Sterling Check (STER) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 08, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40829
Entity Registrant Name	Sterling Check Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1784336
Entity Address, Address Line One	1 State Street Plaza
Entity Address, Address Line Two	24th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10004
City Area Code	800
Local Phone Number	853-3228
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	STER
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		98,030,304
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001645070

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 50,964	$ 103,095
Accounts receivable (net of allowance of $3,200 and $3,248 as of December 31, 2022 and March 31, 2023, respectively)	147,123	139,579
Insurance receivable	922	921
Prepaid expenses	11,201	13,433
Other current assets	16,563	13,654
Total current assets	226,773	270,682
Property and equipment, net	9,600	10,341
Goodwill	877,212	849,609
Intangible assets, net	263,109	241,036
Deferred income taxes	4,518	4,452
Operating leases right-of-use asset	19,652	20,084
Other noncurrent assets, net	11,518	11,050
TOTAL ASSETS	1,412,382	1,407,254
CURRENT LIABILITIES:
Accounts payable	42,132	38,372
Litigation settlement obligation	3,850	4,165
Accrued expenses	57,091	67,047
Current portion of long-term debt	9,375	7,500
Operating leases liability, current portion	3,565	3,717
Other current liabilities	13,974	12,939
Total current liabilities	129,987	133,740
Long-term debt, net	490,434	493,990
Deferred income taxes	30,102	23,707
Long-term operating leases liability, net of current portion	16,574	16,835
Other liabilities	12,681	2,336
Total liabilities	679,778	670,608
COMMITMENTS AND CONTINGENCIES (NOTE 13)
STOCKHOLDERS’ EQUITY:
Preferred stock ($0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding)	0	0
Common stock ($0.01 par value; 1,000,000,000 shares authorized; 97,765,120 shares issued and 96,717,883 shares outstanding as of December 31, 2022; 99,663,997 shares issued and 98,085,706 shares outstanding as of March 31, 2023)	95	76
Additional paid-in capital	950,813	942,789
Common stock held in treasury (1,047,237 and 1,578,291 shares as of December 31, 2022 and March 31, 2023, respectively)	(23,058)	(14,859)
Accumulated deficit	(185,857)	(186,448)
Accumulated other comprehensive loss	(9,389)	(4,912)
Total stockholders’ equity	732,604	736,646
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,412,382	$ 1,407,254

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 3,248	$ 3,200
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	99,663,997	97,765,120
Common stock, shares outstanding (in shares)	98,085,706	96,717,883
Treasury stock (in shares)	1,578,291	1,047,237

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
REVENUES	$ 179,274	$ 191,972
OPERATING EXPENSES:
Cost of revenues (exclusive of depreciation and amortization below)	94,754	100,956
Corporate technology and production systems	11,952	12,552
Selling, general and administrative	47,451	42,333
Depreciation and amortization	15,122	20,156
Impairments of long-lived assets	106	0
Total operating expenses	169,385	175,997
OPERATING INCOME	9,889	15,975
OTHER EXPENSE (INCOME):
Interest expense, net	8,608	6,336
Gain on interest rate swaps	0	(328)
Other income	(412)	(354)
Total other expense, net	8,196	5,654
INCOME BEFORE INCOME TAXES	1,693	10,321
Income tax provision	1,102	4,085
NET INCOME	591	6,236
Unrealized loss on hedged transactions, net of tax of $0 and $1,815, respectively	(5,159)	0
Foreign currency translation adjustments, net of tax of $0 and $0, respectively	682	283
Total other comprehensive income (loss)	(4,477)	283
COMPREHENSIVE INCOME (LOSS)	$ (3,886)	$ 6,519
Net income per share attributable to stockholders
Basic (in USD per share)	$ 0.01	$ 0.07
Diluted (in USD per share)	$ 0.01	$ 0.06
Weighted average number of shares outstanding
Basic (in shares)	92,877,506	93,967,819
Diluted (in shares)	95,350,342	99,186,456

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Tax on unrealized gain (loss) on hedged transactions	$ 1,815	$ 0
Tax on foreign currency translation adjustments	$ 0	$ 0

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Common Stock Held in Treasury	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2021			95,746,975		107,820
Beginning balance at Dec. 31, 2021	$ 709,624	$ (198)	$ 68	$ 916,578	$ (897)	$ (206,218)	$ (198)	$ 93
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			1,112
Common stock issued for exercise of employee stock options (in shares)			8,486
Common stock issued for exercise of employee stock options	80			80
Issuance of restricted shares, net of forfeitures and vesting (in shares)			533,095
Issuance of restricted shares, net of forfeitures and vestings	0		$ 5	(5)
Stock-based compensation	5,108			5,108
Net income	6,236					6,236
Unrealized loss on hedged transactions, net of tax	0
Foreign currency translation adjustment, net of tax	275			(8)				283
Foreign currency translation adjustment, net of tax	283
Ending Balance (in shares) at Mar. 31, 2022			96,289,668		107,820
Ending Balance at Mar. 31, 2022	721,125		$ 73	921,753	$ (897)	(200,180)		376
Beginning balance (in shares) at Dec. 31, 2022			96,717,883		1,047,237
Beginning balance at Dec. 31, 2022	736,646		$ 76	942,789	$ (14,859)	(186,448)		(4,912)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			4,567
Issuance of restricted shares, net of forfeitures and vesting (in shares)			1,894,310
Issuance of restricted shares, net of forfeitures and vestings	$ 0		$ 19	(19)
Repurchases of common stock (in shares)	493,926		493,926		493,926
Repurchases of common stock	$ (7,712)				$ (7,712)
Shares withheld to cover restricted share vestings tax (in shares)			37,128		37,128
Shares withheld to cover restricted share vestings tax	(487)				$ (487)
Stock-based compensation	8,043			8,043
Net income	591					591
Unrealized loss on hedged transactions, net of tax	(5,159)							(5,159)
Foreign currency translation adjustment, net of tax	682							682
Ending Balance (in shares) at Mar. 31, 2023			98,085,706		1,578,291
Ending Balance at Mar. 31, 2023	$ 732,604		$ 95	$ 950,813	$ (23,058)	$ (185,857)		$ (9,389)

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Issuance of restricted shares, net of forfeitures and vestings	$ 0
Additional Paid-In Capital
Issuance of restricted shares, net of forfeitures and vestings	(5)
Accounting Standards Update 2016-13
Tax on cumulative effect adjustment for adoption of CECL	$ 56

UNAUDITED CONDENSED CONSOLIDA_7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 591	$ 6,236
Adjustments to reconcile net income to net cash provided by operations
Depreciation and amortization	15,122	20,156
Deferred income taxes	209	3,412
Stock-based compensation	8,043	5,108
Impairments of long-lived assets	106	0
Provision for bad debts	244	308
Amortization of financing fees	269	109
Amortization of debt discount	194	478
Deferred rent	39	0
Noncash impact of lease accounting under ASC 842	0	(55)
Unrealized translation (gain) loss on investment in foreign subsidiaries	135	(393)
Changes in fair value of derivatives	0	(2,464)
Interest rate swap settlements	23	0
Gain on disposition of property and equipment	0	(4)
Changes in operating assets and liabilities
Accounts receivable	(3,414)	(20,006)
Prepaid expenses	2,844	(869)
Other assets	(2,534)	(1,736)
Accounts payable	3,716	10,255
Litigation settlement obligation	315	0
Accrued expenses	(12,256)	(12,283)
Other liabilities	(2,364)	(4,807)
Net cash provided by operating activities	11,282	3,445
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(140)	(1,495)
Purchases of intangible assets and capitalized software	(4,120)	(3,742)
Acquisitions, net of cash acquired	(48,802)	0
Proceeds from disposition of property and equipment	7	4
Net cash used in investing activities	(53,055)	(5,233)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock	0	70
Repurchases of common stock	(7,711)	0
Payments of IPO issuance costs	0	(225)
Cash paid for tax withholding on RSA vestings	(487)	0
Payments of long-term debt	(1,875)	(1,615)
Payment of contingent consideration for acquisition	(305)	0
Payments of finance lease obligations	0	(1)
Net cash used in financing activities	(10,378)	(1,771)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	20	(92)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(52,131)	(3,651)
Beginning of period	103,095	47,998
Cash and cash equivalents at end of period	50,964	44,347
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest, net of capitalized amounts of $73 and $90 for the three months ended March 31, 2022 and 2023, respectively	11,602	8,296
Income taxes	2,978	4,222
Noncash investing activities
Purchases of property and equipment in accounts payable and accrued expenses	69	245
Noncash purchase price of business combinations	$ 4,821	$ 0

UNAUDITED CONDENSED CONSOLIDA_8

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Cash Flows [Abstract]
Interest, capitalized amounts	$ 90	$ 73

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of BusinessSterling Check Corp. (the “Company”), a Delaware corporation headquartered in New York City, New York, is a global provider of technology-enabled background and identity verification services. The Company provides the foundation of trust and safety its clients need to create effective environments for their most essential resource—people. The Company offers a comprehensive hiring and risk management solution that begins with identity verification, followed by criminal background screening, credential verification, drug and health screening, employee onboarding document processing and ongoing risk monitoring. As of March 31, 2023, the Company is 61.1% owned by an investment group consisting of entities advised by or affiliated with The Goldman Sachs Group, Inc. (“Goldman Sachs”) and Caisse de dépôt et placement du Québec (“CDPQ”). CDPQ owns its equity interest in the Company indirectly through a limited partnership controlled by Goldman Sachs.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with US GAAP applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2023. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and judgments that can affect the reported amount of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Significant estimates include the impairment of long-lived assets, goodwill impairment, the determination of the fair value of acquired assets and liabilities, collectability of receivables, the valuation of stock-based awards and stock-based compensation and sales and income tax liabilities. The Company also applies an estimated useful life of three years to internally developed software assets. This is based on the historical observed pace of change in the Company’s delivery, technology, and product offerings as well as market competition. The Company believes that the estimates used in the preparation of these unaudited condensed consolidated financial statements are reasonable; however, actual results could differ materially from these estimates. Segment Information The Company has one operating and reportable segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Cash and Cash Equivalents Cash and cash equivalents of $103.1 million and $51.0 million as of December 31, 2022 and March 31, 2023, respectively, include money market instruments with maturities of three months or less. The Company maintained cash outside the U.S. as of December 31, 2022 of $28.0 million with the largest deposits being held in India and Canada, with balances of $5.1 million and $9.2 million, respectively. Cash outside the U.S. was $26.6 million as of March 31, 2023, with the largest deposits being held in India and Canada, with balances of $5.4 million and $1.9 million, respectively. Foreign Currency Assets and liabilities of operations having non-USD functional currencies are translated at period-end exchange rates, and income statement accounts are translated at weighted average exchange rates for the period. Gains or losses resulting from translating foreign currency financial statements, net of any related tax effects, are reflected in Accumulated other comprehensive income (loss), a separate component of stockholders’ equity on the unaudited condensed consolidated balance sheets. Gains or losses resulting from foreign currency transactions incurred in currencies other than the local functional currency are included in Other income in the unaudited condensed consolidated statements of operations and comprehensive income (loss). The cumulative translation adjustment resulted in losses of $5.6 million and $4.9 million as of December 31, 2022 and March 31, 2023, respectively. Accounts Receivable and Allowance for Credit Losses Accounts receivable balances consist of trade receivables that are recorded at the invoiced amount, net of allowances for expected credit losses and for potential sales credits and reserves. Sales credits and reserves were $0.9 million and $0.8 million as of December 31, 2022 and March 31, 2023 , respectively. The Company adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments - Credit Losses (“CECL”) on January 1, 2022. The adoption of CECL resulted in a $0.3 million cumulative effect adjustment recorded in retained earnings as of January 1, 2022. CECL requires an entity to utilize an impairment model to estimate its lifetime expected credit losses and record an allowance that, when deducted from the amortized cost basis of a financial asset, presents the net amount expected to be collected on the financial asset. The Company maintains an allowance for expected credit losses in order to record accounts receivable at their net realizable value. Inherent in the assessment of the allowance for expected credit losses are certain judgments and estimates relating to, among other things, the Company’s customers’ access to capital, customers’ willingness and ability to pay, general economic conditions and the ongoing relationship with customers. Allowances have been recorded for receivables believed to be uncollectible, including amounts for the resolution of potential credit and other collection issues such as disputed invoices. The allowance for expected credit losses is determined by analyzing the Company’s historical write-offs, the current aging of receivables, the financial condition of customers and the general economic climate. Adjustments to the allowance may be required in future periods depending on how such potential issues are resolved or if the financial condition of the Company’s customers were to deteriorate resulting in an impairment of their ability to make payments. The Company has not historically had material write-offs due to uncollectible accounts receivable. Allowances for expected credit losses were $2.3 million and $2.5 million as of December 31, 2022 and March 31, 2023, respectively. The following table summarizes changes in the allowance for expected credit losses for the periods presented: Three Months Ended March 31, (in thousands) 2022 2023 Balance at beginning of period $ 2,949 $ 2,304 Cumulative effect of accounting change upon adoption of CECL 254 — Additions 308 244 Write-offs, net of recoveries (1,669) (78) Foreign currency translation adjustment — 3 Balance at end of period $ 1,842 $ 2,473 Corporate Technology and Production Systems Corporate technology and production systems includes costs related to maintaining the Company’s corporate information technology infrastructure and non-capitalizable costs to develop and maintain its production systems. The following table sets forth expenses included in each category of corporate technology and production systems for the periods presented: Three Months Ended (in thousands) 2022 2023 Corporate information technology $ 6,123 $ 5,267 Development of platform and product initiatives 4,249 4,414 Production support and maintenance 2,180 2,271 Total production systems 6,429 6,685 Corporate technology and production systems $ 12,552 $ 11,952 Corporate information technology consists of salaries and benefits of personnel (including stock-based compensation expense) supporting internal operations such as information technology support and the maintenance of information security and business continuity functions. Also included are third-party costs including cloud computing costs that support the Company’s corporate internal systems, software licensing and maintenance, telecommunications and other technology infrastructure costs. Production systems costs consist of non-capitalizable personnel costs including contractor costs incurred for the development of platform and product initiatives and production support and maintenance. Platform and product initiatives facilitate the development of the Company’s technology platform and the launch of new screening products. Production support and maintenance includes costs to support and maintain the technology underlying the Company’s existing screening products and to enhance the ease of use of the Company’s cloud applications. Certain personnel costs related to new products and features are capitalized and amortized to depreciation and amortization.

Recent Accounting Standards Upd

Recent Accounting Standards Updates	3 Months Ended
	Mar. 31, 2023
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Standards Updates	Recent Accounting Standards Updates The Company qualifies as an emerging growth company under the Jumpstart Our Business Startups Act (the “JOBS Act”). The JOBS Act permits extended transition periods for complying with new or revised accounting standards affecting public companies. The Company has elected to use the extended transition periods and is adopting new or revised accounting standards on the FASB‘s non-public company timeline. As such, the Company’s financial statements may not be comparable to financial statements of public entities that comply with new or revised accounting standards on a non-delayed basis. The Company will cease to be an emerging growth company upon the earliest of (a) the last day of the fiscal year in which it has total annual gross revenues of $1.235 billion or more; (b) the last day of its fiscal year following the fifth anniversary of the date of its IPO; (c) the date on which it has issued more than $1.0 billion in nonconvertible debt during the previous three years; or (d) the date on which it is deemed to be a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur as of the last day of a fiscal year in which the market value of its common stock held by non-affiliates equals or exceeds $700 million

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions Socrates and A-Check Acquisitions On January 4, 2023, the Company acquired all of the outstanding shares of Socrates Limited and its affiliates (“Socrates”), a screening company in Latin America, pursuant to a share purchase agreement. The Socrates acquisition expands the Company’s global presence into Latin America to serve the rapidly growing regional hiring needs of both multi-national and local clients. On March 1, 2023, the Company acquired all of the outstanding shares of A-Check Global (“A-Check”), a U.S.-based employment screening organization, pursuant to a share purchase agreement. The A-Check acquisition provides the Company access to a high quality, enterprise-focused customer base diversified across verticals including healthcare and telecom. The aggregate purchase price for the acquisitions totaled approximately $65.9 million, was funded with available cash on hand and is subject to certain closing adjustments specified in the share purchase agreements and includes contingent consideration related to the A-Check acquisition of $4.7 million recorded at fair value. The contingent consideration will be determined based on actual future results. As of March 31, 2023, the fair value of the contingent consideration consisted of $2.6 million for an earn-out payable one year after the acquisition based upon revenue retention and a $2.1 million payable throughout the second and third year following the acquisition based on revenue retention and referral revenue. The Company recorded a preliminary allocation of the purchase price to assets acquired and liabilities assumed based on their estimated fair values as of their respective purchase dates. Additionally, in connection with the Socrates acquisition, $5.0 million is payable to certain senior employees two years after the acquisition date based on certain retention requirements. The Company incurred approximately $2.7 million of transaction expenses related to the acquisitions during the three months ended March 31, 2023. The preliminary allocation of the purchase price is based on the fair value of assets acquired and liabilities assumed as of the applicable acquisition date. The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed: (in thousands) Consideration Cash $ 11,935 Other current assets Accounts receivable 4,279 Other current assets 805 Property and equipment 177 Intangible assets 32,141 Other long-term assets $ 6 Total assets acquired $ 49,343 Accounts payable and accrued expenses 1,156 Other current liabilities 1,291 Deferred tax liability 8,388 Other liabilities 2 Total liabilities assumed $ 10,837 Total identifiable net assets 38,506 Goodwill 27,352 Total consideration $ 65,858 Goodwill recognized is primarily attributable to assembled workforce and expected synergies and is not tax deductible in future years. Intangible assets acquired consist largely of customer lists in the amount of $28.0 million to be amortized over 15 years. The remaining intangible assets include trade names, developed technology and a non-compete agreement, which will be amortized over two years, eight years, and five years, respectively. The acquisitions are not material to the Company's financial position as of March 31, 2023 or results of operations for the three months ended March 31, 2023, and therefore, pro forma operating results and other disclosures for the acquisitions are not presented. EBI Acquisition On November 30, 2021, the Company acquired all of the outstanding shares of Employment Background Investigations, Inc. (“EBI”) for a purchase price of $67.8 million, consisting of $66.3 million of cash and $1.5 million of contingent consideration recorded at fair value. As of December 31, 2022, the purchase price was reduced by $0.3 million reflecting the final determination of the post-closing adjustment of the purchase price in accordance with the purchase agreement with EBI, resulting in an adjusted purchase price of $67.5 million. The receivable related to this adjustment was collected in February 2023.

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net (in thousands) December 31, March 31, Furniture and fixtures $ 2,568 $ 2,516 Computers and equipment 41,084 41,421 Leasehold improvements 6,565 6,587 50,217 50,524 Less: Accumulated depreciation (39,876) (40,924) Total property and equipment, net $ 10,341 $ 9,600

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill for the periods presented were as follows: (in thousands) Goodwill as of December 31, 2022 $ 849,609 Acquisitions 27,352 Foreign currency translation adjustment 251 Goodwill as of March 31, 2023 $ 877,212 Intangible Assets Intangible assets, net consisted of the following for the periods presented: December 31, 2022 March 31, 2023 (dollars in thousands) Estimated Useful Lives Gross Accumulated Net Gross Accumulated Net Customer lists 7 - 17 years $ 506,015 $ (340,579) $ 165,436 $ 533,848 $ (348,729) $ 185,119 Trademarks 2 - 16 years 77,198 (37,519) 39,679 77,791 (39,010) 38,781 Non-compete agreement 1 - 5 years 3,179 (2,584) 595 3,976 (2,619) 1,357 Technology 3 - 8 years 246,220 (216,330) 29,890 252,943 (220,358) 32,585 Domain names 2 - 15 years 10,118 (4,682) 5,436 10,117 (4,850) 5,267 $ 842,730 $ (601,694) $ 241,036 $ 878,675 $ (615,566) $ 263,109 Included within technology is $28.1 million and $30.2 million of internal-use software, net of accumulated amortization, as of December 31, 2022 and March 31, 2023, respectively. As of March 31, 2023, $5.1 million of technology assets have not yet been put in service. The Company capitalized $3.7 million of costs to develop internal-use software included in technology during the three months ended March 31, 2022 (consisting of internal costs of $3.0 million and external costs of $0.7 million). The Company capitalized $4.1 million of costs to develop internal-use software included in technology during the three months ended March 31, 2023 (consisting of internal costs of $3.4 million and external costs of $0.7 million ). For the three months ended March 31, 2022, the Company recorded no write-down of capitalized software. For the three months ended March 31, 2023, the Company recorded a write-down related to the impairment of capitalized software in the amount of $0.1 million . Amortization expense was $19.1 million and $14.1 million for the three months ended March 31, 2022 and 2023, respectively. Except for the customer lists, which are amortized utilizing an accelerated method, all other intangible assets are amortized on a straight-line basis, which approximates the pattern in which economic benefits are consumed. Estimated amortization expense as of March 31, 2023 is as follows for each of the next five years: (in thousands) Year Ending December 31, Remainder of fiscal year 2023 $ 71,305 2024 45,083 2025 35,729 2026 27,578 2027 22,070 Thereafter 61,344 $ 263,109

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses on the unaudited condensed consolidated balance sheets as of the periods presented consisted of the following: (in thousands) December 31, March 31, Accrued compensation $ 29,835 $ 18,392 Accrued cost of revenues 15,721 19,005 Accrued interest 3,143 106 Other accrued expenses 18,348 19,588 Total accrued expenses $ 67,047 $ 57,091

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	Leases Effective January 1, 2022 using the effective date method, the Company adopted the FASB’s Accounting Standards Update No. 2016-02, “Leases” (“ASC 842”), which requires the recognition of all leases, including operating leases on the unaudited condensed consolidated balance sheets by recording a right-of-use (“ROU”) asset and related liability, and elected to exclude short-term leases from adoption. The lease liability and ROU asset will be remeasured when there is a change in the lease term (or upon the occurrence of another reassessment trigger). Upon adoption on January 1, 2022, the Company recognized a ROU asset of $23.5 million and a lease liability of $23.8 million. The Company determines if a contract is a lease or contains a lease at inception. Operating lease liabilities are measured, on each reporting date, based on the present value of the future minimum lease payments over the remaining lease term. The Company’s leases generally do not provide an implicit rate and, therefore, the Company used the incremental borrowing rate of the former first lien term loan credit agreement of 4.50% for all leases entered into for the period prior to November 29, 2022. Operating lease assets are measured by adjusting the lease liability for lease incentives, initial direct costs incurred and asset impairments. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term with the operating lease asset reduced by the amount of the expense. Lease terms may include options to extend or terminate a lease when they are reasonably certain to occur. The Company leases real estate and equipment for use in its operations. The Company has 23 operating leases with remaining lease terms ranging from 1 month to 70 months. The components of lease expense for the periods presented are as follows: Three Months Ended (in thousands) 2022 2023 Components of total lease costs Operating lease expense $ 1,299 $ 1,379 Sublease income (72) (222) Total net lease costs $ 1,227 $ 1,157 Information related to the Company’s ROU assets and lease liabilities for the period presented is as follows: (dollar amounts in thousands) March 31, 2023 Operating leases Operating leases ROU asset - long-term $ 19,652 Operating leases ROU asset, net $ 19,652 Operating leases liability - current $ 3,565 Operating leases liability - long-term 16,574 Total operating leases liability $ 20,139 Weighted average remaining lease term in years - operating leases 4.5 Weighted average discount rate - operating leases 4.50 % Total remaining lease payments under the Company’s operating leases for the period presented are as follows: (in thousands) March 31, 2023 Remainder of fiscal year 2023 $ 4,378 2024 4,958 2025 4,610 2026 3,796 2027 3,468 2028 1,073 Thereafter 85 Total future minimum lease payments $ 22,368 Less: imputed interest (2,229) Total $ 20,139

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	Debt On November 29, 2022, Sterling Infosystems, Inc. (the “Borrower”), a Delaware corporation and a subsidiary of the Company, entered into a credit agreement (the “2022 Credit Agreement”) by and among the Borrower, as borrower, Sterling Intermediate Corp., KeyBank National Association, as administrative agent (the “Administrative Agent”), certain guarantors party thereto and the lenders party thereto. The 2022 Credit Agreement provides for aggregate principal borrowings of $700.0 million, comprised of $300.0 million aggregate principal amount of term loans (the “Term Loans”) and a $400.0 million revolving credit facility (the “Revolving Credit Facility”). The Term Loans and the Revolving Credit Facility mature on November 29, 2027. The table below sets forth the Company’s long-term debt as presented in the unaudited condensed consolidated balance sheets for the periods presented: (in thousands) December 31, March 31, Current portion of long-term debt Term Loans $ 7,500 $ 9,375 Total current portion of long-term debt $ 7,500 $ 9,375 Long-term debt Term Loans, due November 29, 2027 (6.76% and 6.91% at December 31, 2022 and March 31, 2023, respectively) 292,500 288,750 Revolving Credit Facility 205,494 205,494 Unamortized discount and debt issuance costs (4,004) (3,810) Total long-term debt, net $ 493,990 $ 490,434 The estimated fair value of the Company’s 2022 Credit Agreement was $487.1 million and $488.7 million as of December 31, 2022 and March 31, 2023, respectively. These fair values were determined based on quoted prices in markets with similar instruments that are less active (Level 2 inputs as defined below) as an observable price of the 2022 Credit Agreement or similar liabilities is not readily available. The Company was in compliance with all financial covenants under its credit agreement as of March 31, 2023.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. An asset or liability’s level in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flows methodologies and similar techniques that use significant unobservable inputs. The Company considers the recorded value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses to approximate the fair value of the respective assets and liabilities as of December 31, 2022 and March 31, 2023 based upon the short-term nature of such assets and liabilities (Level 1). See Note 9, “Debt” for discussion of the fair value of the Company’s debt. Interest rate swaps are measured at fair value on a recurring basis in the Company’s financial statements and are considered Level 2 financial instruments. Interest rate swaps are measured based on quoted prices for similar financial instruments and other observable inputs recognized. The currency forward agreements are typically cash settled in U.S. dollars for their fair value at or close to their settlement date. As of December 31, 2022, the fair value of contingent consideration related to the November 30, 2021 acquisition of EBI totaled $1.2 million and consisted of a $0.9 million earn-out payable two years after the acquisition based upon revenue retention and $0.3 million remaining payable throughout the year following the acquisition based on customer collections on acquired receivables and is considered a Level 3 financial instrument. As of March 31, 2023, contingent consideration for the earn-out payable related to the acquisition of EBI totaled $0.9 million and is considered a Level 3 financial instrument. As of March 31, 2023, contingent consideration related to the A-Check acquisition completed in 2023 totaled $4.7 million and consisted of $2.6 million for an earn-out payable one year after the acquisition based upon revenue retention and a $2.1 million payable throughout the second and third year following the acquisition based on revenue retention and referral revenue. Contingent consideration related to acquisitions is considered a Level 3 financial instrument. The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of December 31, 2022: (in thousands) Level 1 Level 2 Level 3 Liabilities Contingent consideration - acquisition of EBI $ — $ — $ 1,219 The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of March 31, 2023: (in thousands) Level 1 Level 2 Level 3 Assets Interest rate swaps $ — $ 1,049 $ — Liabilities Interest rate swaps — 8,024 — Contingent consideration - acquisition of EBI — — 914 Contingent consideration - acquisitions of Socrates and A-Check — — 4,706

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities Interest Rate Swap Hedges To reduce exposure to variability in expected future cash outflows on variable rate debt attributable to the changes in the applicable interest rates under the 2022 Credit Agreement, the Company entered into interest rate swaps to economically offset a portion of this risk. For interest rate swap derivatives designated and that qualify as hedges for accounting purposes, the unrealized gain or loss on the derivative is recorded in Accumulated other comprehensive income (loss) (“OCI”). As of March 31, 2023, the Company had the following outstanding interest rate swap derivatives that were used to hedge its interest rate risks: Product Number of Instruments Effective Date Maturity Date Notional Interest Rate Swaps 4 February 28, 2023 November 29, 2027 $300.0 million USD All financial derivative instruments are carried at their fair value on the balance sheet. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of the dates presented: Asset Derivatives (in thousands) As of December 31, 2022 As of March 31, 2023 Derivatives designated as hedging instruments: Interest rate swaps Other current assets $ — Other current assets $ 1,049 Interest rate swaps Other assets — Other assets $ — Total interest rate swaps $ — $ 1,049 Liability Derivatives (in thousands) As of December 31, 2022 As of March 31, 2023 Derivatives designated as hedging instruments: Interest rate swaps Other current liabilities $ — Other current liabilities $ — Interest rate swaps Other liabilities — Other liabilities 8,024 Total interest rate swaps $ — $ 8,024 The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss) for the periods presented: Three Months Ended Three Months Ended (in thousands) 2022 2023 2022 2023 Derivatives in Hedging Relationships Amount of Loss Recognized in OCI on Derivative (Included Component) Location of Gain Reclassified from Accumulated OCI into Income Amount of Gain Reclassified from Accumulated OCI into Income (Included Component) Interest rate swaps $ — $ (6,877) Interest expense $ — $ 97 Total $ — $ (6,877) $ — $ 97 The tables below present the effect of the Company’s cash flow hedge accounting on the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods presented: Three Months Ended March 31, (in thousands) 2022 2023 Interest Expense Interest Expense Total amounts of income and expense line items in which the effects of fair value or cash flow hedges are recorded $ 6,336 $ 8,608 Gain on cash flow hedging relationships Interest rate swaps: Amount of gain reclassified from accumulated other comprehensive income (loss) into income $ — $ 97 Non-designated Derivatives Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of March 31, 2023, the Company did not have any outstanding derivatives not designated as a hedge in qualifying hedging relationships. The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods presented: Three Months Ended (in thousands) 2022 2023 Derivatives Not Designated as Hedging Instruments Location of Loss (Gain) Recognized in Income on Derivatives Amount of Loss (Gain) Recognized in Income on Derivatives Interest rate swaps Loss (gain) on interest rate swaps $ (328) $ — Total $ (328) $ —

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe computation of the provision for or benefit from income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date income before tax and adjusting for discrete tax items recorded in the period, if any. The Company recorded a tax provision of $4.1 million and $1.1 million for the three months ended March 31, 2022 and 2023, respectively, which resulted in an effective tax rate of 39.6% and 65.1%, respectively. For the three months ended March 31, 2022 and 2023, the effective rate differs from the statutory rate mainly due to a jurisdictional mix of earnings and permanent items.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is party to both class actions and individual actions in the ordinary course of business. The matters typically allege violations of the Fair Credit Reporting Act (“FCRA”), as well as other claims. In addition, from time to time, the Company receives inquiries from regulatory bodies regarding its business. The Company accrues for the cost of resolving matters where it can be determined that a loss is both estimable and probable. Certain matters are in litigation and an estimate of the outcome and potential losses, if any, cannot be determined. Certain of these matters are covered by the Company’s insurance policies, subject to policy terms, including retentions. The Company does not believe that the resolution of current matters will result in a material adverse effect on the financial position, results of operations, or cash flows of the Company. As of December 31, 2022, the Company recorded a legal settlement obligation of $4.2 million and an offsetting insurance receivable of $0.9 million for the settlement of legal matters. As of March 31, 2023, the Company recorded a legal settlement obligation of $3.9 million and an offsetting insurance receivable of $0.9 million for the settlement of legal matters.

Equity

Equity	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Equity	Equity Under the Company’s Amended and Restated Certificate of Incorporation, a total of 1,100,000,000 shares of all classes of stock are authorized, divided as follows: (i) 1,000,000,000 shares of common stock, par value $0.01 per share (“common stock”); and (ii) 100,000,000 shares of undesignated preferred stock, par value $0.01 per share (“preferred stock”). Each share of common stock is entitled to one vote on all matters on which holders of common stock are entitled to vote generally. Holders of common stock are entitled to be paid ratably any dividends as may be declared by the Board of Directors (in its sole discretion), subject to any preferential dividend rights of outstanding preferred stock (if any). No dividends have been declared or paid on the Company’s common stock through March 31, 2023. The Board of Directors is authorized to direct the issuance of the undesignated preferred stock in one or more series and to fix the designation of such series, the powers (including voting powers), preferences and relative, participating, optional and other special rights, and the qualifications, limitations or restrictions thereof, of such series of preferred stock and the number of shares of such series. On November 23, 2022, the Company’s board of directors authorized the repurchase of up to $100.0 million of the Company’s shares of common stock over a period through December 31, 2024. The share repurchase program is being executed on a discretionary basis through open market repurchases, private transactions, or other transactions, including through block trades and Rule 10b-18 and Rule 10b5-1 trading plans. The Company is not obligated to repurchase any specific number of shares, and the timing and amount of any share repurchases will be subject to several factors including share price, trading volume, market conditions and capital allocation priorities. The share repurchase program may be suspended, terminated or

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense is recognized in cost of revenues, corporate, technology and production systems, and selling, general, and administrative expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss) as follows: Three Months Ended 2022 2023 (in thousands) Stock-based compensation expense Cost of revenues $ 413 $ 428 Corporate technology and production systems 531 612 Selling, general and administrative 4,164 7,003 Total stock-based compensation expense $ 5,108 $ 8,043 Prior to the initial public offering (“IPO”), all share-based awards were issued to employees under the Company’s 2015 Long-Term Equity Incentive Plan (the “2015 Plan”). Upon the adoption of the Sterling Check Corp. 2021 Omnibus Incentive Plan (the “2021 Equity Plan”) on August 4, 2021 and as of September 22, 2021, all newly granted share-based awards have been issued under the 2021 Equity Plan. As of March 31, 2023, the Company had approximately $109.3 million of unrecognized pre-tax non-cash stock-based compensation expense related to awards granted under the 2021 Equity Plan, consisting of approximately $34.8 million related to non-qualified stock options (“NQSOs”), $73.6 million related to restricted stock, and approximately $0.9 million related to restricted stock units (“RSUs”), all of which the Company expects to recognize over a weighted average period of 2.84 years. 2015 Long-Term Equity Incentive Plan The table below provides a summary of service-based vesting options (“SVOs”) and performance-based stock options (“PSOs”) currently outstanding under the 2015 Plan for the three months ended March 31, 2023: Outstanding SVOs Outstanding PSOs Number of Weighted Weighted Aggregate Number of Weighted Weighted Aggregate (in thousands, except shares and per share amounts) Balances as of December 31, 2022 6,208,274 $ 9.59 5.00 $ 36,513 3,081,855 $ 10.05 3.32 $ 16,699 Granted — — — — Forfeited / Cancelled — — — — Exercised — — — — — — Balances as of March 31, 2023 (1) 6,208,274 $ 9.59 4.72 $ 9,693 3,081,855 $ 10.05 3.07 $ 3,385 __________ (1) All SVOs and PSOs are exercisable as of March 31, 2023. On August 4, 2021, the Company amended each option outstanding under the 2015 Plan to (i) accelerate vesting upon an initial public offering and (ii) permit each option to be exercised following termination for any reason for the period set forth in the applicable award agreement or, if longer, an extended post-termination exercise period that would end on the date that is six months following the second anniversary of the effective date of the initial public offering, provided that if such date falls during a blackout period, the post-termination exercise period will be extended until the date that is thirty days after the commencement of the Company’s next open trading window. In connection with the option agreement amendments, the option holders agreed that any shares of common stock acquired by such individuals upon exercise of any options outstanding under the 2015 plan (the “LTIP Option Shares”) will be subject to the following transfer restrictions, in addition to any other lock-up restrictions, securities trading policies, and other limitations to which such individuals may be subject: (i) the holder will be able to transfer up to 25% of the LTIP Option Shares at any time after six months following the effectiveness of the registration statement of which the IPO Prospectus formed a part (or such earlier time as the transfer restrictions expire under the lock-up agreements described in the IPO Prospectus under “Shares Eligible for Future Sale—Lock-up Agreements”) but prior to the first anniversary of the effectiveness of the registration statement of which the IPO Prospectus formed a part; (ii) on or after the first anniversary but prior to the second anniversary of the effectiveness of the registration statement of which the IPO Prospectus formed a part, the holder will be able to transfer up to 50% of the LTIP Option Shares (reduced by any of the LTIP Option Shares sold prior to the first anniversary) and (iii) on or after the second anniversary of the effectiveness of the registration statement of which the IPO Prospectus forms a part, the holder will be able to transfer all of his or her LTIP Option Shares. The foregoing transfer restrictions will not apply to any shares of common stock held by any such individual that are not LTIP Option Shares. 2021 Omnibus Incentive Plan On August 4, 2021, the Company’s Board of Directors adopted, and on August 13, 2021 the Company’s stockholders approved, the 2021 Equity Plan. Equity awards under the 2021 Equity Plan are intended to retain and motivate the Company’s officers and employees, consultants and non-employee directors and to promote the success of the Company’s business by providing such participating individuals with a proprietary interest in the performance of the Company. The 2021 Equity Plan will terminate on the ten Stock Options Options issued under the 2021 Equity Plan generally vest on various schedules over one The table below provides a summary of stock option activity under the 2021 Equity Plan for the three months ended March 31, 2023: Number of Shares Weighted Average Exercise Price Weighted Average Contractual Term (in years) Aggregate Intrinsic Value Weighted Average Fair Value (in thousands, except share and per share amounts) Outstanding at December 31, 2022 4,387,501 $ 22.91 8.81 $ — Granted 869,874 12.79 $ 7.07 Forfeited / Cancelled — — Exercised / Released — — — — Outstanding at March 31, 2023 5,257,375 $ 21.23 8.79 $ — Exercisable at March 31, 2023 102,995 $ 22.61 8.75 $ — $ — Restricted Stock Restricted stock issued under the 2021 Equity Plan in connection with the Company’s initial public offering vests 50% on the second anniversary of the grant date and 25% on each of the third and four one The table below provides a summary of restricted stock activity under the 2021 Equity Plan for the three months ended March 31, 2023: Number of Shares Weighted Average Fair Value Unvested at December 31, 2022 3,421,920 $ 20.32 Granted 1,970,881 12.93 Forfeited / Cancelled (77,795) 21.67 Vested (92,370) 22.35 Unvested at March 31, 2023 5,222,636 $ 17.47 Restricted Stock Units Restricted stock units issued under the 2021 Equity Plan in connection with the Company’s initial public offering vest 50% on the second anniversary of the grant date and 25% on each of the third and four one Number of Shares Weighted Average Fair Value Unvested at December 31, 2022 51,249 $ 21.18 Granted 12,262 12.79 Forfeited / Cancelled (2,254) 23.00 Vested (1,224) 22.35 Unvested at March 31, 2023 60,033 $ 19.38 Employee Stock Purchase Plan

Net Income per Share

Net Income per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Income per Share	Net Income per Share The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented: (in thousands, except share and per share amounts) Three Months Ended 2022 2023 Numerator: Net income attributable to stockholders $ 6,236 $ 591 Less: Undistributed amounts allocated to participating securities — — Undistributed income allocated to stockholders $ 6,236 $ 591 Denominator: Weighted average number of shares outstanding, basic 93,967,819 92,877,506 Weighted average additional shares assuming conversion of potential common shares 5,218,637 2,472,836 Weighted average common shares outstanding - diluted 99,186,456 95,350,342 Net income per share attributable to stockholders, basic $ 0.07 $ 0.01 Net income per share attributable to stockholders, diluted $ 0.06 $ 0.01 The following potentially dilutive outstanding securities were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period: Three Months Ended March 31, 2022 2023 Stock options 8,866,851 12,136,464 Restricted Stock Awards 2,272,422 5,160,978 Restricted Stock Units 47,663 59,895

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsThe Company had sales to Goldman Sachs and affiliates in the amount of $1.9 million and $1.1 million for the three months ended March 31, 2022 and 2023, respectively. Outstanding accounts receivable from Goldman Sachs as of December 31, 2022 and March 31, 2023 were $0.2 million and $0.6 million, respectively. Additionally, the Company is currently a party to a $75.0 million notional value interest rate swap through November 29, 2027 with J. Aron & Company LLC, a wholly-owned subsidiary of Goldman Sachs. Outstanding accounts receivable from J. Aron & Company LLC as of March 31, 2023 were less than $0.1 million. The Company had sales to an affiliate of certain stockholders that, to the Company’s knowledge, collectively own greater than 10% of the Company’s outstanding shares of common stock (the “Stockholders”) in the amount of $0.1 million for the three months ended March 31, 2022 and 2023. Outstanding accounts receivable from an affiliate of the Stockholders were less than $0.1 million as of December 31, 2022 and $0.1 million as of March 31, 2023.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Performance Obligations Substantially all of the Company’s revenues are recognized at a point in time as results from services are provided through a screening report and the customer takes control of the product when the report is completed. Accordingly, revenue is generally recognized at the point in time when the customer receives and can use the report. For revenue arrangements containing multiple products or services, the Company accounts for the individual products or services as separate performance obligations if they are distinct, the product or service is separately identifiable from other terms in the contract, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised products or services are accounted for as a combined performance obligation. The Company allocates the contract price to each performance obligation based on the standalone selling prices of each distinct product or service in the contract. Disaggregation of Revenues The following tables set forth total revenue by type of service for the periods presented: Three Months Ended (in thousands) 2022 2023 Screening services $ 189,748 $ 176,871 Other services 2,224 2,403 Total revenue $ 191,972 $ 179,274 The following table sets forth total revenue by geographic area in which the revenues and invoicing are recorded for the periods presented: Three Months Ended (in thousands) 2022 2023 United States $ 159,316 $ 149,742 All other countries 32,656 29,532 Total revenue $ 191,972 $ 179,274 Other than the U.S., no single country accounted for more than 10% of the Company’s total revenues during the three months ended March 31, 2022 and 2023. Substantially all of the Company’s long-lived assets were located in the U.S. as of December 31, 2022 and March 31, 2023. Contract Assets and Liabilities Incremental costs of obtaining a contract with a customer are recognized as an asset if the benefit of such costs is expected to be longer than one year, with a majority of contracts being multi-year. Incremental costs include commissions to the sales force and are amortized over three years, as management estimates that this corresponds to the period over which a customer benefits from the contract. As of December 31, 2022 and March 31, 2023, $3.3 million and $3.3 million, respectively, of deferred commissions are included in Other current assets on the unaudited condensed consolidated balance sheets and approximately $2.7 million and $2.7 million, respectively, of deferred commissions are included in Other noncurrent assets, net on the unaudited condensed consolidated balance sheets. The Company did not have any material contract liabilities as of December 31, 2022 and March 31, 2023. Concentrations For the three months ended March 31, 2022 and 2023, no single customer accounted for more than 10% of the Company’s revenue. No single customer had an accounts receivable balance greater than 10% of total accounts receivable as of December 31, 2022 and March 31, 2023.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company moved to a virtual-first strategy in 2020 and has closed or reduced the size of 12 offices globally. As a result of the success to date of the Company’s virtual-first strategy, the Company intends to close or reduce the size of its remaining offices during 2023, including the closure of the Company’s current principal executive office in New York. The Company’s new principal executive office will be the Company’s existing office in Ohio. The Company is currently assessing the financial impact of continuing to close multiple offices and relocating its principal executive office location.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include accounts of the Company and its wholly-owned subsidiaries.These unaudited condensed consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with US GAAP applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2023.
Consolidation	All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and judgments that can affect the reported amount of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Significant estimates include the impairment of long-lived assets, goodwill impairment, the determination of the fair value of acquired assets and liabilities, collectability of receivables, the valuation of stock-based awards and stock-based compensation and sales and income tax liabilities. The Company also applies an estimated useful life of three years to internally developed software assets. This is based on the historical observed pace of change in the Company’s delivery, technology, and product offerings as well as market competition. The Company believes that the estimates used in the preparation of these unaudited condensed consolidated financial statements are reasonable; however, actual results could differ materially from these estimates.
Segment Information	Segment Information The Company has one operating and reportable segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents of $103.1 million and $51.0 million as of December 31, 2022 and March 31, 2023, respectively, include money market instruments with maturities of three months or less. The Company maintained cash outside the U.S. as of December 31, 2022 of $28.0 million with the largest deposits being held in India and Canada, with balances of $5.1 million and $9.2 million, respectively. Cash outside the U.S. was
Foreign Currency	Foreign Currency Assets and liabilities of operations having non-USD functional currencies are translated at period-end exchange rates, and income statement accounts are translated at weighted average exchange rates for the period. Gains or losses resulting from translating foreign currency financial statements, net of any related tax effects, are reflected in Accumulated other comprehensive income (loss), a separate component of stockholders’ equity on the unaudited condensed consolidated balance sheets. Gains or losses resulting from foreign currency transactions incurred in currencies other than the local functional currency are included in Other income in the unaudited condensed consolidated statements of operations and comprehensive income (loss).
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses Accounts receivable balances consist of trade receivables that are recorded at the invoiced amount, net of allowances for expected credit losses and for potential sales credits and reserves. Sales credits and reserves were $0.9 million and $0.8 million as of December 31, 2022 and March 31, 2023 , respectively. The Company adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments - Credit Losses (“CECL”) on January 1, 2022. The adoption of CECL resulted in a $0.3 million cumulative effect adjustment recorded in retained earnings as of January 1, 2022. CECL requires an entity to utilize an impairment model to estimate its lifetime expected credit losses and record an allowance that, when deducted from the amortized cost basis of a financial asset, presents the net amount expected to be collected on the financial asset. The Company maintains an allowance for expected credit losses in order to record accounts receivable at their net realizable value. Inherent in the assessment of the allowance for expected credit losses are certain judgments and estimates relating to, among other things, the Company’s customers’ access to capital, customers’ willingness and ability to pay, general economic conditions and the ongoing relationship with customers. Allowances have been recorded for receivables believed to be uncollectible, including amounts for the resolution of potential credit and other collection issues such as disputed invoices. The allowance for expected credit losses is determined by analyzing the Company’s historical write-offs, the current aging of receivables, the financial condition of customers and the general economic climate.
Corporate Technology and Production Systems	Corporate Technology and Production Systems Corporate technology and production systems includes costs related to maintaining the Company’s corporate information technology infrastructure and non-capitalizable costs to develop and maintain its production systems. The following table sets forth expenses included in each category of corporate technology and production systems for the periods presented: Three Months Ended (in thousands) 2022 2023 Corporate information technology $ 6,123 $ 5,267 Development of platform and product initiatives 4,249 4,414 Production support and maintenance 2,180 2,271 Total production systems 6,429 6,685 Corporate technology and production systems $ 12,552 $ 11,952 Corporate information technology consists of salaries and benefits of personnel (including stock-based compensation expense) supporting internal operations such as information technology support and the maintenance of information security and business continuity functions. Also included are third-party costs including cloud computing costs that support the Company’s corporate internal systems, software licensing and maintenance, telecommunications and other technology infrastructure costs. Production systems costs consist of non-capitalizable personnel costs including contractor costs incurred for the development of platform and product initiatives and production support and maintenance. Platform and product initiatives facilitate the development of the Company’s technology platform and the launch of new screening products. Production support and maintenance includes costs to support and maintain the technology underlying the Company’s existing screening products and to enhance the ease of use of the Company’s cloud applications. Certain personnel costs related to new products and features are capitalized and amortized to depreciation and amortization.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of Accounts Receivable, Allowance for Credit Losses	The following table summarizes changes in the allowance for expected credit losses for the periods presented: Three Months Ended March 31, (in thousands) 2022 2023 Balance at beginning of period $ 2,949 $ 2,304 Cumulative effect of accounting change upon adoption of CECL 254 — Additions 308 244 Write-offs, net of recoveries (1,669) (78) Foreign currency translation adjustment — 3 Balance at end of period $ 1,842 $ 2,473
Summary of Corporate Technology and Production Systems Expense	The following table sets forth expenses included in each category of corporate technology and production systems for the periods presented: Three Months Ended (in thousands) 2022 2023 Corporate information technology $ 6,123 $ 5,267 Development of platform and product initiatives 4,249 4,414 Production support and maintenance 2,180 2,271 Total production systems 6,429 6,685 Corporate technology and production systems $ 12,552 $ 11,952

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed: (in thousands) Consideration Cash $ 11,935 Other current assets Accounts receivable 4,279 Other current assets 805 Property and equipment 177 Intangible assets 32,141 Other long-term assets $ 6 Total assets acquired $ 49,343 Accounts payable and accrued expenses 1,156 Other current liabilities 1,291 Deferred tax liability 8,388 Other liabilities 2 Total liabilities assumed $ 10,837 Total identifiable net assets 38,506 Goodwill 27,352 Total consideration $ 65,858

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, net	(in thousands) December 31, March 31, Furniture and fixtures $ 2,568 $ 2,516 Computers and equipment 41,084 41,421 Leasehold improvements 6,565 6,587 50,217 50,524 Less: Accumulated depreciation (39,876) (40,924) Total property and equipment, net $ 10,341 $ 9,600

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the periods presented were as follows: (in thousands) Goodwill as of December 31, 2022 $ 849,609 Acquisitions 27,352 Foreign currency translation adjustment 251 Goodwill as of March 31, 2023 $ 877,212
Summary of Intangible Assets	Intangible assets, net consisted of the following for the periods presented: December 31, 2022 March 31, 2023 (dollars in thousands) Estimated Useful Lives Gross Accumulated Net Gross Accumulated Net Customer lists 7 - 17 years $ 506,015 $ (340,579) $ 165,436 $ 533,848 $ (348,729) $ 185,119 Trademarks 2 - 16 years 77,198 (37,519) 39,679 77,791 (39,010) 38,781 Non-compete agreement 1 - 5 years 3,179 (2,584) 595 3,976 (2,619) 1,357 Technology 3 - 8 years 246,220 (216,330) 29,890 252,943 (220,358) 32,585 Domain names 2 - 15 years 10,118 (4,682) 5,436 10,117 (4,850) 5,267 $ 842,730 $ (601,694) $ 241,036 $ 878,675 $ (615,566) $ 263,109
Summary of Estimated Future Amortization Expense	Estimated amortization expense as of March 31, 2023 is as follows for each of the next five years: (in thousands) Year Ending December 31, Remainder of fiscal year 2023 $ 71,305 2024 45,083 2025 35,729 2026 27,578 2027 22,070 Thereafter 61,344 $ 263,109

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Summary of Accrued Expenses	Accrued expenses on the unaudited condensed consolidated balance sheets as of the periods presented consisted of the following: (in thousands) December 31, March 31, Accrued compensation $ 29,835 $ 18,392 Accrued cost of revenues 15,721 19,005 Accrued interest 3,143 106 Other accrued expenses 18,348 19,588 Total accrued expenses $ 67,047 $ 57,091

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of Lease Expense	The components of lease expense for the periods presented are as follows: Three Months Ended (in thousands) 2022 2023 Components of total lease costs Operating lease expense $ 1,299 $ 1,379 Sublease income (72) (222) Total net lease costs $ 1,227 $ 1,157
Schedule of Right-of-Use Assets and Lease Liabilities	Information related to the Company’s ROU assets and lease liabilities for the period presented is as follows: (dollar amounts in thousands) March 31, 2023 Operating leases Operating leases ROU asset - long-term $ 19,652 Operating leases ROU asset, net $ 19,652 Operating leases liability - current $ 3,565 Operating leases liability - long-term 16,574 Total operating leases liability $ 20,139 Weighted average remaining lease term in years - operating leases 4.5 Weighted average discount rate - operating leases 4.50 %
Schedule of Remaining Lease Payments	Total remaining lease payments under the Company’s operating leases for the period presented are as follows: (in thousands) March 31, 2023 Remainder of fiscal year 2023 $ 4,378 2024 4,958 2025 4,610 2026 3,796 2027 3,468 2028 1,073 Thereafter 85 Total future minimum lease payments $ 22,368 Less: imputed interest (2,229) Total $ 20,139

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Summary of Company's Long-term Debt	The table below sets forth the Company’s long-term debt as presented in the unaudited condensed consolidated balance sheets for the periods presented: (in thousands) December 31, March 31, Current portion of long-term debt Term Loans $ 7,500 $ 9,375 Total current portion of long-term debt $ 7,500 $ 9,375 Long-term debt Term Loans, due November 29, 2027 (6.76% and 6.91% at December 31, 2022 and March 31, 2023, respectively) 292,500 288,750 Revolving Credit Facility 205,494 205,494 Unamortized discount and debt issuance costs (4,004) (3,810) Total long-term debt, net $ 493,990 $ 490,434

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis	The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of December 31, 2022: (in thousands) Level 1 Level 2 Level 3 Liabilities Contingent consideration - acquisition of EBI $ — $ — $ 1,219 The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of March 31, 2023: (in thousands) Level 1 Level 2 Level 3 Assets Interest rate swaps $ — $ 1,049 $ — Liabilities Interest rate swaps — 8,024 — Contingent consideration - acquisition of EBI — — 914 Contingent consideration - acquisitions of Socrates and A-Check — — 4,706

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Company's Outstanding Derivatives	As of March 31, 2023, the Company had the following outstanding interest rate swap derivatives that were used to hedge its interest rate risks: Product Number of Instruments Effective Date Maturity Date Notional Interest Rate Swaps 4 February 28, 2023 November 29, 2027 $300.0 million USD
Summary of Fair Value of Derivative Financial Instruments	All financial derivative instruments are carried at their fair value on the balance sheet. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of the dates presented: Asset Derivatives (in thousands) As of December 31, 2022 As of March 31, 2023 Derivatives designated as hedging instruments: Interest rate swaps Other current assets $ — Other current assets $ 1,049 Interest rate swaps Other assets — Other assets $ — Total interest rate swaps $ — $ 1,049 Liability Derivatives (in thousands) As of December 31, 2022 As of March 31, 2023 Derivatives designated as hedging instruments: Interest rate swaps Other current liabilities $ — Other current liabilities $ — Interest rate swaps Other liabilities — Other liabilities 8,024 Total interest rate swaps $ — $ 8,024
Schedule of Derivative Instruments, Accumulated Other Comprehensive Income (Loss)	The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss) for the periods presented: Three Months Ended Three Months Ended (in thousands) 2022 2023 2022 2023 Derivatives in Hedging Relationships Amount of Loss Recognized in OCI on Derivative (Included Component) Location of Gain Reclassified from Accumulated OCI into Income Amount of Gain Reclassified from Accumulated OCI into Income (Included Component) Interest rate swaps $ — $ (6,877) Interest expense $ — $ 97 Total $ — $ (6,877) $ — $ 97
Summary of Cash Flow Hedge Accounting on Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	The tables below present the effect of the Company’s cash flow hedge accounting on the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods presented: Three Months Ended March 31, (in thousands) 2022 2023 Interest Expense Interest Expense Total amounts of income and expense line items in which the effects of fair value or cash flow hedges are recorded $ 6,336 $ 8,608 Gain on cash flow hedging relationships Interest rate swaps: Amount of gain reclassified from accumulated other comprehensive income (loss) into income $ — $ 97
Summary of Derivative Financial Instruments that are not Designated as Hedging Instruments	The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods presented: Three Months Ended (in thousands) 2022 2023 Derivatives Not Designated as Hedging Instruments Location of Loss (Gain) Recognized in Income on Derivatives Amount of Loss (Gain) Recognized in Income on Derivatives Interest rate swaps Loss (gain) on interest rate swaps $ (328) $ — Total $ (328) $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Summary Of Stock-Based Compensation Expense	Stock-based compensation expense is recognized in cost of revenues, corporate, technology and production systems, and selling, general, and administrative expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss) as follows: Three Months Ended 2022 2023 (in thousands) Stock-based compensation expense Cost of revenues $ 413 $ 428 Corporate technology and production systems 531 612 Selling, general and administrative 4,164 7,003 Total stock-based compensation expense $ 5,108 $ 8,043
Share-based Payment Arrangement, Option, Activity	The table below provides a summary of service-based vesting options (“SVOs”) and performance-based stock options (“PSOs”) currently outstanding under the 2015 Plan for the three months ended March 31, 2023: Outstanding SVOs Outstanding PSOs Number of Weighted Weighted Aggregate Number of Weighted Weighted Aggregate (in thousands, except shares and per share amounts) Balances as of December 31, 2022 6,208,274 $ 9.59 5.00 $ 36,513 3,081,855 $ 10.05 3.32 $ 16,699 Granted — — — — Forfeited / Cancelled — — — — Exercised — — — — — — Balances as of March 31, 2023 (1) 6,208,274 $ 9.59 4.72 $ 9,693 3,081,855 $ 10.05 3.07 $ 3,385 __________ (1) All SVOs and PSOs are exercisable as of March 31, 2023. The table below provides a summary of stock option activity under the 2021 Equity Plan for the three months ended March 31, 2023: Number of Shares Weighted Average Exercise Price Weighted Average Contractual Term (in years) Aggregate Intrinsic Value Weighted Average Fair Value (in thousands, except share and per share amounts) Outstanding at December 31, 2022 4,387,501 $ 22.91 8.81 $ — Granted 869,874 12.79 $ 7.07 Forfeited / Cancelled — — Exercised / Released — — — — Outstanding at March 31, 2023 5,257,375 $ 21.23 8.79 $ — Exercisable at March 31, 2023 102,995 $ 22.61 8.75 $ — $ —
Share-based Payment Arrangement, Restricted Stock Activity	The table below provides a summary of restricted stock activity under the 2021 Equity Plan for the three months ended March 31, 2023: Number of Shares Weighted Average Fair Value Unvested at December 31, 2022 3,421,920 $ 20.32 Granted 1,970,881 12.93 Forfeited / Cancelled (77,795) 21.67 Vested (92,370) 22.35 Unvested at March 31, 2023 5,222,636 $ 17.47 Number of Shares Weighted Average Fair Value Unvested at December 31, 2022 51,249 $ 21.18 Granted 12,262 12.79 Forfeited / Cancelled (2,254) 23.00 Vested (1,224) 22.35 Unvested at March 31, 2023 60,033 $ 19.38

Net Income per Share (Tables)

Net Income per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented: (in thousands, except share and per share amounts) Three Months Ended 2022 2023 Numerator: Net income attributable to stockholders $ 6,236 $ 591 Less: Undistributed amounts allocated to participating securities — — Undistributed income allocated to stockholders $ 6,236 $ 591 Denominator: Weighted average number of shares outstanding, basic 93,967,819 92,877,506 Weighted average additional shares assuming conversion of potential common shares 5,218,637 2,472,836 Weighted average common shares outstanding - diluted 99,186,456 95,350,342 Net income per share attributable to stockholders, basic $ 0.07 $ 0.01 Net income per share attributable to stockholders, diluted $ 0.06 $ 0.01
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potentially dilutive outstanding securities were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period: Three Months Ended March 31, 2022 2023 Stock options 8,866,851 12,136,464 Restricted Stock Awards 2,272,422 5,160,978 Restricted Stock Units 47,663 59,895

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following tables set forth total revenue by type of service for the periods presented: Three Months Ended (in thousands) 2022 2023 Screening services $ 189,748 $ 176,871 Other services 2,224 2,403 Total revenue $ 191,972 $ 179,274
Revenue from External Customers by Geographic Areas	The following table sets forth total revenue by geographic area in which the revenues and invoicing are recorded for the periods presented: Three Months Ended (in thousands) 2022 2023 United States $ 159,316 $ 149,742 All other countries 32,656 29,532 Total revenue $ 191,972 $ 179,274

Description of Business (Detail

Description of Business (Details)	Mar. 31, 2023
Sterling Check Corp.
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Ownership percentage	61.10%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)
Accounting Policies [Line Items]
Number of operating segments | Segment	1
Cash and cash equivalents	$ 50,964	$ 103,095
Cumulative translation adjustment losses	(4,900)	(5,600)
Sales credits and reserves	800	900
Allowance for expected credit losses	$ 2,473	2,304	$ 1,842		$ 2,949
Percentage of cloud-hosted revenue platforms	80%				95%
Cumulative Effect, Period of Adoption, Adjustment
Accounting Policies [Line Items]
Allowance for expected credit losses		0			$ 254
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13
Accounting Policies [Line Items]
Retained earnings				$ 300
Outside US
Accounting Policies [Line Items]
Cash	$ 26,600	28,000
India
Accounting Policies [Line Items]
Cash	5,400	5,100
Canada
Accounting Policies [Line Items]
Cash	$ 1,900	$ 9,200
Internally Developed Software Assets
Accounting Policies [Line Items]
Estimated useful life	3 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Accounts Receivable, Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 2,304	$ 2,949
Additions	244	308
Write-offs, net of recoveries	(78)	(1,669)
Foreign currency translation adjustment	3	0
Balance at end of period	2,473	1,842
Cumulative Effect, Period of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 0	$ 254

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Summary of Corporate Technology and Production Systems Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Corporate information technology	$ 5,267	$ 6,123
Development of platform and product initiatives	4,414	4,249
Production support and maintenance	2,271	2,180
Total production systems	6,685	6,429
Corporate technology and production systems	$ 11,952	$ 12,552

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($)				3 Months Ended		12 Months Ended	13 Months Ended
	Mar. 01, 2023	Dec. 31, 2022	Nov. 30, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Contingent consideration				$ 4,821,000	$ 0
Socrates and A-Check
Business Acquisition [Line Items]
Purchase price	$ 65,900,000
Transaction expenses				2,700,000
Tax deductible goodwill	0
Socrates and A-Check | Customer lists
Business Acquisition [Line Items]
Finite lived assets acquired	$ 28,000,000
Useful life of assets acquired	15 years
Socrates and A-Check | Trade Names
Business Acquisition [Line Items]
Useful life of assets acquired	2 years
Socrates and A-Check | Developed Technology
Business Acquisition [Line Items]
Useful life of assets acquired	8 years
Socrates and A-Check | Non-compete agreement
Business Acquisition [Line Items]
Useful life of assets acquired	5 years
A-Check
Business Acquisition [Line Items]
Contingent consideration	$ 4,700,000
Current portion of contingent consideration				$ 2,600,000
Contingent consideration period				1 year
Noncurrent portion of contingent consideration				$ 2,100,000
Socrates
Business Acquisition [Line Items]
Retention requirements payable	$ 5,000,000
Period of retention requirements payable	2 years
EBI
Business Acquisition [Line Items]
Purchase price		$ 67,500,000	$ 67,800,000
Contingent consideration			1,500,000
Current portion of contingent consideration		900,000				$ 900,000	$ 900,000
Contingent consideration period						2 years
Noncurrent portion of contingent consideration		$ 300,000				$ 300,000	300,000
Cash purchase price			$ 66,300,000
Total consideration, purchase price adjustment							$ (300,000)

Acquisitions - Assets and Liabi

Acquisitions - Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 01, 2023	Dec. 31, 2022
Consideration
Goodwill	$ 877,212		$ 849,609
Socrates and A-Check
Consideration
Cash		$ 11,935
Accounts receivable		4,279
Other current assets		805
Property and equipment		177
Intangible assets		32,141
Other long-term assets		6
Total assets acquired		49,343
Accounts payable and accrued expenses		1,156
Other current liabilities		1,291
Deferred tax liability		8,388
Other liabilities		2
Total liabilities assumed		10,837
Total identifiable net assets		38,506
Goodwill		27,352
Total consideration		$ 65,858

Property and Equipment, net - S

Property and Equipment, net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 50,524	$ 50,217
Less: Accumulated depreciation	(40,924)	(39,876)
Total property and equipment, net	9,600	10,341
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,516	2,568
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	41,421	41,084
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 6,587	$ 6,565

Property and Equipment, net - A

Property and Equipment, net - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,000,000	$ 1,100,000
Write down no longer use in property and equipment	$ 100,000	$ 0

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 849,609
Acquisitions	27,352
Foreign currency translation adjustment	251
Goodwill, ending balance	$ 877,212

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 878,675	$ 842,730
Accumulated Amortization	(615,566)	(601,694)
Net	263,109	241,036
Customer lists
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	533,848	506,015
Accumulated Amortization	(348,729)	(340,579)
Net	185,119	165,436
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	77,791	77,198
Accumulated Amortization	(39,010)	(37,519)
Net	38,781	39,679
Non-compete agreement
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,976	3,179
Accumulated Amortization	(2,619)	(2,584)
Net	1,357	595
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	252,943	246,220
Accumulated Amortization	(220,358)	(216,330)
Net	32,585	29,890
Domain names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,117	10,118
Accumulated Amortization	(4,850)	(4,682)
Net	$ 5,267	$ 5,436
Minimum | Customer lists
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	7 years
Minimum | Trademarks
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	2 years
Minimum | Non-compete agreement
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	1 year
Minimum | Technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	3 years
Minimum | Domain names
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	2 years
Maximum | Customer lists
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	17 years
Maximum | Trademarks
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	16 years
Maximum | Non-compete agreement
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	5 years
Maximum | Technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	8 years
Maximum | Domain names
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	15 years

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Indefinite-lived Intangible Assets [Line Items]
Net intangibles	$ 263,109,000		$ 241,036,000
Capitalized computer software, impairments	100,000	$ 0
Amortization of intangible assets	14,100,000	19,100,000
Software and Software Development Costs
Indefinite-lived Intangible Assets [Line Items]
Net intangibles	30,200,000		28,100,000
Capitalized computer software, additions	4,100,000	3,700,000
Software and Software Development Costs | Internal Cost
Indefinite-lived Intangible Assets [Line Items]
Capitalized computer software, additions	3,400,000	3,000,000
Software and Software Development Costs | External Cost
Indefinite-lived Intangible Assets [Line Items]
Capitalized computer software, additions	700,000	$ 700,000
Technology
Indefinite-lived Intangible Assets [Line Items]
Net intangibles	32,585,000		$ 29,890,000
Finite lived intangible assets, not yet in service	$ 5,100,000

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Summary of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of fiscal year 2023	$ 71,305
2024	45,083
2025	35,729
2026	27,578
2027	22,070
Thereafter	61,344
Net	$ 263,109	$ 241,036

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued compensation	$ 18,392	$ 29,835
Accrued cost of revenues	19,005	15,721
Accrued interest	106	3,143
Other accrued expenses	19,588	18,348
Total accrued expenses	$ 57,091	$ 67,047

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) lease	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Right-of-use asset	$ 19,652	$ 20,084
Lease liability	$ 20,139
Credit agreement incremental borrowing rate used for leases	4.50%
Number of operating leases | lease	23
Minimum
Lessee, Lease, Description [Line Items]
Remaining operating lease term	1 month
Maximum
Lessee, Lease, Description [Line Items]
Remaining operating lease term	70 months
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Right-of-use asset			$ 23,500
Lease liability			$ 23,800

Leases - Schedule of Lease Expe

Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease expense	$ 1,379	$ 1,299
Sublease income	(222)	(72)
Total net lease costs	$ 1,157	$ 1,227

Leases - Schedule of Right-of-U

Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating leases ROU asset - long-term	$ 19,652
Operating leases ROU asset, net	19,652	$ 20,084
Operating leases liability - current	3,565	3,717
Operating leases liability - long-term	16,574	$ 16,835
Total operating leases liability	$ 20,139
Weighted average remaining lease term in years - operating leases	4 years 6 months
Weighted average discount rate - operating leases	4.50%

Leases - Schedule of Remaining

Leases - Schedule of Remaining Lease Payments (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Remainder of fiscal year 2023	$ 4,378
2024	4,958
2025	4,610
2026	3,796
2027	3,468
2028	1,073
Thereafter	85
Total future minimum lease payments	22,368
Less: imputed interest	(2,229)
Total	$ 20,139

Debt - Additional Information (

Debt - Additional Information (Details) - Line of Credit - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Nov. 29, 2022
Debt Instrument [Line Items]
Aggregate amount of borrowings permitted			$ 700,000,000
Level 2
Debt Instrument [Line Items]
Estimated fair value	$ 488,700,000	$ 487,100,000
Secured Debt | Term Loans
Debt Instrument [Line Items]
Aggregate amount of borrowings permitted			300,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate amount of borrowings permitted			$ 400,000,000

Debt - Summary of Company's Lon

Debt - Summary of Company's Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current portion of long-term debt
Total current portion of long-term debt	$ 9,375	$ 7,500
Long-term debt
Unamortized discount and debt issuance costs	(3,810)	(4,004)
Total long-term debt, net	490,434	493,990
Line of Credit | Secured Debt | Term Loans
Current portion of long-term debt
Total current portion of long-term debt	9,375	7,500
Long-term debt
Long-term debt, gross	$ 288,750	$ 292,500
Interest rates	6.91%	6.76%
Line of Credit | Revolving Credit Facility
Long-term debt
Long-term debt, gross	$ 205,494	$ 205,494

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
EBI
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 0.9	$ 1.2
Current portion of contingent consideration		$ 0.9
Contingent consideration period		2 years
Noncurrent portion of contingent consideration		$ 0.3
A-Check
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	4.7
Current portion of contingent consideration	$ 2.6
Contingent consideration period	1 year
Noncurrent portion of contingent consideration	$ 2.1

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Summary of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
EBI
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 900	$ 1,200
Fair Value, Recurring | Level 1 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0
Liabilities	0
Fair Value, Recurring | Level 1 | EBI
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0	0
Fair Value, Recurring | Level 1 | Socrates and A-Check
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0
Fair Value, Recurring | Level 2 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1,049
Liabilities	8,024
Fair Value, Recurring | Level 2 | EBI
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0	0
Fair Value, Recurring | Level 2 | Socrates and A-Check
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0
Fair Value, Recurring | Level 3 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0
Liabilities	0
Fair Value, Recurring | Level 3 | EBI
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	914	$ 1,219
Fair Value, Recurring | Level 3 | Socrates and A-Check
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 4,706

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Summary of Company's Outstanding Derivatives (Details) - Interest rate swaps $ in Millions	Mar. 31, 2023 USD ($) instrument
Derivative [Line Items]
Number of Instruments | instrument	4
Notional | $	$ 300

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Summary of Fair Value of Derivative Financial Instruments (Details) - Derivatives designated as hedging instruments: - Interest rate swaps - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Asset Derivatives	$ 1,049	$ 0
Liability Derivatives	8,024	0
Other current assets
Derivative [Line Items]
Asset Derivatives	1,049	0
Other assets
Derivative [Line Items]
Asset Derivatives	0	0
Other current liabilities
Derivative [Line Items]
Liability Derivatives	0	0
Other liabilities
Derivative [Line Items]
Liability Derivatives	$ 8,024	$ 0

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Summary of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) (Details) - Derivatives in Hedging Relationships - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Amount of Loss Recognized in OCI on Derivative (Included Component)	$ (6,877)	$ 0
Amount of Gain Reclassified from Accumulated OCI into Income (Included Component)	97	0
Interest expense
Derivative [Line Items]
Amount of Gain Reclassified from Accumulated OCI into Income (Included Component)	97	0
Interest rate swaps
Derivative [Line Items]
Amount of Loss Recognized in OCI on Derivative (Included Component)	(6,877)	0
Interest rate swaps | Interest expense
Derivative [Line Items]
Amount of Gain Reclassified from Accumulated OCI into Income (Included Component)	$ 97	$ 0

Derivative Instruments and He_6

Derivative Instruments and Hedging Activities - Summary of Cash Flow Hedge Accounting on Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Interest Expense	$ 8,608	$ 6,336
Derivatives designated as hedging instruments:
Derivative [Line Items]
Interest Expense	8,608	6,336
Amount of gain reclassified from accumulated other comprehensive income (loss) into income	97	0
Derivatives designated as hedging instruments: | Interest expense
Derivative [Line Items]
Amount of gain reclassified from accumulated other comprehensive income (loss) into income	97	0
Derivatives designated as hedging instruments: | Interest rate swaps | Interest expense
Derivative [Line Items]
Amount of gain reclassified from accumulated other comprehensive income (loss) into income	$ 97	$ 0

Derivative Instruments and He_7

Derivative Instruments and Hedging Activities - Summary of Derivative Financial Instruments that are Not Designated as Hedging Instruments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) instrument	Mar. 31, 2022 USD ($)
Interest rate swaps
Derivative [Line Items]
Number of Instruments | instrument	4
Derivatives designated as hedging instruments:
Derivative [Line Items]
Number of Instruments | instrument	0
Amount of Loss (Gain) Recognized in Income on Derivatives | $	$ 0	$ (328)
Derivatives designated as hedging instruments: | Interest rate swaps | Loss (gain) on interest rate swaps
Derivative [Line Items]
Amount of Loss (Gain) Recognized in Income on Derivatives | $	$ 0	$ (328)

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax provision	$ 1,102	$ 4,085
Effective tax rate	65.10%	39.60%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Litigation settlement obligation	$ 3,850		$ 4,165
Insurance receivable	900		$ 900
Net legal settlement expense	$ 100	$ 100

Equity (Details)

Equity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) vote $ / shares shares	Dec. 31, 2022 $ / shares shares	Nov. 23, 2022 USD ($)
Stockholders' Equity Note [Abstract]
Total shares authorized (in shares)	1,100,000,000
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, par value (in USD per share) | $ / shares	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, par value (in USD per share) | $ / shares	$ 0.01	$ 0.01
Number of votes entitled to each share of common stock | vote	1
Dividends declared (in USD per share) | $ / shares	$ 0
Authorized common stock repurchase amount | $			$ 100,000
Common stock repurchased (in shares)	493,926
Value of common stock repurchased | $	$ 7,712

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 8,043	$ 5,108
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	428	413
Corporate technology and production systems
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	612	531
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 7,003	$ 4,164

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ in Millions				3 Months Ended
	Dec. 31, 2021	Sep. 27, 2021	Aug. 04, 2021 shares	Mar. 31, 2023 USD ($) employee shares	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $				$ 109.3
Weighted average period of recognition				2 years 10 months 2 days
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Post-termination exercise period			6 months
Extended post-termination exercise period			30 days
Maximum threshold percentage transfer of long term option shares within one year			25%
Effectiveness period of transfer of long term option shares within one year			6 months
Maximum threshold percentage transfer of long term option shares after one year			50%
2021 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award expiration term					10 years
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares) | shares			9,433,000
Percentage of outstanding stock maximum			5%
Share based compensation by share based award number of shares authorized for issuance (in shares) | shares			9,433,000
Share based compensation by share based award number of shares available for grant (in shares) | shares				8,403,520
NQSO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense related to options | $				$ 34.8
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense related to restricted stock | $				73.6
Restricted Stock Awards | 2021 Equity Plan | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term	2 years
Share based compensation by share based award vesting percentage	50%
Restricted Stock Awards | 2021 Equity Plan | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term	3 years
Share based compensation by share based award vesting percentage	25%
Restricted Stock Awards | 2021 Equity Plan | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term	4 years
Share based compensation by share based award vesting percentage	25%
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense related to restricted stock | $				$ 0.9
Restricted Stock Units | 2021 Equity Plan | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term		2 years
Share based compensation by share based award vesting percentage		50%
Restricted Stock Units | 2021 Equity Plan | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term		3 years
Share based compensation by share based award vesting percentage		25%
Restricted Stock Units | 2021 Equity Plan | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term		4 years
Share based compensation by share based award vesting percentage		25%
Restricted Stock Units | 2021 Equity Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				1 year
Restricted Stock Units | 2021 Equity Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				4 years
Stock Options | 2021 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award expiration term				10 years
Stock Options | 2021 Equity Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				1 year
Stock Options | 2021 Equity Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				4 years
Restricted Stock, Other | 2021 Equity Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				1 year
Restricted Stock, Other | 2021 Equity Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award vesting term				4 years
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares) | shares				0
Number of eligible employees enrolled in ESPP | employee				0

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
2015 Plan | Service-Based Vesting Stock Options
Number of Shares
Balance at beginning of period (in shares)	6,208,274
Granted (in shares)	0
Forfeited / cancelled (in shares)	0
Exercised (in shares)	0
Balance at end of period (in shares)	6,208,274	6,208,274
Weighted Average Exercise Price
Balance at beginning of period (in USD per share)	$ 9.59
Granted (in USD per share)	0
Forfeited / cancelled (in USD per share)	0
Exercised (in USD per share)	0
Balance at end of period (in USD per share)	$ 9.59	$ 9.59
Weighted Average Remaining Contractual Life (years)
Weighted average contractual term of options outstanding	4 years 8 months 19 days	5 years
Aggregate Intrinsic Value
Beginning Balance, Aggregate Intrinsic Value	$ 36,513
Exercised, Aggregate Intrinsic Value	0
Ending Balance, Aggregate Intrinsic Value	$ 9,693	$ 36,513
2015 Plan | Performance-Based Stock Options
Number of Shares
Balance at beginning of period (in shares)	3,081,855
Granted (in shares)	0
Forfeited / cancelled (in shares)	0
Exercised (in shares)	0
Balance at end of period (in shares)	3,081,855	3,081,855
Weighted Average Exercise Price
Balance at beginning of period (in USD per share)	$ 10.05
Forfeited / cancelled (in USD per share)	0
Exercised (in USD per share)	0
Balance at end of period (in USD per share)	$ 10.05	$ 10.05
Weighted Average Remaining Contractual Life (years)
Weighted average contractual term of options outstanding	3 years 25 days	3 years 3 months 25 days
Aggregate Intrinsic Value
Beginning Balance, Aggregate Intrinsic Value	$ 16,699
Exercised, Aggregate Intrinsic Value	0
Ending Balance, Aggregate Intrinsic Value	$ 3,385	$ 16,699
2021 Equity Plan
Number of Shares
Balance at beginning of period (in shares)	4,387,501
Granted (in shares)	869,874
Forfeited / cancelled (in shares)	0
Exercised (in shares)	0
Balance at end of period (in shares)	5,257,375	4,387,501
Exercisable (in shares)	102,995
Weighted Average Exercise Price
Balance at beginning of period (in USD per share)	$ 22.91
Granted (in USD per share)	12.79
Forfeited / cancelled (in USD per share)	0
Exercised (in USD per share)	0
Balance at end of period (in USD per share)	21.23	$ 22.91
Exercisable (in USD per share)	$ 22.61
Weighted Average Remaining Contractual Life (years)
Weighted average contractual term of options outstanding	8 years 9 months 14 days	8 years 9 months 21 days
Weighted average contractual term of options exercisable	8 years 9 months
Aggregate Intrinsic Value
Beginning Balance, Aggregate Intrinsic Value	$ 0
Ending Balance, Aggregate Intrinsic Value	0	$ 0
Aggregate intrinsic value of options exercisable	$ 0
Weighted average fair value of options granted (in USD per share)	$ 7.07

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - 2021 Equity Plan	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Restricted Stock Awards
Number of Shares
Balance at beginning of period (in shares) | shares	3,421,920
Granted (in shares) | shares	1,970,881
Forfeited / cancelled (in shares) | shares	(77,795)
Vested (in shares) | shares	(92,370)
Balance at end of period (in shares) | shares	5,222,636
Weighted Average Fair Value (per share)
Balance at beginning of period (in USD per share) | $ / shares	$ 20.32
Granted (in USD per share) | $ / shares	12.93
Forfeited / cancelled (in USD per share) | $ / shares	21.67
Vested (in USD per share) | $ / shares	22.35
Balance at end of period (in USD per share) | $ / shares	$ 17.47
Restricted Stock Units
Number of Shares
Balance at beginning of period (in shares) | shares	51,249
Granted (in shares) | shares	12,262
Forfeited / cancelled (in shares) | shares	(2,254)
Vested (in shares) | shares	(1,224)
Balance at end of period (in shares) | shares	60,033
Weighted Average Fair Value (per share)
Balance at beginning of period (in USD per share) | $ / shares	$ 21.18
Granted (in USD per share) | $ / shares	12.79
Forfeited / cancelled (in USD per share) | $ / shares	23
Vested (in USD per share) | $ / shares	22.35
Balance at end of period (in USD per share) | $ / shares	$ 19.38

Net Income per Share - Schedule

Net Income per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income attributable to stockholders	$ 591	$ 6,236
Less: Undistributed amounts allocated to participating securities	0	0
Undistributed income allocated to stockholders	$ 591	$ 6,236
Denominator:
Weighted average number of shares outstanding, basic (in shares)	92,877,506	93,967,819
Weighted average additional shares assuming conversion of potential shares of common stock (in shares)	2,472,836	5,218,637
Weighted average shares of common stock outstanding - diluted (in shares)	95,350,342	99,186,456
Net income per share attributable to stockholders, basic (in USD per share)	$ 0.01	$ 0.07
Net income per share attributable to stockholders, diluted (in USD per share)	$ 0.01	$ 0.06

Net Income per Share - Schedu_2

Net Income per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	12,136,464	8,866,851
Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,160,978	2,272,422
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	59,895	47,663

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Interest rate swaps
Related Party Transaction [Line Items]
Notional value interest rate swap with related party	$ 300
Goldman Sachs
Related Party Transaction [Line Items]
Revenue from related parties	1.1	$ 1.9
Accounts receivable from related party	0.6		$ 0.2
Goldman Sachs | J. Aron & Company LLC
Related Party Transaction [Line Items]
Accounts receivable from related party	0.1
Goldman Sachs | Interest rate swaps | J. Aron & Company LLC
Related Party Transaction [Line Items]
Notional value interest rate swap with related party	75
Stockholders
Related Party Transaction [Line Items]
Revenue from related parties	0.1	$ 0.1
Accounts receivable from related party	$ 0.1		$ 0.1

Revenue - Summary of Total Reve

Revenue - Summary of Total Revenue by Type of Service (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 179,274	$ 191,972
Screening services
Disaggregation of Revenue [Line Items]
Revenues	176,871	189,748
Other services
Disaggregation of Revenue [Line Items]
Revenues	$ 2,403	$ 2,224

Revenue - Summary of Total Re_2

Revenue - Summary of Total Revenue by Geographic Area Based on the Billing Address of its Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 179,274	$ 191,972
United States
Disaggregation of Revenue [Line Items]
Revenues	149,742	159,316
All other countries
Disaggregation of Revenue [Line Items]
Revenues	$ 29,532	$ 32,656

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred commissions, amortization period	3 years
Deferred commissions current	$ 3.3	$ 3.3
Deferred commissions non-current	$ 2.7	$ 2.7

Subsequent Events (Detail)

Subsequent Events (Detail)	40 Months Ended
	May 09, 2023 office
Subsequent Event
Subsequent Event [Line Items]
Number of offices closed or reduce in size	12

Uncategorized Items - ster-2023

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]