Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
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 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Class A Common Stock | |
Entity Address, State or Province | MA | |
Security Exchange Name | NASDAQ | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,591,009 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15,215,087 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 37,123 | $ 41,634 |
Accounts receivable | 24,147 | 17,460 |
Prepaid expenses and other current assets | 1,429 | 1,456 |
Total current assets | 62,699 | 60,550 |
Property and equipment, net | 5,040 | 4,481 |
Other assets | 703 | 715 |
Total assets | 68,442 | 65,746 |
Current liabilities: | ||
Accounts payable | 18,355 | 16,826 |
Accrued expenses and other current liabilities | 3,452 | 3,099 |
Deferred revenue | 1,761 | 1,440 |
Total current liabilities | 23,568 | 21,365 |
Deferred rent, net of current portion | 1,175 | 1,197 |
Total liabilities | 24,743 | 22,562 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | ||
Additional paid-in capital | 149,921 | 143,050 |
Accumulated deficit | (106,248) | (99,892) |
Total stockholders' equity | 43,699 | 43,184 |
Total liabilities and stockholders' equity | 68,442 | 65,746 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 11 | 8 |
Total stockholders' equity | 11 | 8 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 15 | 18 |
Total stockholders' equity | $ 15 | $ 18 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 10,503,870 | 7,528,741 |
Common stock, shares outstanding | 10,503,870 | 7,528,741 |
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 | 15,250,847 | 17,696,414 |
Common stock, shares outstanding | 15,250,847 | 17,696,414 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 55,667 | $ 41,092 | $ 107,900 | $ 81,822 |
Cost and operating expenses: | ||||
Cost of revenue | 3,504 | 2,873 | 7,170 | 5,488 |
Sales and marketing | 45,524 | 34,932 | 90,146 | 69,955 |
Research and development | 4,404 | 3,181 | 9,089 | 5,795 |
General and administrative | 4,481 | 1,733 | 8,307 | 3,446 |
Total cost and operating expenses | 57,913 | 42,719 | 114,712 | 84,684 |
Loss from operations | (2,246) | (1,627) | (6,812) | (2,862) |
Other income (expense): | ||||
Interest income (expense), net | 184 | (103) | 368 | (196) |
Other income | 88 | 88 | ||
Total other income (expense), net | 272 | (103) | 456 | (196) |
Net loss and comprehensive loss | (1,974) | (1,730) | (6,356) | (3,058) |
Accretion of redeemable convertible preferred stock to redemption value | (26,402) | (37,415) | ||
Net loss attributable to common stockholders | $ (1,974) | $ (28,132) | $ (6,356) | $ (40,473) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.08) | $ (3.10) | $ (0.25) | $ (4.55) |
Weighted average common shares outstanding, basic and diluted | 25,578,579 | 9,084,880 | 25,436,889 | 8,897,088 |
Statements of Redeemable Conver
Statements of Redeemable Convertible Preferred Stock and Stockholders Equity (Deficit) - USD ($) $ in Thousands | Total | Series A, B and B-1 Redeemable Convertible Preferred Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2017 | $ (50,544) | $ 9 | $ 766 | $ (51,319) | ||
Beginning balance, shares at Dec. 31, 2017 | 24,000 | 8,670,992 | ||||
Convertible preferred shares, beginning balance at Dec. 31, 2017 | $ 50,937 | |||||
Convertible preferred shares, beginning balance, shares at Dec. 31, 2017 | 1,574,508 | |||||
Accretion of redeemable convertible preferred stock to redemption value | $ 11,013 | |||||
Convertible preferred shares, ending balance at Mar. 31, 2018 | $ 61,950 | |||||
Convertible preferred shares, ending balance, shares at Mar. 31, 2018 | 1,574,508 | |||||
Issuance of common stock upon exercise of stock options | 568 | 568 | ||||
Issuance of common stock upon exercise of stock options, shares | 386,912 | |||||
Stock-based compensation expense | 567 | 567 | ||||
Transfer of Class B common stock to Class A common stock, shares | 140,400 | (140,400) | ||||
Accretion of redeemable convertible preferred stock to redemption value | (11,013) | (1,901) | (9,112) | |||
Net loss | (1,328) | (1,328) | ||||
Ending balance at Mar. 31, 2018 | (61,750) | $ 9 | (61,759) | |||
Ending balance, shares at Mar. 31, 2018 | 164,400 | 8,917,504 | ||||
Beginning balance at Dec. 31, 2017 | (50,544) | $ 9 | 766 | (51,319) | ||
Beginning balance, shares at Dec. 31, 2017 | 24,000 | 8,670,992 | ||||
Convertible preferred shares, beginning balance at Dec. 31, 2017 | $ 50,937 | |||||
Convertible preferred shares, beginning balance, shares at Dec. 31, 2017 | 1,574,508 | |||||
Convertible preferred shares, ending balance at Jun. 30, 2018 | $ 88,352 | |||||
Convertible preferred shares, ending balance, shares at Jun. 30, 2018 | 1,574,508 | |||||
Net loss | (3,058) | |||||
Ending balance at Jun. 30, 2018 | (89,150) | $ 9 | (89,159) | |||
Ending balance, shares at Jun. 30, 2018 | 164,400 | 8,924,440 | ||||
Beginning balance at Dec. 31, 2017 | (50,544) | $ 9 | 766 | (51,319) | ||
Beginning balance, shares at Dec. 31, 2017 | 24,000 | 8,670,992 | ||||
Convertible preferred shares, beginning balance at Dec. 31, 2017 | $ 50,937 | |||||
Convertible preferred shares, beginning balance, shares at Dec. 31, 2017 | 1,574,508 | |||||
Net loss | (13,800) | |||||
Ending balance at Dec. 31, 2018 | 43,184 | $ 8 | $ 18 | 143,050 | (99,892) | |
Ending balance, shares at Dec. 31, 2018 | 7,528,741 | 17,696,414 | ||||
Beginning balance at Mar. 31, 2018 | (61,750) | $ 9 | (61,759) | |||
Beginning balance, shares at Mar. 31, 2018 | 164,400 | 8,917,504 | ||||
Convertible preferred shares, beginning balance at Mar. 31, 2018 | $ 61,950 | |||||
Convertible preferred shares, beginning balance, shares at Mar. 31, 2018 | 1,574,508 | |||||
Accretion of redeemable convertible preferred stock to redemption value | $ 26,402 | |||||
Convertible preferred shares, ending balance at Jun. 30, 2018 | $ 88,352 | |||||
Convertible preferred shares, ending balance, shares at Jun. 30, 2018 | 1,574,508 | |||||
Issuance of common stock upon exercise of stock options | 9 | 9 | ||||
Issuance of common stock upon exercise of stock options, shares | 6,936 | |||||
Stock-based compensation expense | 723 | 723 | ||||
Accretion of redeemable convertible preferred stock to redemption value | (26,402) | (732) | (25,670) | |||
Net loss | (1,730) | (1,730) | ||||
Ending balance at Jun. 30, 2018 | (89,150) | $ 9 | (89,159) | |||
Ending balance, shares at Jun. 30, 2018 | 164,400 | 8,924,440 | ||||
Beginning balance at Dec. 31, 2018 | 43,184 | $ 8 | $ 18 | 143,050 | (99,892) | |
Beginning balance, shares at Dec. 31, 2018 | 7,528,741 | 17,696,414 | ||||
Issuance of common stock upon exercise of stock options | 234 | 234 | ||||
Issuance of common stock upon exercise of stock options, shares | 114,831 | |||||
Vesting of restricted stock units, shares | 99,197 | |||||
Stock-based compensation expense | 2,750 | 2,750 | ||||
Transfer of Class B common stock to Class A common stock | $ 1 | $ (1) | ||||
Transfer of Class B common stock to Class A common stock, shares | 1,032,231 | (1,032,231) | ||||
Net loss | (4,382) | (4,382) | ||||
Ending balance at Mar. 31, 2019 | 41,786 | $ 9 | $ 17 | 146,034 | (104,274) | |
Ending balance, shares at Mar. 31, 2019 | 8,775,000 | 16,664,183 | ||||
Beginning balance at Dec. 31, 2018 | 43,184 | $ 8 | $ 18 | 143,050 | (99,892) | |
Beginning balance, shares at Dec. 31, 2018 | 7,528,741 | 17,696,414 | ||||
Net loss | (6,356) | |||||
Ending balance at Jun. 30, 2019 | 43,699 | $ 11 | $ 15 | 149,921 | (106,248) | |
Ending balance, shares at Jun. 30, 2019 | 10,503,870 | 15,250,847 | ||||
Beginning balance at Mar. 31, 2019 | 41,786 | $ 9 | $ 17 | 146,034 | (104,274) | |
Beginning balance, shares at Mar. 31, 2019 | 8,775,000 | 16,664,183 | ||||
Issuance of common stock upon exercise of stock options | 649 | 649 | ||||
Issuance of common stock upon exercise of stock options, shares | 132,770 | |||||
Vesting of restricted stock units, shares | 182,764 | |||||
Stock-based compensation expense | 3,238 | 3,238 | ||||
Transfer of Class B common stock to Class A common stock | $ 2 | $ (2) | ||||
Transfer of Class B common stock to Class A common stock, shares | 1,413,336 | (1,413,336) | ||||
Net loss | (1,974) | (1,974) | ||||
Ending balance at Jun. 30, 2019 | $ 43,699 | $ 11 | $ 15 | $ 149,921 | $ (106,248) | |
Ending balance, shares at Jun. 30, 2019 | 10,503,870 | 15,250,847 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (6,356) | $ (3,058) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 1,005 | 612 |
Stock-based compensation expense | 5,988 | 1,290 |
Noncash interest expense | 14 | |
Provision for bad debt | 422 | |
Deferred rent | (22) | 325 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,109) | (3,025) |
Prepaid expenses and other current assets | 27 | (1,379) |
Accounts payable | 1,529 | 3,193 |
Accrued expenses and other current liabilities | 353 | 863 |
Deferred revenue | 321 | 166 |
Net cash used in operating activities | (3,842) | (999) |
Cash flows from investing activities: | ||
Acquisition of property and equipment, including costs capitalized for development of internal-use software | (1,552) | (1,395) |
Net cash used in investing activities | (1,552) | (1,395) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 883 | 577 |
Proceeds from borrowings on line of credit | 22,729 | |
Repayments of borrowings on line of credit | (17,746) | |
Repayments of term loan | (2,625) | |
Payments of initial public offering costs | (522) | |
Net cash provided by financing activities | 883 | 2,413 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,511) | 19 |
Cash, cash equivalents and restricted cash at beginning of period | 41,884 | 2,613 |
Cash, cash equivalents and restricted cash at end of period | $ 37,373 | 2,632 |
Supplemental disclosure of noncash investing and financing information: | ||
Purchases of property and equipment included in accounts payable | 104 | |
Deferred initial public offering costs included in accounts payable or accrued expenses | 3,190 | |
Accretion of redeemable convertible preferred stock to redemption value | $ 37,415 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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. 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. On July 2, 2018, the Company completed an initial public offering (“IPO”), in which it issued and sold shares of Class A common stock at a public offering price of $ per share, resulting in net proceeds to the Company of approximately $ million after deducting underwriting discounts and commissions and other offering costs. Additionally, certain of the Company’s stockholders sold shares of Class A common stock at the same public offering price of $18.00 per share. The Company did not receive any proceeds from the sale of shares by its stockholders. Upon closing of the IPO, the Company’s outstanding redeemable convertible preferred stock automatically converted into shares of Class B common stock (see Note 5). The accompanying condensed 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. Since inception, the Company has incurred operating losses, including net losses of $ million for the six months ended June 30, 2019 and $ million for the year ended December 31, 2018. As of June 30, 2019, the Company had an accumulated deficit of $ million. The Company has primarily funded its operations through issuances of shares of redeemable convertible preferred stock and common stock, debt, including a revolving line of credit with Western Alliance Bank, cash flows from operations and proceeds from the Company’s IPO. As of August 8, 2019, the issuance date of the interim 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 interim financial statements, without considering available borrowings under the Company’s revolving line of credit. The Company’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the IPO, subject to specified conditions. The JOBS Act provides that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected not to “opt out” of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company will adopt the new or revised standard at the time private companies adopt the new or revised standard, provided that the Company continues to be an emerging growth company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Financial Information The balance sheet at December , was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying unaudited financial statements as of June , and for the three and six months ended June , and 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 financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December , included in the Company’s Annual Report on Form 10-K for the year ended December , filed with the SEC on April , . 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 June , and results of operations for the three and six months ended June , and and cash flows for the six months ended June , and have been made. The Company’s results of operations for the three and six months ended June , are not necessarily indicative of the results of operations that may be expected for the year ending December , . 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 financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, revenue recognition, the expensing and capitalization of website and software development costs, the valuation of stock-based awards and income taxes. The Company bases its estimates on historical experience, known trends and other market-specific or other 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. Actual results may differ from those estimates or assumptions. 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 receivable. The Company maintains its cash and cash equivalents at two 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. For the three months ended June , , customers represented % and % of total revenue. For the six months ended June , , two customers represented % and % of total revenue. For the three months ended June , , customers represented % and % of total revenue. For the six months ended June , , customers represented %, % and % of total revenue. As of June , , two customers accounted for % and % of the accounts receivable balance. As of December , , two customers accounted for % and % of the accounts receivable balance. 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 of $22.9 million and $22.7 million as of June 30, 2019 and December 31, 2018, respectively, consisting of money market funds, are carried at fair value based on Level 1 inputs. 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. Revenue Recognition The Company derives its revenue by selling consumer referrals to its insurance provider customers, including insurance carriers and agents. On January , , the Company adopted the new revenue standard ASC , discussed below under the heading “Recently Adopted Accounting Pronouncements”, which amended revenue recognition principles and provides a single, comprehensive set of criteria for revenue recognition within and across all industries. The new revenue standard provides a five-step framework whereby revenue is recognized when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of the new revenue standard, 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 collectability 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. The Company recognizes 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. 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. Total revenue is comprised of revenue from the following distribution channels: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Direct channels 93 % 90 % 93 % 88 % Indirect channels 7 % 10 % 7 % 12 % 100 % 100 % 100 % 100 % Total revenue is comprised of revenue from the following insurance verticals (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Automotive $ 49,788 $ 35,509 $ 94,802 $ 71,434 Other 5,879 5,583 13,098 10,388 Total Revenue $ 55,667 $ 41,092 $ 107,900 $ 81,822 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 June 30, 2019, the Company had not Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the accompanying balance sheets. Amounts expected to be recognized as revenue within months of the balance sheet date are classified as current deferred revenue. Deferred revenue was $ million and $ million as of June , and December , , respectively. During the six months ended June , , the Company recognized revenue of $ million that was included in the contract liability balance (deferred revenue) at December , . The Company recognizes 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. Billings during the period are added to the deferred revenue balance to be recognized in future periods. Advertising Expense Advertising expense consists of variable costs that are related to attracting consumers to the Company’s marketplace and generating consumer quote requests, increasing downloads of its social safe-driving mobile app, EverDrive, 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 statements of operations and comprehensive loss. During the three months ended June , and , advertising expense totaled $ . million and $ million, respectively. During the six months ended June , and , advertising expense totaled $ million and $ million, respectively. 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. Management reviews accounts receivable on a periodic basis and reserves for receivables in the Company’s allowance for doubtful accounts on a specific identification basis when they are determined to be uncollectible. After the Company has exhausted all collection efforts, the outstanding receivable is written off against the allowance. The Company had no allowance for doubtful accounts as of June , and December , , as the Company deemed all amounts to be collectible. During the three months ended , the Company reserved for and wrote off a $ million uncollectible account. Recently Adopted Accounting Pronouncements In , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), and has since issued several additional amendments thereto, collectively referred to herein as ASC . ASC outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The new standards require entities to apportion consideration from contracts to performance obligations on a relative standalone selling price basis, based on a five-step model. Under ASC , revenue is recognized when a customer obtains control of a promised good or service and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for the good or service. In addition, ASC provides guidance on accounting for certain revenue related costs including costs associated with obtaining and fulfilling a contract. ASC may be applied using either a full retrospective approach, under which all years included in the financial statements will be presented under the revised guidance, or a modified retrospective approach, under which financial statements will be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities will recognize a cumulative catch-up adjustment to the opening balance of retained earnings at the effective date for contracts that still require performance by the entity at the date of adoption. For public entities, the guidance was effective for annual periods beginning after December , , including interim periods within those fiscal years. For non-public entities and emerging growth companies that choose to take advantage of the extended transition periods, the guidance was effective for annual periods beginning after December , . The Company adopted ASC as of January , using the modified retrospective transition approach. The adoption of this guidance did not have a material impact on the Company’s financial statements. In , the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230) (“ASU 2016-15”), to address diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. For public entities, the standard was effective for annual periods beginning after December , , including interim periods within those fiscal years. For non-public entities and emerging growth companies that choose to take advantage of the extended transition periods, the standard was effective for annual periods beginning after December , . Early adoption was permitted for all entities. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company adopted ASU 2016-15 on January , , in accordance with the non-public company requirements. The adoption of this guidance did not have a material impact on the Company’s financial statements. In , the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. For public entities, ASU 2018-07 was required to be adopted for annual periods beginning after December , , including interim periods within those fiscal years. For non-public entities and emerging growth companies that choose to take advantage of the extended transition periods, ASU 2018-07 is effective for annual periods beginning after December , . Early adoption is permitted for all entities but no earlier than the Company’s adoption of ASU 2014-09. The Company early-adopted ASU 2018-07 on January , and the adoption did not have a material impact on the Company’s financial statements. Recently Issued Accounting Pronouncements In , the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than months regardless of their classification. Leases with a term of months or less will be accounted for similar to existing guidance for operating leases today. For public entities, the guidance was effective for annual reporting periods beginning after December , and for interim periods within those fiscal years. For non-public entities and emerging growth companies that choose to take advantage of the extended transition periods, the guidance is effective for annual reporting periods beginning after December , . Early adoption is permitted. ASU 2016-02 initially required adoption using a modified retrospective approach, under which all years presented in the financial statements would be prepared under the revised guidance. In , the FASB issued ASU No. 2018-11, Leases (Topic 842) , which added an optional transition method under which financial statements may be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities will recognize a cumulative catch-up adjustment to the opening balance of retained earnings in the period of adoption. The Company is planning to adopt ASU 2016-02 on January 1, , in accordance with the non-public company requirements. The Company is currently evaluating the method of adoption and the impact that the adoption of ASU 2016-02 will have on its financial statements. The Company expects that the adoption will result in the recognition of material right-of-use assets and lease liabilities on its balance sheet. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 3. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, Accrued employee compensation and benefits $ 1,599 $ 1,369 Accrued advertising expenses 715 919 Other current liabilities 1,138 811 $ 3,452 $ 3,099 |
Loan and Security Agreement
Loan and Security Agreement | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Loan and Security Agreement | 4. Loan and Security Agreement In March 2018, the Company executed the 2018 Loan and Security Modification Agreement (the “2018 Loan Modification”) which modified the Company’s existing Loan and Security Agreement to provide for a revolving line of credit of $ million which matures in March 2020. Pursuant to the 2018 Loan Modification, borrowings under the revolving line of credit cannot exceed % of eligible accounts receivable balances and bear interest at one-half percent (0.5%) above the greater of 4.25% or the prime rate. Borrowings are collateralized by substantially all of the Company’s assets and property. The terms of the 2018 Loan Modification required that the existing outstanding term loan under the previously outstanding amended Loan and Security Agreement be repaid. Accordingly, on March 27, 2018, the Company used $ million of proceeds from the revolving line of credit to repay all amounts then due on the term loan. Under the 2018 Loan Modification, the Company is subject to specified affirmative and negative covenants until maturity. These covenants include limitations on the Company’s ability to incur additional indebtedness and engage in certain fundamental business transactions, such as mergers or acquisitions. In addition, pursuant to the 2018 Loan Modification, As of June 30, 2019 and December 31, 2018, the Company was in compliance with all covenants related to the revolving line of credit. There can be guarantee that these covenants will be met in the future, and if not met, that waivers will be obtained. As of June 30, 2019 and December 31, 2018, the Company had no amounts outstanding on the revolving line of credit and $ million was available for borrowing. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | 5. Equity Upon closing of the IPO on July 2, 2018, the Company’s authorized shares of common stock were increased to 220,000,000 shares of Class A common stock and 30,000,000 shares of Class B common stock. The Company also authorized 10,000,000 shares of undesignated preferred stock. Each share of on all matters submitted to a vote of the Company’s stockholders at all meetings of stockholders and written actions in lieu of meetings. Each share of on all matters submitted to a vote of the Company’s stockholders at all meetings of stockholders and written actions in lieu of meetings. Holders of both classes of common stock are entitled to receive dividends, when and if declared by the board of directors. 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. Automatic conversion shall occur upon the occurrence of a transfer of such share of Class B common stock or at the date and time, or the occurrence of an event, specified by a vote or written consent of the holders of a majority of the voting power of the then outstanding shares of Class B common stock. A transfer is described as a sale, assignment, transfer, conveyance, hypothecation or disposition of such share or any legal or beneficial interest in such share other than certain permitted transfers as described in the Restated Certificate of Incorporation, including a transfer to a holder of Preferred Stock. Each share of Class B common stock held by a stockholder shall automatically convert into one fully paid and non-assessable share of Class A common stock nine months after the death or incapacity of the holder of such Class B common stock. Acquisitions of treasury stock have been recorded at cost. Treasury stock held was reported as a deduction from stockholders’ deficit. When the treasury stock was retired, the carrying value of the treasury stock was allocated between additional paid-in capital and retained earnings. The portion allocated to additional paid-in capital was limited to the sum of (i) all additional paid-in capital arising from previous retirements and net gains on sales of treasury stock of the same issue and (ii) the pro rata portion of additional paid-in capital and voluntary transfers of retained earnings on the same issue. To date, the Company has not reissued any treasury stock. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation 2008 Stock Incentive Plan The Company’s Stock Incentive Plan, as amended (the “ Plan”), provided for the Company to issue equity awards to employees, consultants, advisors and directors. Upon effectiveness of the Company’s Equity Incentive Plan (the “ Plan” and, together with the Plan, the “Plans”) on June , , the remaining shares that were available for grant under the Plan became available for grant under the Plan and no future grants will be made under the Plan. Additionally, shares underlying awards under the 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) will be available for future grants under the Plan. Shares of common stock issued upon exercise of stock options granted prior to September , 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 , will be issued as Class A common stock. 2018 Equity Incentive Plan The Company’s Plan became effective on June , . The Plan 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 Plan is the sum of shares of Class A common stock, plus the number of shares of Class A common stock (up to shares) equal to the sum of (i) the shares of Class A common stock and Class B common stock that were available for grant under the Plan upon the effectiveness of the Plan and (ii) the number of shares of Class A common stock and Class B common stock subject to outstanding awards under the 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 Plan will automatically increase on the first day of each fiscal year, beginning with the fiscal year ending December , and continuing for each fiscal year until, and including, the fiscal year ending December , , equal to the least of (i) shares of Class A common stock; (ii) % 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 Plan will be added back to the shares of common stock available for issuance under the Plan. The number of authorized shares reserved for issuance under the Plan was increased by shares effective as of January , in accordance with the provisions of the Plan described above. As of June , , shares remain available for future grants under the 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 longer than years from the date of the grant. The exercise price for stock options granted is not less than the fair value of common shares as determined by the board of directors as of the date of grant. Prior to the Company’s IPO, the Company’s board of directors valued the Company’s common stock, taking into consideration its most recently available valuation of common stock performed by third parties as well as additional factors which may have changed since the date of the most recent contemporaneous valuation through the date of grant. Subsequent to the IPO, the fair value of the Company’s Class A common stock is based on quoted market prices. Award Issuances During the six months ended June , , the Company granted service-based RSUs with a weighted average grant date fair value of $ per share. Stock-Based Compensation The Company recorded stock-based compensation expense in the following expense categories of its statements of operations and comprehensive loss (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cost of revenue $ 87 $ 10 $ 87 $ 17 Sales and marketing 891 400 1,685 670 Research and development 979 168 1,853 292 General and administrative 1,281 145 2,363 311 $ 3,238 $ 723 $ 5,988 $ 1,290 As of June 30, 2019, unrecognized compensation expense related to unvested options and RSUs was $38.9 million, which is expected to be recognized over a weighted average period of 4.9 years. The Company also had 86,500 unvested RSUs with an aggregate grant-date fair value of $1.6 million that contain service-based and performance-based vesting conditions for which performance has not been deemed probable and therefore the Company has not yet recorded expense. The performance RSUs vest in three equal annual installments upon the achievement of certain Company-specific goals and continued service in each of the next three years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Leases The Company leases office space in Cambridge, Massachusetts under a non-cancelable operating lease that expires in . In , the Company amended its existing lease agreement to lease additional space, which commenced in and expires in . The Company also leases office space in Woburn, Massachusetts under a non-cancelable operating lease that expires in . Lease incentives, payment escalations and rent holidays specified in the lease agreements are accrued or deferred as appropriate such that rent expense per square foot is recognized on a straight-line basis over the terms of occupancy. As of June , and December , , the Company had a deferred rent liability of $ million. During the three months ended June , and , the Company recorded rent expense of $ million and $ million, respectively. During the six months ended June , and , the Company recorded rent expense of $ million and $ million, respectively. As of June , and December , , the Company maintained security deposits of $ million with the landlords of its leases, which amounts are included in other assets on the Company’s balance sheet. Future minimum lease payments under the operating leases as of June , are as follows (in thousands): Year Ending December 31, 2019 (Remaining six months) $ 1,221 2020 2,573 2021 2,659 2022 2,502 2023 2,534 Thereafter 1,922 $ 13,411 Indemnification Agreements In the normal course of business, the Company may provide indemnification of varying scope and terms to third parties and enter 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 June , and December , , 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 financial statements as of June , and December , . Legal Proceedings On February , , Sean F. Townsend, a purported holder of the Company’s common stock, filed a civil action in the Supreme Court for the State of New York against the Company, the Company’s chief executive officer, chief financial officer, general counsel, the Company’s directors, and the Company’s underwriters for its IPO, captioned Townsend v. EverQuote, Inc. et al. , Index No. - . On February , , Mark Townsend, a second purported holder of the Company’s common stock, filed an identical civil action in the Supreme Court for the State of New York against the same defendants, captioned Townsend v. EverQuote, Inc. et al. , Index No. - . The plaintiffs allege claims for violations of Sections , (a), and of the Securities Act of , on behalf of a purported class of all persons or entities who purchased or otherwise acquired the Company’s common stock pursuant or traceable to the Registration Statement for its IPO. Those claims generally challenge as false or misleading certain of the Company’s disclosures about its quote request volume. The plaintiffs seek, on behalf of themselves and the purported class, damages, costs and expenses of litigation, and rescission, disgorgement, or other equitable relief. The cases were both later assigned to the Commercial Division, and the court consolidated them on May , in a case captioned In re EverQuote Securities Litigation , Index No. - . On June , , the plaintiffs filed a consolidated amended complaint (the “amended complaint”). The amended complaint again asserts claims for violations of Sections , (a) and of the Securities Act of , on behalf of a purported class of all those who purchased the Company’s common stock pursuant and/or traceable to the Registration Statement for the Company’s IPO. Those claims generally challenge as false or misleading certain of the Company’s disclosures about the Company’s quote request volume and the relationship between quote requests and payments from insurance providers; plaintiffs also claim that the Company’s disclosures omitted material information relating to these same topics. The plaintiffs seek, on behalf of themselves and the purported class, damages, costs and expenses of litigation, rescission, and other equitable relief. On August , , the Company filed a motion to dismiss the amended complaint. Plaintiffs’ memorandum in opposition to the Company’s motion to dismiss will be filed on or before September , ; the Company will file a reply memorandum on or before October , . The Company and the individual defendants intend to deny any liability or wrongdoing and to vigorously defend all claims asserted. The Company, from time to time, is subject to legal proceedings and claims that arise in the normal course of its business. In the opinion of management, the amount of ultimate liability with respect to any such actions should not have a material adverse effect on the Company’s results of operations of financial position. As of June , and December , , the Company does not have any contingency reserves established for any litigation liabilities. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 8. Net Loss per Share The Company has two classes of common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. As a result, basic and diluted net loss per share of Class A common stock and Class B common stock are equivalent. Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net loss $ (1,974 ) $ (1,730 ) $ (6,356 ) $ (3,058 ) Accretion of redeemable convertible preferred stock to redemption value — (26,402 ) — (37,415 ) Net loss attributable to common stockholders $ (1,974 ) $ (28,132 ) $ (6,356 ) $ (40,473 ) Denominator: Weighted average common shares outstanding, basic and diluted 25,578,579 9,084,880 25,436,889 8,897,088 Net loss per share attributable to common stockholders, basic and diluted $ (0.08 ) $ (3.10 ) $ (0.25 ) $ (4.55 ) The Company’s potentially dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share attributable to common stockholders. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the three months and six months ended June 30, 2019 and 2018 because including them would have had an anti-dilutive effect: June 30, 2019 2018 Redeemable convertible preferred stock (as converted to common stock) — 12,596,064 Options to purchase common stock 3,305,425 4,092,960 Unvested restricted stock units 3,050,834 2,118,368 6,356,259 18,807,392 |
Retirement Plan
Retirement Plan | 6 Months Ended |
Jun. 30, 2019 | |
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 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
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 and to a lesser extent a small amount of office space. During the three months ended June 30, 2019 and 2018, the Company recorded expense of $1.1 million and $2.1 million, respectively, related to these arrangements. During the three months ended June 30, 2019 and 2018, the Company paid $1.5 million and $2.4 million, respectively, related to these arrangements. During the six months ended June , and , the Company recorded expense of $ million and $ million, respectively, related to these arrangements. During the six months ended June , and , the Company paid $ million and $ million, respectively, related to these arrangements. As of June , and December , , amounts due to related-party affiliates totaled $0.8 million and $1.0 million, respectively, which were included in accounts payable and accrued expenses on the balance sheets. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The balance sheet at December , was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying unaudited financial statements as of June , and for the three and six months ended June , and 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 financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December , included in the Company’s Annual Report on Form 10-K for the year ended December , filed with the SEC on April , . 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 June , and results of operations for the three and six months ended June , and and cash flows for the six months ended June , and have been made. The Company’s results of operations for the three and six months ended June , are not necessarily indicative of the results of operations that may be expected for the year ending December , . 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 financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, revenue recognition, the expensing and capitalization of website and software development costs, the valuation of stock-based awards and income taxes. The Company bases its estimates on historical experience, known trends and other market-specific or other 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. Actual results may differ from those estimates or assumptions. 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 receivable. The Company maintains its cash and cash equivalents at two 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. For the three months ended June , , customers represented % and % of total revenue. For the six months ended June , , two customers represented % and % of total revenue. For the three months ended June , , customers represented % and % of total revenue. For the six months ended June , , customers represented %, % and % of total revenue. As of June , , two customers accounted for % and % of the accounts receivable balance. As of December , , two customers accounted for % and % of the accounts receivable balance. 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: |
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 financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, revenue recognition, the expensing and capitalization of website and software development costs, the valuation of stock-based awards and income taxes. The Company bases its estimates on historical experience, known trends and other market-specific or other 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. Actual results may differ from those estimates or assumptions. |
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 receivable. The Company maintains its cash and cash equivalents at two 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. For the three months ended June 30, 2019, two customers represented 20% and 13% of total revenue. For the six months ended June 30, 2019, two customers represented 20% and 12% of total revenue. For the three months ended June 30, 2018, two customers represented 22% and 10% of total revenue. For the six months ended June 30, 2018, three customers represented 19%, 10% and 10% of total revenue. As of June 30, 2019, two customers accounted for 16% and 11% of the accounts receivable balance. As of December 31, 2018, two customers accounted for 12% and 11% of the accounts receivable balance. |
Fair Value Measurements | • 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 of $22.9 million and $22.7 million as of June 30, 2019 and December 31, 2018, respectively, consisting of money market funds, are carried at fair value based on Level 1 inputs. 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. Revenue Recognition The Company derives its revenue by selling consumer referrals to its insurance provider customers, including insurance carriers and agents. On January , , the Company adopted the new revenue standard ASC , discussed below under the heading “Recently Adopted Accounting Pronouncements”, which amended revenue recognition principles and provides a single, comprehensive set of criteria for revenue recognition within and across all industries. The new revenue standard provides a five-step framework whereby revenue is recognized when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of the new revenue standard, 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 collectability 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. The Company recognizes 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. 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. Total revenue is comprised of revenue from the following distribution channels: |
Revenue Recognition | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Direct channels 93 % 90 % 93 % 88 % Indirect channels 7 % 10 % 7 % 12 % 100 % 100 % 100 % 100 % Total revenue is comprised of revenue from the following insurance verticals (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Automotive $ 49,788 $ 35,509 $ 94,802 $ 71,434 Other 5,879 5,583 13,098 10,388 Total Revenue $ 55,667 $ 41,092 $ 107,900 $ 81,822 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 June 30, 2019, the Company had not Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the accompanying balance sheets. Amounts expected to be recognized as revenue within months of the balance sheet date are classified as current deferred revenue. Deferred revenue was $ million and $ million as of June , and December , , respectively. During the six months ended June , , the Company recognized revenue of $ million that was included in the contract liability balance (deferred revenue) at December , . The Company recognizes 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. Billings during the period are added to the deferred revenue balance to be recognized in future periods. Advertising Expense Advertising expense consists of variable costs that are related to attracting consumers to the Company’s marketplace and generating consumer quote requests, increasing downloads of its social safe-driving mobile app, EverDrive, 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 statements of operations and comprehensive loss. During the three months ended June , and , advertising expense totaled $ . million and $ million, respectively. During the six months ended June , and , advertising expense totaled $ million and $ million, respectively. 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. Management reviews accounts receivable on a periodic basis and reserves for receivables in the Company’s allowance for doubtful accounts on a specific identification basis when they are determined to be uncollectible. After the Company has exhausted all collection efforts, the outstanding receivable is written off against the allowance. The Company had no allowance for doubtful accounts as of June , and December , , as the Company deemed all amounts to be collectible. During the three months ended , the Company reserved for and wrote off a $ million uncollectible account. Recently Adopted Accounting Pronouncements In , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), and has since issued several additional amendments thereto, collectively referred to herein as ASC . ASC outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The new standards require entities to apportion consideration from contracts to performance obligations on a relative standalone selling price basis, based on a five-step model. Under ASC , revenue is recognized when a customer obtains control of a promised good or service and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for the good or service. In addition, ASC provides guidance on accounting for certain revenue related costs including costs associated with obtaining and fulfilling a contract. ASC may be applied using either a full retrospective approach, under which all years included in the financial statements will be presented under the revised guidance, or a modified retrospective approach, under which financial statements will be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities will recognize a cumulative catch-up adjustment to the opening balance of retained earnings at the effective date for contracts that still require performance by the entity at the date of adoption. For public entities, the guidance was effective for annual periods beginning after December , , including interim periods within those fiscal years. For non-public entities and emerging growth companies that choose to take advantage of the extended transition periods, the guidance was effective for annual periods beginning after December , . The Company adopted ASC as of January , using the modified retrospective transition approach. The adoption of this guidance did not have a material impact on the Company’s financial statements. In , the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230) (“ASU 2016-15”), to address diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. For public entities, the standard was effective for annual periods beginning after December , , including interim periods within those fiscal years. For non-public entities and emerging growth companies that choose to take advantage of the extended transition periods, the standard was effective for annual periods beginning after December , . Early adoption was permitted for all entities. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company adopted ASU 2016-15 on January , , in accordance with the non-public company requirements. The adoption of this guidance did not have a material impact on the Company’s financial statements. In , the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. For public entities, ASU 2018-07 was required to be adopted for annual periods beginning after December , , including interim periods within those fiscal years. For non-public entities and emerging growth companies that choose to take advantage of the extended transition periods, ASU 2018-07 is effective for annual periods beginning after December , . Early adoption is permitted for all entities but no earlier than the Company’s adoption of ASU 2014-09. The Company early-adopted ASU 2018-07 on January , and the adoption did not have a material impact on the Company’s financial statements. Recently Issued Accounting Pronouncements In , the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than months regardless of their classification. Leases with a term of months or less will be accounted for similar to existing guidance for operating leases today. For public entities, the guidance was effective for annual reporting periods beginning after December , and for interim periods within those fiscal years. For non-public entities and emerging growth companies that choose to take advantage of the extended transition periods, the guidance is effective for annual reporting periods beginning after December , . Early adoption is permitted. ASU 2016-02 initially required adoption using a modified retrospective approach, under which all years presented in the financial statements would be prepared under the revised guidance. In , the FASB issued ASU No. 2018-11, Leases (Topic 842) , which added an optional transition method under which financial statements may be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities will recognize a cumulative catch-up adjustment to the opening balance of retained earnings in the period of adoption. The Company is planning to adopt ASU 2016-02 on January 1, , in accordance with the non-public company requirements. The Company is currently evaluating the method of adoption and the impact that the adoption of ASU 2016-02 will have on its financial statements. The Company expects that the adoption will result in the recognition of material right-of-use assets and lease liabilities on its balance sheet. |
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, increasing downloads of its social safe-driving mobile app, EverDrive, 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 statements of operations and comprehensive loss. During the three months ended June 30, 2019 and 2018, advertising expense totaled $39.0 million and $28.9 million, respectively. During the six months ended June 30, 2019 and 2018, advertising expense totaled $77.3 million and $58.5 million, respectively. |
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. Management reviews accounts receivable on a periodic basis and reserves for receivables in the Company’s allowance for doubtful accounts on a specific identification basis when they are determined to be uncollectible. After the Company has exhausted all collection efforts, the outstanding receivable is written off against the allowance. The Company had no |
Recently Issued/Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09”), catch-up non-public In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230) 2016-15”), non-public 2016-15 non-public In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting 2018-07”). 2018-07 non-employees 2018-07 non-public 2018-07 2014-09. ASU 2018-07 Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets a right-of-use asset years. For non-public entities and ASU 2016-02 initially issued ASU No. 2018-11, Leases (Topic 842) a cumulative catch-up adjustment to adopt ASU 2016-02 on January 1, the non-public company requirements. of ASU 2016-02 will material right-of-use assets |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Revenue by Distribution Chanel | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Direct channels 93 % 90 % 93 % 88 % Indirect channels 7 % 10 % 7 % 12 % 100 % 100 % 100 % 100 % |
Disaggregation of Revenue | Total revenue is comprised of revenue from the following insurance verticals (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Automotive $ 49,788 $ 35,509 $ 94,802 $ 71,434 Other 5,879 5,583 13,098 10,388 Total Revenue $ 55,667 $ 41,092 $ 107,900 $ 81,822 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, Accrued employee compensation and benefits $ 1,599 $ 1,369 Accrued advertising expenses 715 919 Other current liabilities 1,138 811 $ 3,452 $ 3,099 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-Based Compensation Expense of Statements of Operations and Comprehensive Loss | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cost of revenue $ 87 $ 10 $ 87 $ 17 Sales and marketing 891 400 1,685 670 Research and development 979 168 1,853 292 General and administrative 1,281 145 2,363 311 $ 3,238 $ 723 $ 5,988 $ 1,290 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments under the Operating Leases | Year Ending December 31, 2019 (Remaining six months) $ 1,221 2020 2,573 2021 2,659 2022 2,502 2023 2,534 Thereafter 1,922 $ 13,411 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net loss $ (1,974 ) $ (1,730 ) $ (6,356 ) $ (3,058 ) Accretion of redeemable convertible preferred stock to redemption value — (26,402 ) — (37,415 ) Net loss attributable to common stockholders $ (1,974 ) $ (28,132 ) $ (6,356 ) $ (40,473 ) Denominator: Weighted average common shares outstanding, basic and diluted 25,578,579 9,084,880 25,436,889 8,897,088 Net loss per share attributable to common stockholders, basic and diluted $ (0.08 ) $ (3.10 ) $ (0.25 ) $ (4.55 ) |
Summary of Diluted Net Loss Per Share Attributable to Common Stockholders | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the three months and six months ended June 30, 2019 and 2018 because including them would have had an anti-dilutive effect: June 30, 2019 2018 Redeemable convertible preferred stock (as converted to common stock) — 12,596,064 Options to purchase common stock 3,305,425 4,092,960 Unvested restricted stock units 3,050,834 2,118,368 6,356,259 18,807,392 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 02, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Operating loss | $ (1,974) | $ (4,382) | $ (1,730) | $ (1,328) | $ (6,356) | $ (3,058) | $ (13,800) | |
Accumulated deficit | $ (106,248) | $ (106,248) | $ (99,892) | |||||
Initial Public Offering (IPO) [Member] | Class A Common Stock [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares of common stock issued and sold | 3,125,000 | |||||||
Public offering price, per share | $ 18 | |||||||
Net proceeds from initial public offering | $ 48,600 | |||||||
Sale of stock sold by stockholders shares | 1,562,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($)Customers | Jun. 30, 2018USD ($)Customers | Jun. 30, 2019USD ($)Customers | Jun. 30, 2018USD ($)Customers | Dec. 31, 2018USD ($)Customers | Mar. 31, 2019USD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Capitalized contract cost | $ 0 | |||||
Deferred revenue | $ 1,800,000 | $ 1,800,000 | $ 1,400,000 | |||
Contract with customer, liability, revenue recognized | 1,100,000 | |||||
Advertising expenses | 39,000,000 | $ 28,900,000 | 77,300,000 | $ 58,500,000 | ||
Allowance for doubtful accounts | 0 | 0 | 0 | |||
Write off against reserve | 400,000 | |||||
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cash equivalents | $ 22.9 | $ 22.9 | $ 22.7 | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of major customers | Customers | 2 | 2 | 2 | 3 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customers A [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 20.00% | 22.00% | 20.00% | 19.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customers B [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 13.00% | 10.00% | 12.00% | 10.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customers C [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 10.00% | |||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of major customers | Customers | 2 | 2 | ||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customers A [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 16.00% | 12.00% | ||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customers B [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 11.00% | 11.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Revenue by Distribution Chanel (Detail) - Sales Revenue, Net [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Product Information [Line Items] | ||||
Revenue from Contract with Customer Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Direct channels [Member] | ||||
Product Information [Line Items] | ||||
Revenue from Contract with Customer Percentage | 93.00% | 90.00% | 93.00% | 88.00% |
Indirect channels [Member] | ||||
Product Information [Line Items] | ||||
Revenue from Contract with Customer Percentage | 7.00% | 10.00% | 7.00% | 12.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies-Disaggregation Of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Product Information [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 55,667 | $ 41,092 | $ 107,900 | $ 81,822 |
Automotive [Member] | ||||
Product Information [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 49,788 | 35,509 | 94,802 | 71,434 |
Other [Member] | ||||
Product Information [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 5,879 | $ 5,583 | $ 13,098 | $ 10,388 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 1,599 | $ 1,369 |
Accrued advertising expenses | 715 | 919 |
Other current liabilities | 1,138 | 811 |
Accrued expenses and other current liabilities | $ 3,452 | $ 3,099 |
Loan and Security Agreement - A
Loan and Security Agreement - Additional Information (Detail) - Revolving Credit Facility [Member] - Loan and Security Agreement [Member] - 2018 Loan Modification [Member] - USD ($) | Mar. 27, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | $ 11,000,000 | |||
Credit facility, maturity date | Mar. 31, 2020 | |||
Maximum percentage borrowings of eligible accounts receivable | 80.00% | |||
Debt instrument, interest rate description | bear interest at one-half percent (0.5%) above the greater of 4.25% or the prime rate. | |||
Annual rate of accrued interest | 0.50% | |||
Debt instrument interest rate during period minimum stated percentage | 4.25% | |||
Repayment of term loan | $ 2,300,000 | |||
Debt Instrument, Covenant Description | the Company is required to maintain a financial performance covenant: a minimum asset coverage ratio of 1.5 to 1, calculated as the sum of unrestricted cash and qualified accounts receivable divided by borrowings outstanding under the revolving line of credit. Events which would meet the criteria of a default under the 2018 Loan Modification include failure to make payments when due, insolvency events, failure to comply with covenants or material adverse events with respect to the Company. | |||
Revolving line of credit outstanding amount | $ 0 | $ 0 | ||
Borrowing under revolving line of credit, remaining amount | $ 11,000,000 | $ 11,000,000 |
Equity - Additional Information
Equity - Additional Information (Detail) - shares | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Jul. 02, 2018 | |
Class of Stock [Line Items] | |||
Preferred stock, authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 220,000,000 | 220,000,000 | 220,000,000 |
Common stock, voting right | Class A common stock entitles the holder to one vote for each share | ||
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 30,000,000 | 30,000,000 | 30,000,000 |
Common stock, voting right | Class B common stock entitles the holder to ten votes for each share | ||
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. Automatic conversion shall occur upon the occurrence of a transfer of such share of Class B common stock or at the date and time, or the occurrence of an event, specified by a vote or written consent of the holders of a majority of the voting power of the then outstanding shares of Class B common stock. A transfer is described as a sale, assignment, transfer, conveyance, hypothecation or disposition of such share or any legal or beneficial interest in such share other than certain permitted transfers as described in the Restated Certificate of Incorporation, including a transfer to a holder of Preferred Stock. Each share of Class B common stock held by a stockholder shall automatically convert into one fully paid and non-assessable share of Class A common stock nine months after the death or incapacity of the holder of such Class B common stock. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2019 | Jun. 27, 2018 | Jun. 30, 2019 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options expiration period | 10 years | ||
Restricted Stock Units (RSUs) [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, shares | 1,032,775 | ||
Weighted average grant date fair value, per share | $ 8.90 | ||
Restricted Stock Units (RSUs) [Member] | Performance Based And Service Based [Member] | Non Probable Performance Based And Service Based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested Stock options | 86,500 | ||
Unvested grant-date fair value | $ 1.6 | ||
Share based compensation vesting period | 3 years | ||
Employee Stock Option and Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested options | $ 38.9 | ||
Compensation expense, expected recognition period | 4 years 10 months 24 days | ||
2008 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, common stock available for grant | 583,056 | ||
2018 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, common stock available for grant | 583,056 | ||
Share-based Compensation, common stock available for grant | 1,138,495 | ||
Share-based Compensation, number of additional shares available for issuance | 1,261,257 | ||
2018 Equity Incentive Plan [Member] | Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, common stock available for grant | 2,149,480 | ||
2018 Equity Incentive Plan [Member] | Class A Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, common stock available for grant | 5,028,832 | ||
Shares of common stock available for issuance | 2,500,000 | ||
2018 Equity Incentive Plan [Member] | Class A Common Stock and Class B Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, number of additional shares available from 2008 Stock Incentive Plan | 583,056 | ||
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] | |||
Percentage of shares of common stock available for issuance | 5.00% |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 3,238 | $ 723 | $ 5,988 | $ 1,290 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 87 | 10 | 87 | 17 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 891 | 400 | 1,685 | 670 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 979 | 168 | 1,853 | 292 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,281 | $ 145 | $ 2,363 | $ 311 |
Commitments and Contingencies -
Commitments and Contingencies -Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | |||||
Deferred rent liability | $ 1.2 | $ 1.2 | $ 1.2 | ||
Rent expense | 0.7 | $ 0.5 | 1.2 | $ 1 | |
Security deposits | $ 0.4 | $ 0.4 | $ 0.4 | ||
Cambridge, Massachusetts [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease expiration period | 2024-09 | ||||
Cambridge, Massachusetts [Member] | Additional Space [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease commencement period | 2019-03 | ||||
Operating lease expiration period | 2024-09 | ||||
Woburn Massachusetts [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease expiration period | 2022-01 |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Operating Leases (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 (Remaining six months) | $ 1,221 |
2020 | 2,573 |
2021 | 2,659 |
2022 | 2,502 |
2023 | 2,534 |
Thereafter | 1,922 |
Total | $ 13,411 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Numerator: | |||||||
Net loss | $ (1,974) | $ (4,382) | $ (1,730) | $ (1,328) | $ (6,356) | $ (3,058) | $ (13,800) |
Accretion of redeemable convertible preferred stock to redemption value | (26,402) | (37,415) | |||||
Net loss attributable to common stockholders | $ (1,974) | $ (28,132) | $ (6,356) | $ (40,473) | |||
Denominator: | |||||||
Weighted average common shares outstanding, basic and diluted | 25,578,579 | 9,084,880 | 25,436,889 | 8,897,088 | |||
Net loss per share attributable to common stockholders, basic and diluted | $ (0.08) | $ (3.10) | $ (0.25) | $ (4.55) |
Net Loss Per Share - Summary _2
Net Loss Per Share - Summary of Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 6,356,259 | 18,807,392 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 12,596,064 | |
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 | 3,305,425 | 4,092,960 |
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 | 3,050,834 | 2,118,368 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | ||||
Contribution to defined contribution savings plan | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |||||
Expense from transactions with related party | $ 1.1 | $ 2.1 | $ 2.6 | $ 4.4 | |
Payment to related party | 1.5 | $ 2.4 | 2.9 | $ 5 | |
Due to affiliate | $ 0.8 | $ 0.8 | $ 1 |