options expiration period | 10 years | ||
2018 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Authorized | 2,149,480 | ||
Number of shares available for grant | 3,049,855 | ||
Share-based Compensation, number of additional shares available for issuance | 1,708,925 | ||
2018 Equity Incentive Plan [Member] | From 2008 Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Authorized | 5,028,832 | ||
2018 Equity Incentive Plan [Member] | Service-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate grant date fair value | $ 7.6 | ||
Options Granted | 486,923 | ||
2018 Equity Incentive Plan [Member] | Performance-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate grant date fair value | $ 5.1 | ||
Options Granted | 327,075 | ||
2018 Equity Incentive Plan [Member] | Class A Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual increase in shares authorized | 2,500,000 | ||
2018 Equity Incentive Plan [Member] | Class A Common Stock and Class B Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual percentage increase in shares authorized | 5% | ||
2018 Equity Incentive Plan [Member] | Class A Common Stock and Class B Common Stock [Member] | From 2008 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Authorized | 583,056 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense of Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 4,518 | $ 6,509 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 36 | 54 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,594 | 2,273 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,312 | 2,374 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 1,576 | $ 1,808 |
Commitments and Contingencies -
Commitments and Contingencies -Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leased Assets [Line Items] | ||
Operating lease right-of-use assets | $ 1,120 | $ 1,617 |
Operating lease liabilities | $ 18 | $ 70 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Contribution to defined contribution savings plan | $ 0.2 | $ 0.2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Payment to related party | $ 1,000 | $ 1,800 | |
Due to affiliate | 33,069 | $ 17,202 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Expense from transactions with related party | 2,300 | $ 1,800 | |
Due to affiliate | $ 1,600 | $ 300 |
Net Income (Loss) per Share (Ad
Net Income (Loss) per Share (Additional Information) (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Common stock, conversion features | Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time. |
Net Income (Loss) per Share - S
Net Income (Loss) per Share - Schedule of basic and dilutive net income (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net Income (Loss) | $ 1,907 | $ (2,529) |
Denominator: | ||
Weighted average basic common shares outstanding (in shares) | 34,387 | 32,892 |
Effect of dilutive securities: | ||
Weighted average dilutive common shares outstanding (in shares) | 35,608 | 32,892 |
Net income (loss) per share: | ||
Basic (USD per share) | $ 0.06 | $ (0.08) |
Diluted (USD per share) | $ 0.05 | $ (0.08) |
Employee Stock Option | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 523 | 0 |
Restricted Stock Units (RSUs) [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 698 | 0 |
Net Income (Loss) per Share -_2
Net Income (Loss) per Share - Summary of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 829 | 4,469 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 419 | 1,909 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 410 | 2,560 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) $ in Millions | 45 Months Ended |
Dec. 31, 2027 USD ($) | |
Forecast [Member] | |
Subsequent Event [Line Items] | |
Office Lease Payment | $ 3.2 |