Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40819 | |
Entity Registrant Name | Toast, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-4168768 | |
Entity Address, Address Line One | 401 Park Drive, | |
Entity Address, Address Line Two | Suite 801 | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02215 | |
City Area Code | 617 | |
Local Phone Number | 297-1005 | |
Title of 12(b) Security | Class A common stock, par value of $0.000001 per share | |
Trading Symbol | TOST | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001650164 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 283,334,993 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 228,545,225 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 757 | $ 809 |
Marketable securities | 453 | 457 |
Accounts receivable, net | 56 | 55 |
Inventories | 44 | 42 |
Deferred costs, net | 32 | 30 |
Prepaid expenses and other current assets | 135 | 92 |
Total current assets | 1,477 | 1,485 |
Property and equipment, net | 42 | 41 |
Operating lease right-of-use assets | 79 | 79 |
Intangible assets | 15 | 16 |
Goodwill | 74 | 74 |
Deferred costs, non-current | 30 | 25 |
Other non-current assets | 17 | 15 |
Total non-current assets | 257 | 250 |
Total assets | 1,734 | 1,735 |
Current liabilities: | ||
Accounts payable | 29 | 40 |
Operating lease liabilities | 18 | 22 |
Deferred revenue | 42 | 44 |
Accrued expenses and other current liabilities | 315 | 246 |
Total current liabilities | 404 | 352 |
Warrants to purchase common stock | 84 | 181 |
Operating lease liabilities, non-current | 77 | 77 |
Deferred revenue, non-current | 8 | 12 |
Other long-term liabilities | 18 | 22 |
Total liabilities | 591 | 644 |
Commitments and Contingencies (Note 12) | ||
Stockholders’ Equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 2,271 | 2,194 |
Accumulated deficit | (1,125) | (1,102) |
Accumulated other comprehensive loss | (3) | (1) |
Treasury stock, at cost— 225,000 shares outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 |
Total stockholders’ equity | 1,143 | 1,091 |
Total liabilities and stockholders’ equity | 1,734 | 1,735 |
Common Class A | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Common Class B | ||
Stockholders’ Equity: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Stockholders’ Equity: | |||
Preferred stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 | |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred stock, issued (in shares) | 0 | 0 | |
Preferred stock, outstanding (in shares) | 0 | 0 | |
Treasury stock (in shares) | 225,000 | 225,000 | |
Common Class A | |||
Stockholders’ Equity: | |||
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 | |
Common stock, authorized (in shares) | 7,000,000,000 | 7,000,000,000 | |
Common stock, issued (in shares) | 257,866,880 | 167,732,925 | |
Common stock, outstanding (in shares) | 257,866,880 | 167,732,925 | |
Common Class B | |||
Stockholders’ Equity: | |||
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 | |
Common stock, authorized (in shares) | 700,000,000 | 700,000,000 | |
Common stock, issued (in shares) | 252,558,185 | 339,437,440 | |
Common stock, outstanding (in shares) | 252,558,185 | 339,437,440 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Total revenue | $ 535 | $ 282 |
Costs of revenue: | ||
Amortization of acquired technology and customer assets | 1 | 1 |
Total costs of revenue | 446 | 213 |
Gross profit | 89 | 69 |
Operating expenses: | ||
Sales and marketing | 71 | 32 |
Research and development | 62 | 23 |
General and administrative | 57 | 19 |
Total operating expenses | 190 | 74 |
Loss from operations | (101) | (5) |
Other income (expense): | ||
Interest income (expense), net | 0 | (6) |
Change in fair value of warrant liabilities | 79 | (12) |
Change in fair value of derivative liability | 0 | (76) |
Other income (expense), net | (1) | 0 |
Loss before provision for income taxes | (23) | (99) |
Provision for income taxes | 0 | 0 |
Net loss | $ (23) | $ (99) |
Net loss per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.05) | $ (0.48) |
Diluted (in dollars per share) | $ (0.20) | $ (0.48) |
Weighted average shares used in computing net loss per share: | ||
Basic (in shares) | 505,378,195 | 205,352,706 |
Diluted (in shares) | 507,037,246 | 205,352,706 |
Subscription services | ||
Revenue: | ||
Total revenue | $ 63 | $ 31 |
Costs of revenue: | ||
Cost of revenue | 25 | 10 |
Financial technology solutions | ||
Revenue: | ||
Total revenue | 438 | 227 |
Costs of revenue: | ||
Cost of revenue | 347 | 172 |
Hardware | ||
Revenue: | ||
Total revenue | 29 | 21 |
Costs of revenue: | ||
Cost of revenue | 52 | 21 |
Professional services | ||
Revenue: | ||
Total revenue | 5 | 3 |
Costs of revenue: | ||
Cost of revenue | $ 21 | $ 9 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (23) | $ (99) |
Other comprehensive income (loss): | ||
Unrealized losses on marketable securities, net of tax effect of $0 | (2) | 0 |
Total other comprehensive loss | (2) | 0 |
Comprehensive loss | $ (25) | $ (99) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized losses on marketable securities, tax | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) | Total | Cumulative adjustment due to adoption of ASC 842 and ASC 326 | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative adjustment due to adoption of ASC 842 and ASC 326 | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2020 | 253,832,025 | |||||||
Beginning balance at Dec. 31, 2020 | $ 849,000,000 | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 253,832,025 | |||||||
Ending balance at Mar. 31, 2021 | $ 849,000,000 | |||||||
Beginning balance (in shares) at Dec. 31, 2020 | 219,755,430 | 225,000 | ||||||
Beginning balance at Dec. 31, 2020 | (471,000,000) | $ 1,000,000 | $ 0 | $ 0 | $ 145,000,000 | $ (616,000,000) | $ 1,000,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options | 1,957,980 | |||||||
Exercise of common stock options | 2,000,000 | 2,000,000 | ||||||
Stock-based compensation | 5,000,000 | 5,000,000 | ||||||
Unrealized loss on marketable securities | 0 | |||||||
Net loss | (99,000,000) | (99,000,000) | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 221,713,410 | 225,000 | ||||||
Ending balance at Mar. 31, 2021 | (562,000,000) | $ 0 | $ 0 | 152,000,000 | (714,000,000) | |||
Beginning balance (in shares) at Dec. 31, 2021 | 507,170,365 | 225,000 | ||||||
Beginning balance at Dec. 31, 2021 | 1,091,000,000 | $ 0 | $ 0 | 2,194,000,000 | (1,102,000,000) | $ (1,000,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of common stock (in shares) | (30,475) | |||||||
Repurchase of common stock | 0 | |||||||
Issuance of common stock upon net exercise of common stock warrants (in shares) | 371,573 | |||||||
Issuance of common stock upon net exercise of common stock warrants | $ 18,000,000 | 18,000,000 | ||||||
Exercise of common stock options | 2,750,691 | 2,750,691 | ||||||
Exercise of common stock options | $ 4,000,000 | 4,000,000 | ||||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 125,732 | |||||||
Stock-based compensation | 53,000,000 | 53,000,000 | ||||||
Vesting of restricted stock | 1,000,000 | 1,000,000 | ||||||
Issuance of common stock for payment of acquisition contingent consideration (in shares) | 37,179 | |||||||
Issuance of common stock for contingent consideration payment | 1,000,000 | 1,000,000 | ||||||
Unrealized loss on marketable securities | (2,000,000) | (2,000,000) | ||||||
Net loss | (23,000,000) | (23,000,000) | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 510,425,065 | 225,000 | ||||||
Ending balance at Mar. 31, 2022 | $ 1,143,000,000 | $ 0 | $ 0 | $ 2,271,000,000 | $ (1,125,000,000) | $ (3,000,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (23) | $ (99) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6 | 4 |
Stock-based compensation | 53 | 5 |
Amortization of deferred costs | 10 | 5 |
Change in fair value of derivative liability | 0 | 76 |
Change in fair value of warrant liabilities | (79) | 12 |
Credit loss expense | 3 | 2 |
Change in fair value of contingent consideration | 2 | 0 |
Non-cash interest expense on convertible notes | 0 | 6 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (2) | (6) |
Merchant cash advances and acquired loans repaid | 1 | 0 |
Prepaid expenses and other current assets | (15) | (2) |
Deferred costs, net | (17) | (8) |
Inventories | (2) | 1 |
Operating lease right-of-use assets | (6) | 5 |
Accounts payable | (12) | (3) |
Accrued expenses and other current liabilities | 39 | 12 |
Deferred revenue | (6) | (3) |
Operating lease liabilities | 4 | (5) |
Other assets and liabilities | (3) | (7) |
Net cash used in operating activities | (47) | (5) |
Cash flows from investing activities: | ||
Capitalized software | (1) | (2) |
Purchases of property and equipment | (2) | (6) |
Purchases of marketable securities | (30) | 0 |
Proceeds from the sale of marketable securities | 18 | 0 |
Maturities of marketable securities | 12 | 0 |
Net cash used in investing activities | (3) | (8) |
Cash flows from financing activities: | ||
Change in customer funds obligations, net | 27 | 10 |
Proceeds from exercise of stock options | 4 | 2 |
Payment of contingent consideration | (2) | 0 |
Net cash provided by financing activities | 29 | 12 |
Net decrease in cash, cash equivalents, cash held on behalf of customers and restricted cash | (21) | (1) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 0 | (1) |
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period | 851 | 594 |
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period | 830 | 592 |
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash | ||
Cash and cash equivalents | 757 | 570 |
Cash held on behalf of customers | 62 | 21 |
Restricted cash | 11 | 1 |
Total cash, cash equivalents, cash held on behalf of customers and restricted cash | 830 | 592 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable and accrued expenses | 2 | 0 |
Issuance of Class B common stock upon exercise of common stock warrants | 18 | 0 |
Issuance of Class B common stock for payment of contingent consideration | $ 1 | $ 0 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies Toast, Inc. (“we,” or “the Company”), is a cloud-based all-in-one digital technology platform purpose-built for the entire restaurant community. Our platform provides a comprehensive suite of software as a service, or SaaS, products, financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. We serve as the restaurant operating system, connecting front of house and back of house operations across dine-in, takeout, and delivery channels. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. The Consolidated Balance Sheet as of December 31, 2021 included herein was derived from the audited financial statements as of that date. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive loss, stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be expected for the full year ending December 31, 2022 or any other future interim periods. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021, or the 2021 Annual Report. There have been no changes to our significant accounting policies described in the 2021 Annual Report that have had a material impact on our consolidated financial statements and related notes. Risks and Uncertainties We are subject to a number of risks common to emerging, technology-based companies, including a limited operating history, dependence on key individuals, rapid technological changes, competition from substitute products and larger companies, the ability to successfully develop, market, and outsource manufacturing of our products and services, as well as the impact of the novel coronavirus disease, or COVID-19, on the restaurant industry and other global financial, economic and political events. Since early 2020, changes in consumers’ behavior and government-imposed restrictions because of the COVID-19 pandemic have impacted restaurants in various ways, including limiting service to takeout orders for a period of time or reducing capacity to accommodate social distancing recommendations. The extent of the impact of the COVID-19 pandemic over the longer term remains uncertain and will depend largely on future developments that cannot be accurately predicted at this time, including the duration and the spread of the pandemic both globally and within the United States, the introduction and severity of new variants of the virus and their resistance to currently approved vaccines, as well as the potential negative impact these and other factors may have on the restaurant industry and our business. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates, judgments, and assumptions in these consolidated financial statements include, but are not limited to, those related to revenue recognition, allowance for credit losses, liabilities associated with financial guarantees (contingent liabilities for credit losses and related non-contingent liabilities), negative allowances for expected recoveries on repurchased loans, allowances for uncollectible loans, allowance for excessive and obsolete inventory, reserves for warranties on hardware sold, incremental borrowing rates applied in valuation of lease liabilities, reserves for sales returns, fair values of assets acquired and liabilities assumed through business combinations, useful lives of assets acquired in business combinations, stock-based compensation expense, warrants, as well as amortization periods for deferred contract acquisition costs. Actual results could vary from these estimates. Recently Adopted Accounting Pronouncements Leases and Credit Losses In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Codification, or ASC 842, Leases , or ASC 842, as amended, which superseded the guidance in former ASC 840, Leases . We adopted ASC 842 on January 1, 2021 on a modified retrospective basis. In June 2016, the FASB issued ASC 326, Financial Instruments-Credit Losses , or ASC 326. We adopted the standard as of January 1, 2021 on a modified retrospective basis and recognized a cumulative-effect adjustment to the opening retained earnings as of that date. Significant Accounting Policies Other than the adoption of new accounting pronouncements as described above, there have been no material changes to our significant accounting policies disclosed in Note 2, “Summary of Significant Accounting Policies” included in the Consolidated Financial Statements for the years ended December 31, 2021, 2020 and 2019 in our 2021 Annual Report. Reclassifications Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values: Fair Value Measurement at March 31, 2022 Using Level 1 Level 2 Level 3 Total Assets: Money market funds $ 709 $ — $ — $ 709 Commercial paper — 135 — 135 Certificates of deposit — 21 — 21 Corporate bonds — 190 — 190 Treasury securities — 69 — 69 Asset-backed securities — 38 — 38 $ 709 $ 453 $ — $ 1,162 Liabilities: Warrants to purchase common stock $ — $ — $ 84 $ 84 Contingent consideration — — 3 3 $ — $ — $ 87 $ 87 Fair Value Measurement at December 31, 2021 Using Level 1 Level 2 Level 3 Total Assets: Money market funds $ 50 $ — $ — $ 50 Commercial paper — 134 — 134 Certificates of deposit — 14 — 14 Corporate bonds — 193 — 193 Treasury securities — 67 — 67 Asset-backed securities — 49 — 49 $ 50 $ 457 $ — $ 507 Liabilities: Warrants to purchase common stock $ — $ — $ 181 $ 181 Contingent consideration — — 5 5 $ — $ — $ 186 $ 186 During the three months ended March 31, 2022, there were no transfers into or out of Level 3 measurements within the fair value hierarchy. Valuation of Warrants to Purchase Common Stock The fair value of the warrants was determined using the Black-Scholes option-pricing model, which considered as inputs the underlying price of our Class A common stock, strike price, time to expiration, volatility, risk-free interest rates, and dividend yield. The following table indicates the weighted-average assumptions made in estimating the fair value for the three months ended March 31, 2022: (in millions, except per share amounts) Three Months Ended March 31, 2022 Risk-free interest rate 2.4 % Contractual term (in years) 5.19 Expected volatility 54.0 % Expected dividend yield — % Exercise price per share $ 17.15 In February 2022, we issued 371,573 shares of Class B common stock as a result of warrants exercised during the three months ended March 31, 2022, and recognized a related remeasurement gain of $6 within “Other income (expense)”. The remaining outstanding warrants were remeasured at March 31, 2022 resulting in a total remeasurement gain of $73 recorded within “Other income (expense)” during the three months ended March 31, 2022. For further information on the warrants to purchase common stock, please refer to Note 15, “Warrants to Purchase Preferred and Common Stock”, in our Consolidated Financial Statements included in the 2021 Annual Report. Contingent Consideration Liability Fair value of the contingent consideration liability incurred in connection with the acquisition of xtraCHEF, Inc. is estimated based on a Monte Carlo simulation which performs numerous simulations utilizing certain assumptions, such as projected revenue amounts over the related period, risk-free rate, and risk-adjusted discount rate. The fair value measurement of contingent consideration is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The contingent consideration liability is subject to remeasurement each reporting period until the contingency is resolved and the liability is settled, and changes in the assumptions used could materially impact the estimated fair value of the liability. We recognize the change in fair value of the contingent consideration liability in our results of operations. During the three months ended March 31, 2022, we paid $2 in cash and issued 37,179 shares of our Class B common stock to settle a portion of the contingent consideration. The following tables provide a roll-forward of the aggregate fair value of our common stock warrant liability, contingent consideration liability, preferred stock warrant liability, and derivative liability, for which fair value is determined using Level 3 inputs: Common Stock Warrant Contingent Balance as of December 31, 2021 $ 181 $ 5 Change in fair value (79) 2 Settlement (18) (4) Balance as of March 31, 2022 $ 84 $ 3 Preferred Stock Warrant Liability (1) Derivative Liability (1) Balance as of December 31, 2020 $ 11 $ 37 Change in fair value and other adjustments 12 76 Balance as of March 31, 2021 $ 23 $ 113 (1) Preferred stock warrant liability and derivative liability were settled during the year ended December 31, 2021. For further information, please refer to Note 4, “Fair Value of Financial Instruments” and Note 15, “Warrants to Purchase Preferred and Common Stock”, in our Consolidated Financial Statements included in the 2021 Annual Report. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The amortized cost, gross unrealized holding losses and fair value of marketable securities, excluding accrued interest receivable, consisted of the following: March 31, 2022 Amortized Cost Gross Unrealized Losses Fair Value Commercial paper $ 135 $ — $ 135 Certificates of deposit 21 — 21 Corporate bonds 192 (2) 190 Treasury securities 70 (1) 69 Asset-backed securities 38 — 38 Total $ 456 $ (3) $ 453 December 31, 2021 Amortized Cost Gross Unrealized Losses Fair Value Commercial paper $ 134 $ — $ 134 Certificates of deposit 14 — 14 Corporate bonds 194 (1) 193 Treasury securities 67 — 67 Asset-backed securities 49 — 49 Total $ 458 $ (1) $ 457 The fair values of marketable securities by contractual maturities at March 31, 2022 : March 31, Due within 1 year $ 346 Due after 1 year through 5 years 107 Total marketable securities $ 453 We review marketable securities for impairment during each reporting period to determine if any of the securities have experienced an other-than-temporary decline in fair value. Unrealized losses were not significant for the securities held in our portfolio as of March 31, 2022 or December 31, 2021. There were no impairment losses or expected credit losses related to our marketable securities during the three months ended March 31, 2022. |
Loan Servicing Activities and A
Loan Servicing Activities and Acquired Loans Receivable, Net | 3 Months Ended |
Mar. 31, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Loan Servicing Activities and Acquired Loans Receivable, Net | Loan Servicing Activities and Acquired Loans Receivable, NetWe service loans originated by our bank partner and assume liability for loan defaults on a limited basis based on a specified percentage of the total loans originated, which are measured on a quarterly basis. If the merchant’s payments are delayed for a defined period of time, the loan is considered delinquent and we are required to purchase the loan from our bank partner. The loan purchase, net of expected recoveries, reduces our potential liability with respect to the quarterly cohort of loans from which the defaulted loan originated. This obligation represents a financial guarantee with a contingent aspect related to our contingent obligation to purchase defaulted loans, and a non-contingent aspect related to our obligation to perform under the guarantee. We recognize a liability for both these elements which is included in “Accrued expenses and other current liabilities” in the unaudited Consolidated Balance Sheets. The contingent liability for expected credit losses related to our guarantee was $3 and $2, respectively, as of March 31, 2022 and December 31, 2021. Changes in the contingent liability were not significant for the three months ended March 31, 2022 and 2021. We repurchase delinquent loans and establish a negative allowance for expected recoveries when we have an expectation of collecting cash flows on the repurchased loans at the portfolio level. As of March 31, 2022 and December 31, 2021, we had a negative allowance for acquired loans and merchant cash advances receivable of $2 and $1, respectively, which are included within “Prepaid expenses and other current assets.” Changes in the negative allowance were not significant for the three months ended March 31, 2022 and 2021. |
Lessee Arrangements
Lessee Arrangements | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lessee Arrangements | Lessee Arrangements During the three months ended March 31, 2022, we entered into operating leases for office space resulting in right-of use assets of $11, and related current and long-term operating lease liabilities of $11 in the accompanying unaudited Consolidated Balance Sheets. The right-of-use assets and lease liabilities are amortized over the 5-year lease terms of each lease. The components of lease expense were as follows for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Operating lease expense $ 4 $ 6 Variable lease expense 1 — Total $ 5 $ 6 The following table summarizes supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities during the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Operating cash flows for operating leases $ (7) $ (6) Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets/ (decreases) of lease liabilities due to lease terminations 3 — Total $ (4) $ (6) In March 2022, we entered into a lease agreement for approximately 44 thousand square feet of office space located in Omaha, Nebraska. The lease term of approximately ten years is expected to commence in July 2022. Future lease payments are approximately $9 over the lease term. |
Other Balance Sheet Information
Other Balance Sheet Information | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Information | Other Balance Sheet Information Cash held on behalf of customers represents an asset that is restricted for the purpose of satisfying obligations to remit funds to various tax authorities to satisfy customers’ payroll, tax, and other obligations. Cash held on behalf of customers is included within “Prepaid expenses and other current assets”, and the corresponding customer funds obligation is included within “Accrued expenses and other current liabilities” in the unaudited Consolidated Balance Sheets. Restricted cash represents cash held with commercial lending institutions. The restrictions are related to cash collateralized letters of credit to cover potential customer defaults on third-party financing arrangements and cash held as collateral pursuant to an agreement with the originating third-party bank for the working capital loans serviced by Toast Capital (See Note 4). Restricted cash is included in within “Other non-current assets” in the unaudited Consolidated Balance Sheets. Cash, cash equivalents, cash held on behalf of customers, and restricted cash consisted of the following: March 31, December 31, Cash and cash equivalents $ 757 $ 809 Cash held on behalf of customers 62 34 Restricted cash 11 8 Total cash, cash equivalents, cash held on behalf of customers and restricted cash $ 830 $ 851 Accounts receivable, net consisted of the following: March 31, December 31, Accounts receivable $ 27 $ 20 Unbilled receivables 33 39 Less: Allowance for credit losses (4) (4) Accounts receivable, net $ 56 $ 55 Our allowance for credit losses was comprised of the following: Three Months Ended March 31, 2022 2021 Beginning balance $ (4) $ (4) Impact of adopting ASU 2016-13 — (2) Additions (1) — Write offs 1 — Ending balance $ (4) $ (6) Inventory consisted of the following: March 31, December 31, Finished goods $ 44 $ 41 Components of finished goods — 1 Capitalized overhead 3 2 Reserve for excess and obsolete inventory (3) (2) $ 44 $ 42 Prepaid expenses and other current assets consisted of the following: March 31, December 31, Cash held on behalf of customers $ 62 $ 34 Prepaid software subscriptions 11 11 Prepaid expenses 5 8 Loan servicing receivable 8 5 Prepaid insurance 4 6 Deposits for inventory purchases 32 21 Other current assets 13 7 $ 135 $ 92 Accrued expenses and current liabilities consisted of the following: March 31, December 31, Accrued transaction-based costs $ 140 $ 120 Accrued payroll and bonus 19 24 Customer funds obligation 62 34 Accrued expenses 53 21 Accrued commissions 9 19 Other liabilities 32 28 $ 315 $ 246 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table summarizes the activity in deferred revenue: Three Months Ended March 31, 2022 2021 Deferred revenue, beginning of year 56 58 Deferred revenue, end of period 50 55 Revenue recognized in the period from amounts included in deferred revenue at the beginning of period $ 24 $ 11 As of March 31, 2022, approximately $397 of revenue is expected to be recognized from remaining performance obligations for customer contracts. We expect to recognize revenue of approximately $379 from these remaining performance obligations over the next 24 months, with the balance recognized thereafter. The following table summarizes the activity in deferred contract acquisition costs: Three Months Ended March 31, 2022 2021 Beginning balance $ 55 $ 29 Capitalization of sales commissions costs 17 8 Amortization of sales commissions costs (10) (5) Ending balance $ 62 $ 32 Three Months Ended March 31, 2022 2021 Deferred costs, current $ 32 $ 18 Deferred costs, non-current 30 14 Total $ 62 $ 32 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense recognized for the three months ended March 31, 2022 and 2021, is as follows: Three Months Ended March 31, 2022 2021 Costs of revenue $ 8 $ 1 Sales and marketing 13 1 Research and development 16 2 General and administrative 16 1 Stock based compensation $ 53 $ 5 Prior to consummation of our initial public offering, or IPO, no stock-based compensation expense was recognized for certain RSUs with an IPO-related vesting condition. Subsequent to the consummation of our IPO, we began recognizing stock-based compensation expense related to these awards which amounted to $26 during the three months ended March 31, 2022. Stock Options The fair value of each option grant was estimated on its grant date using the Black-Scholes option-pricing model. The following table indicates the weighted-average assumptions made in estimating the fair value for the three months ended March 31, 2022 and 2021: (in millions, except per share amounts) Three Months Ended March 31, 2022 2021 Risk-free interest rate 2.16 % 0.99 % Expected term (in years) 6.06 6.31 Expected volatility 51.41 % 65.00 % Expected dividend yield — % — % Weighted-average fair value of common stock $ 17.76 $ 15.26 Weighted-average grant date fair value $ 9.02 $ 9.11 The following is a summary of stock option activity under our stock option plans for the three months ended March 31, 2022 : (in millions, except share and per share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding as of December 31, 2021 58,917,018 $ 4.53 7.65 $ 1,778 Granted 4,257,768 17.76 Exercised 2,750,691 1.50 Forfeited 771,776 14.51 Outstanding, vested, and expected to vest as of March 31, 2022 59,652,319 $ 5.49 7.60 $ 972 Options exercisable as of March 31, 2022 55,332,801 $ 4.51 7.42 $ 955 (1)The aggregate intrinsic value was determined as the difference between the closing price of the Class A common stock on the last trading day of March 2022, or the date of exercise, as appropriate, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their in-the-money options at period end. The aggregate intrinsic values of options exercised during the three months ended March 31, 2022 and 2021 was $56 and $23, respectively. The total fair value of options vested during the three months ended March 31, 2022 and 2021 was $26 and $7, respectively. As of March 31, 2022, total unrecognized stock-based compensation expense related to the option awards was $117 and is expected to be recognized over the remaining weighted-average service period of 3.69 years. Restricted Stock Units The following table summarizes RSU activity during the three months ended March 31, 2022 : RSU Weighted Average Grant Date Fair Value Unvested balance as of December 31, 2021 15,384,809 $ 29.71 Granted 9,034,290 19.88 Vested 125,732 18.12 Forfeited 421,325 31.35 Unvested balance as of March 31, 2022 23,872,042 $ 26.02 The fair value of RSUs vested during the three months ended March 31, 2022 was $3. No RSUs vested during the three months ended March 31, 2021. As of March 31, 2022, total unrecognized stock-based compensation expense related to the RSUs was $408 and is expected to be recognized over the remaining weighted-average service period of 3.71 years. Restricted Stock As of March 31, 2022 and December 31, 2021, 3,286,605 and 4,133,955 shares of Class A and B common stock, respectively, were outstanding from early exercise of stock options. Pursuant to the associated agreements, upon termination of employment, unvested shares held by such individuals were subject to repurchase by us. As of March 31, 2022 and December 31, 2021, cash paid for unvested shares of $5 and $6, respectively, is included in “Other long-term liabilities” in the accompanying unaudited Consolidated Balance Sheets. During the three months ended March 31, 2022, 816,875 shares vested that were previously issued upon early exercise of stock options. As of each Consolidated Balance Sheet date, we had reserved shares of Class A common stock and Class B common stock for issuance in connection with the following: March 31, December 31, Options to purchase Class A common stock and Class B common stock 59,652,319 58,917,018 Restricted stock units 23,872,042 15,384,809 Warrants to purchase Class B common stock 6,902,633 7,961,455 Shares available for future grant under the Stock Plans 67,175,666 53,916,105 Shares reserved for charitable donations 4,922,001 4,922,001 Shares available for issuance under 2021 Employee Stock Purchase Plan 16,709,893 11,638,189 179,234,554 152,739,577 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective income tax rate was (1.3)% and (0.1)% for the three months ended March 31, 2022 and |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common StockholdersBasic net loss per share is determined by dividing net loss by the weighted average shares outstanding for the period. We analyze the potential dilutive effect of stock options, unvested restricted stock, RSUs, and warrants to purchase common stock (as applicable), during periods we generate net income, or when income is recognized related to changes in fair value of warrant liabilities. During the three months ended March 31, 2022, we recorded a gain on fair value remeasurement of warrant liabilities which was added back to the numerator to adjust net loss for the dilutive impact of the warrants. We adjusted the denominator for the incremental dilutive shares using the treasury stock method. The following table sets forth the computation of basic and diluted net loss per share (in millions, except share and per share data) attributable to common stockholders for the three months ended March 31, 2022 and 2021: (in millions, except share and per share amounts) Three Months Ended March 31, 2022 2021 Numerator: Net loss, basic $ (23) $ (99) Gain on change in fair value of warrant liabilities 79 — Net loss, diluted $ (102) $ (99) Denominator: Weighted average shares of common stock outstanding—basic 505,378,195 205,352,706 Effect of dilutive securities: Warrants to purchase Class B common stock 1,659,051 — Weighted average shares of common stock outstanding—diluted 507,037,246 205,352,706 Net loss per share, basic $ (0.05) $ (0.48) Net loss per share, diluted $ (0.20) $ (0.48) We excluded the following potential shares of common stock from the computation of diluted net loss per share because including them would have an antidilutive effect for three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Options to purchase Class A common stock, Class B common stock and common stock 59,652,319 62,899,560 Unvested restricted stock 3,286,605 1,103,750 Unvested restricted stock units 23,872,042 2,910,005 Shares issued for exercise of non-recourse notes — 14,267,650 Convertible preferred stock (as converted to common stock) — 253,832,025 Warrants to purchase Class B common stock and common stock and preferred stock (as if converted to warrants to purchase common stock) — 1,002,035 86,810,966 336,015,025 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have operations in the United States, Ireland and India. We did not earn material revenue in any country other than the United States during the three months ended March 31, 2022 and 2021. The following table sets forth the breakdown of long-lived assets based on geography: March 31, December 31, United States $ 111 $ 119 Ireland 10 1 $ 121 $ 120 Tangible long-lived assets consist of property and equipment and operating lease right-of-use assets. Long-lived assets attributed to the United States and Ireland are based upon the country in which the asset is located. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments We had non-cancelable purchase obligations to hardware suppliers and cloud service providers of $285 and $315, respectively, as of March 31, 2022 and December 31, 2021. Most of our purchase obligations are payable within the next 12 months. Legal Proceedings From time to time, we may be involved in legal actions arising in the ordinary course of business. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably. We establish accruals for losses that management deems to be probable and subject to a reasonable estimate. We do not expect any claims with a reasonably possible adverse outcome to have a material impact. |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. The Consolidated Balance Sheet as of December 31, 2021 included herein was derived from the audited financial statements as of that date. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive loss, stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be expected for the full year ending December 31, 2022 or any other future interim periods. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021, or the 2021 Annual Report. There have been no changes to our significant accounting policies described in the 2021 Annual Report that have had a material impact on our consolidated financial statements and related notes. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates, judgments, and assumptions in these consolidated financial statements include, but are not limited to, those related to revenue recognition, allowance for credit losses, liabilities associated with financial guarantees (contingent liabilities for credit losses and related non-contingent liabilities), negative allowances for expected recoveries on repurchased loans, allowances for uncollectible loans, allowance for excessive and obsolete inventory, reserves for warranties on hardware sold, incremental borrowing rates applied in valuation of lease liabilities, reserves for sales returns, fair values of assets acquired and liabilities assumed through business combinations, useful lives of assets acquired in business combinations, stock-based compensation expense, warrants, as well as amortization periods for deferred contract acquisition costs. Actual results could vary from these estimates. |
Recently Adopted Accounting Pronouncements and Significant Accounting Policies | Leases and Credit Losses In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Codification, or ASC 842, Leases , or ASC 842, as amended, which superseded the guidance in former ASC 840, Leases . We adopted ASC 842 on January 1, 2021 on a modified retrospective basis. In June 2016, the FASB issued ASC 326, Financial Instruments-Credit Losses , or ASC 326. We adopted the standard as of January 1, 2021 on a modified retrospective basis and recognized a cumulative-effect adjustment to the opening retained earnings as of that date. Significant Accounting Policies Other than the adoption of new accounting pronouncements as described above, there have been no material changes to our significant accounting policies disclosed in Note 2, “Summary of Significant Accounting Policies” included in the Consolidated Financial Statements for the years ended December 31, 2021, 2020 and 2019 in our 2021 Annual Report. |
Reclassifications | Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. |
Credit Loss, Financial Instrument | We review marketable securities for impairment during each reporting period to determine if any of the securities have experienced an other-than-temporary decline in fair value. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values: Fair Value Measurement at March 31, 2022 Using Level 1 Level 2 Level 3 Total Assets: Money market funds $ 709 $ — $ — $ 709 Commercial paper — 135 — 135 Certificates of deposit — 21 — 21 Corporate bonds — 190 — 190 Treasury securities — 69 — 69 Asset-backed securities — 38 — 38 $ 709 $ 453 $ — $ 1,162 Liabilities: Warrants to purchase common stock $ — $ — $ 84 $ 84 Contingent consideration — — 3 3 $ — $ — $ 87 $ 87 Fair Value Measurement at December 31, 2021 Using Level 1 Level 2 Level 3 Total Assets: Money market funds $ 50 $ — $ — $ 50 Commercial paper — 134 — 134 Certificates of deposit — 14 — 14 Corporate bonds — 193 — 193 Treasury securities — 67 — 67 Asset-backed securities — 49 — 49 $ 50 $ 457 $ — $ 507 Liabilities: Warrants to purchase common stock $ — $ — $ 181 $ 181 Contingent consideration — — 5 5 $ — $ — $ 186 $ 186 |
Fair Value Measurement Inputs and Valuation Techniques | The following table indicates the weighted-average assumptions made in estimating the fair value for the three months ended March 31, 2022: (in millions, except per share amounts) Three Months Ended March 31, 2022 Risk-free interest rate 2.4 % Contractual term (in years) 5.19 Expected volatility 54.0 % Expected dividend yield — % Exercise price per share $ 17.15 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The following tables provide a roll-forward of the aggregate fair value of our common stock warrant liability, contingent consideration liability, preferred stock warrant liability, and derivative liability, for which fair value is determined using Level 3 inputs: Common Stock Warrant Contingent Balance as of December 31, 2021 $ 181 $ 5 Change in fair value (79) 2 Settlement (18) (4) Balance as of March 31, 2022 $ 84 $ 3 Preferred Stock Warrant Liability (1) Derivative Liability (1) Balance as of December 31, 2020 $ 11 $ 37 Change in fair value and other adjustments 12 76 Balance as of March 31, 2021 $ 23 $ 113 (1) Preferred stock warrant liability and derivative liability were settled during the year ended December 31, 2021. For further information, please refer to Note 4, “Fair Value of Financial Instruments” and Note 15, “Warrants to Purchase Preferred and Common Stock”, in our Consolidated Financial Statements included in the 2021 Annual Report. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The amortized cost, gross unrealized holding losses and fair value of marketable securities, excluding accrued interest receivable, consisted of the following: March 31, 2022 Amortized Cost Gross Unrealized Losses Fair Value Commercial paper $ 135 $ — $ 135 Certificates of deposit 21 — 21 Corporate bonds 192 (2) 190 Treasury securities 70 (1) 69 Asset-backed securities 38 — 38 Total $ 456 $ (3) $ 453 December 31, 2021 Amortized Cost Gross Unrealized Losses Fair Value Commercial paper $ 134 $ — $ 134 Certificates of deposit 14 — 14 Corporate bonds 194 (1) 193 Treasury securities 67 — 67 Asset-backed securities 49 — 49 Total $ 458 $ (1) $ 457 The fair values of marketable securities by contractual maturities at March 31, 2022 : March 31, Due within 1 year $ 346 Due after 1 year through 5 years 107 Total marketable securities $ 453 |
Lessee Arrangements (Tables)
Lessee Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense were as follows for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Operating lease expense $ 4 $ 6 Variable lease expense 1 — Total $ 5 $ 6 The following table summarizes supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities during the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Operating cash flows for operating leases $ (7) $ (6) Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets/ (decreases) of lease liabilities due to lease terminations 3 — Total $ (4) $ (6) |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, cash held on behalf of customers, and restricted cash consisted of the following: March 31, December 31, Cash and cash equivalents $ 757 $ 809 Cash held on behalf of customers 62 34 Restricted cash 11 8 Total cash, cash equivalents, cash held on behalf of customers and restricted cash $ 830 $ 851 |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable, net consisted of the following: March 31, December 31, Accounts receivable $ 27 $ 20 Unbilled receivables 33 39 Less: Allowance for credit losses (4) (4) Accounts receivable, net $ 56 $ 55 |
Accounts Receivable, Allowance for Credit Loss | Our allowance for credit losses was comprised of the following: Three Months Ended March 31, 2022 2021 Beginning balance $ (4) $ (4) Impact of adopting ASU 2016-13 — (2) Additions (1) — Write offs 1 — Ending balance $ (4) $ (6) |
Schedule of Inventory, Current | Inventory consisted of the following: March 31, December 31, Finished goods $ 44 $ 41 Components of finished goods — 1 Capitalized overhead 3 2 Reserve for excess and obsolete inventory (3) (2) $ 44 $ 42 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Prepaid expenses and other current assets consisted of the following: March 31, December 31, Cash held on behalf of customers $ 62 $ 34 Prepaid software subscriptions 11 11 Prepaid expenses 5 8 Loan servicing receivable 8 5 Prepaid insurance 4 6 Deposits for inventory purchases 32 21 Other current assets 13 7 $ 135 $ 92 |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses and current liabilities consisted of the following: March 31, December 31, Accrued transaction-based costs $ 140 $ 120 Accrued payroll and bonus 19 24 Customer funds obligation 62 34 Accrued expenses 53 21 Accrued commissions 9 19 Other liabilities 32 28 $ 315 $ 246 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table summarizes the activity in deferred revenue: Three Months Ended March 31, 2022 2021 Deferred revenue, beginning of year 56 58 Deferred revenue, end of period 50 55 Revenue recognized in the period from amounts included in deferred revenue at the beginning of period $ 24 $ 11 |
Capitalized Contract Cost | The following table summarizes the activity in deferred contract acquisition costs: Three Months Ended March 31, 2022 2021 Beginning balance $ 55 $ 29 Capitalization of sales commissions costs 17 8 Amortization of sales commissions costs (10) (5) Ending balance $ 62 $ 32 Three Months Ended March 31, 2022 2021 Deferred costs, current $ 32 $ 18 Deferred costs, non-current 30 14 Total $ 62 $ 32 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Stock-based compensation expense recognized for the three months ended March 31, 2022 and 2021, is as follows: Three Months Ended March 31, 2022 2021 Costs of revenue $ 8 $ 1 Sales and marketing 13 1 Research and development 16 2 General and administrative 16 1 Stock based compensation $ 53 $ 5 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table indicates the weighted-average assumptions made in estimating the fair value for the three months ended March 31, 2022 and 2021: (in millions, except per share amounts) Three Months Ended March 31, 2022 2021 Risk-free interest rate 2.16 % 0.99 % Expected term (in years) 6.06 6.31 Expected volatility 51.41 % 65.00 % Expected dividend yield — % — % Weighted-average fair value of common stock $ 17.76 $ 15.26 Weighted-average grant date fair value $ 9.02 $ 9.11 |
Share-based Payment Arrangement, Option, Activity | The following is a summary of stock option activity under our stock option plans for the three months ended March 31, 2022 : (in millions, except share and per share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding as of December 31, 2021 58,917,018 $ 4.53 7.65 $ 1,778 Granted 4,257,768 17.76 Exercised 2,750,691 1.50 Forfeited 771,776 14.51 Outstanding, vested, and expected to vest as of March 31, 2022 59,652,319 $ 5.49 7.60 $ 972 Options exercisable as of March 31, 2022 55,332,801 $ 4.51 7.42 $ 955 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table summarizes RSU activity during the three months ended March 31, 2022 : RSU Weighted Average Grant Date Fair Value Unvested balance as of December 31, 2021 15,384,809 $ 29.71 Granted 9,034,290 19.88 Vested 125,732 18.12 Forfeited 421,325 31.35 Unvested balance as of March 31, 2022 23,872,042 $ 26.02 |
Schedule of Stock by Class | As of each Consolidated Balance Sheet date, we had reserved shares of Class A common stock and Class B common stock for issuance in connection with the following: March 31, December 31, Options to purchase Class A common stock and Class B common stock 59,652,319 58,917,018 Restricted stock units 23,872,042 15,384,809 Warrants to purchase Class B common stock 6,902,633 7,961,455 Shares available for future grant under the Stock Plans 67,175,666 53,916,105 Shares reserved for charitable donations 4,922,001 4,922,001 Shares available for issuance under 2021 Employee Stock Purchase Plan 16,709,893 11,638,189 179,234,554 152,739,577 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share (in millions, except share and per share data) attributable to common stockholders for the three months ended March 31, 2022 and 2021: (in millions, except share and per share amounts) Three Months Ended March 31, 2022 2021 Numerator: Net loss, basic $ (23) $ (99) Gain on change in fair value of warrant liabilities 79 — Net loss, diluted $ (102) $ (99) Denominator: Weighted average shares of common stock outstanding—basic 505,378,195 205,352,706 Effect of dilutive securities: Warrants to purchase Class B common stock 1,659,051 — Weighted average shares of common stock outstanding—diluted 507,037,246 205,352,706 Net loss per share, basic $ (0.05) $ (0.48) Net loss per share, diluted $ (0.20) $ (0.48) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | We excluded the following potential shares of common stock from the computation of diluted net loss per share because including them would have an antidilutive effect for three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Options to purchase Class A common stock, Class B common stock and common stock 59,652,319 62,899,560 Unvested restricted stock 3,286,605 1,103,750 Unvested restricted stock units 23,872,042 2,910,005 Shares issued for exercise of non-recourse notes — 14,267,650 Convertible preferred stock (as converted to common stock) — 253,832,025 Warrants to purchase Class B common stock and common stock and preferred stock (as if converted to warrants to purchase common stock) — 1,002,035 86,810,966 336,015,025 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | The following table sets forth the breakdown of long-lived assets based on geography: March 31, December 31, United States $ 111 $ 119 Ireland 10 1 $ 121 $ 120 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants to purchase common stock | $ 84 | $ 181 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,162 | 507 |
Warrants to purchase common stock | 84 | 181 |
Contingent consideration | 3 | 5 |
Total liabilities | 87 | 186 |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 709 | 50 |
Fair Value, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 135 | 134 |
Fair Value, Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 21 | 14 |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 190 | 193 |
Fair Value, Recurring | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 69 | 67 |
Fair Value, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 38 | 49 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 709 | 50 |
Warrants to purchase common stock | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 709 | 50 |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 453 | 457 |
Warrants to purchase common stock | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 135 | 134 |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 21 | 14 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 190 | 193 |
Fair Value, Recurring | Level 2 | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 69 | 67 |
Fair Value, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 38 | 49 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Warrants to purchase common stock | 84 | 181 |
Contingent consideration | 3 | 5 |
Total liabilities | 87 | 186 |
Fair Value, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Weighted Average Assumptions (Details) - Level 3 | Mar. 31, 2022 |
Risk-free interest rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants, measurement inputs | 0.024 |
Contractual term (in years) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants, measurement inputs | 5.19 |
Expected volatility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants, measurement inputs | 0.540 |
Expected dividend yield | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants, measurement inputs | 0 |
Exercise price per share | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrants, measurement inputs | 17.15 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Feb. 28, 2022 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remeasurement gain from warrant exercises | $ 6 | $ 73 |
Common Class B | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Exercise of warrants (in shares) | 371,573 | |
Level 3 | Common Class B | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash issued to settle contingent consideration | $ 2 | |
Stock issued for settlement of contingent consideration (in shares) | 37,179 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Rollforward of Level 3 Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Warrants to purchase Class B common stock | Common Stock Warrants | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 181 | |
Change in fair value | (79) | |
Settlement | (18) | |
Ending balance | 84 | |
Warrants to purchase Class B common stock | Preferred Stock Warrants | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 11 | |
Change in fair value | 12 | |
Ending balance | 23 | |
Contingent Consideration Liability | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 5 | |
Change in fair value | 2 | |
Settlement | (4) | |
Ending balance | $ 3 | |
Derivative Liability | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 37 | |
Change in fair value | 76 | |
Ending balance | $ 113 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 456 | $ 458 |
Gross Unrealized Losses | (3) | (1) |
Fair Value | 453 | 457 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 135 | 134 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 135 | 134 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21 | 14 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 21 | 14 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 192 | 194 |
Gross Unrealized Losses | (2) | (1) |
Fair Value | 190 | 193 |
Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 70 | 67 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 69 | 67 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 38 | 49 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 38 | $ 49 |
Marketable Securities - Sched_2
Marketable Securities - Scheduled Maturities of Available-for-Sale Securities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Due within 1 year | $ 346,000,000 | |
Due after 1 year through 5 years | 107,000,000 | |
Total marketable securities | 453,000,000 | $ 457,000,000 |
Impairment losses on marketable securities | $ 0 |
Loan Servicing Activities and_2
Loan Servicing Activities and Acquired Loans Receivable, Net - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Guarantor Obligations [Line Items] | ||
Financing receivable, allowance for credit loss | $ 2 | $ 1 |
Non-contingent stand-ready liability | ||
Guarantor Obligations [Line Items] | ||
Guarantee liability | $ 3 | $ 2 |
Lessee Arrangements - Narrative
Lessee Arrangements - Narrative (Details) $ in Millions | Mar. 31, 2022USD ($)ft² | Jan. 05, 2022 | Dec. 31, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 79 | $ 79 | |
Lease term | 5 years | ||
Office Space | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | 11 | ||
Operating lease, liability | $ 11 | ||
Omaha, Nebraska | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 10 years | ||
Area of office space (sqft) | ft² | 44 | ||
Future lease payments | $ 9 |
Lessee Arrangements - Schedule
Lessee Arrangements - Schedule of Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease expense | $ 4 | $ 6 |
Variable lease expense | 1 | 0 |
Total | $ 5 | $ 6 |
Lessee Arrangements - Schedul_2
Lessee Arrangements - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ (7) | $ (6) |
Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets/ (decreases) of lease liabilities due to lease terminations | 3 | 0 |
Total | $ (4) | $ (6) |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Schedule of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 757 | $ 809 | $ 570 | |
Cash held on behalf of customers | 62 | 34 | 21 | |
Restricted cash | 11 | 8 | 1 | |
Total cash, cash equivalents, cash held on behalf of customers and restricted cash | $ 830 | $ 851 | $ 592 | $ 594 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accounts receivable | $ 27 | $ 20 | ||
Unbilled receivables | 33 | 39 | ||
Less: Allowance for credit losses | (4) | (4) | $ (6) | $ (4) |
Accounts receivable, net | $ 56 | $ 55 |
Other Balance Sheet Informati_5
Other Balance Sheet Information - Schedule of Allowance For Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ (4) | $ (4) |
Additions | (1) | 0 |
Write offs | 1 | 0 |
Ending balance | $ (4) | (6) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Ending balance | $ 2 |
Other Balance Sheet Informati_6
Other Balance Sheet Information - Schedule of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 44 | $ 41 |
Components of finished goods | 0 | 1 |
Capitalized overhead | 3 | 2 |
Reserve for excess and obsolete inventory | (3) | (2) |
Inventories | $ 44 | $ 42 |
Other Balance Sheet Informati_7
Other Balance Sheet Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash held on behalf of customers | $ 62 | $ 34 | $ 21 |
Prepaid software subscriptions | 11 | 11 | |
Prepaid expenses | 5 | 8 | |
Loan servicing receivable | 8 | 5 | |
Prepaid insurance | 4 | 6 | |
Deposits for inventory purchases | 32 | 21 | |
Other current assets | 13 | 7 | |
Prepaid expenses and other current assets | $ 135 | $ 92 |
Other Balance Sheet Informati_8
Other Balance Sheet Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued transaction-based costs | $ 140 | $ 120 |
Accrued payroll and bonus | 19 | 24 |
Customer funds obligation | 62 | 34 |
Accrued expenses | 53 | 21 |
Accrued commissions | 9 | 19 |
Other liabilities | 32 | 28 |
Accrued expenses and other current liabilities | $ 315 | $ 246 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Activity of Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue | $ 50 | $ 55 | $ 56 | $ 58 |
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period | $ 24 | $ 11 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 397 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 379 |
Remaining performance obligation, period | 24 months |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Capitalized Costs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Increase (Decrease) in Capitalized Contract Costs [Roll Forward] | |||
Beginning balance | $ 55 | $ 29 | |
Capitalization of sales commissions costs | 17 | 8 | |
Amortization of sales commissions costs | (10) | (5) | |
Ending balance | 62 | 32 | |
Capitalized Contract Cost, Net, Classified [Abstract] | |||
Deferred costs, current | 32 | 18 | $ 30 |
Deferred costs, non-current | 30 | 14 | 25 |
Total | $ 62 | $ 32 | $ 55 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 53 | $ 5 |
Costs of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 8 | 1 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 13 | 1 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 16 | 2 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 16 | $ 1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 53,000 | $ 5,000 | |
Aggregate intrinsic value of options exercised | 56,000 | 23,000 | |
Fair value of options vested | 26,000 | 7,000 | |
Unrecognized stock-based compensation expense related to options | $ 117,000 | ||
Expected period for recognition | 3 years 8 months 8 days | ||
Total unrecognized stock-based compensation expense related to RSUs | $ 5,000 | $ 6,000 | |
Shares outstanding from early exercise of stock options (in shares) | 3,286,605 | 4,133,955 | |
Shares vested that were previously issued (in shares) | 816,875 | ||
Awards Prior To IPO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 26,000 | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected period for recognition | 3 years 8 months 15 days | ||
Fair value of RUSs vested | $ 3,000 | $ 0 | |
Total unrecognized stock-based compensation expense related to RSUs | $ 408,000 | ||
Shares vested that were previously issued (in shares) | 125,732 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Weighted Average Assumptions (Details) - Option - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (as a percent) | 2.16% | 0.99% |
Expected term (in years) | 6 years 21 days | 6 years 3 months 21 days |
Expected volatility (as a percent) | 51.41% | 65.00% |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Weighted-average fair value of common stock (in dollars per share) | $ 17.76 | $ 15.26 |
Weighted average fair value per share of options granted (in dollars per share) | $ 9.02 | $ 9.11 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Beginning balance (in shares) | 58,917,018 | |
Granted (in shares) | 4,257,768 | |
Exercised (in shares) | 2,750,691 | |
Forfeited (in shares) | 771,776 | |
Ending balance (in shares) | 59,652,319 | 58,917,018 |
Options exercisable (in shares) | 55,332,801 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 4.53 | |
Granted (in dollars per share) | 17.76 | |
Exercised (in dollars per share) | 1.50 | |
Forfeited (in dollars per share) | 14.51 | |
Ending balance (in dollars per share) | 5.49 | $ 4.53 |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 4.51 | |
Weighted Average Remaining Contractual Term (Years) | ||
Options outstanding | 7 years 7 months 6 days | 7 years 7 months 24 days |
Options exercisable | 7 years 5 months 1 day | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 972 | $ 1,778 |
Options exercisable | $ 955 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSU Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
RSU | |
Vested (in shares) | 816,875 |
Restricted stock units | |
RSU | |
Beginning balance (in shares) | 15,384,809 |
Granted (in shares) | 9,034,290 |
Vested (in shares) | 125,732 |
Forfeited (in shares) | 421,325 |
Ending balance (in shares) | 23,872,042 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 29.71 |
Granted (in dollars per share) | $ / shares | 19.88 |
Vested (in dollars per share) | $ / shares | 18.12 |
Forfeited (in dollars per share) | $ / shares | 31.35 |
Ending balance (in dollars per share) | $ / shares | $ 26.02 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Shares Reserved For Issuance (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 179,234,554 | 152,739,577 |
Options to purchase Class A common stock, Class B common stock and common stock | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 59,652,319 | 58,917,018 |
Restricted stock units | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 23,872,042 | 15,384,809 |
Warrants to purchase Class B common stock | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 6,902,633 | 7,961,455 |
Shares available for future grant under the Stock Plans | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 67,175,666 | 53,916,105 |
Shares reserved for charitable donations | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 4,922,001 | 4,922,001 |
Shares available for issuance under 2021 Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 16,709,893 | 11,638,189 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | (1.30%) | (0.10%) |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net loss, basic | $ (23) | $ (99) |
Gain on change in fair value of warrant liabilities | 79 | 0 |
Net loss, diluted | $ (102) | $ (99) |
Denominator: | ||
Weighted average shares of common stock outstanding - basic (in shares) | 505,378,195 | 205,352,706 |
Effect of dilutive securities: | ||
Warrants to purchase Class B common stock (in shares) | 1,659,051 | 0 |
Weighted average shares of common stock outstanding - diluted (in shares) | 507,037,246 | 205,352,706 |
Net loss per share, basic (in dollars per share) | $ (0.05) | $ (0.48) |
Net loss per share, diluted (in dollars per share) | $ (0.20) | $ (0.48) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Antidilutive Shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 86,810,966 | 336,015,025 |
Options to purchase Class A common stock, Class B common stock and common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 59,652,319 | 62,899,560 |
Unvested restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 3,286,605 | 1,103,750 |
Unvested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 23,872,042 | 2,910,005 |
Shares issued for exercise of non-recourse notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 14,267,650 |
Convertible preferred stock (as converted to common stock) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 253,832,025 |
Warrants to purchase Class B common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 1,002,035 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 121 | $ 120 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 111 | 119 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 10 | $ 1 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Non-cancelable purchase obligations | $ 285 | $ 315 |
Uncategorized Items - tost-2022
Label | Element | Value |
Accounting Standards Update 2016-13 [Member] | ||
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |
Accounting Standards Update 2016-02 [Member] | ||
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |