Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 02, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.000001 per share | |
Trading Symbol | TOST | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001650164 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 363,640,890 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 166,842,600 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 451 | $ 547 |
Marketable securities | 499 | 474 |
Accounts receivable, net | 97 | 77 |
Inventories, net | 112 | 110 |
Deferred costs, net | 47 | 44 |
Prepaid expenses and other current assets | 202 | 155 |
Total current assets | 1,408 | 1,407 |
Property and equipment, net | 70 | 61 |
Operating lease right-of-use assets | 75 | 77 |
Intangible assets, net | 31 | 29 |
Goodwill | 113 | 107 |
Restricted cash | 36 | 28 |
Deferred costs, non-current | 44 | 38 |
Other non-current assets | 18 | 14 |
Total non-current assets | 387 | 354 |
Total assets | 1,795 | 1,761 |
Current liabilities: | ||
Accounts payable | 36 | 30 |
Operating lease liabilities | 15 | 14 |
Deferred revenue | 43 | 39 |
Accrued expenses and other current liabilities | 444 | 413 |
Total current liabilities | 538 | 496 |
Warrants to purchase common stock | 65 | 68 |
Operating lease liabilities, non-current | 77 | 80 |
Deferred revenue, non-current | 6 | 7 |
Other long-term liabilities | 11 | 12 |
Total liabilities | 697 | 663 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ Equity: | ||
Preferred stock | 0 | 0 |
Treasury stock, at cost— 225,000 shares outstanding at March 31, 2023 and December 31, 2022 | 0 | 0 |
Accumulated other comprehensive loss | 0 | (2) |
Additional paid-in capital | 2,556 | 2,477 |
Accumulated deficit | (1,458) | (1,377) |
Total stockholders’ equity | 1,098 | 1,098 |
Total liabilities and stockholders’ equity | 1,795 | 1,761 |
Common Class A | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Common Class B | ||
Stockholders’ Equity: | ||
Common stock | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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) | 361,727,592 | 353,094,009 |
Common stock, outstanding (in shares) | 361,727,592 | 353,094,009 |
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) | 166,841,303 | 169,933,289 |
Common stock, outstanding (in shares) | 166,841,303 | 169,933,289 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Total revenue | $ 819 | $ 535 |
Costs of revenue: | ||
Amortization of acquired intangible assets | 1 | 1 |
Total costs of revenue | 645 | 446 |
Gross profit | 174 | 89 |
Operating expenses: | ||
Sales and marketing | 99 | 71 |
Research and development | 85 | 62 |
General and administrative | 82 | 57 |
Total operating expenses | 266 | 190 |
Loss from operations | (92) | (101) |
Other income (expense): | ||
Interest income (expense), net | 8 | 0 |
Change in fair value of warrant liability | 3 | 79 |
Other income (expense), net | 0 | (1) |
Loss before provision for income taxes | (81) | (23) |
Provision for income taxes | 0 | 0 |
Net loss | $ (81) | $ (23) |
Net loss per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.15) | $ (0.05) |
Diluted (in dollars per share) | $ (0.16) | $ (0.20) |
Weighted average shares used in computing net loss per share: | ||
Basic (in shares) | 524,099,376 | 505,378,195 |
Diluted (in shares) | 524,876,023 | 507,037,246 |
Subscription services | ||
Revenue: | ||
Total revenue | $ 107 | $ 63 |
Costs of revenue: | ||
Cost of revenue | 36 | 25 |
Financial technology solutions | ||
Revenue: | ||
Total revenue | 673 | 438 |
Costs of revenue: | ||
Cost of revenue | 523 | 347 |
Hardware | ||
Revenue: | ||
Total revenue | 31 | 29 |
Costs of revenue: | ||
Cost of revenue | 57 | 52 |
Professional services | ||
Revenue: | ||
Total revenue | 8 | 5 |
Costs of revenue: | ||
Cost of revenue | $ 28 | $ 21 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (81) | $ (23) |
Other comprehensive income (loss): | ||
Unrealized gains (losses) on marketable securities, net of tax effect of $0 | 2 | (2) |
Total other comprehensive income (loss) | 2 | (2) |
Comprehensive loss | $ (79) | $ (25) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized losses on marketable securities, tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Class A and Class B Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2021 | 507,170,365 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 225,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 1,091 | $ 0 | $ 0 | $ 2,194 | $ (1,102) | $ (1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of common stock (in shares) | (30,475) | |||||
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 | 18 | ||||
Exercise of common stock options (in shares) | 2,750,691 | |||||
Issuance of common stock upon exercise of common stock options | $ 4 | 4 | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 0 | 125,732 | ||||
Stock-based compensation | $ 53 | 53 | ||||
Vesting of restricted stock | 1 | 1 | ||||
Issuance of common stock in connection with business combinations (in shares) | 37,179 | |||||
Issuance of common stock in connection with business combination | 1 | 1 | ||||
Unrealized gain (loss) on marketable securities | (2) | (2) | ||||
Net loss | (23) | (23) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 510,425,065 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 225,000 | |||||
Ending balance at Mar. 31, 2022 | 1,143 | $ 0 | $ 0 | 2,271 | (1,125) | (3) |
Beginning balance (in shares) at Dec. 31, 2021 | 507,170,365 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 225,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 1,091 | $ 0 | $ 0 | 2,194 | (1,102) | (1) |
Ending balance (in shares) at Dec. 31, 2022 | 523,027,298 | |||||
Ending balance (in shares) at Dec. 31, 2022 | 225,000 | 225,000 | ||||
Ending balance at Dec. 31, 2022 | $ 1,098 | $ 0 | $ 0 | 2,477 | (1,377) | (2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options (in shares) | 2,790,766 | 2,790,766 | ||||
Issuance of common stock upon exercise of common stock options | $ 6 | 6 | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 287,086 | 2,397,783 | ||||
Stock-based compensation | $ 67 | 67 | ||||
Vesting of restricted stock | 1 | 1 | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 287,086 | |||||
Issuance of common stock under employee stock purchase plan | 4 | 4 | ||||
Issuance of common stock in connection with business combinations (in shares) | 65,962 | |||||
Issuance of common stock in connection with business combination | 1 | 1 | ||||
Unrealized gain (loss) on marketable securities | 2 | 2 | ||||
Net loss | $ (81) | (81) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 528,568,895 | |||||
Ending balance (in shares) at Mar. 31, 2023 | 225,000 | 225,000 | ||||
Ending balance at Mar. 31, 2023 | $ 1,098 | $ 0 | $ 0 | $ 2,556 | $ (1,458) | $ 0 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (81) | $ (23) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6 | 6 |
Stock-based compensation expense | 63 | 53 |
Amortization of deferred costs | 14 | 10 |
Change in fair value of warrant liability | (3) | (79) |
Change in deferred income taxes | (1) | 0 |
Credit loss expense | 13 | 3 |
Other | 0 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (20) | (2) |
Prepaid expenses and other current assets | (6) | (14) |
Deferred costs, net | (24) | (17) |
Inventories, net | (1) | (2) |
Accounts payable | 6 | (12) |
Accrued expenses and other current liabilities | (20) | 39 |
Deferred revenue | 3 | (6) |
Operating lease right-of-use assets and operating lease liabilities | 0 | (2) |
Other assets and liabilities | (4) | (3) |
Net cash used in operating activities | (55) | (47) |
Cash flows from investing activities: | ||
Cash paid for acquisition, net of cash acquired | (9) | 0 |
Capitalized software | (8) | (1) |
Purchases of property and equipment | (2) | (2) |
Purchases of marketable securities | (176) | (30) |
Proceeds from the sale of marketable securities | 7 | 18 |
Maturities of marketable securities | 147 | 12 |
Other investing activities | (1) | 0 |
Net cash used in investing activities | (42) | (3) |
Cash flows from financing activities: | ||
Change in customer funds obligations, net | 37 | 27 |
Proceeds from exercise of stock options and issuance of common stock upon ESPP purchase | 11 | 4 |
Payment of contingent consideration | 0 | (2) |
Net cash provided by financing activities | 48 | 29 |
Net decrease in cash, cash equivalents, cash held on behalf of customers and restricted cash | (49) | (21) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period | 635 | 851 |
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period | 586 | 830 |
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash | ||
Cash and cash equivalents | 451 | 757 |
Cash held on behalf of customers | 99 | 62 |
Restricted cash | 36 | 11 |
Total cash, cash equivalents, cash held on behalf of customers and restricted cash | 586 | 830 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable and accrued expenses | 1 | 2 |
Issuance of Class B common stock upon exercise of common stock warrants | 0 | 18 |
Deferred payments included in purchase price | 1 | 0 |
Issuance of Class A common stock and Class B common stock for payment of contingent consideration | 1 | 1 |
Stock-based compensation included in capitalized software | $ 3 | $ 0 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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 condensed 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 unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed 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, 2023 or any other future interim periods. The unaudited condensed 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, 2022, or the 2022 Annual Report. The Consolidated Balance Sheet as of December 31, 2022 included herein was derived from the audited financial statements as of that date. Risks and Uncertainties We are subject to a number of risks and uncertainties, including global events and macroeconomic conditions such as inflation and its potential impact on consumer spending, rising interest rates, global supply chain issues, and public health concerns, which may also impact consumer behavior, 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates, judgments, and assumptions in these condensed consolidated financial statements include, but are not limited to, those related to revenue recognition, allowance for credit losses, liabilities associated with financial guarantees related to loan activities, incremental borrowing rates applied in valuation of lease liabilities, fair values and useful lives of assets acquired and liabilities assumed through 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 There have been no material changes to recently adopted accounting standards disclosed in Note 2, “Recently Adopted Accounting Pronouncements” included in the Consolidated Financial Statements in our 2022 Annual Report. Significant Accounting Policies 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 in our 2022 Annual Report. Reclassifications Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Delphi Display Systems, Inc. On February 14, 2023, we acquired 100% of the outstanding capital stock of Delphi Display Systems, Inc., or Delphi, a provider of digital display solutions and drive-thru technology, for a total purchase price of $10, to extend our growing suite of products benefiting quick-service restaurants and enterprise brands. The purchase price was preliminarily allocated to goodwill, intangible assets and other net assets of $6, $3 and $1, respectively. Intangible assets consisted of $2 of developed technology and $1 of customer relationships, each with estimated useful lives of 5 years. Goodwill is not deductible for tax purposes, and primarily attributable to synergies expected to arise after the acquisition. Due to the timing of the acquisition, the accounting for this acquisition was not complete as of March 31, 2023. The fair values of the assets acquired and the liabilities assumed have been determined provisionally and are subject to adjustments as we obtain additional information. Any adjustments to the purchase price allocation will be made as soon as practicable, but no later than one year from the acquisition date. The operating results of Delphi have been reflected in our results of operations from the date of the acquisition, but were not material to our consolidated financial statements. |
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 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, 2023 Using Level 1 Level 2 Level 3 Total Assets: Money market funds $ 338 $ — $ — $ 338 Commercial paper — 143 — 143 Certificates of deposit — 84 — 84 Corporate bonds — 52 — 52 U.S. government agency securities — 73 — 73 Treasury securities — 103 — 103 Asset-backed securities — 44 — 44 $ 338 $ 499 $ — $ 837 Liabilities: Warrants to purchase common stock $ — $ — $ 65 $ 65 $ — $ — $ 65 $ 65 Fair Value Measurement at December 31, 2022 Using Level 1 Level 2 Level 3 Total Assets: Money market funds $ 483 $ — $ — $ 483 Commercial paper — 140 — 140 Certificates of deposit — 104 — 104 Corporate bonds — 109 — 109 U.S. government agency securities — 33 — 33 Treasury securities — 60 — 60 Asset-backed securities — 28 — 28 $ 483 $ 474 $ — $ 957 Liabilities: Warrants to purchase common stock $ — $ — $ 68 $ 68 Contingent consideration — — 4 4 $ — $ — $ 72 $ 72 During the three months ended March 31, 2023 and 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. The following table indicates the weighted-average assumptions made in estimating the fair value for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Risk-free interest rate 3.7 % 2.4 % Contractual term (in years) 4.19 5.19 Expected volatility 61.1 % 54.0 % Expected dividend yield — % — % Exercise price per share $ 17.16 $ 17.15 There were no warrant exercises during the three months ended March 31, 2023. During the three months ended March 31, 2022, we issued 371,573 shares of Class B common stock as a result of warrants exercised. Contingent Consideration Liability Fair value of the contingent consideration liability incurred in connection with the Company’s acquisition of xtraCHEF, Inc., or xtraCHEF, was estimated based on a Monte Carlo simulation which performed 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 was 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 was subject to remeasurement each reporting period until the contingency was settled during three months ended March 31, 2023. During the three months ended March 31, 2023, we paid $2 in cash and issued 38,908 shares of our Class A common stock to settle the remaining contingent consideration liability based on the achievement of 2022 revenue targets. 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 the portion of our contingent consideration liability based on the achievement of 2021 revenue targets. Fair Value of Liabilities The following tables provide a roll-forward of the aggregate fair value of our common stock warrant liability and contingent consideration liability for which fair value is determined using Level 3 inputs: Common Stock Warrant Contingent Balance as of December 31, 2022 $ 68 $ 4 Change in fair value (3) — Settlement — (4) Balance as of March 31, 2023 $ 65 $ — 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 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 Amortized Cost Gross Unrealized Losses Fair Value Commercial paper $ 143 $ — $ 143 Certificates of deposit 84 — 84 Corporate bonds 52 — 52 U.S. government agency securities 73 — 73 Treasury securities 103 — 103 Asset-backed securities 44 — 44 Total $ 499 $ — $ 499 December 31, 2022 Amortized Cost Gross Unrealized Losses Fair Value Commercial paper $ 140 $ — $ 140 Certificates of deposit 104 — 104 Corporate bonds 110 (1) 109 U.S. government agency securities 33 — 33 Treasury securities 61 (1) 60 Asset-backed securities 28 — 28 Total $ 476 $ (2) $ 474 The fair values of marketable securities by contractual maturities at March 31, 2023: March 31, Due within 1 year $ 396 Due after 1 year through 5 years 101 Due after 5 years through 10 years 2 Total marketable securities $ 499 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 immaterial for the securities held in our portfolio as of March 31, 2023 and December 31, 2022. There were no impairment losses or expected credit losses related to our marketable securities during the three months ended March 31, 2023 and 2022. |
Loan Servicing Activities and A
Loan Servicing Activities and Acquired Loans Receivable, Net | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Loan Servicing Activities and Acquired Loans Receivable, Net | Loan Servicing Activities and Acquired Loans Receivable, Net We 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 are included in “Accrued expenses and other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. Changes in the contingent liability for expected credit losses for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 Beginning balance $ 14 $ 2 Credit loss expense 12 2 Reductions due to loan purchases (7) (1) Ending balance $ 19 $ 3 The balance of the non-contingent stand-ready liability was $8 and $6, respectively, as of March 31, 2023 and December 31, 2022. |
Lessee Arrangements
Lessee Arrangements | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lessee Arrangements | Lessee Arrangements The components of lease expense were as follows for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Operating lease expense $ 4 $ 4 Variable lease expense 1 1 Total $ 5 $ 5 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, 2023 and 2022: Three Months Ended March 31, 2023 2022 Operating cash flows for operating leases $ (4) $ (7) Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets/ (decreases) of lease liabilities due to lease terminations 1 3 Total $ (3) $ (4) |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Line of Credit On March 2, 2023, we entered into an amendment to our revolving credit facility agreement, as amended, the 2021 Facility, to replace the London Interbank Offered Rate, or LIBOR, with the Secured Overnight Financing Rate, or SOFR. Under the terms of the amendment, interest on loans will be determined based on loan type and accrue at an annual rate, as defined in the agreement, of 1.50% per annum; or 0.5% per annum plus the highest of: (i) the Prime Rate, (ii) the Federal Reserve Bank of New York Rate plus 0.5%, or (iii) the Adjusted SOFR based upon loan duration plus 1.00%. The 2021 Facility is subject to a minimum liquidity covenant of $250. As of March 31, 2023 and December 31, 2022, no amounts were drawn or outstanding under the 2021 Facility which had $330 available as of each period end. |
Other Balance Sheet Information
Other Balance Sheet Information | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Information | Other Balance Sheet Information Accounts receivable, net consisted of the following: March 31, December 31, Accounts receivable $ 61 $ 45 Unbilled receivables 45 44 Less: Allowance for credit losses (9) (12) Accounts receivable, net $ 97 $ 77 Our allowance for credit losses was comprised of the following: Three Months Ended March 31, 2023 2022 Beginning balance $ (12) $ (4) Additions — (1) Write offs 3 1 Ending balance $ (9) $ (4) Prepaid expenses and other current assets consisted of the following: March 31, December 31, Cash held on behalf of customers $ 99 $ 60 Prepaid expenses 31 27 Deposits for inventory purchases 16 20 Other current assets 56 48 $ 202 $ 155 Accrued expenses and current liabilities consisted of the following: March 31, December 31, Accrued transaction-based costs $ 198 $ 181 Accrued payroll and bonus 32 59 Customer funds obligation 99 60 Accrued expenses 41 45 Accrued commissions 15 15 Contingent liability for expected credit losses 19 14 Other liabilities 40 39 $ 444 $ 413 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 2022 Deferred revenue, beginning of year 46 56 Deferred revenue, end of period 49 50 Revenue recognized in the period from amounts included in deferred revenue at the beginning of period $ 30 $ 24 As of March 31, 2023, approximately $517 of revenue is expected to be recognized from remaining performance obligations for customer contracts. We expect to recognize revenue of approximately $497 from these remaining performance obligations over the next 24 months, with the balance recognized thereafter. The following tables summarize the activity in deferred contract acquisition costs and the classification of deferred costs: Three Months Ended March 31, 2023 2022 Beginning balance $ 82 $ 55 Capitalization of sales commissions costs 23 17 Amortization of sales commissions costs (14) (10) Ending balance $ 91 $ 62 Three Months Ended March 31, 2023 2022 Deferred costs, current $ 47 $ 32 Deferred costs, non-current 44 30 Total $ 91 $ 62 |
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 recognized for the three months ended March 31, 2023 and 2022, is as follows: Three Months Ended March 31, 2023 2022 Costs of revenue $ 10 $ 8 Sales and marketing 13 13 Research and development 21 16 General and administrative 19 16 Stock based compensation $ 63 $ 53 Stock-based compensation expense of $3 was capitalized as software development costs during the three months ended March 31, 2023. Stock-based compensation expense capitalized during the three months ended March 31, 2022 was not material. 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, 2023 and 2022: Three Months Ended March 31, 2023 2022 Risk-free interest rate 3.91 % 2.16 % Expected term (in years) 6.09 6.06 Expected volatility 56.12 % 51.41 % Expected dividend yield — % — % Weighted-average fair value of common stock $ 17.33 $ 17.76 Weighted-average grant date fair value $ 9.86 $ 9.02 The following is a summary of stock option activity under our stock option plans for the three months ended March 31, 2023 : (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, 2022 53,728,512 $ 5.98 6.94 $ 655 Granted 2,783,012 17.33 Exercised (2,790,766) 2.19 Forfeited (269,055) 11.15 Outstanding as of March 31, 2023 53,451,703 $ 6.75 6.96 $ 596 Options vested and expected to vest as of March 31, 2023 50,651,650 $ 6.43 6.98 $ 581 Options exercisable as of March 31, 2023 45,837,869 $ 4.89 6.56 $ 591 (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 2023, 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, 2023 and 2022 was $50 and $56, respectively. As of March 31, 2023, total unrecognized stock-based compensation expense related to the option awards was $111 and is expected to be recognized over the remaining weighted-average service period of 3.12 years. Restricted Stock Units The following table summarizes RSU activity during the three months ended March 31, 2023 : RSU Weighted Average Grant Date Fair Value Unvested balance as of December 31, 2022 31,242,263 $ 22.11 Granted 9,277,539 17.44 Vested (2,403,605) 22.26 Forfeited (620,668) 24.36 Unvested balance as of March 31, 2023 37,495,529 $ 20.91 The weighted average grant-date fair value of RSUs granted during the three months ended March 31, 2022 was $19.88. The fair value of RSUs vested during the three months ended March 31, 2023 and 2022 was $48 and $3, respectively. As of March 31, 2023, total unrecognized stock-based compensation expense related to the RSUs was $562 and is expected to be recognized over the remaining weighted-average service period of 3.3 years. As of March 31, 2023, we had 69,995,495 shares of Class A common stock available for future issuance under our 2021 Plan. 2021 Employee Stock Purchase Plan In 2021, our Board adopted, and our stockholders approved, the 2021 Employee Stock Purchase Plan ("ESPP") which became effective on September 23, 2021. As of March 31, 2023, 21,653,080 shares of our Class A common stock were authorized for issuance to participating employees who are allowed to purchase shares of Class A common stock at a price equal to 85% of its fair market value at the beginning or the end of the offering period, whichever is lower. During the three months ended March 31, 2023, 287,086 shares were purchased under the ESPP at $15.65 per share, resulting in cash proceeds of $4. No shares were purchased under the ESPP during the three months ended March 31, 2022. Restricted Stock As of March 31, 2023 and December 31, 2022, we issued 2,293,117 and 2,703,538 shares of Class A common stock and Class B common stock subject to restrictions, respectively. As of March 31, 2023, this included 927,835 shares of Class A common stock and Class B common stock issued upon the early exercise of stock options and 1,365,282 shares of restricted Class A common stock issued to certain members of management of Delphi and Sling, Inc. as part of their consideration in connection with the acquisitions. As of December 31, 2022, this included 1,365,310 shares of Class A common stock and Class B common stock issued upon the early exercise of stock options and 1,338,228 shares of restricted Class A common stock issued to certain members of management of Sling, Inc. as part of their consideration in connection with the acquisition in 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective income tax rate was (0.2)% and (1.3)% for the three months ended March 31, 2023 and 2022, respectively. The effective tax rate for each period differs from the statutory rate primarily as a result of having a full valuation allowance maintained against our U.S. deferred tax assets. The provision for income taxes was $— and $— for the three months ended March 31, 2023 and |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Basic 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, our ESPP, and warrants to purchase common stock, 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, 2023 and 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 attributable to common stockholders for the three months ended March 31, 2023 and 2022: (in millions, except share and per share amounts) Three Months Ended March 31, 2023 2022 Numerator: Net loss, basic $ (81) $ (23) Gain on change in fair value of warrant liabilities 3 79 Net loss, diluted $ (84) $ (102) Denominator: Weighted average shares of common stock outstanding—basic 524,099,376 505,378,195 Effect of dilutive securities: Warrants to purchase Class B common stock 776,647 1,659,051 Weighted average shares of common stock outstanding—diluted 524,876,023 507,037,246 Net loss per share, basic $ (0.15) $ (0.05) Net loss per share, diluted $ (0.16) $ (0.20) 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 the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Options to purchase Class A common stock and Class B common stock 53,451,703 59,652,319 Unvested restricted stock 2,293,117 3,286,605 Unvested restricted stock units 37,495,529 23,872,042 Employee Stock Purchase Plan 97,815 — 93,338,164 86,810,966 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have significant operations in the United States, Ireland and India. We did not generate material revenue in any country other than the United States during the three months ended March 31, 2023 and 2022. The following table sets forth the breakdown of long-lived assets based on geography: March 31, December 31, United States $ 129 $ 122 Ireland 9 10 India 5 5 Other 2 1 Total long-lived assets $ 145 $ 138 Tangible long-lived assets consist of property and equipment and operating lease right-of-use assets. Long-lived assets are based upon the country in which the asset is located. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments We have non-cancelable purchase obligations to hardware suppliers and cloud service providers. As of March 31, 2023, there were no material changes outside the ordinary course of business to our commitments, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Boston Lease Termination and ModificationWe entered into an agreement, effective as of May 4, 2023, to terminate the lease for a portion of our corporate headquarters in Boston, MA and to modify the remaining lease term to end on December 31, 2024. As part of this termination and modification agreement, we expect to pay a net fee of $11 and will write off the right of use asset and lease liability associated with the terminated portion as of the termination date. The impact to our consolidated statements of operations is expected to be immaterial. |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed 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 unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed 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, 2023 or any other future interim periods. |
Use of Estimates | 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. |
Recently Adopted Accounting Pronouncements and Significant Accounting Policies | Recently Adopted Accounting Pronouncements There have been no material changes to recently adopted accounting standards disclosed in Note 2, “Recently Adopted Accounting Pronouncements” included in the Consolidated Financial Statements in our 2022 Annual Report. Significant Accounting Policies 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 in our 2022 Annual Report. |
Reclassifications | 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, 2023 | |
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, 2023 Using Level 1 Level 2 Level 3 Total Assets: Money market funds $ 338 $ — $ — $ 338 Commercial paper — 143 — 143 Certificates of deposit — 84 — 84 Corporate bonds — 52 — 52 U.S. government agency securities — 73 — 73 Treasury securities — 103 — 103 Asset-backed securities — 44 — 44 $ 338 $ 499 $ — $ 837 Liabilities: Warrants to purchase common stock $ — $ — $ 65 $ 65 $ — $ — $ 65 $ 65 Fair Value Measurement at December 31, 2022 Using Level 1 Level 2 Level 3 Total Assets: Money market funds $ 483 $ — $ — $ 483 Commercial paper — 140 — 140 Certificates of deposit — 104 — 104 Corporate bonds — 109 — 109 U.S. government agency securities — 33 — 33 Treasury securities — 60 — 60 Asset-backed securities — 28 — 28 $ 483 $ 474 $ — $ 957 Liabilities: Warrants to purchase common stock $ — $ — $ 68 $ 68 Contingent consideration — — 4 4 $ — $ — $ 72 $ 72 |
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, 2023 and 2022: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Risk-free interest rate 3.7 % 2.4 % Contractual term (in years) 4.19 5.19 Expected volatility 61.1 % 54.0 % Expected dividend yield — % — % Exercise price per share $ 17.16 $ 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 and contingent consideration liability for which fair value is determined using Level 3 inputs: Common Stock Warrant Contingent Balance as of December 31, 2022 $ 68 $ 4 Change in fair value (3) — Settlement — (4) Balance as of March 31, 2023 $ 65 $ — 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 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 Amortized Cost Gross Unrealized Losses Fair Value Commercial paper $ 143 $ — $ 143 Certificates of deposit 84 — 84 Corporate bonds 52 — 52 U.S. government agency securities 73 — 73 Treasury securities 103 — 103 Asset-backed securities 44 — 44 Total $ 499 $ — $ 499 December 31, 2022 Amortized Cost Gross Unrealized Losses Fair Value Commercial paper $ 140 $ — $ 140 Certificates of deposit 104 — 104 Corporate bonds 110 (1) 109 U.S. government agency securities 33 — 33 Treasury securities 61 (1) 60 Asset-backed securities 28 — 28 Total $ 476 $ (2) $ 474 The fair values of marketable securities by contractual maturities at March 31, 2023: March 31, Due within 1 year $ 396 Due after 1 year through 5 years 101 Due after 5 years through 10 years 2 Total marketable securities $ 499 |
Loan Servicing Activities and_2
Loan Servicing Activities and Acquired Loans Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Off-Balance Sheet, Credit Loss, Liability | Changes in the contingent liability for expected credit losses for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 Beginning balance $ 14 $ 2 Credit loss expense 12 2 Reductions due to loan purchases (7) (1) Ending balance $ 19 $ 3 |
Lessee Arrangements (Tables)
Lessee Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense were as follows for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Operating lease expense $ 4 $ 4 Variable lease expense 1 1 Total $ 5 $ 5 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, 2023 and 2022: Three Months Ended March 31, 2023 2022 Operating cash flows for operating leases $ (4) $ (7) Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets/ (decreases) of lease liabilities due to lease terminations 1 3 Total $ (3) $ (4) |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable, net consisted of the following: March 31, December 31, Accounts receivable $ 61 $ 45 Unbilled receivables 45 44 Less: Allowance for credit losses (9) (12) Accounts receivable, net $ 97 $ 77 |
Accounts Receivable, Allowance for Credit Loss | Our allowance for credit losses was comprised of the following: Three Months Ended March 31, 2023 2022 Beginning balance $ (12) $ (4) Additions — (1) Write offs 3 1 Ending balance $ (9) $ (4) |
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 $ 99 $ 60 Prepaid expenses 31 27 Deposits for inventory purchases 16 20 Other current assets 56 48 $ 202 $ 155 |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses and current liabilities consisted of the following: March 31, December 31, Accrued transaction-based costs $ 198 $ 181 Accrued payroll and bonus 32 59 Customer funds obligation 99 60 Accrued expenses 41 45 Accrued commissions 15 15 Contingent liability for expected credit losses 19 14 Other liabilities 40 39 $ 444 $ 413 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 2022 Deferred revenue, beginning of year 46 56 Deferred revenue, end of period 49 50 Revenue recognized in the period from amounts included in deferred revenue at the beginning of period $ 30 $ 24 |
Capitalized Contract Cost | The following tables summarize the activity in deferred contract acquisition costs and the classification of deferred costs: Three Months Ended March 31, 2023 2022 Beginning balance $ 82 $ 55 Capitalization of sales commissions costs 23 17 Amortization of sales commissions costs (14) (10) Ending balance $ 91 $ 62 Three Months Ended March 31, 2023 2022 Deferred costs, current $ 47 $ 32 Deferred costs, non-current 44 30 Total $ 91 $ 62 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022, is as follows: Three Months Ended March 31, 2023 2022 Costs of revenue $ 10 $ 8 Sales and marketing 13 13 Research and development 21 16 General and administrative 19 16 Stock based compensation $ 63 $ 53 |
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, 2023 and 2022: Three Months Ended March 31, 2023 2022 Risk-free interest rate 3.91 % 2.16 % Expected term (in years) 6.09 6.06 Expected volatility 56.12 % 51.41 % Expected dividend yield — % — % Weighted-average fair value of common stock $ 17.33 $ 17.76 Weighted-average grant date fair value $ 9.86 $ 9.02 |
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, 2023 : (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, 2022 53,728,512 $ 5.98 6.94 $ 655 Granted 2,783,012 17.33 Exercised (2,790,766) 2.19 Forfeited (269,055) 11.15 Outstanding as of March 31, 2023 53,451,703 $ 6.75 6.96 $ 596 Options vested and expected to vest as of March 31, 2023 50,651,650 $ 6.43 6.98 $ 581 Options exercisable as of March 31, 2023 45,837,869 $ 4.89 6.56 $ 591 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table summarizes RSU activity during the three months ended March 31, 2023 : RSU Weighted Average Grant Date Fair Value Unvested balance as of December 31, 2022 31,242,263 $ 22.11 Granted 9,277,539 17.44 Vested (2,403,605) 22.26 Forfeited (620,668) 24.36 Unvested balance as of March 31, 2023 37,495,529 $ 20.91 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (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 loss per share attributable to common stockholders for the three months ended March 31, 2023 and 2022: (in millions, except share and per share amounts) Three Months Ended March 31, 2023 2022 Numerator: Net loss, basic $ (81) $ (23) Gain on change in fair value of warrant liabilities 3 79 Net loss, diluted $ (84) $ (102) Denominator: Weighted average shares of common stock outstanding—basic 524,099,376 505,378,195 Effect of dilutive securities: Warrants to purchase Class B common stock 776,647 1,659,051 Weighted average shares of common stock outstanding—diluted 524,876,023 507,037,246 Net loss per share, basic $ (0.15) $ (0.05) Net loss per share, diluted $ (0.16) $ (0.20) |
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 the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Options to purchase Class A common stock and Class B common stock 53,451,703 59,652,319 Unvested restricted stock 2,293,117 3,286,605 Unvested restricted stock units 37,495,529 23,872,042 Employee Stock Purchase Plan 97,815 — 93,338,164 86,810,966 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 $ 129 $ 122 Ireland 9 10 India 5 5 Other 2 1 Total long-lived assets $ 145 $ 138 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | Feb. 14, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 113 | $ 107 | |
Delphi Display Systems, Inc | |||
Business Acquisition [Line Items] | |||
Voting interest acquired (as a percent) | 100% | ||
Total purchase price | $ 10 | ||
Goodwill | 6 | ||
Intangible assets | 3 | ||
Other assets | 1 | ||
Delphi Display Systems, Inc | Developed Technology | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 2 | ||
Finite lived intangibles acquired, weighted average useful life | 5 years | ||
Delphi Display Systems, Inc | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 1 | ||
Finite lived intangibles acquired, weighted average useful life | 5 years |
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, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants to purchase common stock | $ 65 | $ 68 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 837 | 957 |
Warrants to purchase common stock | 65 | 68 |
Contingent consideration | 4 | |
Total liabilities | 65 | 72 |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 338 | 483 |
Fair Value, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 143 | 140 |
Fair Value, Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 84 | 104 |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 52 | 109 |
Fair Value, Recurring | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 73 | 33 |
Fair Value, Recurring | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 103 | 60 |
Fair Value, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 44 | 28 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 338 | 483 |
Warrants to purchase common stock | 0 | 0 |
Contingent consideration | 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 | 338 | 483 |
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 | U.S. government agency securities | ||
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 | 499 | 474 |
Warrants to purchase common stock | 0 | 0 |
Contingent consideration | 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 | 143 | 140 |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 84 | 104 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 52 | 109 |
Fair Value, Recurring | Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 73 | 33 |
Fair Value, Recurring | Level 2 | Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 103 | 60 |
Fair Value, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 44 | 28 |
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 | 65 | 68 |
Contingent consideration | 4 | |
Total liabilities | 65 | 72 |
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 | U.S. government agency securities | ||
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, 2023 | Mar. 31, 2022 |
Risk-free interest rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, measurement inputs | 0.037 | 0.024 |
Contractual term (in years) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, measurement inputs | 4.19 | 5.19 |
Expected volatility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, measurement inputs | 0.611 | 0.540 |
Expected dividend yield | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, measurement inputs | 0 | 0 |
Exercise price per share | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, measurement inputs | 17.16 | 17.15 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Common Class B | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Exercise of warrants (in shares) | 0 | 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 | |
Level 3 | Common Class A | ||
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) | 38,908 |
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, 2023 | Mar. 31, 2022 | |
Common Stock Warrant Liability | Common Stock Warrants | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 68 | $ 181 |
Change in fair value | (3) | (79) |
Settlement | 0 | (18) |
Ending balance | 65 | 84 |
Contingent Consideration Liability | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 4 | 5 |
Change in fair value | 0 | 2 |
Settlement | (4) | (4) |
Ending balance | $ 0 | $ 3 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 499 | $ 476 |
Gross Unrealized Losses | 0 | (2) |
Fair Value | 499 | 474 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 143 | 140 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 143 | 140 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 84 | 104 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 84 | 104 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52 | 110 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 52 | 109 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 73 | 33 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 73 | 33 |
Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 103 | 61 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 103 | 60 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 44 | 28 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 44 | $ 28 |
Marketable Securities - Sched_2
Marketable Securities - Scheduled Maturities of Available-for-Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within 1 year | $ 396 | |
Due after 1 year through 5 years | 101 | |
Due after 5 years through 10 years | 2 | |
Total marketable securities | $ 499 | $ 474 |
Loan Servicing Activities and_3
Loan Servicing Activities and Acquired Loans Receivable, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Guarantor Obligations [Line Items] | |||
Credit loss expense | $ 12 | $ 2 | |
Acquired Loans and Merchant Cash Advances Receivable | |||
Guarantor Obligations [Line Items] | |||
Financing receivable, allowance for credit loss | 4 | $ 2 | |
Non-contingent stand-ready liability | |||
Guarantor Obligations [Line Items] | |||
Guarantee liability | $ 8 | $ 6 |
Loan Servicing Activities and_4
Loan Servicing Activities and Acquired Loans Receivable, Net - Rollforward of Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Beginning balance | $ 14 | $ 2 |
Credit loss expense | 12 | 2 |
Reductions due to loan purchases | (7) | (1) |
Ending balance | $ 19 | $ 3 |
Lessee Arrangements - Schedule
Lessee Arrangements - Schedule of Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 4 | $ 4 |
Variable lease expense | 1 | 1 |
Total | $ 5 | $ 5 |
Lessee Arrangements - Schedul_2
Lessee Arrangements - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ (4) | $ (7) |
Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets/ (decreases) of lease liabilities due to lease terminations | 1 | 3 |
Total | $ (3) | $ (4) |
Debt (Details)
Debt (Details) - Revolving Credit Facility - 2021 Credit Facility - Line of Credit - USD ($) | Mar. 02, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Minimum liquidity amount | $ 250,000,000 | ||
Long term debt, amount available | $ 0 | $ 0 | |
Maximum borrowing capacity | $ 330,000,000 | ||
London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.50% | ||
Prime Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.50% | ||
Federal Reserve Bank of New York Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.50% | ||
Adjusted SOFR Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1% |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accounts receivable | $ 61 | $ 45 | ||
Unbilled receivables | 45 | 44 | ||
Less: Allowance for credit losses | (9) | (12) | $ (4) | $ (4) |
Accounts receivable, net | $ 97 | $ 77 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Schedule of Allowance For Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ (12) | $ (4) |
Additions | 0 | (1) |
Write offs | 3 | 1 |
Ending balance | $ (9) | $ (4) |
Other Balance Sheet Informati_5
Other Balance Sheet Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash held on behalf of customers | $ 99 | $ 60 | $ 62 |
Prepaid expenses | 31 | 27 | |
Deposits for inventory purchases | 16 | 20 | |
Other current assets | 56 | 48 | |
Prepaid expenses and other current assets | $ 202 | $ 155 |
Other Balance Sheet Informati_6
Other Balance Sheet Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued transaction-based costs | $ 198 | $ 181 |
Accrued payroll and bonus | 32 | 59 |
Customer funds obligation | 99 | 60 |
Accrued expenses | 41 | 45 |
Accrued commissions | 15 | 15 |
Contingent liability for expected credit losses | 19 | 14 |
Other liabilities | 40 | 39 |
Accrued expenses and other current liabilities | $ 444 | $ 413 |
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, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue | $ 49 | $ 50 | $ 46 | $ 56 |
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period | $ 30 | $ 24 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 517 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 497 |
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, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Increase (Decrease) in Capitalized Contract Costs [Roll Forward] | |||
Beginning balance | $ 82 | $ 55 | |
Capitalization of sales commissions costs | 23 | 17 | |
Amortization of sales commissions costs | (14) | (10) | |
Ending balance | 91 | 62 | |
Capitalized Contract Cost, Net, Classified [Abstract] | |||
Deferred costs, current | 47 | 32 | $ 44 |
Deferred costs, non-current | 44 | 30 | 38 |
Total | $ 91 | $ 62 | $ 82 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 63 | $ 53 |
Costs of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 10 | 8 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 13 | 13 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 21 | 16 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 19 | $ 16 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation included in capitalized software | $ 3 | $ 0 | |
Aggregate intrinsic value of options exercised | 50 | $ 56 | |
Unrecognized stock-based compensation expense related to options | $ 111 | ||
Expected period for recognition | 3 years 1 month 13 days | ||
Weighted average fair value per share of options granted (in dollars per share) | $ 15.65 | ||
Restricted stock issued (in shares) | 287,086 | 0 | |
Proceeds from cash | $ 4 | ||
Shares exercised (in shares) | 2,790,766 | ||
Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance (in shares) | 21,653,080 | ||
Share based compensation arrangement by share based payment award, discount from market price, purchase date | 85% | ||
RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected period for recognition | 3 years 3 months 18 days | ||
Weighted average fair value per share of options granted (in dollars per share) | $ 19,880,000 | ||
Fair value of RUSs vested | $ 48 | $ 3 | |
Total unrecognized stock-based compensation expense related to RSUs | $ 562 | ||
Shares exercised (in shares) | 927,835 | 1,365,310 | |
RSU | Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock issued (in shares) | 2,293,117 | 2,293,117 | |
Issuance of common stock in connection with business combinations (in shares) | 1,365,282 | 1,338,228 | |
RSU | Common Class B | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock issued (in shares) | 2,703,538 | 2,703,538 | |
Shares Under Stock Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance (in shares) | 69,995,495 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value per share of options granted (in dollars per share) | $ 15.65 | |
Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (as a percent) | 3.91% | 2.16% |
Expected term (in years) | 6 years 1 month 2 days | 6 years 21 days |
Expected volatility (as a percent) | 56.12% | 51.41% |
Expected dividend yield (as a percent) | 0% | 0% |
Weighted-average fair value of common stock (in dollars per share) | $ 17.33 | $ 17.76 |
Weighted average fair value per share of options granted (in dollars per share) | $ 9.86 | $ 9.02 |
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, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Beginning balance (in shares) | 53,728,512 | |
Granted (in shares) | 2,783,012 | |
Exercised (in shares) | (2,790,766) | |
Forfeited (in shares) | (269,055) | |
Ending balance (in shares) | 53,451,703 | 53,728,512 |
Options vested and expected to vest (in shares) | 50,651,650 | |
Options exercisable (in shares) | 45,837,869 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 5.98 | |
Granted (in dollars per share) | 17.33 | |
Exercised (in dollars per share) | 2.19 | |
Forfeited (in dollars per share) | 11.15 | |
Ending balance (in dollars per share) | 6.75 | $ 5.98 |
Options vested and expected to vest, Weighted average exercise price (in dollars per share) | 6.43 | |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 4.89 | |
Weighted Average Remaining Contractual Term (Years) | ||
Options outstanding | 6 years 11 months 15 days | 6 years 11 months 8 days |
Options vested and expected to vest | 6 years 11 months 23 days | |
Options exercisable | 6 years 6 months 21 days | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 596 | $ 655 |
Options vested and expected to vest | 581 | |
Options exercisable | $ 591 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSU Activity (Details) - RSU | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
RSU | |
Beginning balance (in shares) | shares | 31,242,263 |
Granted (in shares) | shares | 9,277,539 |
Vested (in shares) | shares | (2,403,605) |
Forfeited (in shares) | shares | (620,668) |
Ending balance (in shares) | shares | 37,495,529 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 22.11 |
Granted (in dollars per share) | $ / shares | 17.44 |
Vested (in dollars per share) | $ / shares | 22.26 |
Forfeited (in dollars per share) | $ / shares | 24.36 |
Ending balance (in dollars per share) | $ / shares | $ 20.91 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | (0.20%) | (1.30%) |
Provision for income taxes | $ 0 | $ 0 |
Non-recurring income tax benefit | $ 1 |
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, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net loss, basic | $ (81) | $ (23) |
Gain on change in fair value of warrant liabilities | 3 | 79 |
Net loss, diluted | $ (84) | $ (102) |
Denominator: | ||
Weighted average shares of common stock outstanding - basic (in shares) | 524,099,376 | 505,378,195 |
Effect of dilutive securities: | ||
Warrants to purchase Class B common stock (in shares) | 776,647 | 1,659,051 |
Weighted average shares of common stock outstanding - diluted (in shares) | 524,876,023 | 507,037,246 |
Net loss per share, basic (in dollars per share) | $ (0.15) | $ (0.05) |
Net loss per share, diluted (in dollars per share) | $ (0.16) | $ (0.20) |
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, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 93,338,164 | 86,810,966 |
Options to purchase Class A common stock and 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) | 53,451,703 | 59,652,319 |
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) | 2,293,117 | 3,286,605 |
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) | 37,495,529 | 23,872,042 |
Share-Based Payment Arrangement | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 97,815 | 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 145 | $ 138 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 129 | 122 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 9 | 10 |
India | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 5 | 5 |
Other | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 2 | $ 1 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | May 04, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Fee from termination and modification agreement | $ 11 |