Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 29, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
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 | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Title of 12(b) Security | Class A Common Stock | ||
Entity Address, State or Province | MA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Public Float | $ 143,200,941 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 16,354,278 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 10,420,181 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 46,054 | $ 41,634 |
Accounts receivable | 32,214 | 17,460 |
Prepaid expenses and other current assets | 7,065 | 1,456 |
Total current assets | 85,333 | 60,550 |
Property and equipment, net | 5,197 | 4,481 |
Other assets | 691 | 715 |
Total assets | 91,221 | 65,746 |
Current liabilities: | ||
Accounts payable | 23,663 | 16,826 |
Accrued expenses and other current liabilities | 13,225 | 3,099 |
Deferred revenue | 1,501 | 1,440 |
Total current liabilities | 38,389 | 21,365 |
Deferred rent, net of current portion | 1,062 | 1,197 |
Total liabilities | 39,451 | 22,562 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | ||
Additional paid-in capital | 158,752 | 143,050 |
Accumulated deficit | (107,009) | (99,892) |
Total stockholders' equity | 51,770 | 43,184 |
Total liabilities and stockholders' equity | 91,221 | 65,746 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 15 | 8 |
Total stockholders' equity | 15 | 8 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 12 | 18 |
Total stockholders' equity | $ 12 | $ 18 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 14,635,834 | 7,528,741 |
Common stock, shares outstanding | 14,635,834 | 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 | 11,802,341 | 17,696,414 |
Common stock, shares outstanding | 11,802,341 | 17,696,414 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 248,811 | $ 163,349 |
Cost and operating expenses: | ||
Cost of revenue | 15,903 | 11,678 |
Sales and marketing | 202,689 | 140,743 |
Research and development | 20,214 | 14,173 |
General and administrative | 16,827 | 10,667 |
Legal settlement | 1,227 | |
Total cost and operating expenses | 256,860 | 177,261 |
Loss from operations | (8,049) | (13,912) |
Other income (expense): | ||
Interest income (expense), net | 669 | 121 |
Other income | 263 | |
Total other income (expense), net | 932 | 121 |
Net loss and comprehensive loss | (7,117) | (13,791) |
Accretion of redeemable convertible preferred stock to redemption value | (37,415) | |
Net loss attributable to common stockholders | $ (7,117) | $ (51,206) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.28) | $ (3.03) |
Weighted average common shares outstanding, basic and diluted | 25,758,649 | 16,922,225 |
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) | $ 50,937 | $ 9 | $ 766 | $ (51,319) | |
Beginning balance, shares at Dec. 31, 2017 | 1,574,508 | 24,000 | 8,670,992 | |||
Accretion of redeemable convertible preferred stock to redemption value | (37,415) | $ 37,415 | (2,633) | (34,782) | ||
Conversion of preferred stock to common stock upon IPO | 88,352 | $ (88,352) | $ 13 | 88,339 | ||
Conversion of preferred stock to common stock upon IPO, shares | (1,574,508) | 12,596,064 | ||||
Transfer of Class B common stock to Class A common stock | $ 4 | $ (4) | ||||
Transfer of Class B common stock to Class A common stock, shares | 4,116,404 | (4,116,404) | ||||
Issuance of common stock upon exercise of stock options | 861 | 861 | ||||
Issuance of common stock upon exercise of stock options, shares | 55,256 | 545,762 | ||||
Issuance of common stock upon vesting of restricted stock units | $ 1 | (1) | ||||
Issuance of common stock upon vesting of restricted stock units, shares | 208,081 | |||||
Stock-based compensation expense | 7,121 | 7,121 | ||||
Issuance of common stock upon IPO | 48,600 | $ 3 | 48,597 | |||
Issuance of common stock upon IPO, shares | 3,125,000 | |||||
Net loss | (13,791) | (13,791) | ||||
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 | ||||
Transfer of Class B common stock to Class A common stock | $ 6 | $ (6) | ||||
Transfer of Class B common stock to Class A common stock, shares | 5,894,073 | (5,894,073) | ||||
Issuance of common stock upon exercise of stock options | $ 2,982 | $ 1 | 2,981 | |||
Issuance of common stock upon exercise of stock options, shares | 645,920 | 645,920 | ||||
Issuance of common stock upon vesting of restricted stock units | ||||||
Issuance of common stock upon vesting of restricted stock units, shares | 567,100 | |||||
Stock-based compensation expense | $ 12,721 | 12,721 | ||||
Net loss | (7,117) | (7,117) | ||||
Ending balance at Dec. 31, 2019 | $ 51,770 | $ 15 | $ 12 | $ 158,752 | $ (107,009) | |
Ending balance, shares at Dec. 31, 2019 | 14,635,834 | 11,802,341 |
Statements of Redeemable Conv_2
Statements of Redeemable Convertible Preferred Stock and Stockholders Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of common stock ,net of issuance costs | $ 3,713 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (7,117) | $ (13,791) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 2,186 | 1,341 |
Loss on disposal of property and equipment | 98 | |
Stock-based compensation expense | 12,721 | 7,121 |
Noncash interest expense | 14 | |
Provision for bad debt | 478 | |
Deferred rent | (135) | 337 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (15,232) | (2,766) |
Prepaid expenses and other current assets | (5,609) | (863) |
Other assets | (1) | |
Accounts payable | 6,837 | 4,932 |
Accrued expenses and other current liabilities | 10,126 | 1,324 |
Deferred revenue | 61 | 454 |
Net cash provided by (used in) operating activities | 4,413 | (1,897) |
Cash flows from investing activities: | ||
Acquisition of property and equipment, including costs capitalized for development of internal-use software | (2,975) | (3,668) |
Net cash used in investing activities | (2,975) | (3,668) |
Cash flows from financing activities: | ||
Proceeds from initial public offering, net of underwriting discounts and commissions | 52,313 | |
Proceeds from exercise of stock options | 2,982 | 861 |
Proceeds from borrowings on line of credit | 22,729 | |
Repayments of borrowings on line of credit | (24,729) | |
Repayments of term loan | (2,625) | |
Payments of initial public offering costs | (3,713) | |
Net cash provided by financing activities | 2,982 | 44,836 |
Net increase in cash, cash equivalents and restricted cash | 4,420 | 39,271 |
Cash, cash equivalents and restricted cash at beginning of period | 41,884 | 2,613 |
Cash, cash equivalents and restricted cash at end of period | $ 46,304 | 41,884 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 214 | |
Supplemental disclosure of noncash investing and financing information: | ||
Conversion of convertible preferred stock to common stock | 88,352 | |
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 | 12 Months Ended |
Dec. 31, 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. Through its internet websites, the Company operates an online marketplace for consumers shopping for auto, home and renters, life, health and commercial insurance. The Company generates revenue by selling consumer referrals to insurance provider customers, consisting of carriers and agents, and indirect distributors in the United States. 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 3,125,000 shares of Class A common stock at a public offering price of $18.00 per share, resulting in net proceeds to the Company of approximately $48.6 million after deducting underwriting discounts and commissions and other offering costs. Additionally, certain of the Company’s stockholders sold 1,562,500 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 6). The accompanying 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 $7.1 million and $13.8 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019, the Company had an accumulated deficit of $107.0 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 the issuance date of these 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 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”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The 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 non-public non-public |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies 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 estimate are recorded in periods in which they become known. Actual results may differ from those estimates or assumptions. Restricted Cash As of December 31, 2019 and 2018, restricted cash consisted of $0.3 million deposited in a separate restricted bank account as a security deposit for the Company’s corporate credit cards. Restricted cash accounts are classified within other assets. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. 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 year ended December 31, 2019, one customer represented 21% of total revenue. For the year ended December 31, 2018, two customers represented 19% and 10% , respectively, , respectiv ely, Deferred Financing Costs The Company capitalizes lender, legal and other third-party fees that are directly associated with obtaining access to capital under credit facilities. Deferred financing costs incurred in connection with obtaining access to capital are recorded in prepaid expenses and other current assets and are amortized over the availability period or term of the credit facility. Deferred financing costs related to a recognized debt liability are recorded as a direct reduction of the carrying amount of the debt liability and amortized to interest expense on an effective interest basis over the repayment term. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset as follows: Estimated Useful Life Computer equipment 3 years Software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is included in loss from operations on the statements of operations and comprehensive loss. Expenditures for repairs and maintenance are charged to expense as incurred. Impairment of Long-Lived Assets Long-lived assets consist primarily of property and equipment. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized in loss from operations when estimated undiscounted future cash flows expected to result from the use of an asset group are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset group over its fair value, determined based on discounted cash flows. The Company did not record any impairment losses on long-lived assets during the years ended December 31, 2019 or 2018. 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 $23.2 million as of December 31, 2019, 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. Classification and Accretion of Redeemable Convertible Preferred Stock The Company classified redeemable convertible preferred stock outside of stockholders’ equity (deficit) because the shares contained certain redemption features that were not solely within the control of the Company. Costs incurred in connection with the issuance of each series of redeemable convertible preferred stock were recorded as a reduction of gross proceeds from issuance. The Company recognized changes in the redemption values of its outstanding redeemable convertible preferred stock immediately as they occurred and adjusted the carrying value of the redeemable convertible preferred stock to equal the redemption value at the end of each reporting period as if the end of each reporting period were the redemption date. Adjustments to the carrying values of the redeemable convertible preferred stock at each reporting date resulted in an increase or decrease to net income (loss) attributable to common stockholders. Segment Information The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company operates an online marketplace for consumers shopping for auto, home and renters, life, health and commercial insurance quotes. All of the Company’s tangible assets are held in the United States. Revenue Recognition The Company derives its revenue by selling consumer referrals to its insurance provider customers, including insurance carriers and agents. On January 1, 2019, the Company adopted the new revenue standard ASC 606, 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: Year Ended December 31, 2019 2018 Direct channels 94 % 90 % Indirect channels 6 % 10 % 100 % 100 % Total revenue is comprised of revenue from the following insurance verticals (in thousands): Year ended December 31, 2019 2018 Automotive $ 212,300 $ 141,187 Other 36,511 22,162 Total Revenue $ 248,811 $ 163,349 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 December 31, 2019, the Company had not capitalized any costs to obtain any of its contracts. 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 12 months of the balance sheet date are classified as current deferred revenue. Deferred revenue was $1.5 million and $1.4 million as of December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, the Company recognized revenue of $1.1 million that was included in the contract liability balance (deferred revenue) at December 31, 2018. 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. Research and Development Research and development expenses consist primarily of personnel-related expenses (wages, fringe benefit costs and stock-based compensation expense) for product management and software development. Research and development costs are expensed as incurred, except for certain costs which are capitalized in connection with the development of the Company’s website and internal-use Costs incurred in the preliminary and post-implementation stages of development are expensed as incurred. Once an application has reached the development stage, internal costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. The Company also capitalizes costs related to specific upgrades and enhancements of its website and internal-use Advertising Expense Advertising expense consists of variable costs that are related to attracting consumers to the Company’s marketplace and generating consumer quote requests, promo tin g its marketplace to insur ance carriers and agents, and . In , t he Company announced that it would During the years ended December 31, 2019 and 2018, advertising expense totaled $175.5 million and $117.3 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 December 31, 2019 and 2018, as the Company deemed all amounts to be collectible. During the year ended December 31, 2019, the Company wrote off $0.5 million of uncollectible accounts. Stock-Based Compensation The Company measures stock options with service-based vesting or performance-based vesting granted to employees, non-employees Black-Scholes option-pricing straight-line service-based graded-vesting service-based performance-based Prior to the adoption of ASU 2018-07 non-employees non-employees. The Company classifies stock-based compensation expense in its statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. Comprehensive Loss Comprehensive loss includes net loss as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders. For the years ended December 31, 2019 and 2018, there was no difference between net loss and comprehensive loss. Net Income (Loss) per Share Prior to the closing of its IPO, the Company followed the two-class two-class two-class Subsequent to the closing of its IPO, basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and unvested restricted stock units. For periods in which the Company reported a net loss, diluted net loss per common share is the same as basic net loss per common share, since dilutive common shares are not assumed to have been issued if their affect is anti-dilutive. The Company has two classes of common stock outstanding: Class A common stock and Class B common stock. As more fully described in Note 7, the rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one-to-one Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in the Company’s tax returns. Deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The Company accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step more-likely-than-not Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), and cumulative catch-up adjustment For non-public entities In August 2016, 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 For non-public entities ASU 2016-15 on the non-public company In June 2018, 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 to non-employees by ASU 2018-07 was For non-public entities ASU 2018-07 is ASU 2014-09. The early-adopted ASU 2018-07 on Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out record a right-of-use asset and fiscal years. For non-public entities permitted. ASU 2016-02 initially required FASB issued ASU No. 2018-11, Leases (Topic 842) recognize a cumulative catch-up adjustment to the 2019-10, non-public No. 2016-02 of material right-of-use assets and In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) For non-public entities No. 2019-10, non-public In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. internal-use For non-public entities |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 3. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): December 31, 2019 2018 Computer equipment $ 1,940 $ 2,459 Software 8,829 6,419 Furniture and fixtures 1,032 1,053 Leasehold improvements 850 818 12,651 10,749 Less: Accumulated depreciation and amortization (7,454 ) (6,268 ) $ 5,197 $ 4,481 Depreciation and amortization expense was $2.2 million and $1.3 million for the years ended December 31, 2019 and 2018, respectively. The Company capitalized costs associated with the development of internal use software of $2.7 million and $2.5 million included in the Software line item above and recorded related amortization expense of $1.4 million and $0.6 million (included in depreciation and amortization expense) during the years ended December 31, 2019 and 2018, respectively. The Company wrote off internal use software with a gross book value of $0.2 million and accumulated amortization of $0.1 million in 2019. The remaining net book value of capitalized software costs was $4.0 million and $2.9 million as of December 31, 2019 and 2018, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 4. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, 2019 2018 Accrued employee compensation and benefits $ 2,388 $ 1,369 Accrued advertising expenses 4,119 919 Accrued legal settlement 4,750 — Other current liabilities 1,968 811 $ 13,225 $ 3,099 |
Loan and Security Agreement
Loan and Security Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Loan and Security Agreement | 5. Loan and Security Agreement As of December 31, 2019, the Company had available borrowings of $11.0 million under its amended 2018 Loan and Security Agreement, as modified by the 2018 Loan and Modification Agreement (the “2018 Loan Modification”), which modified the amended Loan and Security Agreement. 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, 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. As of December 31, 2019, the Company was in compliance with all covenants related to the revolving line of credit. There can be no guarantee that these covenants will be met in the future, and if not met, that waivers will be obtained. As of December 31, 2019, the Company had no amounts outstanding on the revolving line of credit. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | 6. Redeemable Convertible Preferred Stock The Company had issued Series A redeemable convertible preferred stock (the “Series A Preferred Stock”), Series B redeemable convertible preferred stock (the “Series B Preferred Stock”) and Series B-1 B-1 B-1 During the year ended December 31, 2018, the Company recorded adjustments of $37.4 million to the carrying value of Series B and B-1 Preferred additional paid-in Upon the closing of the Company’s IPO in July 2018, all 1,574,508 shares of the Company’s then-outstanding Preferred Stock automatically converted into an aggregate of 12,596,064 shares of the Company’s Class B common stock. Upon conversion of the redeemable convertible preferred stock, the Company reclassified the carrying value of the Preferred Stock to common stock and additional paid-in capital. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | 7. Equity On June 15, 2018, the Company effected an eight-for-one forward On July 2, 2018, the Company completed its IPO, in which it issued and sold 3,125,000 shares of Class A common stock at a public offering price of $18.00 per share, resulting in net proceeds to the Company of approximately $48.6 million after deducting underwriting discounts and commissions and other offering costs. Upon closing of the IPO, 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 Class A common stock entitles the holder to one vote for each share 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 Class B common stock entitles the holder to ten votes for each share 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 During the years ended December 31, 2019 and 2018, 5,894,073 shares and 4,116,404 shares, respectively, of Class B common stock were automatically converted to 5,894,073 shares and 4,116,404 shares, respectively , |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation The Company has outstanding awards under its 2008 Stock Incentive Plan, as amended (the “2008 Plan”), but is no longer granting awards under this plan. Shares of common stock issued upon exercise of stock options granted prior to September 8, 2017 will be issued as either Class A common stock or Class B common stock. Shares of common stock issued upon exercise of stock options granted after September 8, 2017 will be issued as Class A common stock. The Company’s 2018 Equity Incentive Plan (the “2018 Plan” and, together with the 2008 Plan, the “Plans”) provides for the grant of incentive stock options, non-qualified stock Options and restricted stock units granted under the Plans vest over periods determined by the board of directors. Options granted under the Plans expire no longer than ten years from the date of the grant. The exercise price for stock options granted is not less than the fair value of common shares based on quoted market prices. Stock Option Valuation The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company, historically, has been a private company and lacks company-specific historical and implied volatility information. Therefore, the Company estimates its expected stock volatility based on the historical volatility of its publicly traded set of peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The expected term of stock options granted to non-employees Year Ended Risk-free interest rate 2.79 % Expected volatility 49.66 % Expected dividend yield 0 % Expected term (in years) 5.73 The Company did not grant stock options in the year ended December 31, 2019. Stock Option Activity The following table summarizes the Company’s option activity since December 31, 2018: Number of Shares Weighted Weighted Aggregate (in years) (in thousands) Outstanding as of December 31, 2018 3,770,086 $ 6.91 7.44 $ 1,956 Granted — 0.00 Exercised (645,920 ) 4.62 Forfeited (296,298 ) 9.35 Outstanding as of December 31, 2019 2,827,868 $ 7.17 6.50 $ 76,850 Vested and expected to vest as of December 31, 2019 2,634,417 $ 7.03 6.44 $ 71,979 Options exercisable as of December 31, 2019 1,690,960 $ 6.20 5.98 $ 47,599 As of December 31, 2019, outstanding options of 1,092,081 were for the purchase of Class A common stock and outstanding options of 1,735,787 were for the purchase of either Class A common stock or Class B common stock. The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had strike prices lower than the fair value of the Company’s common stock. The aggregate intrinsic value of options exercised during the years ended December 31, 2019 and 2018 was $8.8 million and $1.7 million, respectively. The weighted average grant-date fair value of awards granted during the year ended December 31, 2018 was $5.09 per share. Restricted Stock Units The Company has granted restricted stock units (“RSUs”) with service-based vesting conditions and with both service-based and performance-based vesting conditions. Restricted stock units with service-based and both service-based and performance-based vesting conditions are valued on the grant date using the grant date market price of the underlying shares. As of December 31, 2019, the Company has outstanding 86,500 unvested RSUs granted in a previous year that contain both service-based and performance-based vesting conditions. These RSU’s vest in equal annual installments upon the achievement of certain Company-specific goals and continued service in each of the next two years. During the year ended December 31, 2019, the Company granted 128,733 RSUs that contain service-based and performance-based vesting conditions. These RSUs will cumulatively vest upon the achievement of certain Company-specific goals and continued service. The following table summarizes the Company’s RSU activity since December 31, 2018: Number of Shares Weighted Average Grant-Date Fair Value Unvested balance December 31, 2018 2,409,893 $ 15.98 Granted 1,705,580 12.61 Vested (567,100 ) 14.66 Forfeited (180,527 ) 9.55 Unvested balance December 31, 2019 3,367,846 $ 14.84 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): Year Ended December 31, 2019 2018 Cost of revenue $ 193 $ 42 Sales and marketing 3,805 1,955 Research and development 3,967 2,011 General and administrative 4,756 3,113 $ 12,721 $ 7,121 As of December 31, 2019, unrecognized compensation expense related to unvested options and RSUs was $38.4 million, which is expected to be recognized over a weighted average period of 4.6 years. Additionally, as of December 31, 2019, unrecognized compensation expense related to unvested RSUs for which performance has not been deemed probable was $3.9 million. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company had no income tax expense for the years ended December 31, 2019 or 2018. The Company has no foreign operations and therefore, has not provided for any foreign taxes. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % State taxes, net of federal benefit 5.5 6.1 Federal and state research and development tax credits 19.4 9.6 Nondeductible items (1.6 ) (0.8 ) Stock-based compensation 13.3 4.4 Other (0.9 ) 0.2 Change in valuation allowance (56.7 ) (40.5 ) Effective income tax rate — % — % Net deferred tax assets as of December 31, 2019 and 2018 consisted of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 8,165 $ 5,691 Research and development tax credit carryforwards 5,040 3,772 Accrued expenses and other current liabilities 671 501 Intangible assets 33 38 Property and equipment 215 150 Stock-based compensation 1,463 1,479 Other 725 382 Total deferred tax assets 16,312 12,013 Valuation allowance (15,292 ) (11,257 ) Net deferred tax assets 1,020 756 Deferred tax liabilities: Capitalized software development costs (1,020 ) (756 ) Deferred tax liabilities (1,020 ) (756 ) Net deferred tax assets and liabilities $ — $ — As of December 31, 2019, the Company had federal net operating loss carryforwards of $31.1 million, which may be available to offset future taxable income, of which $9.0 million of the total net operating loss carryforwards expire at various dates beginning in 2029, while the remaining $22.1 million do not expire but are limited in their usage to an annual deduction equal to 80% of annual taxable income. As of December 31, 2019, the Company had state net operating loss carryforwards of $25.8 million, which may be available to offset future taxable income and expire at various dates beginning in 2027. As of December 31, 2019, the Company also had federal and state research and development tax credit carryforwards of $3.5 million and $1.9 million, respectively, which may be available to reduce future tax liabilities and expire at various dates beginning in 2030 and 2029, respectively. Utilization of the U.S. federal and state net operating loss carryforwards and research and development tax credit carryforwards may be subject to a substantial annual limitation under Section 382 and Section 383 of the Internal Revenue Code of 1986, and corresponding provisions of state law, due to ownership changes that have occurred previously or that could occur in the future. These ownership changes may limit the amount of carryforwards that can be utilized annually to offset future taxable income and tax liabilities. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50% over a three-year period. In 2019, the Company performed an analysis of the ownership changes as defined within IRC § 382 382 The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets, which are comprised primarily of net operating loss carryforwards and research and development tax credit carryforwards. Management has considered the Company’s history of cumulative net losses incurred since inception, estimated future taxable income and prudent and feasible tax planning strategies and has concluded that it is more likely than not that the Company will not realize the benefits of federal and state deferred tax assets. Accordingly, a full valuation allowance has been established against the net deferred tax assets as of December 31, 2019 and 2018. The Company reevaluates the positive and negative evidence at each reporting period. The change in the valuation allowance for deferred tax assets during the years ended December 31, 2019 and 2018 related primarily to an increase in net operating loss carryforwards and 9 8 Year Ended December 31, 2019 2018 Valuation allowance as of beginning of year $ 11,257 $ 5,677 Increases recorded to tax provision 4,035 5,580 Valuation allowance as of end of year $ 15,292 $ 11,257 The Company assesses the uncertainty in its income tax positions to determine whether a tax position of the Company is more likely than not to be sustained upon examination, including resolution of any related appeals of litigation processes, based on the technical merits of the position. For tax positions meeting the more-likely-than-not The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. There are currently no pending tax examinations. The Company is open to future tax examination under statute from 2016 to the present, however, carryforward attributes that were generated prior to January 1, 201 6 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Operating Leases The Company leases office space in Cambridge, Massachusetts under a non-cancelable operating a non-cancelable operating 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 December 31, 2019 and 2018, the Company had a deferred rent liability of $1.2 million. During the years ended December 31, 2019 and 2018, the Company recorded rent expense of $2.5 million and $2.1 million, respectively. As of December 31, 2019 and 2018, the Company maintained security deposits of $0.4 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 December 31, 2019 are as follows (in thousands): Year Ending December 31, 2020 $ 2,573 2021 2,659 2022 2,502 2023 2,534 2024 1,922 Thereafter — $ 12,190 Indemnification Agreements In the normal course of business, the Company may provide indemnification of varying scope and terms to third parties and enters into commitments and guarantees (“Agreements”) under which it may be required to make payments. The duration of these Agreements varies, and in certain cases, is indefinite. Furthermore, many of these Agreements do not limit the Company’s maximum potential payment exposure. In addition, the Company has entered into indemnification agreements with members of its board of directors and executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Through December 31, 2019 and 2018, 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 December 31, 2019 and 2018, respectively. Legal Proceedings and Other Contingencies On February 15, 2019, 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. Townsend v. EverQuote, Inc. et al. , The Company was contacted by a representative from a state tax assessor’s office requesting remittance of uncollected sales taxes. The Company does not believe its services are taxable in this state and is investigating this request and intends to vigorously defend this position. If the Company does not prevail in its position, uncollected sales taxes due for the period could amount to approximately $1.5 million, including interest and The Company is from time to time subject to various other legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of its business. While the outcome of these other claims cannot be predicted with certainty, management does not believe that the outcome of any of these other legal matters will have a material adverse effect on the Company’s results of operations or financial condition. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 11. 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 income (loss) per share of Class A common stock and share of 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): Year Ended December 31, 2019 2018 Basic net loss per share: Numerator: Net loss $ (7,117 ) $ (13,791 ) Accretion of redeemable convertible preferred stock — (37,415 ) Net loss attributable to common stockholders $ (7,117 ) $ (51,206 ) Denominator: Weighted average common shares outstanding, 25,758,649 16,922,225 Net income loss per share attributable to common stockholders, $ (0.28 ) $ (3.03 ) 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 periods indicated because including them would have had an anti-dilutive effect: December 31, 2019 2018 Options to purchase common stock 2,827,868 3,770,086 Unvested restricted stock units 3,367,846 2,409,893 6,195,714 6,179,979 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plan | 12. 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 | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. 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 years ended December 31, 2019 and 2018, the Company recorded expense of $5.2 million and $8.2 million, respectively, related to these arrangements. During the years ended December 31, 2019 and 2018, the Company paid $5.7 million and $8.7 million, respectively, related to these arrangements. As of December 31, 2019 and 2018, amounts due to related-party affiliates totaled $0.6 million and $1.0 million, respectively, which were included in accounts payable and accrued expenses on the balance sheets. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 14. Selected Quarterly Financial Data (Unaudited) The following information has been derived from unaudited financial statements that, in the opinion of management, include all recurring adjustments necessary for a fair statement of such information (in thousands except per share data): Three Months Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2019 2019 2019 2019 2018 2018 2018 2018 Statements of Operations Data: Revenue $ 73,799 $ 67,112 $ 55,667 $ 52,233 $ 39,779 $ 41,748 $ 41,092 $ 40,730 Cost of revenue 4,681 4,052 3,504 3,666 3,075 3,115 2,873 2,615 Loss from operations(1) (1,155 ) (82 ) (2,246 ) (4,566 ) (7,114 ) (3,936 ) (1,627 ) (1,235 ) Net income (loss)(1) (934 ) 173 (1,974 ) (4,382 ) (6,925 ) (3,808 ) (1,730 ) (1,328 ) Net income (loss) available (attributable) to common stockholders(1) (934 ) 173 (1,974 ) (4,382 ) (6,925 ) (3,808 ) (28,132 ) (12,341 ) Basic and diluted net income (loss) per share available (attributable) to common stockholders: $ (0.04 ) $ 0.01 $ (0.08 ) $ (0.17 ) $ (0.28 ) $ (0.15 ) $ (3.10 ) $ (1.42 ) (1) The Company’s statements of operations were impacted in the third and fourth quarter of 2018 by the recognition of $0.6 million and $1.1 million of stock-based compensation expense, respectively, related to performance-based RSU grants for which achievement of the performance condition became probable. The amount recorded in the fourth quarter of 2018 included an out-of-period did out-of-period |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
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 estimate are recorded in periods in which they become known. Actual results may differ from those estimates or assumptions. |
Restricted Cash | Restricted Cash As of December 31, 2019 and 2018, restricted cash consisted of $0.3 million deposited in a separate restricted bank account as a security deposit for the Company’s corporate credit cards. Restricted cash accounts are classified within other assets. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. |
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 year ended December 31, 2019, one customer represented 21% of total revenue. For the year ended December 31, 2018, two customers represented 19% and 10% , respectively, , respectiv ely, |
Deferred Financing Costs | Deferred Financing Costs The Company capitalizes lender, legal and other third-party fees that are directly associated with obtaining access to capital under credit facilities. Deferred financing costs incurred in connection with obtaining access to capital are recorded in prepaid expenses and other current assets and are amortized over the availability period or term of the credit facility. Deferred financing costs related to a recognized debt liability are recorded as a direct reduction of the carrying amount of the debt liability and amortized to interest expense on an effective interest basis over the repayment term. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset as follows: Estimated Useful Life Computer equipment 3 years Software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is included in loss from operations on the statements of operations and comprehensive loss. Expenditures for repairs and maintenance are charged to expense as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets consist primarily of property and equipment. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized in loss from operations when estimated undiscounted future cash flows expected to result from the use of an asset group are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset group over its fair value, determined based on discounted cash flows. The Company did not record any impairment losses on long-lived assets during the years ended December 31, 2019 or 2018. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s cash equivalents of $23.2 million as of December 31, 2019, 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. |
Classification and Accretion of Redeemable Convertible Preferred Stock | Classification and Accretion of Redeemable Convertible Preferred Stock The Company classified redeemable convertible preferred stock outside of stockholders’ equity (deficit) because the shares contained certain redemption features that were not solely within the control of the Company. Costs incurred in connection with the issuance of each series of redeemable convertible preferred stock were recorded as a reduction of gross proceeds from issuance. The Company recognized changes in the redemption values of its outstanding redeemable convertible preferred stock immediately as they occurred and adjusted the carrying value of the redeemable convertible preferred stock to equal the redemption value at the end of each reporting period as if the end of each reporting period were the redemption date. Adjustments to the carrying values of the redeemable convertible preferred stock at each reporting date resulted in an increase or decrease to net income (loss) attributable to common stockholders. |
Segment Information | Segment Information The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company operates an online marketplace for consumers shopping for auto, home and renters, life, health and commercial insurance quotes. All of the Company’s tangible assets are held in the United States. |
Revenue Recognition | Revenue Recognition The Company derives its revenue by selling consumer referrals to its insurance provider customers, including insurance carriers and agents. On January 1, 2019, the Company adopted the new revenue standard ASC 606, 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: Year Ended December 31, 2019 2018 Direct channels 94 % 90 % Indirect channels 6 % 10 % 100 % 100 % Total revenue is comprised of revenue from the following insurance verticals (in thousands): Year ended December 31, 2019 2018 Automotive $ 212,300 $ 141,187 Other 36,511 22,162 Total Revenue $ 248,811 $ 163,349 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 December 31, 2019, the Company had not capitalized any costs to obtain any of its contracts. 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 12 months of the balance sheet date are classified as current deferred revenue. Deferred revenue was $1.5 million and $1.4 million as of December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, the Company recognized revenue of $1.1 million that was included in the contract liability balance (deferred revenue) at December 31, 2018. 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. |
Research And Development | Research and Development Research and development expenses consist primarily of personnel-related expenses (wages, fringe benefit costs and stock-based compensation expense) for product management and software development. Research and development costs are expensed as incurred, except for certain costs which are capitalized in connection with the development of the Company’s website and internal-use Costs incurred in the preliminary and post-implementation stages of development are expensed as incurred. Once an application has reached the development stage, internal costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. The Company also capitalizes costs related to specific upgrades and enhancements of its website and internal-use |
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, promo tin g its marketplace to insur ance carriers and agents, and . In , t he Company announced that it would During the years ended December 31, 2019 and 2018, advertising expense totaled $175.5 million and $117.3 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 allowance for doubtful accounts as of December 31, 2019 and 2018, as the Company deemed all amounts to be collectible. During the year ended December 31, 2019, the Company wrote off $0.5 million of uncollectible accounts. |
Stock Based Compensation | Stock-Based Compensation The Company measures stock options with service-based vesting or performance-based vesting granted to employees, non-employees Black-Scholes option-pricing straight-line service-based graded-vesting service-based performance-based Prior to the adoption of ASU 2018-07 non-employees non-employees. The Company classifies stock-based compensation expense in its statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes net loss as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders. For the years ended December 31, 2019 and 2018, there was no difference between net loss and comprehensive loss. |
Net Income (Loss) per Share | Net Income (Loss) per Share Prior to the closing of its IPO, the Company followed the two-class two-class two-class Subsequent to the closing of its IPO, basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and unvested restricted stock units. For periods in which the Company reported a net loss, diluted net loss per common share is the same as basic net loss per common share, since dilutive common shares are not assumed to have been issued if their affect is anti-dilutive. The Company has two classes of common stock outstanding: Class A common stock and Class B common stock. As more fully described in Note 7, the rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one-to-one |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in the Company’s tax returns. Deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The Company accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step more-likely-than-not |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), and cumulative catch-up adjustment For non-public entities In August 2016, 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 For non-public entities ASU 2016-15 on the non-public company In June 2018, 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 to non-employees by ASU 2018-07 was For non-public entities ASU 2018-07 is ASU 2014-09. The early-adopted ASU 2018-07 on Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out record a right-of-use asset and fiscal years. For non-public entities permitted. ASU 2016-02 initially required FASB issued ASU No. 2018-11, Leases (Topic 842) recognize a cumulative catch-up adjustment to the 2019-10, non-public No. 2016-02 of material right-of-use assets and In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) For non-public entities No. 2019-10, non-public In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. internal-use For non-public entities |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Property and Equipment Estimated Useful Lives | Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset as follows: Estimated Useful Life Computer equipment 3 years Software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or |
Disaggregation of Revenue | Total revenue is comprised of revenue from the following distribution channels: Year Ended December 31, 2019 2018 Direct channels 94 % 90 % Indirect channels 6 % 10 % 100 % 100 % Total revenue is comprised of revenue from the following insurance verticals (in thousands): Year ended December 31, 2019 2018 Automotive $ 212,300 $ 141,187 Other 36,511 22,162 Total Revenue $ 248,811 $ 163,349 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment, net consisted of the following (in thousands): December 31, 2019 2018 Computer equipment $ 1,940 $ 2,459 Software 8,829 6,419 Furniture and fixtures 1,032 1,053 Leasehold improvements 850 818 12,651 10,749 Less: Accumulated depreciation and amortization (7,454 ) (6,268 ) $ 5,197 $ 4,481 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 31, 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): December 31, 2019 2018 Accrued employee compensation and benefits $ 2,388 $ 1,369 Accrued advertising expenses 4,119 919 Accrued legal settlement 4,750 — Other current liabilities 1,968 811 $ 13,225 $ 3,099 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Grants Valuation Assumptions | The relevant data used to determine the value of the stock option grants for employees and directors for the year ended December 31, 2018 is as follows, presented on a weighted-average basis: Year Ended Risk-free interest rate 2.79 % Expected volatility 49.66 % Expected dividend yield 0 % Expected term (in years) 5.73 |
Schedule of Stock Options Activity | The following table summarizes the Company’s option activity since December 31, 2018: Number of Shares Weighted Weighted Aggregate (in years) (in thousands) Outstanding as of December 31, 2018 3,770,086 $ 6.91 7.44 $ 1,956 Granted — 0.00 Exercised (645,920 ) 4.62 Forfeited (296,298 ) 9.35 Outstanding as of December 31, 2019 2,827,868 $ 7.17 6.50 $ 76,850 Vested and expected to vest as of December 31, 2019 2,634,417 $ 7.03 6.44 $ 71,979 Options exercisable as of December 31, 2019 1,690,960 $ 6.20 5.98 $ 47,599 |
Schedule of Unvested Restricted Stock Units | The following table summarizes the Company’s RSU activity since December 31, 2018: Number of Shares Weighted Average Grant-Date Fair Value Unvested balance December 31, 2018 2,409,893 $ 15.98 Granted 1,705,580 12.61 Vested (567,100 ) 14.66 Forfeited (180,527 ) 9.55 Unvested balance December 31, 2019 3,367,846 $ 14.84 |
Summary of Stock-Based Compensation Expense of Statements of Operations and Comprehensive Loss | The Company recorded stock-based compensation expense in the following expense categories of its statements of operations and comprehensive loss (in thousands): Year Ended December 31, 2019 2018 Cost of revenue $ 193 $ 42 Sales and marketing 3,805 1,955 Research and development 3,967 2,011 General and administrative 4,756 3,113 $ 12,721 $ 7,121 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % State taxes, net of federal benefit 5.5 6.1 Federal and state research and development tax credits 19.4 9.6 Nondeductible items (1.6 ) (0.8 ) Stock-based compensation 13.3 4.4 Other (0.9 ) 0.2 Change in valuation allowance (56.7 ) (40.5 ) Effective income tax rate — % — % |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets as of December 31, 2019 and 2018 consisted of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 8,165 $ 5,691 Research and development tax credit carryforwards 5,040 3,772 Accrued expenses and other current liabilities 671 501 Intangible assets 33 38 Property and equipment 215 150 Stock-based compensation 1,463 1,479 Other 725 382 Total deferred tax assets 16,312 12,013 Valuation allowance (15,292 ) (11,257 ) Net deferred tax assets 1,020 756 Deferred tax liabilities: Capitalized software development costs (1,020 ) (756 ) Deferred tax liabilities (1,020 ) (756 ) Net deferred tax assets and liabilities $ — $ — |
Summary of Changes in Valuation Allowance | The changes in the valuation allowance for 201 9 8 Year Ended December 31, 2019 2018 Valuation allowance as of beginning of year $ 11,257 $ 5,677 Increases recorded to tax provision 4,035 5,580 Valuation allowance as of end of year $ 15,292 $ 11,257 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments under the Operating Leases | Year Ending December 31, 2020 $ 2,573 2021 2,659 2022 2,502 2023 2,534 2024 1,922 Thereafter — $ 12,190 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Income (Loss) Per Share Available (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): Year Ended December 31, 2019 2018 Basic net loss per share: Numerator: Net loss $ (7,117 ) $ (13,791 ) Accretion of redeemable convertible preferred stock — (37,415 ) Net loss attributable to common stockholders $ (7,117 ) $ (51,206 ) Denominator: Weighted average common shares outstanding, 25,758,649 16,922,225 Net income loss per share attributable to common stockholders, $ (0.28 ) $ (3.03 ) |
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 periods indicated because including them would have had an anti-dilutive effect: December 31, 2019 2018 Options to purchase common stock 2,827,868 3,770,086 Unvested restricted stock units 3,367,846 2,409,893 6,195,714 6,179,979 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | The following information has been derived from unaudited financial statements that, in the opinion of management, include all recurring adjustments necessary for a fair statement of such information (in thousands except per share data): Three Months Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2019 2019 2019 2019 2018 2018 2018 2018 Statements of Operations Data: Revenue $ 73,799 $ 67,112 $ 55,667 $ 52,233 $ 39,779 $ 41,748 $ 41,092 $ 40,730 Cost of revenue 4,681 4,052 3,504 3,666 3,075 3,115 2,873 2,615 Loss from operations(1) (1,155 ) (82 ) (2,246 ) (4,566 ) (7,114 ) (3,936 ) (1,627 ) (1,235 ) Net income (loss)(1) (934 ) 173 (1,974 ) (4,382 ) (6,925 ) (3,808 ) (1,730 ) (1,328 ) Net income (loss) available (attributable) to common stockholders(1) (934 ) 173 (1,974 ) (4,382 ) (6,925 ) (3,808 ) (28,132 ) (12,341 ) Basic and diluted net income (loss) per share available (attributable) to common stockholders: $ (0.04 ) $ 0.01 $ (0.08 ) $ (0.17 ) $ (0.28 ) $ (0.15 ) $ (3.10 ) $ (1.42 ) (1) The Company’s statements of operations were impacted in the third and fourth quarter of 2018 by the recognition of $0.6 million and $1.1 million of stock-based compensation expense, respectively, related to performance-based RSU grants for which achievement of the performance condition became probable. The amount recorded in the fourth quarter of 2018 included an out-of-period did out-of-period |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 02, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | ||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Net proceeds from initial public offering | $ 52,313 | ||||||||||||||||||
Net losses | $ 934 | [1] | $ (173) | $ 1,974 | $ 4,382 | $ 6,925 | [1] | $ 3,808 | $ 1,730 | $ 1,328 | $ 7,117 | 13,791 | |||||||
Accumulated deficit | $ 107,009 | $ 99,892 | $ 107,009 | $ 99,892 | |||||||||||||||
Class A Common Stock [Member] | |||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||
Shares of common stock issued and sold | 3,125,000 | ||||||||||||||||||
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 | ||||||||||||||||||
[1] | The Company’s statements of operations were impacted in the third and fourth quarter of 2018 by the recognition of $0.6 million and $1.1 million of stock-based compensation expense, respectively, related to performance-based RSU grants for which achievement of the performance condition became probable. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019USD ($)Customers | Dec. 31, 2018USD ($)Customers | |
Significant Accounting Policies [Line Items] | ||
Restricted Cash | $ 300,000 | $ 300,000 |
Deferred revenue | 1,500,000 | 1,400,000 |
Contract with customer, liability, revenue recognized | 1,100,000 | |
Advertising expenses | 175,500,000 | 117,300,000 |
Allowance for doubtful accounts | 0 | 0 |
Write off against reserve | 500,000 | |
Impairment loss | $ 0 | $ 0 |
Software [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Significant Accounting Policies [Line Items] | ||
Cash equivalents | $ 23,200,000 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Significant Accounting Policies [Line Items] | ||
Number of major customers | Customers | 1 | 2 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customers A [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 21.00% | 19.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customers B [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 | 14.00% | 12.00% |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customers B [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 14.00% | 11.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Computer Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Software [Member] | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture and Fixtures [Member] | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Leasehold Improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | Shorter of lease term or estimated useful life |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Revenue by Distribution Chanel (Detail) - Sales Revenue, Net [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Product Information [Line Items] | ||
Revenue from Contract with Customer Percentage | 100.00% | 100.00% |
Direct channels [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer Percentage | 94.00% | 90.00% |
Indirect channels [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer Percentage | 6.00% | 10.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies-Disaggregation Of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 248,811 | $ 163,349 |
Automotive [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 212,300 | 141,187 |
Other [Member] | ||
Product Information [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 36,511 | $ 22,162 |
Property and Equipment Net - Su
Property and Equipment Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment , Gross | $ 12,651 | $ 10,749 |
Less: Accumulated depreciation and amortization | (7,454) | (6,268) |
Property and equipment, net | 5,197 | 4,481 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 1,940 | 2,459 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 8,829 | 6,419 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 1,032 | 1,053 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 850 | $ 818 |
Property and Equipment Net - Ad
Property and Equipment Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 2,186 | $ 1,341 |
Capitalized costs of internal use software | 2,700 | 2,500 |
Amortization of internal use software | 1,400 | 600 |
Capitalized software cost, net | 4,000 | 2,900 |
Property plant and equipment , Gross | 12,651 | 10,749 |
Accumulated amortization | 7,454 | $ 6,268 |
Software | Write Off | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment , Gross | 200 | |
Accumulated amortization | $ 100 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 2,388 | $ 1,369 |
Accrued advertising expenses | 4,119 | 919 |
Accrued legal settlement | 4,750 | |
Other current liabilities | 1,968 | 811 |
Accrued expenses and other current liabilities | $ 13,225 | $ 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 ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Credit facility borrowing capacity | $ 11,000,000 | |
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% | |
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 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock - Additional Information (Detail) - USD ($) $ in Millions | Jul. 02, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Series B and B-1 Redeemable Convertible Preferred Stock [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Adjustment to carrying value | $ 37.4 | ||
Series B and B-1 Redeemable Convertible Preferred Stock [Member] | Additional Paid-in Capital [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Increase (decrease) to additional paid-in capital and accumulated deficit | 37.4 | ||
Series B and B-1 Redeemable Convertible Preferred Stock [Member] | Accumulated Deficit [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Increase (decrease) to additional paid-in capital and accumulated deficit | $ 37.4 | ||
Class B Common Stock [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Conversion of stock, shares converted | 5,894,073 | 4,116,404 | |
Conversion of stock, common stock issued | 12,596,064 | ||
Redeemable Preferred Stock [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Conversion of stock, shares converted | 1,574,508 |
Equity - Additional Information
Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jul. 02, 2018USD ($)$ / sharesshares | Jun. 15, 2018shares | Dec. 31, 2019shares | Dec. 31, 2018USD ($)shares |
Class of Stock [Line Items] | ||||
Net proceeds from initial public offering | $ | $ 52,313 | |||
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 | |
Shares of common stock issued and sold | 3,125,000 | |||
Common stock, voting right | Class A common stock entitles the holder to one vote for each share | |||
Conversion of stock, shares issued | 5,894,073 | 4,116,404 | ||
Class A Common Stock [Member] | Initial Public Offering (IPO) [Member] | ||||
Class of Stock [Line Items] | ||||
Net proceeds from initial public offering | $ | $ 48,600 | |||
Shares of common stock issued and sold | 3,125,000 | |||
Public offering price, per share | $ / shares | $ 18 | |||
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. | |||
Conversion of stock, shares converted | 5,894,073 | 4,116,404 | ||
Conversion of stock, shares issued | 12,596,064 | |||
Forward Stock Split [Member] | ||||
Class of Stock [Line Items] | ||||
Forward stock split description | Eight-for-one forwardstock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company's Preferred Stock. | |||
Forward stock split ratio | 8 | |||
Common stock, shares authorized | 57,570,856 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2020 | Jun. 27, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 1,705,580 | |||
Unvested Stock options | 3,367,846 | 2,409,893 | ||
Stock Options Outstanding | 2,827,868 | 3,770,086 | ||
Aggregate intrinsic value of options exercised | $ 8.8 | $ 1.7 | ||
Weighted average fair value options granted price per share | $ 5.09 | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options expiration period | 10 years | |||
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] | ||||
Granted, shares | 128,733 | |||
Unrecognized compensation expense related to unvested options | $ 3.9 | |||
Unvested Stock options | 86,500 | |||
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 | $ 38.4 | |||
Compensation expense, expected recognition period | 4 years 7 months 6 days | |||
Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Options Outstanding | 1,092,081 | |||
Class A Common Stock and Class B Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Options Outstanding | 1,735,787 | |||
2018 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation, common stock available for grant | 615,584 | |||
Share-based Compensation, number of additional shares available for issuance | 1,321,908 | |||
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 Option Grants (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Sharebased Compensation Arrangement by Sharebased Payment Award Stock OptionsShares Outstanding WeightedAverage Exercise Price and Additional Disclosures [Abstract] | |
Risk-free interest rate | 2.79% |
Expected volatility | 49.66% |
Expected dividend yield | 0.00% |
Expected term (in years) | 5 years 8 months 23 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Options Outstanding, Beginning balance | 3,770,086 | |
Number of Options, Exercised | (645,920) | |
Number of Options, Forfeited | (296,298) | |
Number of Options Outstanding, Ending balance | 2,827,868 | 3,770,086 |
Number of Options, Vested and expected to vest | 2,634,417 | |
Number of Options, Exercisable | 1,690,960 | |
Weighted-Average Exercise Price, Outstanding, Beginning balance | $ 6.91 | |
Weighted-Average Exercise Price, Granted | 0 | |
Weighted-Average Exercise Price, Exercised | 4.62 | |
Weighted-Average Exercise Price, Forfeited | 9.35 | |
Weighted-Average Exercise Price, Outstanding, Ending balance | 7.17 | $ 6.91 |
Weighted-Average Exercise Price, Vested and expected to vest | 7.03 | |
Weighted-Average Exercise Price, Exercisable | $ 6.20 | |
Weighted-Average Contractual Term, Outstanding, Beginning balance | 6 years 6 months | 7 years 5 months 8 days |
Vested and expected to vest | 6 years 5 months 8 days | |
Exercisable | 5 years 11 months 23 days | |
Aggregate intrinsic value Outstanding, Beginning balance | $ 1,956 | |
Aggregate intrinsic value Outstanding, Ending balance | 76,850 | $ 1,956 |
Vested and expected to vest | 71,979 | |
Exercisable | $ 47,599 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Unvested Restricted Stock Units (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unvested balance December 31, 2018 | shares | 2,409,893 |
Granted | shares | 1,705,580 |
Vested | shares | (567,100) |
Forfeited | shares | (180,527) |
Unvested balance December 31, 2019 | shares | 3,367,846 |
Unvested balance December 31, 2018 | $ / shares | $ 15.98 |
Granted | $ / shares | 12.61 |
Vested | $ / shares | 14.66 |
Forfeited | $ / shares | 9.55 |
Unvested balance December 31, 2019 | $ / shares | $ 14.84 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-Based Compensation Expense of Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 12,721 | $ 7,121 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 193 | 42 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 3,805 | 1,955 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 3,967 | 2,011 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 4,756 | $ 3,113 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax expense | $ 0 | $ 0 |
Foreign taxes | 0 | |
Research and development tax credit carry forwards | $ 5,040,000 | $ 3,772,000 |
Annual taxable income, percentage | 80.00% | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 25,800,000 | |
Research and development tax credit carry forwards | 1,900,000 | |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 31,100,000 | |
Research and development tax credit carry forwards | 3,500,000 | |
Federal [Member] | Expirable [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 9,000,000 | |
Federal [Member] | Nonexpirable [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 22,100,000 | |
Minimum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Open tax year | 2016 | |
Minimum [Member] | State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards expiration period | 2027 | |
Tax credit carry forward expiration date | 2029 | |
Minimum [Member] | Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards expiration period | 2029 | |
Tax credit carry forward expiration date | 2030 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 21.00% | 21.00% |
State taxes, net of federal benefit | 5.50% | 6.10% |
Federal and state research and development tax credits | 19.40% | 9.60% |
Nondeductible items | (1.60%) | (0.80%) |
Stock-based compensation | 13.30% | 4.40% |
Other | (0.90%) | 0.20% |
Change in valuation allowance | (56.70%) | (40.50%) |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 8,165 | $ 5,691 | |
Research and development tax credit carryforwards | 5,040 | 3,772 | |
Accrued expenses and other current liabilities | 671 | 501 | |
Intangible assets | 33 | 38 | |
Property and equipment | 215 | 150 | |
Stock-based compensation | 1,463 | 1,479 | |
Other | 725 | 382 | |
Total deferred tax assets | 16,312 | 12,013 | |
Valuation allowance | (15,292) | (11,257) | $ (5,677) |
Net deferred tax assets | 1,020 | 756 | |
Deferred tax liabilities: | |||
Capitalized software development costs | (1,020) | (756) | |
Deferred tax liabilities | (1,020) | (756) | |
Net deferred tax assets and liabilities | $ 0 | $ 0 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance as of beginning of year | $ 11,257 | $ 5,677 |
Increases recorded to tax provision | 4,035 | 5,580 |
Valuation allowance as of end of year | $ 15,292 | $ 11,257 |
Commitments and Contingencies -
Commitments and Contingencies -Additional Information (Detail) - USD ($) $ in Thousands | Feb. 26, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | |||
Deferred rent liability | $ 1,200 | $ 1,200 | |
Rent expense | 2,500 | 2,100 | |
Security deposits | 400 | $ 400 | |
Legal Expense | 1,227 | ||
Nonprobable Sales Tax Due | $ 1,500 | ||
Settlement Agreement [Member] | |||
Operating Leased Assets [Line Items] | |||
Agreed To Pay Plaintiffs | $ 4,800 | ||
Expected To Reimbursed | 3,600 | ||
Legal Expense | 1,200 | ||
Settlement Agreement [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Operating Leased Assets [Line Items] | |||
Other receivables | 3,600 | ||
Settlement Agreement [Member] | Accrued Liabilities And Other Liabilities [Member] | |||
Operating Leased Assets [Line Items] | |||
Accrued Liabilities | $ 4,800 | ||
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 | Dec. 31, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | $ 2,573 |
2021 | 2,659 |
2022 | 2,502 |
2023 | 2,534 |
2024 | 1,922 |
Total | $ 12,190 |
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 | 12 Months Ended | ||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||||||||||||||||||
Net loss | $ (934) | $ 173 | $ (1,974) | $ (4,382) | $ (6,925) | $ (3,808) | $ (1,730) | $ (1,328) | $ (7,117) | $ (13,791) | ||||||||
Accretion of redeemable convertible preferred stock to redemption value | (37,415) | |||||||||||||||||
Net loss attributable to common stockholders | $ (934) | $ 173 | $ (1,974) | $ (4,382) | $ (6,925) | $ (3,808) | $ (28,132) | $ (12,341) | $ (7,117) | $ (51,206) | ||||||||
Denominator: | ||||||||||||||||||
Weighted average common shares outstanding, basic and diluted | 25,758,649 | 16,922,225 | ||||||||||||||||
Net income loss per share attributable to common stockholders, basic and diluted | $ (0.28) | $ (3.03) | ||||||||||||||||
[1] | The Company’s statements of operations were impacted in the third and fourth quarter of 2018 by the recognition of $0.6 million and $1.1 million of stock-based compensation expense, respectively, related to performance-based RSU grants for which achievement of the performance condition became probable. |
Net Loss per Share - Summary _2
Net Loss per Share - Summary of Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 6,195,714 | 6,179,979 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 2,827,868 | 3,770,086 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 3,367,846 | 2,409,893 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Contribution to defined contribution savings plan | $ 0.5 | $ 0.4 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Expense from transactions with related party | $ 5.2 | $ 8.2 |
Payment to related party | 5.7 | 8.7 |
Due to affiliate | $ 0.6 | $ 1 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Revenue | $ 73,799 | $ 67,112 | $ 55,667 | $ 52,233 | $ 39,779 | $ 41,748 | $ 41,092 | $ 40,730 | ||||||||||
Cost of revenue | 4,681 | 4,052 | 3,504 | 3,666 | 3,075 | 3,115 | 2,873 | 2,615 | $ 15,903 | $ 11,678 | ||||||||
Loss from operations | (1,155) | [1] | (82) | [1] | (2,246) | [1] | (4,566) | [1] | (7,114) | [1] | (3,936) | [1] | (1,627) | [1] | (1,235) | [1] | (8,049) | (13,912) |
Net Income (loss) | (934) | [1] | 173 | [1] | (1,974) | [1] | (4,382) | [1] | (6,925) | [1] | (3,808) | [1] | (1,730) | [1] | (1,328) | [1] | (7,117) | (13,791) |
Net income (loss) available (attributable) to common stockholders | $ (934) | [1] | $ 173 | [1] | $ (1,974) | [1] | $ (4,382) | [1] | $ (6,925) | [1] | $ (3,808) | [1] | $ (28,132) | [1] | $ (12,341) | [1] | $ (7,117) | $ (51,206) |
Basic and diluted net income (loss) per share available (attributable) to common stockholders | $ (0.04) | $ 0.01 | $ (0.08) | $ (0.17) | $ (0.28) | $ (0.15) | $ (3.10) | $ (1.42) | ||||||||||
[1] | The Company’s statements of operations were impacted in the third and fourth quarter of 2018 by the recognition of $0.6 million and $1.1 million of stock-based compensation expense, respectively, related to performance-based RSU grants for which achievement of the performance condition became probable. |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information [Line Items] | ||||
Stock-based compensation expense | $ 12,721 | $ 7,121 | ||
Performance Based RSUs [Member] | ||||
Quarterly Financial Information [Line Items] | ||||
Stock-based compensation expense | $ 1,100 | $ 600 | ||
Out of period adjustments for stock-based compensation expense | $ 800 |