COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40963 | |
Entity Registrant Name | Allbirds, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3999983 | |
Entity Address, Address Line One | 730 Montgomery Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94111 | |
City Area Code | 628 | |
Local Phone Number | 225-4848 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | BIRD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001653909 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 103,293,982 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 52,547,761 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 102,084 | $ 130,032 |
Accounts receivable | 5,703 | 8,188 |
Inventory | 60,624 | 57,763 |
Prepaid expenses and other current assets | 16,813 | 16,423 |
Total current assets | 185,224 | 212,406 |
Property and equipment—net | 22,397 | 26,085 |
Operating lease right-of-use assets | 58,283 | 67,085 |
Other assets | 6,459 | 7,129 |
Total assets | 272,363 | 312,705 |
Current liabilities: | ||
Accounts payable | 13,144 | 5,851 |
Accrued expenses and other current liabilities | 15,302 | 22,987 |
Current lease liabilities | 14,003 | 15,218 |
Deferred revenue | 4,261 | 4,551 |
Total current liabilities | 46,710 | 48,607 |
Noncurrent liabilities: | ||
Noncurrent lease liabilities | 65,348 | 78,731 |
Other long-term liabilities | 38 | 38 |
Total noncurrent liabilities | 65,386 | 78,769 |
Total liabilities | 112,096 | 127,376 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 583,330 | 579,848 |
Accumulated other comprehensive loss | (4,548) | (3,335) |
Accumulated deficit | (418,530) | (391,199) |
Total stockholders’ equity | 160,267 | 185,329 |
Total liabilities and stockholders’ equity | 272,363 | 312,705 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock | 10 | 10 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 5 | $ 5 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 103,223,614 | 102,579,222 |
Common stock, outstanding (in shares) | 103,223,614 | 102,579,222 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 52,547,761 | 52,547,761 |
Common stock, outstanding (in shares) | 52,547,761 | 52,547,761 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net revenue | $ 39,327 | $ 54,352 |
Cost of revenue | 20,871 | 32,535 |
Gross profit | 18,456 | 21,817 |
Operating expense: | ||
Selling, general, and administrative expense | 39,706 | 42,764 |
Marketing expense | 7,760 | 11,493 |
Restructuring expense | 800 | 3,239 |
Total operating expense | 48,266 | 57,496 |
Loss from operations | (29,810) | (35,679) |
Interest income | 1,020 | 808 |
Other income (expense) | 1,698 | (74) |
Loss before provision for income taxes | (27,092) | (34,945) |
Income tax provision | (239) | (221) |
Net loss | $ (27,331) | $ (35,166) |
Net loss per share data: | ||
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.18) | $ (0.23) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.18) | $ (0.23) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 155,380,544 | 150,082,295 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 155,380,544 | 150,082,295 |
Other comprehensive (loss) income: | ||
Foreign currency translation (loss) income | $ (1,213) | $ 230 |
Total comprehensive loss | $ (28,544) | $ (34,936) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2022 | 96,768,745 | 53,137,729 | ||||||
Beginning balance at Dec. 31, 2022 | $ 316,769 | $ 10 | $ 5 | $ 559,106 | $ (3,611) | $ (238,741) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (in shares) | 77,941 | |||||||
Exercise of stock options | 63 | 63 | ||||||
Vesting of restricted stock units (in shares) | 381,592 | |||||||
Conversion of Class B shares into Class A common stock (in shares) | 404,919 | (404,919) | ||||||
Stock-based compensation | 5,912 | 5,912 | ||||||
Comprehensive loss | 230 | 230 | ||||||
Net loss | (35,166) | (35,166) | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 97,555,256 | 52,810,751 | ||||||
Ending balance at Mar. 31, 2023 | 287,808 | $ 10 | $ 5 | 565,081 | (3,381) | (273,907) | ||
Beginning balance (in shares) at Dec. 31, 2023 | 102,579,222 | 52,547,761 | 102,579,222 | 52,547,761 | ||||
Beginning balance at Dec. 31, 2023 | $ 185,329 | $ 10 | $ 5 | 579,848 | (3,335) | (391,199) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (in shares) | 25,000 | 25,000 | ||||||
Exercise of stock options | $ 52 | 52 | ||||||
Vesting of restricted stock units (in shares) | 619,392 | |||||||
Conversion of Class B shares into Class A common stock (in shares) | 25,000 | (25,000) | ||||||
Stock-based compensation | 3,431 | 3,431 | ||||||
Comprehensive loss | (1,213) | (1,213) | ||||||
Net loss | (27,331) | (27,331) | ||||||
Ending balance (in shares) at Mar. 31, 2024 | 103,223,614 | 52,547,761 | 103,223,614 | 52,547,761 | ||||
Ending balance at Mar. 31, 2024 | $ 160,267 | $ 10 | $ 5 | $ 583,330 | $ (4,548) | $ (418,530) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (27,331) | $ (35,166) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,846 | 5,077 |
Amortization of debt issuance costs | 8 | 12 |
Stock-based compensation | 3,344 | 5,670 |
Inventory write-down | 893 | 2,357 |
Provision for bad debt | 802 | 0 |
Impairment of note receivable | 404 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,630 | 3,297 |
Inventory | (3,991) | 5,089 |
Prepaid expenses and other current assets | (419) | 430 |
Operating lease right-of-use assets and current and noncurrent lease liabilities | (5,755) | 738 |
Accounts payable and accrued expenses | (333) | (8,028) |
Deferred revenue | (299) | (389) |
Net cash used in operating activities | (26,201) | (20,913) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (1,122) | (3,035) |
Changes in security deposits | 52 | (50) |
Proceeds from sales of businesses | 304 | 0 |
Net cash used in investing activities | (766) | (3,085) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 34 | 123 |
Taxes withheld and paid on employee stock awards | (1) | (61) |
Net cash provided by financing activities | 33 | 62 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | (814) | 110 |
Net decrease in cash, cash equivalents, and restricted cash | (27,748) | (23,826) |
Cash, cash equivalents, and restricted cash—beginning of period | 130,673 | 167,767 |
Cash, cash equivalents, and restricted cash—end of period | 102,925 | 143,941 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 48 | 20 |
Cash paid for taxes | 655 | 273 |
Noncash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable | 53 | 542 |
Stock-based compensation included in capitalized internal-use software | 87 | 242 |
Reconciliation of cash, cash equivalents, and restricted cash: | ||
Cash and cash equivalents | 102,084 | 143,307 |
Restricted cash included in prepaid expenses and other current assets | 841 | 634 |
Total cash, cash equivalents, and restricted cash | $ 102,925 | $ 143,941 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Allbirds, Inc. (“Allbirds” and, together with its wholly owned subsidiaries, the “Company,” “we,” or “our”) was incorporated in the state of Delaware on May 6, 2015. Headquartered in San Francisco, California, Allbirds is a global lifestyle brand that innovates with naturally derived materials to make better footwear and apparel products in a better way, while treading lighter on our planet. The majority of our revenue is from direct sales, including sales to consumers via our digital and store channels, and from third-party sales, including wholesale sales to our retail partners and distributor sales to our distributor partners. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Preparation —The accompanying unaudited condensed consolidated financial statements have been presented in U.S. dollars and prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 13, 2024 (“Form 10-K”). In our opinion, the accompanying unaudited condensed interim financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by GAAP. Certain monetary amounts, percentages, and other figures included elsewhere in these condensed consolidated financial statements and accompanying notes have been subject to rounding adjustments. As such, figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them. Principles of Consolidation —The condensed consolidated financial statements include the accounts of Allbirds, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates —The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Risks and Uncertainties —We continue to monitor and respond to evolving developments about recent macroeconomic events, including elevated inflation, the U.S. Federal Reserve raising interest rates, bank failures, supply chain disruptions, fluctuations in currency exchange rates, and geopolitical conflicts, which have led to economic uncertainty in the global economy. These macroeconomic conditions have had and are likely to continue to have adverse consequences on consumer spending, including the buying patterns of our customers and prospective customers. The conditions caused by the aforementioned recent macroeconomic events could affect the rate of consumer spending and could adversely affect demand for our products, lengthen our sales cycles, reduce the value of inventory, reduce expected spending from new customers, and affect our suppliers, all of which could adversely affect our business, results of operations, and financial condition. As of the date of issuance of the financial statements we are not aware of any specific event or circumstance related to the aforementioned macroeconomic events that would require us to update our estimates or judgments or adjust the carrying value of our assets or liabilities. Actual results could differ from those estimates and any such differences may be material to the condensed consolidated financial statements. Segments —Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by our chief operating decision maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Our CODM is our Chief Executive Officer (“CEO”). Prior to March 15, 2024, our CEO was Joseph Zwillinger. Effective March 15, 2024, Mr. Zwillinger, transitioned from his role as CEO to a member of the Board of Directors (the “Board”) and advisor to the Company. In connection with Mr. Zwillinger’s transition, the Board appointed Joe Vernachio, our then Chief Operating Officer, to serve as CEO and as a member of the Board. As a result, we performed an evaluation and determined Mr. Vernachio, Chief Executive Officer, was our CODM after March 15, 2024 and as of March 31, 2024. We operate in one operating segment and one reportable segment, as the CODM reviews financial information presented on an aggregate basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. There was no change in our operating or reportable segments as a result of the change in CEO during the first quarter of 2024. Foreign Currency Transactions —Our reporting currency is the U.S. dollar. The functional currency for each subsidiary included in these condensed consolidated financial statements that is domiciled outside of the United States is generally the applicable local currency of that country or the U.S. dollar. The translation of foreign currencies into U.S. dollars is performed for assets and liabilities using current foreign currency exchange rates in effect at the balance sheet date and for revenues and expense accounts using average foreign currency exchange rates during the period. Capital accounts are translated at historical foreign currency exchange rates. Translation gains and losses are included in stockholders’ equity as a component of accumulated other comprehensive income or loss. Adjustments that arise from foreign currency exchange rate changes on transactions denominated in a currency other than the functional currency are included in other income or expense on the condensed consolidated statements of operations and comprehensive loss. Cash, Cash Equivalents, and Restricted Cash —We consider all highly liquid investments with an original maturity date of three months or less as cash equivalents. Cash and cash equivalents are comprised primarily of domestic and foreign bank accounts and money market funds. These cash and cash equivalents are valued based on Level 1 inputs, which consist of quoted prices in active markets. We place our cash and cash equivalents with several high credit quality financial institutions which, at times, may be in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. We have not experienced any losses in such accounts and periodically evaluate the credit worthiness of the financial institutions. Our foreign bank accounts are not subject to FDIC insurance. Restricted cash serves as collateral for a bond with the United States Customs and Border Protection (“CBP”), which allows us to take possession of our inventory before all formalities with the CBP are completed for imported products. Restricted cash is included in prepaid expenses and other current assets on the condensed consolidated balance sheets. Accounts Receivable —Accounts receivable consist primarily of amounts due from customers, which results from sales to customers including credit card deposits in transit at the balance sheet date, the majority of which are settled within two three For receivables from our wholesale customers and third-party distributors, we perform ongoing evaluations of creditworthiness and maintain an allowance for potential credit losses. We consider past and current transaction history with the customer, contractual terms, current economic industry trends, and changes in customer payment terms when determining whether collectability is reasonably assured and whether to record allowances for our receivables. If the financial condition of our customers deteriorates and adversely affects their ability to make payments, additional allowances will be recorded. We recorded $0.8 million of bad debt expense and an impairment of $0.4 million of a distributor note receivable for the three months ended March 31, 2024. Bad debt expense is recorded within selling, general, and administrative expense and the impairment of note receivable is recorded with other income or expense within the condensed consolidated statements of operations and comprehensive loss. As of March 31, 2024, our allowance for doubtful accounts was $1.2 million, which was comprised of $0.8 million within accounts receivable and $0.4 million within prepaid expenses and other current assets on the condensed consolidated balance sheets. Inventory —Inventory consists of finished goods, stated at the lower of cost or net realizable value. We value our inventory using the weighted-average cost method and include product costs from our suppliers, freight, import duties and other landing costs. We periodically review inventory and make provisions as necessary to appropriately value end of life, slow-moving, damaged, and excess inventory. To determine if the value of inventory requires a write-down, we estimate the net realizable value of inventory by considering current and anticipated demand, customer preferences and buying trends, and the age of the merchandise. Inventory write-downs are recognized as cost of revenue in the condensed consolidated statements of operations and comprehensive loss. As of March 31, 2024 and December 31, 2023, we recorded an inventory reserve to reduce the value of our inventory by $5.3 million and $6.5 million, respectively, within inventory on the condensed consolidated balance sheets. Related to these inventory reserves, and also including actual shrinkage which is recorded throughout the year based on the results of physical inventory counts, we recorded $1.6 million and $3.2 million as costs of revenue for the three months ended March 31, 2024 and 2023, respectively. Revenue Recognition —Our primary source of revenue is from sales of footwear and apparel products. We recognize revenue when control passes to the customer. This occurs at the time products are shipped to digital and third-party customers, and at the point of sale for retail customers, which is when our performance obligation is satisfied. For the three months ended March 31, 2024 and 2023, we recognized $1.1 million and $1.0 million of revenue, that was deferred as of December 31, 2023 and December 31, 2022, respectively. As of March 31, 2024 and December 31, 2023, we had $0.5 million and $0.8 million in cash collections of purchases via our digital channel which had not yet shipped, respectively, and $3.8 million, in gift card liabilities included in deferred revenue in the condensed consolidated balance sheets. We had deferred revenue balances of $4.3 million, $4.6 million, and $3.7 million as of March 31, 2024, December 31, 2023, and March 31, 2023, respectively. The amounts as of March 31, 2024 are expected to be recognized over the next 12 months. We record a reserve for estimated product returns, based upon historical return trends, in each reporting period as an offsetting decrease of net revenue, with an increase to our sales-refund reserve in accrued expenses. We have also recorded a related inventory returns receivable in prepaid expenses and other current assets, with an offsetting decrease to cost of revenue, as of March 31, 2024 and December 31, 2023 in the condensed consolidated balance sheets. The following table disaggregates our net revenue by geographic area, where no individual foreign country contributed in excess of 10% of net revenue for the three months ended March 31, 2024 and 2023. We recognized the following net revenue by geographic area based on the primary shipping address of the customer where the sale was made in our digital and third-party channels, and based on the physical store location where the sale was made at a retail store: Three Months Ended March 31, (in thousands) 2024 2023 United States $ 29,232 $ 40,836 International 10,095 13,516 Total net revenue $ 39,327 $ 54,352 Fair Value Measurements —Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements. It clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 —Observable inputs, such as quoted prices in active markets Level 2 —Inputs other than the quoted prices in active markets that are observable either directly or indirectly Level 3 —Unobservable inputs in which there is little or no market data, which requires us to develop our own assumptions. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. We record cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses at cost. The carrying values of these instruments approximate their fair value due to their short‐term maturities. We hold certain assets that are required to be measured at fair value on both a recurring and non-recurring basis, which are outlined in Note 5, Fair Value Measurements. Impairment of Long-Lived Assets —We evaluate the recoverability of property and equipment, operating lease right-of-use assets, and identifiable intangible assets with definite lives (“long-lived assets) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When a triggering event occurs, a test for recoverability is performed, comparing projected undiscounted future cash flows to the carrying value of the asset group. If the carrying amount of an asset group exceeds its estimated undiscounted net future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds its fair value. Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (asset group). We determined that our asset groupings are at the individual store level. The carrying amount of a store asset group includes stores’ operating lease right-of-use assets and property and equipment, which consists primarily of leasehold improvements. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. We determined that triggering events, including a current-period and history of operating cash flow losses, occurred during the first quarter of 2024 and required an impairment review of our long-lived assets. Based on the results of our analysis, we determined that impairment charges were not necessary for the three months ended March 31, 2024. Restructuring Charges —In the first quarter of 2023, we announced a strategic transformation plan designed to improve our revenue trend, as well as improve capital efficiency and drive profitability in the business. As part of this effort, we have incurred professional fees, severance and other employee-related benefits, and other related charges which are included within restructuring expense in the condensed consolidated statements of operations and comprehensive loss. The following table presents a roll-forward of our restructuring charges, which are included within accrued expenses and other current liabilities in the condensed consolidated balance sheets: (in thousands) Professional fees and other related charges Severance and other employee-related benefits Balance as of December 31, 2023 $ 192 $ 840 Charges 326 474 Cash Payments (258) (614) Balance as of March 31, 2024 $ 260 $ 700 Emerging Growth Company —As an “emerging growth company,” the Jumpstart Our Business Startups Act, or JOBS Act, allows us to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. For certain pronouncements, we have elected to use the adoption dates applicable to private companies. As a result, our financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Smaller Reporting Company —We are currently a “smaller reporting company,” as defined by Rule 12b-2 of the Exchange Act and therefore qualify for reduced disclosure requirements for smaller reporting companies. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses to estimate credit losses on certain types of financial instruments, including trade and account receivables, which may result in the earlier recognition of allowance for losses. The adoption of the guidance in the first quarter of 2023 did not have a material impact on our condensed consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The adoption of the guidance in the first quarter of 2023 did not have a material impact on our condensed consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , which simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity's own equity, and modifies the guidance on diluted earnings per share calculations as a result of these changes. The guidance is effective for our fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of the guidance in the first quarter of 2024 did not have a material impact on our condensed consolidated financial statements and related disclosures. In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842) - Common Control Arrangements . This ASU addresses issues related to accounting for leases under common control arrangements. The standard will include an amendment to Topic 842 for all entities with leasehold improvements in common control arrangements to amortize leasehold improvements that it owns over the improvements’ useful life to the common control group if certain criteria are met. The amendments in this update are effective for reporting periods beginning after December 15, 2023, with early adoption permitted. The adoption of the guidance in the first quarter of 2024 did not have a material impact on our condensed consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , which amends the disclosure or presentation requirements of a variety of topics in the ASC in order to conform with certain SEC amendments in Release No. 33-10532, Disclosure Update and Simplification . The effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective. Early adoption is prohibited. We are evaluating the potential impact of this guidance on our condensed consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which amended disclosure requirements for segment reporting. The amendments in this ASU improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, amendments to enhance interim disclosure requirements and introduce additional details about the chief operating decision maker. These changes address certain investor concerns that disclosures over reportable segment expenses were limited. The amendments in this update are effective for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are evaluating the potential impact of this guidance on our condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures , which amended disclosure requirements for income taxes. The primary changes from this update relate to improvements over income tax disclosures related to the rate reconciliation, income taxes paid and other disclosures. These changes help investors better 1) understand on an entity’s’ exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. The amendments in this update are effective for annual reporting periods beginning after December 15, 2025, with early adoption permitted. We are evaluating the potential impact of this guidance on our condensed consolidated financial statements and related disclosures. |
Business Combinations and Dispo
Business Combinations and Dispositions | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Combinations and Dispositions | Business Combinations and Dispositions Dispositions Canada On September 19, 2023, we entered into an asset purchase agreement with an unrelated third party for the sale of certain net assets used in connection with the operation of our Canadian subsidiary, Allbirds Canada, ULC. As part of this transaction, we are to be paid a total consideration of $1.3 million, payable in four separate installments, commencing on November 15, 2023 and ending on March 15, 2024, recorded in other receivables within prepaid expenses and other current assets on our condensed consolidated balance sheet. As a result of our ongoing credit evaluations, we recorded $0.8 million of bad debt expense and an impairment of $0.4 million related to a distributor note receivable for the three months ended March 31, 2024. As of March 31, 2024, our allowance for doubtful accounts was $1.2 million, which was comprised of $0.8 million within accounts receivable and $0.4 million within prepaid expenses and other current assets on the condensed consolidated balance sheets. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventory Inventory consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Finished goods $ 65,915 $ 64,281 Reserve to reduce inventories to net realizable value (5,291) (6,518) Total inventory $ 60,624 $ 57,763 Property and Equipment - Net Property and equipment consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Leasehold improvements $ 39,554 $ 40,008 Furniture and fixtures 24,037 23,756 Internal-use software 30,458 29,367 Machinery and equipment 988 975 Computers and equipment 2,874 2,836 Total property and equipment - gross 97,911 96,942 Less: accumulated depreciation and amortization (75,514) (70,857) Total property and equipment - net $ 22,397 $ 26,085 Depreciation and amortization expense for the three months ended March 31, 2024 and 2023 was $4.8 million and $5.1 million, respectively, recognized as selling, general, and administrative expense in the condensed consolidated statements of operations and comprehensive loss. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Prepaid expenses $ 5,638 $ 5,248 Inventory returns receivable 685 927 Security deposits 1,009 458 Taxes receivable 7,256 6,865 Other receivables 1,384 2,284 Restricted cash 841 641 Total prepaid expenses and other current assets $ 16,813 $ 16,423 Other Assets Other assets consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Investment in equity securities $ 2,000 $ 2,000 Security deposits 2,903 3,564 Intangible assets 81 82 Debt issuance costs — 8 Deferred tax assets 1,475 1,475 Total other assets $ 6,459 $ 7,129 Investment in Equity Securities On November 20, 2020, we entered into an agreement to make a minority equity investment of $2.0 million in Natural Fiber Welding, Inc. (“NFW”) in exchange for 201,207 shares of Series A-3 Preferred Stock. Our investment is carried at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Throughout the year, we assess whether impairment indicators exist to trigger the performance of an impairment analysis. There were no impairment charges or observable price changes for the three months ended March 31, 2024. On November 22, 2021, we made a $0.3 million investment in NoHo ESG, Inc. (“NoHo ESG”) via a simple agreement for future equity (“SAFE”). Our investment was carried at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. There were no impairment charges or observable price changes for the three months ended March 31, 2023. In April 2023, Noho ESG was dissolved. Accrued Expenses and Other Current Liabilities Accrued expenses consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Sales-refund reserve $ 2,419 $ 3,370 Taxes payable 1,140 1,996 Employee-related liabilities 3,370 4,174 Accrued expenses 8,373 13,447 Total accrued expenses and other current liabilities $ 15,302 $ 22,987 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Items Measured at Fair Value on a Recurring Basis Money Market Funds —We hold cash in a U.S. treasury securities money market fund. The funds are classified as cash and cash equivalents on our condensed consolidated balance sheet as of March 31, 2024 and December 31, 2023 and represent Level 1 assets on the fair value hierarchy. The following table summarizes, for assets measured at fair value, the respective fair value and classification by level of input within the fair value hierarchy as of March 31, 2024. We had no liabilities measured at fair value as of March 31, 2024. March 31, 2024 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market funds $ 82,000 $ — $ — $ 82,000 $ 82,000 $ — $ — $ 82,000 Items Measured at Fair Value on a Non-Recurring Basis Equity Investments —Our equity investment in NFW represents a non-marketable equity security in a privately held company that does not have a readily determinable fair value and is accounted for under the measurement alternative in ASC 321. The investment is accounted for at cost and adjusted based on observable price changes from orderly transactions for identical or similar investments of the same issuer or impairment. During the three months ended March 31, 2024 and 2023, there were no observable price changes or impairments for our NFW investment. The carrying value of our investment was $2.0 million as of March 31, 2024 and December 31, 2023. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On February 20, 2019, we entered into a credit agreement with JPMorgan Chase Bank, N.A. (the “Original Credit Agreement”). The Original Credit Agreement was an asset-based loan, which provided for a revolving line of credit of up to $40.0 million, subject to a borrowing base formula, and an optional accordion, which, if exercised, would have allowed us to increase the aggregate commitment by up to $35.0 million, subject to obtaining additional lender commitments and satisfying certain conditions. The Original Credit Agreement had a maturity date of February 20, 2024. On April 17, 2023, we entered into an amendment to the Original Credit Agreement, which amended the terms of the Original Credit Agreement to, among other things, (i) increase the committed amount from $40.0 million to $50.0 million, subject to a borrowing base formula, (ii) increase the uncommitted incremental borrowing capacity from $35.0 million to $50.0 million, (iii) increase the interest rate margin by 0.50%, (iv) extend the maturity date from February 20, 2024 to April 17, 2026 and (v) provide that a Dominion Event Date (as defined therein) shall occur on any date on which Availability (as defined therein) is less than 25.0% of the Aggregate Revolving Commitments (as defined therein). Interest on borrowings under the revolving credit facility accrued at a variable rate equal to (i) the Term Secured Overnight Financing Rate (“SOFR”), plus (ii) 0.10%, plus (ii) a specified spread of 1.75% or 2.00% dependent on the average quarterly revolver availability, calculated on the last day of each fiscal quarter being greater than 20% of the total revolver commitments or less than or equal to 20% of the total revolver commitments, respectively. The commitment fee under the Credit Agreement is 0.20% per annum on the average daily unused portion of each lender’s commitment. In addition, we are required to pay a fronting fee of 0.125% per annum on the average daily aggregate face amount of issued and outstanding letters of credit. Interest, commitment fees and fronting fees are payable monthly, in arrears. The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to us and our subsidiaries, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, dividends and other distributions and a financial covenant that requires us to maintain a specified minimum fixed charge coverage ratio. In addition, the Credit Agreement contains certain customary events of default including, but not limited to, failure to pay interest, principal and fees or other amounts when due, material misrepresentations or misstatements in any representation or warranty, covenant defaults, certain cross defaults to other material indebtedness, certain judgment defaults and events of bankruptcy. As of March 31, 2024 and December 31, 2023, there were no amounts outstanding under the Credit Agreement. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity As of March 31, 2024 and December 31, 2023, we were authorized to issue 2,220,000,000 shares of capital stock, comprised of 2,000,000,000 shares of Class A common stock, 200,000,000 shares of Class B common stock, and 20,000,000 shares of preferred stock. Each class had a par value of $0.0001 per share. Preferred Stock As of March 31, 2024 and December 31, 2023, there were no shares of preferred stock issued and outstanding. Our board of directors may, without further action by our stockholders, fix the rights, preferences, privileges, and restrictions of up to an aggregate of 20,000,000 shares of preferred stock in one or more series and authorize their issuance. The voting, dividend, and liquidation rights of the holders of common stock are subject to and qualified by the rights, powers, and preferences of the holders of preferred stock. Common Stock As of March 31, 2024 and December 31, 2023, we had two classes of common stock: Class A common stock and Class B common stock. Each class had a par value of $0.0001. Voting — Holders of Class A common stock are entitled to one vote per share on all matters to be voted upon by the stockholders, and holders of Class B common stock are entitled to 10 votes per share on all matters to be voted upon by the stockholders. The holders of our Class A common stock and Class B common stock generally vote together as a single class on all matters submitted to a vote of our stockholders, unless otherwise required by Delaware law or our amended and restated certificate of incorporation. Delaware law could require either holders of our Class A common stock or Class B common stock to vote separately as a single class in the following circumstances: (i) if we were to seek to amend our amended and restated certificate of incorporation to increase or decrease the par value of a class of our capital stock, then that class would be required to vote separately to approve the proposed amendment; and (ii) if we were to seek to amend our amended and restated certificate of incorporation in a manner that alters or changes the powers, preferences or special rights of a class of our capital stock in a manner that affected its holders adversely, then that class would be required to vote separately to approve the proposed amendment. As a result, in these limited instances, the holders of a majority of the Class A common stock could defeat an amendment to our amended and restated certificate of incorporation. Our amended and restated certificate of incorporation does not provide for cumulative voting for the election of directors. Dividends — Holders of Class A common stock and Class B common stock are entitled to ratably receive dividends if, as and when declared from time to time by our board of directors at its own discretion out of funds legally available for that purpose, after payment of dividends required to be paid on outstanding preferred stock, if any. Under Delaware law, we can only pay dividends either out of “surplus” or out of the current or the immediately preceding year’s net profits. Surplus is defined as the excess, if any, at any given time, of the total assets of a corporation over its total liabilities and statutory capital. The value of a corporation’s assets can be measured in a number of ways and may not necessarily equal their book value. Right to Receive Liquidation Distributions — Upon our dissolution, liquidation or winding-up, the assets legally available for distribution to our stockholders are distributable ratably among the holders of our Class A common stock and Class B common stock, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of preferred stock. Conversion — Each share of our Class B common stock is convertible at any time at the option of the holder into one share of our Class A common stock. Each share of our Class B common stock will convert automatically into one share of our Class A common stock upon any transfer, whether or not for value, except for (i) certain permitted transfers to entities, to the extent the transferor retains sole dispositive power and exclusive voting control with respect to the shares of Class B common stock, and (ii) certain other permitted transfers described in our amended and restated certificate of incorporation. In addition, if held by a natural person (including a natural person serving in a sole trustee capacity), each share of our Class B common stock will convert automatically into one share of our Class A common stock upon the death or incapacity of such natural person as described in our amended and restated certificate of incorporation. All outstanding shares of our Class B common stock will convert automatically into an equivalent number of shares of our Class A common stock upon the final conversion date, defined as the later of (a) the last trading day of the fiscal quarter immediately following the tenth anniversary of September 21, 2021 and (b) the date fixed by our board of directors that is no less than 61 days and no more than 180 days following the date on which the outstanding shares of Class B common stock first represent less than 10% of the aggregate number of the then outstanding shares of Class A common stock and Class B common stock (except if the final conversion date determined according to (a) or (b) would otherwise occur on or after the record date of any meeting of stockholders and before or at the time the vote at such meeting is taken, then the final conversion date shall instead be the last trading day of the fiscal quarter during which such vote was taken). Other Matters — The Class A common stock and Class B common stock have no preemptive rights pursuant to the terms of our amended and restated certificate of incorporation and our amended and restated bylaws. There are no redemption or sinking fund provisions applicable to the Class A common stock and Class B common stock. All outstanding shares of our Class A common stock are fully paid and non-assessable. Shares of common stock reserved for future issuance as of March 31, 2024 and December 31, 2023 consist of the following: March 31, December 31, 2015 Equity Incentive Plan: Options issued and outstanding 7,889,983 8,206,091 Shares available for future option grants — — 2021 Equity Incentive Plan: Options issued and outstanding 5,043,892 5,043,892 Restricted stock units outstanding 10,546,602 10,264,090 Performance stock units outstanding 1,179,965 525,108 Shares available for future grants 16,104,869 11,291,364 2021 Employee Stock Purchase Plan: Shares available for future grants 6,787,896 5,236,950 Total shares of common stock reserved for future issuance 47,553,207 40,567,495 |
Stock Transactions
Stock Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stock Transactions | Stock Transactions On November 19, 2018, we received a promissory note from an employee in consideration for the early exercise of 220,000 shares of common stock options. The promissory note is secured by the underlying shares of common stock and, prior to amendment, bore interest at 2.86% per annum. In June 2023, the note was amended to no longer accrue interest after March 31, 2023 and to extend the maturity date to October 1, 2025. As of March 31, 2024, the promissory note remained outstanding. Since the note is a limited recourse note, the note receivable is not reflected in our condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2015 Equity Incentive Plan In 2015, we adopted the 2015 Equity Incentive Plan (the “2015 Plan”) that authorized the granting of options for shares of common stock. Our 2015 Plan provided for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit (“RSU”) awards, and other stock awards. The 2015 Plan was terminated in connection with the adoption of the 2021 Equity Incentive Plan (the “2021 Plan”) in November 2021 in connection with the initial public offering (“IPO”), and we will not grant any additional awards under the 2015 Plan. However, the 2015 Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. 2021 Equity Incentive Plan In September 2021, our board of directors adopted, and our stockholders approved, the 2021 Plan, which became effective in connection with the IPO in November 2021. The 2021 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, RSU awards, performance awards, and other forms of equity compensation. In addition, the number of shares of our Class A common stock reserved for issuance under the 2021 Plan will automatically increase on January 1 of each year for a period of 10 years, beginning on January 1, 2022 and continuing through (and including) January 1, 2031, in an amount equal to 4% of the total number of share of our common stock (both Class A and Class B) outstanding on December 31 of the immediately preceding year, except that, before the date of any such increase, our board of directors may determine that the increase for such year will be a lesser number of shares. Additionally, to the extent that any stock options outstanding under the 2015 Plan expire, terminate prior to exercise, are not issued because the award is settled in cash, are forfeited because of the failure to vest, or are reacquired or withheld (or not issued) to satisfy a tax withholding obligation or the purchase or exercise price, if any, the shares of Class B common stock reserved for issuance pursuant to such equity awards will become available for issuance as shares of Class A common stock under the 2021 Plan. The maximum number of shares of our Class A common stock that may be issued on the exercise of incentive stock options under the 2021 Plan is 100,000,000 shares. 2021 Employee Stock Purchase Plan In September 2021, our board of directors adopted, and our stockholders approved, the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which became effective in connection with the IPO in November 2021. The 2021 ESPP authorizes the issuance of shares of Class A common stock pursuant to purchase rights granted to employees. The number of shares of our Class A common stock reserved for issuance will automatically increase on January 1 of each year for a period of 10 years, beginning on January 1, 2022 and continuing through (and including) January 1, 2031, by the lesser of (1) 1% of the total number of shares of our common stock (both Class A and Class B) outstanding on December 31 of the immediately preceding year and (2) 2,850,000 shares, except that, before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). The price at which Class A common stock is purchased under the 2021 ESPP is equal to 85% of the fair market value of a share of our Class A common stock on the first day of the offering period, or the date of purchase, whichever is lower. Offering periods are six months long and begin on November 3 and May 3 of each year. Stock Options A summary of the status of the 2015 Plan and 2021 Plan as of December 31, 2023 and March 31, 2024, and changes during the three month period ended March 31, 2024, is presented below: Options Outstanding Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2023 13,249,983 $ 3.60 6.50 $ 927 Granted — — Exercised (25,000) 1.27 Forfeited (62,389) 4.38 Cancelled (228,719) 3.85 Outstanding at March 31, 2024 12,933,875 3.60 6.17 499 Vested and exercisable at March 31, 2024 8,668,272 4.10 4.99 499 There were no stock options granted for the three months ended March 31, 2024. The weighted-average fair value of options granted during the three months ended March 31, 2023 was $0.99. We calculated the fair value of each option using an expected volatility over the expected life of the option, which was estimated using the average volatility of comparable publicly traded companies. The expected life of options granted is based on the simplified method to estimate the expected life of the stock options, giving consideration to the contractual terms and vesting schedules. The following weighted average assumptions were used for issuances during the three months ended March 31, 2023, for employees and non-employees: Three Months Ended March 31, 2023 Risk-free interest rate 4.12 % Dividend yield — Volatility 45.09 % Expected lives (in years) 4.60 2021 ESPP The following table summarizes the weighted-average assumptions used in estimating the fair value of the 2021 ESPP grants for the following offering periods presented, using the Black Scholes option-pricing model: Offering Period - November 3, 2023 to May 2, 2024 Offering Period - May 3, 2023 to November 2, 2023 Offering Period - November 3, 2022 to May 2, 2023 Risk-free interest rate 5.45 % 5.08 % 4.44 % Dividend yield — — — Volatility 43.12 % 45.59 % 43.42 % Expected lives (years) 0.5 0.5 0.5 RSUs After completion of the IPO in November 2021, we began granting RSUs to certain employees. The RSUs granted have service-based vesting conditions. The service-based vesting condition for awards to new employees is typically satisfied over four years, with a cliff vesting period of one year and continued vesting quarterly thereafter. The service-based vesting condition for refresh grants of RSUs to existing employees is typically satisfied over three years with vesting occurring quarterly, subject to the employees’ continued service to us. RSUs and the related stock-based compensation are recognized on a straight-line basis over the requisite service period. RSU activity during the three months ended March 31, 2024 was as follows: Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested at December 31, 2023 10,264,090 $ 1.93 Granted 1,513,365 0.86 Vested (619,392) 2.68 Forfeited (611,461) 2.23 Unvested at March 31, 2024 10,546,602 $ 1.71 Performance Stock Units In March 2024, in connection with the appointment of Joe Vernachio as CEO, we granted him approximately 0.7 million RSUs with market-based and service-based vesting conditions (“PSUs”). The awards vest based on the achievement of certain stock price targets as well as his continued employment with us. The total grant date fair value of the awards was determined to be $0.1 million. In May 2022, we granted a target amount of 0.8 million PSUs to certain executives. The total grant date fair value of the awards was determined to be $4.0 million, with each tranche of the awards representing $1.3 million, $1.4 million, and $1.4 million of the total expense, respectively. Stock-based compensation expense is recognized on a straight-line basis over their requisite service periods, regardless of whether the market condition is ultimately satisfied. Stock-based compensation expense is not reversed if the achievement of the market condition does not occur. We recognized stock-based compensation expense of $0.2 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively, as selling, general and administrative expense in the condensed consolidated statements of operations and comprehensive loss related to these awards. PSU activity during the three months ended March 31, 2024 was as follows: Target Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested at December 31, 2023 525,108 $ 5.29 Granted 654,857 0.13 Vested — — Forfeited — $ — Unvested at March 31, 2024 1,179,965 $ 2.35 Stock-Based Compensation Expense Stock-based compensation expense, recognized as selling, general, and administrative expense in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2024 and 2023, was comprised of the following: Three Months Ended March 31, (in thousands) 2024 2023 Stock-based compensation, net of amounts capitalized $ 3,344 $ 5,670 Capitalized stock-based compensation 87 242 Total stock-based compensation $ 3,431 $ 5,912 As of March 31, 2024, there was approximately $5.7 million of total unrecognized compensation cost related to unvested stock options granted under both equity incentive plans, which is expected to be recognized over the weighted-average remaining vesting period of approximately 2.68 years. There was approximately $15.6 million of total unrecognized compensation cost related to outstanding unvested RSUs under the 2021 Plan, which is expected to be recognized over the weighted-average remaining vesting period of approximately 2.64 years. There was approximately $0.8 million of total unrecognized compensation cost related to outstanding unvested PSUs under the 2021 Plan, which is expected to be recognized over the weighted-average remaining vesting period of approximately 2.16 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provision was $0.2 million for the three months ended March 31, 2024 and 2023. The effective tax rate for the three months ended March 31, 2024 and 2023 was 0.8% and 0.6%, respectively. The income tax provision and effective tax rate are primarily driven by a mix of geographic income and associated effective tax rates. Our tax provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any. Each quarter, we update our estimate of the annual effective tax rate and make a year-to-date adjustment to the provision. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are subject to various claims and legal proceedings that arise in the ordinary course of our business activities. Although the outcome of any legal proceedings cannot be predicted with certainty, as of March 31, 2024, our ultimate liability, if any, is not expected to have a material effect on our financial position or operations. On April 13, 2023, and on May 16, 2023, we and certain of our executive officers and directors were named as defendants in two substantially similar securities class action lawsuits, captioned Shnayder v. Allbirds, Inc., et al. , Case No. 23-cv-01811-AMO and Delgado v. Allbirds, Inc., et al. , Case No. 23-cv-02372-AMO, filed in the United States District Court for the Northern District of California. These lawsuits allege that we violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5, 17 C.F.R. § 240.10b-5, promulgated thereunder, and Sections 11 and 15 of the Securities Act of 1933 by making materially false and/or misleading statements about our business, operations and prospects. The plaintiffs seek damages in an unspecified amount. On July 25, 2023, the court entered an order consolidating the two cases, appointing lead plaintiffs, and approving lead plaintiffs’ selection of lead counsel. On September 15, 2023, lead plaintiffs filed a consolidated amended complaint against the same group of defendants and asserting the same claims. We filed a motion to dismiss the consolidated complaint on November 3, 2023. We intend to vigorously defend against this lawsuit. On October 3, 2023, we and certain of our executive officers and directors were named as defendants in a shareholder derivative suit, captioned Park v. Zwillinger , et al., Case No. 23-cv-01092-CFC, filed in the United States District Court for the District of Delaware. This lawsuit alleges violations of Section 14(a) of the Exchange Act, contribution under Section 21D of the Exchange Act, breach of fiduciary duties, and aiding and abetting based on allegations that are substantially similar to those asserted in the securities class action. On October 13, 2023, we and certain of our past and current executive officers and directors were named as defendants in a substantially similar shareholder derivative suit, captioned Junker v. Zwillinger , et al., Case No. 23-cv-01152-CFC, filed in the United States District Court for the District of Delaware. This lawsuit alleges breach of fiduciary duties, unjust enrichment, violations of Section 10(b) of the Exchange Act, contribution under Section 11(f) of the Securities Act and Section 21D of the Exchange Act, and waste of corporate assets based on allegations that are substantially similar to those asserted in the securities class action. We intend to vigorously defend against these lawsuits. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases We lease various office and retail spaces under non-cancelable operating leases with various expiration dates through fiscal 2034, certain of which contain renewal provisions. These renewal provisions are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. We have no lease agreements that are classified as finance leases. The components of lease costs, recognized as selling, general, and administrative expense in the condensed consolidated statements of operations and comprehensive loss, along with the weighted-average lease term and weighted-average discount rate for operating leases, are as follows: Three Months Ended March 31, (in thousands, except for lease term and discount rate) 2024 2023 Operating lease costs $ 4,087 $ 4,521 Variable lease costs 52 56 Short-term lease costs 44 33 Sublease income (68) (13) Total lease costs $ 4,115 $ 4,596 March 31, March 31, Weighted-average remaining lease term (in years) 6.52 7.52 Weighted-average discount rate 5.89 % 5.32 % Supplemental cash flow information related to operating leases are as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,217 $ 2,014 Right of use assets obtained in exchange for lease liabilities — 6,827 Right of use assets given up for reduction of lease liabilities (5,661) — Future minimum lease payments under non-cancelable operating leases with initial lease terms in excess of one year, included in our lease liabilities as of March 31, 2024, are as follows: (in thousands) Operating Lease Payments (1) Fiscal year ended December 31, Remainder of 2024 $ 13,627 2025 16,595 2026 15,059 2027 11,036 2028 9,749 Thereafter 31,180 Total undiscounted operating lease payments $ 97,245 Less: imputed discount 17,894 Total operating lease liabilities $ 79,350 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share We compute net loss per share using the two-class method required for participating securities and multiple classes of common stock. The two-class method requires net income or loss be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income or loss for the period had been distributed. The rights, including the liquidation and dividend rights and sharing of losses of the Class A common stock and Class B common stock are identical, other than voting, transfer, and conversion rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. 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, 2024 and 2023: Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 Numerator: Net loss attributable to common stockholders $ (27,331) $ (35,166) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 155,380,544 150,082,295 Net loss per share attributable to common stockholders, basic and diluted $ (0.18) $ (0.23) The following shares of preferred stock and common stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive: March 31, March 31, Outstanding stock options 12,933,875 14,866,359 2021 ESPP 107,679 66,094 RSUs 10,546,602 7,084,582 PSUs 1,179,965 787,660 Total anti-dilutive securities 24,768,121 22,804,695 |
Benefit Plan
Benefit Plan | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Benefit Plan | Benefit Plan We sponsor a 401(k) defined contribution plan covering eligible employees who elect to participate. We are allowed to make discretionary profit sharing and matching contributions as defined in the plan and as approved by our board of directors. No discretionary profit-sharing contributions were made for the three months ended March 31, 2024 and 2023. We made $0.3 million and $0.4 million in matching contributions for the three months ended March 31, 2024 and 2023, respectively. We have no intention to terminate the plan. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated events occurring through May 8, 2024, the date the condensed consolidated financial statements were available for issuance, and have determined there are no subsequent events that require disclosure in these condensed consolidated financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (27,331) | $ (35,166) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Joey Zwillinger [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Joey Zwillinger, a director and the former Chief Executive Officer of the Company, and Elizabeth Zwillinger, as Trustees of the Twin Wolves Revocable Trust under Revocable Trust Agreement dated September 27, 2017 (“Seller”) adopted a trading arrangement for the sale of securities of the Company’s Class A Common Stock (a “Rule 10b5-1 Trading Plan”) that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c). The Rule 10b5-1 Trading Plan, which has a term through December 11, 2024, provides for the sale of up to 499,998 shares of Class A Common Stock pursuant to the terms of the plan. |
Name | Joey Zwillinger |
Title | director and the former Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 271 days |
Aggregate Available | 499,998 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation —The accompanying unaudited condensed consolidated financial statements have been presented in U.S. dollars and prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 13, 2024 (“Form 10-K”). In our opinion, the accompanying unaudited condensed interim financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by GAAP. |
Principles of Consolidation | Principles of Consolidation |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Segments | Segments —Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by our chief operating decision maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Our CODM is our Chief Executive Officer (“CEO”). Prior to March 15, 2024, our CEO was Joseph Zwillinger. Effective March 15, 2024, Mr. Zwillinger, transitioned from his role as CEO to a member of the Board of Directors (the “Board”) and advisor to the Company. In connection with Mr. Zwillinger’s transition, the Board appointed Joe Vernachio, our then Chief Operating Officer, to serve as CEO and as a member of the Board. As a result, we performed an evaluation and determined Mr. Vernachio, Chief Executive Officer, was our CODM after March 15, 2024 and as of March 31, 2024. We operate in one operating segment and one reportable segment, as the CODM reviews financial information presented on an aggregate basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. There was no change in our operating or reportable segments as a result of the change in CEO during the first quarter of 2024. |
Foreign Currency Transactions | Foreign Currency Transactions —Our reporting currency is the U.S. dollar. The functional currency for each subsidiary included in these condensed consolidated financial statements that is domiciled outside of the United States is generally the applicable local currency of that country or the U.S. dollar. The translation of foreign currencies into U.S. dollars is performed for assets and liabilities using current foreign currency exchange rates in effect at the balance sheet date and for revenues and expense accounts using average foreign currency exchange rates during the period. Capital accounts are translated at historical foreign currency exchange rates. Translation gains and losses are included in stockholders’ equity as a component of accumulated other comprehensive income or loss. Adjustments that arise from foreign currency exchange rate changes on transactions denominated in a currency other than the functional currency are included in other income or expense on the condensed consolidated statements of operations and comprehensive loss. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash —We consider all highly liquid investments with an original maturity date of three months or less as cash equivalents. Cash and cash equivalents are comprised primarily of domestic and foreign bank accounts and money market funds. These cash and cash equivalents are valued based on Level 1 inputs, which consist of quoted prices in active markets. We place our cash and cash equivalents with several high credit quality financial institutions which, at times, may be in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. We have not experienced any losses in such accounts and periodically evaluate the credit worthiness of the financial institutions. Our foreign bank accounts are not subject to FDIC insurance. Restricted cash serves as collateral for a bond with the United States Customs and Border Protection (“CBP”), which allows us to take possession of our inventory before all formalities with the CBP are completed for imported products. Restricted cash is included in prepaid expenses and other current assets on the condensed consolidated balance sheets. |
Accounts Receivable | Accounts Receivable two three |
Inventory | Inventory —Inventory consists of finished goods, stated at the lower of cost or net realizable value. We value our inventory using the weighted-average cost method and include product costs from our suppliers, freight, import duties and other landing costs. |
Revenue Recognition | Revenue Recognition —Our primary source of revenue is from sales of footwear and apparel products. We recognize revenue when control passes to the customer. This occurs at the time products are shipped to digital and third-party customers, and at the point of sale for retail customers, which is when our performance obligation is satisfied. For the three months ended March 31, 2024 and 2023, we recognized $1.1 million and $1.0 million of revenue, that was deferred as of December 31, 2023 and December 31, 2022, respectively. As of March 31, 2024 and December 31, 2023, we had $0.5 million and $0.8 million in cash collections of purchases via our digital channel which had not yet shipped, respectively, and $3.8 million, in gift card liabilities included in deferred revenue in the condensed consolidated balance sheets. We had deferred revenue balances of $4.3 million, $4.6 million, and $3.7 million as of March 31, 2024, December 31, 2023, and March 31, 2023, respectively. The amounts as of March 31, 2024 are expected to be recognized over the next 12 months. We record a reserve for estimated product returns, based upon historical return trends, in each reporting period as an offsetting decrease of net revenue, with an increase to our sales-refund reserve in accrued expenses. We have also recorded a related inventory returns receivable in prepaid expenses and other current assets, with an offsetting decrease to cost of revenue, as of March 31, 2024 and December 31, 2023 in the condensed consolidated balance sheets. |
Fair Value Measurements | Fair Value Measurements —Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements. It clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 —Observable inputs, such as quoted prices in active markets Level 2 —Inputs other than the quoted prices in active markets that are observable either directly or indirectly Level 3 —Unobservable inputs in which there is little or no market data, which requires us to develop our own assumptions. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. We record cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses at cost. The carrying values of these instruments approximate their fair value due to their short‐term maturities. We hold certain assets that are required to be measured at fair value on both a recurring and non-recurring basis, which are outlined in Note 5, Fair Value Measurements. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets —We evaluate the recoverability of property and equipment, operating lease right-of-use assets, and identifiable intangible assets with definite lives (“long-lived assets) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When a triggering event occurs, a test for recoverability is performed, comparing projected undiscounted future cash flows to the carrying value of the asset group. If the carrying amount of an asset group exceeds its estimated undiscounted net future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds its fair value. Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (asset group). We determined that our asset groupings are at the individual store level. The carrying amount of a store asset group includes stores’ operating lease right-of-use assets and property and equipment, which consists primarily of leasehold improvements. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. We determined that triggering events, including a current-period and history of operating cash flow losses, occurred during the first quarter of 2024 and required an impairment review of our long-lived assets. Based on the results of our analysis, we determined that impairment charges were not necessary for the three months ended March 31, 2024. |
Restructuring Charges | Restructuring Charges |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses to estimate credit losses on certain types of financial instruments, including trade and account receivables, which may result in the earlier recognition of allowance for losses. The adoption of the guidance in the first quarter of 2023 did not have a material impact on our condensed consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The adoption of the guidance in the first quarter of 2023 did not have a material impact on our condensed consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , which simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity's own equity, and modifies the guidance on diluted earnings per share calculations as a result of these changes. The guidance is effective for our fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of the guidance in the first quarter of 2024 did not have a material impact on our condensed consolidated financial statements and related disclosures. In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842) - Common Control Arrangements . This ASU addresses issues related to accounting for leases under common control arrangements. The standard will include an amendment to Topic 842 for all entities with leasehold improvements in common control arrangements to amortize leasehold improvements that it owns over the improvements’ useful life to the common control group if certain criteria are met. The amendments in this update are effective for reporting periods beginning after December 15, 2023, with early adoption permitted. The adoption of the guidance in the first quarter of 2024 did not have a material impact on our condensed consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , which amends the disclosure or presentation requirements of a variety of topics in the ASC in order to conform with certain SEC amendments in Release No. 33-10532, Disclosure Update and Simplification . The effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective. Early adoption is prohibited. We are evaluating the potential impact of this guidance on our condensed consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which amended disclosure requirements for segment reporting. The amendments in this ASU improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, amendments to enhance interim disclosure requirements and introduce additional details about the chief operating decision maker. These changes address certain investor concerns that disclosures over reportable segment expenses were limited. The amendments in this update are effective for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are evaluating the potential impact of this guidance on our condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures , which amended disclosure requirements for income taxes. The primary changes from this update relate to improvements over income tax disclosures related to the rate reconciliation, income taxes paid and other disclosures. These changes help investors better 1) understand on an entity’s’ exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. The amendments in this update are effective for annual reporting periods beginning after December 15, 2025, with early adoption permitted. We are evaluating the potential impact of this guidance on our condensed consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our net revenue by geographic area, where no individual foreign country contributed in excess of 10% of net revenue for the three months ended March 31, 2024 and 2023. We recognized the following net revenue by geographic area based on the primary shipping address of the customer where the sale was made in our digital and third-party channels, and based on the physical store location where the sale was made at a retail store: Three Months Ended March 31, (in thousands) 2024 2023 United States $ 29,232 $ 40,836 International 10,095 13,516 Total net revenue $ 39,327 $ 54,352 |
Schedule of Restructuring and Related Costs | The following table presents a roll-forward of our restructuring charges, which are included within accrued expenses and other current liabilities in the condensed consolidated balance sheets: (in thousands) Professional fees and other related charges Severance and other employee-related benefits Balance as of December 31, 2023 $ 192 $ 840 Charges 326 474 Cash Payments (258) (614) Balance as of March 31, 2024 $ 260 $ 700 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Finished goods $ 65,915 $ 64,281 Reserve to reduce inventories to net realizable value (5,291) (6,518) Total inventory $ 60,624 $ 57,763 |
Schedule of Property and Equipment | Property and equipment consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Leasehold improvements $ 39,554 $ 40,008 Furniture and fixtures 24,037 23,756 Internal-use software 30,458 29,367 Machinery and equipment 988 975 Computers and equipment 2,874 2,836 Total property and equipment - gross 97,911 96,942 Less: accumulated depreciation and amortization (75,514) (70,857) Total property and equipment - net $ 22,397 $ 26,085 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Prepaid expenses $ 5,638 $ 5,248 Inventory returns receivable 685 927 Security deposits 1,009 458 Taxes receivable 7,256 6,865 Other receivables 1,384 2,284 Restricted cash 841 641 Total prepaid expenses and other current assets $ 16,813 $ 16,423 |
Schedule of Other Assets | Other assets consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Investment in equity securities $ 2,000 $ 2,000 Security deposits 2,903 3,564 Intangible assets 81 82 Debt issuance costs — 8 Deferred tax assets 1,475 1,475 Total other assets $ 6,459 $ 7,129 |
Schedule of Accrued Liabilities | Accrued expenses consisted of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Sales-refund reserve $ 2,419 $ 3,370 Taxes payable 1,140 1,996 Employee-related liabilities 3,370 4,174 Accrued expenses 8,373 13,447 Total accrued expenses and other current liabilities $ 15,302 $ 22,987 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes, for assets measured at fair value, the respective fair value and classification by level of input within the fair value hierarchy as of March 31, 2024. We had no liabilities measured at fair value as of March 31, 2024. March 31, 2024 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market funds $ 82,000 $ — $ — $ 82,000 $ 82,000 $ — $ — $ 82,000 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Shares of common stock reserved for future issuance as of March 31, 2024 and December 31, 2023 consist of the following: March 31, December 31, 2015 Equity Incentive Plan: Options issued and outstanding 7,889,983 8,206,091 Shares available for future option grants — — 2021 Equity Incentive Plan: Options issued and outstanding 5,043,892 5,043,892 Restricted stock units outstanding 10,546,602 10,264,090 Performance stock units outstanding 1,179,965 525,108 Shares available for future grants 16,104,869 11,291,364 2021 Employee Stock Purchase Plan: Shares available for future grants 6,787,896 5,236,950 Total shares of common stock reserved for future issuance 47,553,207 40,567,495 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Arrangement, Option, Activity | A summary of the status of the 2015 Plan and 2021 Plan as of December 31, 2023 and March 31, 2024, and changes during the three month period ended March 31, 2024, is presented below: Options Outstanding Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2023 13,249,983 $ 3.60 6.50 $ 927 Granted — — Exercised (25,000) 1.27 Forfeited (62,389) 4.38 Cancelled (228,719) 3.85 Outstanding at March 31, 2024 12,933,875 3.60 6.17 499 Vested and exercisable at March 31, 2024 8,668,272 4.10 4.99 499 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following weighted average assumptions were used for issuances during the three months ended March 31, 2023, for employees and non-employees: Three Months Ended March 31, 2023 Risk-free interest rate 4.12 % Dividend yield — Volatility 45.09 % Expected lives (in years) 4.60 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following table summarizes the weighted-average assumptions used in estimating the fair value of the 2021 ESPP grants for the following offering periods presented, using the Black Scholes option-pricing model: Offering Period - November 3, 2023 to May 2, 2024 Offering Period - May 3, 2023 to November 2, 2023 Offering Period - November 3, 2022 to May 2, 2023 Risk-free interest rate 5.45 % 5.08 % 4.44 % Dividend yield — — — Volatility 43.12 % 45.59 % 43.42 % Expected lives (years) 0.5 0.5 0.5 |
Schedule of Share-based Payment Arrangement, Restricted Stock Unit, Activity | RSU activity during the three months ended March 31, 2024 was as follows: Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested at December 31, 2023 10,264,090 $ 1.93 Granted 1,513,365 0.86 Vested (619,392) 2.68 Forfeited (611,461) 2.23 Unvested at March 31, 2024 10,546,602 $ 1.71 |
Schedule of Share-Based Payment Arrangement, Performance Shares, Activity | PSU activity during the three months ended March 31, 2024 was as follows: Target Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested at December 31, 2023 525,108 $ 5.29 Granted 654,857 0.13 Vested — — Forfeited — $ — Unvested at March 31, 2024 1,179,965 $ 2.35 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense, recognized as selling, general, and administrative expense in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2024 and 2023, was comprised of the following: Three Months Ended March 31, (in thousands) 2024 2023 Stock-based compensation, net of amounts capitalized $ 3,344 $ 5,670 Capitalized stock-based compensation 87 242 Total stock-based compensation $ 3,431 $ 5,912 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Lease Information | The components of lease costs, recognized as selling, general, and administrative expense in the condensed consolidated statements of operations and comprehensive loss, along with the weighted-average lease term and weighted-average discount rate for operating leases, are as follows: Three Months Ended March 31, (in thousands, except for lease term and discount rate) 2024 2023 Operating lease costs $ 4,087 $ 4,521 Variable lease costs 52 56 Short-term lease costs 44 33 Sublease income (68) (13) Total lease costs $ 4,115 $ 4,596 March 31, March 31, Weighted-average remaining lease term (in years) 6.52 7.52 Weighted-average discount rate 5.89 % 5.32 % Supplemental cash flow information related to operating leases are as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,217 $ 2,014 Right of use assets obtained in exchange for lease liabilities — 6,827 Right of use assets given up for reduction of lease liabilities (5,661) — |
Schedule of Commitments for Minimum Lease Payments Under Noncancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases with initial lease terms in excess of one year, included in our lease liabilities as of March 31, 2024, are as follows: (in thousands) Operating Lease Payments (1) Fiscal year ended December 31, Remainder of 2024 $ 13,627 2025 16,595 2026 15,059 2027 11,036 2028 9,749 Thereafter 31,180 Total undiscounted operating lease payments $ 97,245 Less: imputed discount 17,894 Total operating lease liabilities $ 79,350 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share | 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, 2024 and 2023: Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 Numerator: Net loss attributable to common stockholders $ (27,331) $ (35,166) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 155,380,544 150,082,295 Net loss per share attributable to common stockholders, basic and diluted $ (0.18) $ (0.23) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares of preferred stock and common stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive: March 31, March 31, Outstanding stock options 12,933,875 14,866,359 2021 ESPP 107,679 66,094 RSUs 10,546,602 7,084,582 PSUs 1,179,965 787,660 Total anti-dilutive securities 24,768,121 22,804,695 |
Significant Accounting Polici_4
Significant Accounting Policies - Segments (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Significant Accounting Polici_5
Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Wholesale accounts receivable | $ 2,700 | $ 4,600 | |
Credit card receivables | 1,800 | $ 2,300 | |
Provision for bad debt | 802 | $ 0 | |
Impairment of note receivable | 404 | $ 0 | |
Allowance for doubtful accounts | 1,200 | ||
Accounts Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts | 800 | ||
Prepaid Expenses and Other Current Assets | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts | $ 400 | ||
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, settlement period (in days) | 2 days | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, settlement period (in days) | 3 days |
Significant Accounting Polici_6
Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Accounting Policies [Abstract] | |||
Reserve to reduce inventories to net realizable value | $ 5,291 | $ 6,518 | |
Inventory adjustments | $ 1,600 | $ 3,200 |
Significant Accounting Polici_7
Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounting Policies [Abstract] | |||
Revenue recognized | $ 1.1 | $ 1 | |
Cash collections of purchases via digital channel not yet shipped | 0.5 | $ 0.8 | |
Gift card liabilities | $ 3.8 | $ 3.8 |
Significant Accounting Polici_8
Significant Accounting Policies - Revenue, Remaining Performance Obligation (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
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 | $ 3.7 | ||
Remaining performance obligation, expected timing of satisfaction, period (in months) | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, amount | $ 4.6 | ||
Remaining performance obligation, expected timing of satisfaction, period (in months) | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, amount | $ 4.3 | ||
Remaining performance obligation, expected timing of satisfaction, period (in months) | 12 months |
Significant Accounting Polici_9
Significant Accounting Policies - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 39,327 | $ 54,352 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 29,232 | 40,836 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 10,095 | $ 13,516 |
Significant Accounting Polic_10
Significant Accounting Policies - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Charges | $ 800 | $ 3,239 |
Professional fees and other related charges | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring, beginning balance | 192 | |
Charges | 326 | |
Cash Payments | (258) | |
Restructuring, ending balance | 260 | |
Severance and other employee-related benefits | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring, beginning balance | 840 | |
Charges | 474 | |
Cash Payments | (614) | |
Restructuring, ending balance | $ 700 |
Business Combinations and Dis_2
Business Combinations and Dispositions (Details) $ in Thousands | 3 Months Ended | ||
Sep. 19, 2023 USD ($) installment | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Provision for bad debt | $ 802 | $ 0 | |
Impairment of note receivable | 404 | $ 0 | |
Allowance for doubtful accounts | $ 1,200 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Allbirds Canada ULC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration receivable from transaction | $ 1,300 | ||
Number of installments | installment | 4 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Supplemental Balance Sheet Disclosures [Abstract] | ||
Finished goods | $ 65,915 | $ 64,281 |
Reserve to reduce inventories to net realizable value | (5,291) | (6,518) |
Total inventory | $ 60,624 | $ 57,763 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment - gross | $ 97,911 | $ 96,942 |
Less: accumulated depreciation and amortization | (75,514) | (70,857) |
Total property and equipment - net | 22,397 | 26,085 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment - gross | 39,554 | 40,008 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment - gross | 24,037 | 23,756 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment - gross | 30,458 | 29,367 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment - gross | 988 | 975 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment - gross | $ 2,874 | $ 2,836 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Nov. 22, 2021 | Nov. 20, 2020 | |
Other Assets [Line Items] | |||||
Depreciation and amortization expense | $ 4,800,000 | $ 5,100,000 | |||
Investment in equity securities | 2,000,000 | $ 2,000,000 | |||
Natural Fiber Welding, Inc. | |||||
Other Assets [Line Items] | |||||
Investment in equity securities | $ 2,000,000 | ||||
Equity securities impairment loss | $ 0 | ||||
Natural Fiber Welding, Inc. | Series A Preferred Stock | |||||
Other Assets [Line Items] | |||||
Equity securities acquired (in shares) | 201,207 | ||||
NoHo ESG, Inc. | |||||
Other Assets [Line Items] | |||||
Investment in equity securities | $ 300,000 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Supplemental Balance Sheet Disclosures [Abstract] | |||
Prepaid expenses | $ 5,638 | $ 5,248 | |
Inventory returns receivable | 685 | 927 | |
Security deposits | 1,009 | 458 | |
Taxes receivable | 7,256 | 6,865 | |
Other receivables | 1,384 | 2,284 | |
Restricted cash | 841 | 641 | $ 634 |
Total prepaid expenses and other current assets | $ 16,813 | $ 16,423 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Supplemental Balance Sheet Disclosures [Abstract] | ||
Investment in equity securities | $ 2,000 | $ 2,000 |
Security deposits | 2,903 | 3,564 |
Intangible assets | 81 | 82 |
Debt issuance costs | 0 | 8 |
Deferred tax assets | 1,475 | 1,475 |
Total other assets | $ 6,459 | $ 7,129 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Supplemental Balance Sheet Disclosures [Abstract] | ||
Sales-refund reserve | $ 2,419 | $ 3,370 |
Taxes payable | 1,140 | 1,996 |
Employee-related liabilities | 3,370 | 4,174 |
Accrued expenses | 8,373 | 13,447 |
Total accrued expenses and other current liabilities | $ 15,302 | $ 22,987 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring | Mar. 31, 2024 USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Liabilities, fair value disclosure | $ 0 |
Assets, fair value disclosure | 82,000,000 |
Money market funds | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Money market funds | 82,000,000 |
Level 1 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Assets, fair value disclosure | 82,000,000 |
Level 1 | Money market funds | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Money market funds | 82,000,000 |
Level 2 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Assets, fair value disclosure | 0 |
Level 2 | Money market funds | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Money market funds | 0 |
Level 3 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Assets, fair value disclosure | 0 |
Level 3 | Money market funds | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Money market funds | $ 0 |
Fair Value Measurements- Narrat
Fair Value Measurements- Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |||
Equity securities, unrealized gain (loss) | $ 0 | $ 0 | |
Investment without readily determinable fair value | $ 2,000,000 | $ 2,000,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - Revolving Credit Facility - USD ($) | 3 Months Ended | |||
Apr. 17, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Feb. 20, 2019 | |
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 40,000,000 | |||
Accordion feature, increase limit | 35,000,000 | |||
Line of credit facility, total revolver commitment percentage | 20% | |||
Commitment fee percentage | 0.20% | |||
Fronting fee percentage | 0.125% | |||
Long-term line of credit | $ 0 | $ 0 | ||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as percent) | 0.10% | |||
Credit Agreement | Base, SOFR, or Commitment Fee | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as percent) | 1.75% | |||
Credit Agreement | Base, SOFR, or Commitment Fee | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as percent) | 2% | |||
Second Amendment | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 50,000,000 | 40,000,000 | ||
Accordion feature, increase limit | $ 50,000,000 | $ 35,000,000 | ||
Line of credit facility, interest rate margin | 0.50% | |||
Line of credit facility, percentage threshold of availability of aggregate revolving commitments | 25% |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) | Mar. 31, 2024 vote class $ / shares shares | Dec. 31, 2023 class $ / shares shares |
Class of Stock [Line Items] | ||
Capital stock authorized (in shares) | 2,220,000,000 | 2,220,000,000 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Number of classes of common stock | class | 2 | 2 |
Common stock, reclassification ratio | 1 | |
Common stock, percentage of Class B outstanding (less than) | 10% | |
Minimum | ||
Class of Stock [Line Items] | ||
Conversion of common stock, date fixed by the board of directors, period | 61 days | |
Maximum | ||
Class of Stock [Line Items] | ||
Conversion of common stock, date fixed by the board of directors, period | 180 days | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Number of votes per share for common stock | vote | 1 | |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Number of votes per share for common stock | vote | 10 |
Stockholders_ Equity - Schedule
Stockholders’ Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2024 | Dec. 31, 2023 |
Class of Stock [Line Items] | ||
Options issued and outstanding (in shares) | 12,933,875 | 13,249,983 |
Total shares of common stock reserved for future issuance (in shares) | 47,553,207 | 40,567,495 |
2015 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Options issued and outstanding (in shares) | 7,889,983 | 8,206,091 |
Shares available for future grants (in shares) | 0 | 0 |
2021 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Options issued and outstanding (in shares) | 5,043,892 | 5,043,892 |
Shares available for future grants (in shares) | 16,104,869 | 11,291,364 |
2021 Equity Incentive Plan | Restricted stock units | ||
Class of Stock [Line Items] | ||
Stock unit outstanding (in shares) | 10,546,602 | 525,108 |
2021 Equity Incentive Plan | PSUs | ||
Class of Stock [Line Items] | ||
Stock unit outstanding (in shares) | 1,179,965 | 10,264,090 |
2021 Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Shares available for future grants (in shares) | 6,787,896 | 5,236,950 |
Stock Transactions (Details)
Stock Transactions (Details) - shares | 3 Months Ended | |
Nov. 19, 2018 | Mar. 31, 2024 | |
Debt Instrument [Line Items] | ||
Common stock options exercised (in shares) | 220,000 | 25,000 |
Promissory Note | ||
Debt Instrument [Line Items] | ||
Interest rate (as percent) | 2.86% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2024 | May 31, 2022 | Sep. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average fair value of options granted (in dollars per share) | $ 0.99 | ||||
Stock-based compensation expense | $ 3,344 | $ 5,670 | |||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, period for recognition (in years) | 2 years 7 months 20 days | ||||
Unrecognized compensation costs | $ 15,600 | $ 15,600 | |||
RSUs | New Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 4 years | ||||
Award cliff vesting period (in years) | 1 year | ||||
RSUs | Existing Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted (in shares) | 800,000 | ||||
Total grant date fair value | $ 4,000 | ||||
Stock-based compensation expense | $ 200 | $ 400 | |||
Unrecognized compensation cost, period for recognition (in years) | 2 years 1 month 28 days | ||||
Unrecognized compensation costs | $ 800 | $ 800 | |||
PSUs | Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted (in shares) | 700,000 | ||||
Total grant date fair value | $ 100 | ||||
PSUs | Tranche 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate fair value of equity instruments vested during the period | 1,300 | ||||
PSUs | Tranche 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate fair value of equity instruments vested during the period | 1,400 | ||||
PSUs | Tranche 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate fair value of equity instruments vested during the period | 1,400 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested share-based compensation arrangements granted | $ 5,700 | $ 5,700 | |||
Unrecognized compensation cost, period for recognition (in years) | 2 years 8 months 4 days | ||||
2021 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, period for increase in shares (in years) | 10 years | ||||
Percent of outstanding shares | 4% | ||||
2021 Equity Incentive Plan | Class A Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, maximum number of shares available for issue on the exercise of incentive stock options (in shares) | 100,000,000 | ||||
2021 Employee Stock Purchase Plan | 2021 ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, period for increase in shares (in years) | 10 years | ||||
Percent of outstanding shares | 1% | ||||
Stock-based compensation, number of additional shares allowable under the plan (in shares) | 2,850,000 | ||||
Stock-based compensation, purchase period (in months) | 6 months | ||||
2021 Employee Stock Purchase Plan | Class A Common Stock | 2021 ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, discount percentage from market price, beginning of period | 85% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Payment Arrangement, Option, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Nov. 19, 2018 | Mar. 31, 2024 | Dec. 31, 2023 | |
Number of Options | |||
Outstanding, beginning balance (in shares) | 13,249,983 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (220,000) | (25,000) | |
Forfeited (in shares) | (62,389) | ||
Cancelled (in shares) | (228,719) | ||
Outstanding, ending balance (in shares) | 12,933,875 | 13,249,983 | |
Vested and exercisable at end of period (in shares) | 8,668,272 | ||
Weighted-Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 3.60 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 1.27 | ||
Forfeited (in dollars per share) | 4.38 | ||
Cancelled (in dollars per share) | 3.85 | ||
Outstanding, ending balance (in dollars per share) | 3.60 | $ 3.60 | |
Vested and exercisable at end of period (in dollars per share) | $ 4.10 | ||
Weighted-Average Remaining Contractual Term (in years) | |||
Outstanding | 6 years 2 months 1 day | 6 years 6 months | |
Vested and exercisable at end of period (in years) | 4 years 11 months 26 days | ||
Aggregate Intrinsic Value (in thousands) | |||
Outstanding, beginning of period | $ 927 | ||
Outstanding, end of period | 499 | $ 927 | |
Vested and exercisable at end of period | $ 499 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | May 02, 2024 | Nov. 02, 2023 | May 02, 2023 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 4.12% | |||
Dividend yield | 0% | |||
Volatility | 45.09% | |||
Expected lives (in years) | 4 years 7 months 6 days | |||
2021 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 5.08% | 4.44% | ||
Dividend yield | 0% | 0% | ||
Volatility | 45.59% | 43.42% | ||
Expected lives (in years) | 6 months | 6 months | ||
2021 ESPP | Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 5.45% | |||
Dividend yield | 0% | |||
Volatility | 43.12% | |||
Expected lives (in years) | 6 months |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Share-based Payment Arrangement, Restricted Stock Unit, Activity (Details) - RSUs | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Unvested at beginning of period (in shares) | shares | 10,264,090 |
Granted (in shares) | shares | 1,513,365 |
Vested (in shares) | shares | (619,392) |
Forfeited (in shares) | shares | (611,461) |
Unvested at end of period(in shares) | shares | 10,546,602 |
Weighted-Average Grant Date Fair Value per Share | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 1.93 |
Granted (in dollars per share) | $ / shares | 0.86 |
Vested (in dollars per share) | $ / shares | 2.68 |
Forfeited (in dollars per share) | $ / shares | 2.23 |
Unvested at end of period (in dollars per share) | $ / shares | $ 1.71 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Share-based Payment Arrangement, Performance Stock Unit, Activity (Details) - PSUs | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Unvested at beginning of period (in shares) | shares | 525,108 |
Granted (in shares) | shares | 654,857 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Unvested at end of period(in shares) | shares | 1,179,965 |
Weighted-Average Grant Date Fair Value per Share | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 5.29 |
Granted (in dollars per share) | $ / shares | 0.13 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Unvested at end of period (in dollars per share) | $ / shares | $ 2.35 |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation, net of amounts capitalized | $ 3,344 | $ 5,670 |
Capitalized stock-based compensation | 87 | 242 |
Total stock-based compensation | $ 3,431 | $ 5,912 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision (benefit) | $ 239 | $ 221 |
Effective tax rate (as percent) | (0.80%) | (0.60%) |
Commitment and Contingencies (D
Commitment and Contingencies (Details) | Jul. 25, 2023 lawsuit |
Commitments and Contingencies Disclosure [Abstract] | |
Number of suits filed | 2 |
Leases - Schedule of Lease Info
Leases - Schedule of Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease costs | $ 4,087 | $ 4,521 |
Variable lease costs | 52 | 56 |
Short-term lease costs | 44 | 33 |
Sublease income | (68) | (13) |
Total lease costs | $ 4,115 | $ 4,596 |
Weighted-average remaining lease term (in years) | 6 years 6 months 7 days | 7 years 6 months 7 days |
Weighted-average discount rate | 5.89% | 5.32% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 6,217 | $ 2,014 |
Right of use assets obtained in exchange for lease liabilities | 0 | 6,827 |
Right of use assets given up for reduction of lease liabilities | $ (5,661) | $ 0 |
Leases - Schedule of Minimum Le
Leases - Schedule of Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating Lease Payments | |
Remainder of 2024 | $ 13,627 |
2025 | 16,595 |
2026 | 15,059 |
2027 | 11,036 |
2028 | 9,749 |
Thereafter | 31,180 |
Total undiscounted operating lease payments | 97,245 |
Less: imputed discount | 17,894 |
Total operating lease liabilities | $ 79,350 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net loss attributable to common stockholders, basic | $ (27,331) | $ (35,166) |
Net loss attributable to common stockholders, diluted | $ (27,331) | $ (35,166) |
Denominator: | ||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 155,380,544 | 150,082,295 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 155,380,544 | 150,082,295 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.18) | $ (0.23) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.18) | $ (0.23) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 24,768,121 | 22,804,695 |
Outstanding stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 12,933,875 | 14,866,359 |
2021 ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 107,679 | 66,094 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 10,546,602 | 7,084,582 |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,179,965 | 787,660 |
Benefit Plan (Details)
Benefit Plan (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Discretionary profit-sharing contributions | $ 0 | $ 0 |
Matching contributions | $ 300,000 | $ 400,000 |