Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38600 | |
Entity Registrant Name | TENABLE HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-5580846 | |
Entity Address, Address Line One | 6100 Merriweather Drive | |
Entity Address, City or Town | Columbia | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21044 | |
City Area Code | 410 | |
Local Phone Number | 872-0555 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | TENB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 115,639,015 | |
Entity Central Index Key | 0001660280 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 376,059 | $ 300,866 |
Short-term investments | 269,487 | 266,569 |
Accounts receivable (net of allowance for doubtful accounts of $308 and $1,400 at June 30, 2023 and December 31, 2022, respectively) | 154,436 | 187,341 |
Deferred commissions | 45,036 | 44,270 |
Prepaid expenses and other current assets | 54,703 | 58,121 |
Total current assets | 899,721 | 857,167 |
Property and equipment, net | 44,764 | 46,726 |
Deferred commissions (net of current portion) | 64,546 | 67,238 |
Operating lease right-of-use assets | 37,124 | 38,495 |
Acquired intangible assets, net | 69,224 | 75,376 |
Goodwill | 316,520 | 316,520 |
Other assets | 33,940 | 38,008 |
Total assets | 1,465,839 | 1,439,530 |
Current liabilities: | ||
Accounts payable and accrued expenses | 24,855 | 18,722 |
Accrued compensation | 45,220 | 52,620 |
Deferred revenue | 495,199 | 502,115 |
Operating lease liabilities | 5,620 | 5,821 |
Other current liabilities | 6,177 | 4,882 |
Total current liabilities | 577,071 | 584,160 |
Deferred revenue (net of current portion) | 154,995 | 162,487 |
Term loan, net of issuance costs (net of current portion) | 360,609 | 361,970 |
Operating lease liabilities (net of current portion) | 51,005 | 52,611 |
Other liabilities | 7,598 | 7,436 |
Total liabilities | 1,151,278 | 1,168,664 |
Stockholders’ equity: | ||
Common stock (par value: $0.01; 500,000 shares authorized; 115,529 and 113,056 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively) | 1,156 | 1,131 |
Additional paid-in capital | 1,101,928 | 1,017,837 |
Accumulated other comprehensive loss | (701) | (1,351) |
Accumulated deficit | (787,822) | (746,751) |
Total stockholders’ equity | 314,561 | 270,866 |
Total liabilities and stockholders’ equity | $ 1,465,839 | $ 1,439,530 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 308 | $ 1,400 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, shares issued (in shares) | 115,529 | 113,056 |
Common stock, shares outstanding (in shares) | 115,529 | 113,056 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 195,036 | $ 164,341 | $ 383,875 | $ 323,709 |
Cost of revenue | 43,514 | 36,037 | 89,020 | 70,967 |
Gross profit | 151,522 | 128,304 | 294,855 | 252,742 |
Operating expenses: | ||||
Sales and marketing | 97,800 | 88,426 | 194,991 | 169,996 |
Research and development | 37,845 | 36,228 | 76,028 | 70,518 |
General and administrative | 26,622 | 26,870 | 53,737 | 52,996 |
Total operating expenses | 162,267 | 151,524 | 324,756 | 293,510 |
Loss from operations | (10,745) | (23,220) | (29,901) | (40,768) |
Interest income | 6,566 | 693 | 11,661 | 943 |
Interest expense | (7,750) | (3,588) | (15,089) | (7,164) |
Other expense, net | (944) | (1,863) | (1,491) | (2,807) |
Loss before income taxes | (12,873) | (27,978) | (34,820) | (49,796) |
Provision (benefit) for income taxes | 3,101 | (479) | 6,251 | 2,209 |
Net loss | $ (15,974) | $ (27,499) | $ (41,071) | $ (52,005) |
Net loss per share, basic (in usd per share) | $ (0.14) | $ (0.25) | $ (0.36) | $ (0.47) |
Net loss per share, diluted (in usd per share) | $ (0.14) | $ (0.25) | $ (0.36) | $ (0.47) |
Weighted-average shares used to compute net loss per share, basic (in shares) | 115,131 | 111,041 | 114,465 | 110,287 |
Weighted-average shares used to compute net loss per share, diluted (in shares) | 115,131 | 111,041 | 114,465 | 110,287 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (15,974) | $ (27,499) | $ (41,071) | $ (52,005) |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized (losses) gains on available-for-sale securities, net | (30) | (493) | 650 | (1,550) |
Other comprehensive (loss) income | (30) | (493) | 650 | (1,550) |
Comprehensive loss | $ (16,004) | $ (27,992) | $ (40,421) | $ (53,555) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning Balance (in shares) at Dec. 31, 2021 | 108,929 | ||||
Beginning Balance at Dec. 31, 2021 | $ 215,313 | $ 1,089 | $ 869,059 | $ (306) | $ (654,529) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options (in shares) | 932 | ||||
Exercise of stock options | 8,676 | $ 9 | 8,667 | ||
Vesting of restricted stock units (in shares) | 1,457 | ||||
Vesting of restricted stock units | 0 | $ 15 | (15) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 256 | ||||
Issuance of common stock under employee stock purchase plan | 8,882 | $ 3 | 8,879 | ||
Stock-based compensation | 58,209 | 58,209 | |||
Other comprehensive income (loss) | (1,550) | (1,550) | |||
Net loss | (52,005) | (52,005) | |||
Ending Balance (in shares) at Jun. 30, 2022 | 111,574 | ||||
Ending Balance at Jun. 30, 2022 | 237,525 | $ 1,116 | 944,799 | (1,856) | (706,534) |
Beginning Balance (in shares) at Mar. 31, 2022 | 110,287 | ||||
Beginning Balance at Mar. 31, 2022 | 226,968 | $ 1,103 | 906,263 | (1,363) | (679,035) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options (in shares) | 639 | ||||
Exercise of stock options | 6,089 | $ 6 | 6,083 | ||
Vesting of restricted stock units (in shares) | 648 | ||||
Vesting of restricted stock units | 0 | $ 7 | (7) | ||
Stock-based compensation | 32,460 | 32,460 | |||
Other comprehensive income (loss) | (493) | (493) | |||
Net loss | (27,499) | (27,499) | |||
Ending Balance (in shares) at Jun. 30, 2022 | 111,574 | ||||
Ending Balance at Jun. 30, 2022 | $ 237,525 | $ 1,116 | 944,799 | (1,856) | (706,534) |
Beginning Balance (in shares) at Dec. 31, 2022 | 113,056 | 113,056 | |||
Beginning Balance at Dec. 31, 2022 | $ 270,866 | $ 1,131 | 1,017,837 | (1,351) | (746,751) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options (in shares) | 166 | 166 | |||
Exercise of stock options | $ 1,537 | $ 2 | 1,535 | ||
Vesting of restricted stock units (in shares) | 1,930 | ||||
Vesting of restricted stock units | 0 | $ 19 | (19) | ||
Vesting of performance stock units (in shares) | 65 | ||||
Vesting of performance stock units | 0 | $ 1 | (1) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 312 | ||||
Issuance of common stock under employee stock purchase plan | 9,914 | $ 3 | 9,911 | ||
Stock-based compensation | 72,665 | 72,665 | |||
Other comprehensive income (loss) | 650 | 650 | |||
Net loss | $ (41,071) | (41,071) | |||
Ending Balance (in shares) at Jun. 30, 2023 | 115,529 | 115,529 | |||
Ending Balance at Jun. 30, 2023 | $ 314,561 | $ 1,156 | 1,101,928 | (701) | (787,822) |
Beginning Balance (in shares) at Mar. 31, 2023 | 114,743 | ||||
Beginning Balance at Mar. 31, 2023 | 291,679 | $ 1,147 | 1,063,051 | (671) | (771,848) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options (in shares) | 86 | ||||
Exercise of stock options | 595 | $ 1 | 594 | ||
Vesting of restricted stock units (in shares) | 687 | ||||
Vesting of restricted stock units | 0 | $ 8 | (8) | ||
Vesting of performance stock units (in shares) | 13 | ||||
Vesting of performance stock units | 0 | ||||
Stock-based compensation | 38,291 | 38,291 | |||
Other comprehensive income (loss) | (30) | (30) | |||
Net loss | $ (15,974) | (15,974) | |||
Ending Balance (in shares) at Jun. 30, 2023 | 115,529 | 115,529 | |||
Ending Balance at Jun. 30, 2023 | $ 314,561 | $ 1,156 | $ 1,101,928 | $ (701) | $ (787,822) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (41,071) | $ (52,005) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 12,624 | 10,141 |
Stock-based compensation | 71,977 | 57,311 |
Other | (2,795) | 665 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 33,997 | 27,664 |
Prepaid expenses and other assets | 12,649 | 16,765 |
Accounts payable, accrued expenses and accrued compensation | (1,276) | (14,250) |
Deferred revenue | (14,408) | 16,075 |
Other current and noncurrent liabilities | (2,758) | 1,014 |
Net cash provided by operating activities | 68,939 | 63,380 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,098) | (3,236) |
Capitalized software development costs | (2,813) | (6,327) |
Purchases of short-term investments | (147,434) | (119,619) |
Sales and maturities of short-term investments | 148,760 | 108,858 |
Business combinations, net of cash acquired | 0 | (66,993) |
Net cash used in investing activities | (2,585) | (87,317) |
Cash flows from financing activities: | ||
Payments on term loan | (1,875) | (1,875) |
Proceeds from loan agreement | 424 | 572 |
Proceeds from stock issued in connection with the employee stock purchase plan | 9,914 | 8,882 |
Proceeds from the exercise of stock options | 1,537 | 8,676 |
Other financing activities | (129) | (6) |
Net cash provided by financing activities | 9,871 | 16,249 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,032) | (2,471) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 75,193 | (10,159) |
Cash and cash equivalents and restricted cash at beginning of period | 300,866 | 278,271 |
Cash and cash equivalents and restricted cash at end of period | 376,059 | 268,112 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 18,943 | 7,366 |
Cash paid for income taxes, net of refunds | 2,236 | 5,870 |
Supplemental cash flow information related to leases: | ||
Cash payments for operating leases | $ 4,590 | $ 1,521 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Business Description Tenable Holdings, Inc. (the “Company,” “we,” "us," or “our”) is a provider of exposure management solutions, which is an effective discipline for managing, measuring and comparing cybersecurity risk in today's complex IT environments. Our solutions provide broad visibility into security issues such as vulnerabilities, misconfigurations, internal and regulatory compliance violations and other indicators of the state of an organization’s security across IT infrastructure and applications, cloud environments, Active Directory and industrial internet of things and operational technology environments. Basis of Presentation The accompanying consolidated financial statements include the accounts of Tenable Holdings, Inc. and our wholly owned subsidiaries and have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) for interim financial information. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated statements are unaudited and should be read in conjunction with the consolidated financial statements and related notes included in our 2022 Annual Report on Form 10-K ("10-K") filed with the Securities and Exchange Commission on February 24, 2023. The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the 10-K and, in the opinion of management, include all adjustments of a normal recurring nature necessary to fairly state our financial position, our results of operations, and cash flows. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the operating results expected for the year ending December 31, 2023 or any other future period. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, the determination of the estimated economic life of perpetual licenses for revenue recognition, the estimated period of benefit for deferred commissions, the useful lives of long-lived assets, the fair value of acquired intangible assets, the valuation of stock-based compensation, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets and investments. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable. Actual results could differ significantly from these estimates. Significant Accounting Policies |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table presents a summary of revenue: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Subscription revenue $ 176,767 $ 146,806 $ 347,865 $ 289,493 Perpetual license and maintenance revenue 12,154 12,683 24,335 25,556 Professional services and other revenue 6,115 4,852 11,675 8,660 Revenue $ 195,036 $ 164,341 $ 383,875 $ 323,709 Concentrations We sell and market our products and services through our field sales force that works closely with our channel partners, which includes a network of distributors and resellers, in developing sales opportunities. We use a two-tiered channel model whereby we sell our products and services to our distributors, which in turn sell to resellers, which then sell to end-users. We derived 93% of revenue through our channel network in the three and six months ended June 30, 2023 and 92% of revenue through our channel network in the three and six months ended June 30, 2022. One of our distributors accounted for 36% of revenue in the three and six months ended June 30, 2023 and 38% of revenue in the three and six months ended June 30, 2022. That same distributor accounted for 31% and 36% of accounts receivable at June 30, 2023 and December 31, 2022, respectively. Contract Balances We generally bill our customers in advance and accounts receivable are recorded when we have the right to invoice the customer. Contract liabilities consist of deferred revenue and include customer billings and payments received in advance of performance under the contract. In the three months ended June 30, 2023 and 2022 and the six months ended June 30, 2023 and 2022, we recognized revenue of $179.0 million, $148.2 million, $319.2 million and $260.6 million, respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods. Remaining Performance Obligations At June 30, 2023, the future estimated revenue related to unsatisfied performance obligations was $662.7 million, of which approximately 76% is expected to be recognized as revenue over the succeeding twelve months, and the remainder is expected to be recognized over the four years thereafter. Deferred Commissions The following summarizes the activity of deferred incremental costs of obtaining a contract: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 108,380 $ 99,263 $ 111,508 $ 99,949 Capitalization of contract acquisition costs 13,385 12,073 22,292 22,403 Amortization of deferred contract acquisition costs (12,183) (11,336) (24,218) (22,352) Ending balance $ 109,582 $ 100,000 $ 109,582 $ 100,000 |
Cash Equivalents and Short-Term
Cash Equivalents and Short-Term Investments | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents and Short-Term Investments | Cash Equivalents and Short-Term Investments The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments: June 30, 2023 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents Money market funds $ 232,888 $ — $ — $ 232,888 Total cash equivalents $ 232,888 $ — $ — $ 232,888 Short-term investments Commercial paper $ 113,319 $ — $ (99) $ 113,220 Corporate bonds 50,115 — (246) 49,869 Asset backed securities 23,719 — (100) 23,619 Certificates of deposit 10,000 — — 10,000 Yankee bond 4,022 — (58) 3,964 U.S. Treasury and agency obligations 69,013 6 (204) 68,815 Total short-term investments $ 270,188 $ 6 $ (707) $ 269,487 December 31, 2022 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents Money market funds $ 201,476 $ — $ — $ 201,476 Total cash equivalents $ 201,476 $ — $ — $ 201,476 Short-term investments Commercial paper $ 144,093 $ 2 $ (377) $ 143,718 Corporate bonds 37,778 — (194) 37,584 Asset backed securities 19,723 11 (161) 19,573 Certificates of deposit 10,000 — — 10,000 Supranational bonds 4,017 — (67) 3,950 U.S. Treasury and agency obligations 52,309 — (565) 51,744 Total short-term investments $ 267,920 $ 13 $ (1,364) $ 266,569 We considered the extent to which any unrealized losses on our short-term investments were driven by credit risk and other factors, including market risk, and if it is more-likely-than-not that we would have to sell the security before the recovery of the amortized cost basis. At June 30, 2023 and December 31, 2022, our unrealized losses were due to rising market interest rates compared to when the investments were initiated. We do not believe any unrealized losses represent credit losses, and it is unlikely we would sell the investments before we would recover their amortized cost basis. The contractual maturities of our short-term investments are as follows: June 30, 2023 December 31, 2022 (in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 241,042 $ 240,552 $ 243,430 $ 242,129 Due between one and two years 29,146 28,935 24,490 24,440 Total short-term investments $ 270,188 $ 269,487 $ 267,920 $ 266,569 At June 30, 2023 and December 31, 2022, cash and cash equivalents included $8.6 million and $5.8 million, respectively, of restricted cash primarily related to collateral for our outstanding letters of credit. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain financial instruments at fair value using a fair value hierarchy. In the hierarchy, assets are classified based on the lowest level inputs used in valuation into the following categories: • Level 1 — Quoted prices in active markets for identical assets and liabilities; • Level 2 — Observable inputs including quoted market prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets, or inputs that are corroborated by observable market data; and • Level 3 — Unobservable inputs. The following tables summarize assets that are measured at fair value on a recurring basis: June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 232,888 $ — $ — $ 232,888 Total cash equivalents $ 232,888 $ — $ — $ 232,888 Short-term investments Commercial paper $ — $ 113,220 $ — $ 113,220 Corporate bonds — 49,869 — 49,869 Asset backed securities — 23,619 — 23,619 Certificates of deposit — 10,000 — 10,000 Yankee bond — 3,964 — 3,964 U.S. Treasury and agency obligations — 68,815 — 68,815 Total short-term investments $ — $ 269,487 $ — $ 269,487 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 201,476 $ — $ — $ 201,476 Total cash equivalents $ 201,476 $ — $ — $ 201,476 Short-term investments Commercial paper $ — $ 143,718 $ — $ 143,718 Corporate bonds — 37,584 — 37,584 Asset backed securities — 19,573 — 19,573 Certificates of deposit — 10,000 — 10,000 Supranational bonds — 3,950 — 3,950 U.S. Treasury and agency obligations — 51,744 — 51,744 Total short-term investments $ — $ 266,569 $ — $ 266,569 At June 30, 2023 and December 31, 2022, we had $15.0 million of non-marketable simple agreements for future equity ("SAFE") investments with privately held companies, which are included in other assets on our consolidated balance sheets. We record our SAFE investments at cost, less any impairment, plus or minus observable price changes for similar investments of the same issuer. No material events impacted the carrying value of our SAFE investments in the six months ended June 30, 2023 or 2022. We did not have any liabilities measured and recorded at fair value on a recurring basis at June 30, 2023 and December 31, 2022. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following: (in thousands) June 30, 2023 December 31, 2022 Computer software and equipment $ 21,972 $ 21,676 Internally developed software 26,979 23,479 Furniture and fixtures 5,940 5,940 Leasehold improvements 28,506 28,214 Right-of-use assets under finance leases 748 748 Total 84,145 80,057 Less: accumulated depreciation and amortization (39,381) (33,331) Property and equipment, net $ 44,764 $ 46,726 Depreciation and amortization related to property and equipment was $3.2 million, $2.4 million, $6.5 million and $4.9 million in the three months ended June 30, 2023 and 2022 and the six months ended June 30, 2023 and 2022, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsAt June 30, 2023 and December 31, 2022, our goodwill balance was $316.5 million. Acquired intangible assets subject to amortization are as follows: June 30, 2023 December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology $ 97,037 $ (27,825) $ 69,212 $ 97,037 $ (21,738) $ 75,299 Trade name 490 (478) 12 490 (413) 77 $ 97,527 $ (28,303) $ 69,224 $ 97,527 $ (22,151) $ 75,376 Amortization of acquired intangible assets was $3.1 million, $2.8 million, $6.2 million and $5.2 million in the three months ended June 30, 2023 and 2022 and the six months ended June 30, 2023 and 2022, respectively. At June 30, 2023, our acquired intangible assets are expected to be amortized over an estimated weighted average period of 6.2 years. At June 30, 2023, estimated future amortization of acquired intangible assets is as follows: (in thousands) Year ending December 31, 2023 (1) $ 6,099 2024 12,175 2025 12,175 2026 11,990 2027 9,960 Thereafter 16,825 Total $ 69,224 _______________ (1) Represents the six months ending December 31, 2023. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for office facilities. The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Operating lease cost $ 1,902 $ 1,770 $ 3,790 $ 3,587 Rent expense for short-term leases in the three and six months ended June 30, 2023 and 2022 was not material. Supplemental information related to leases was as follows: June 30, 2023 December 31, 2022 Operating leases Weighted average remaining lease term 7.8 years 8.2 years Weighted average discount rate 5.6% 5.6% Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 ROU assets obtained in exchange for lease obligations Operating leases $ 1,234 $ 393 $ 1,234 $ 393 Maturities of operating lease liabilities at June 30, 2023 were as follows: (in thousands) Year ending December 31, 2023 (1) $ 4,090 2024 8,988 2025 9,536 2026 8,860 2027 8,386 Thereafter 30,809 Total lease payments 70,669 Less: Imputed interest (14,044) Total $ 56,625 _______________ (1) Represents the six months ending December 31, 2023. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Agreement In July 2021, we entered into a credit agreement ("Credit Agreement") which is comprised of: • a $375.0 million senior secured term loan facility ("Term Loan"); and • a $50.0 million senior secured revolving credit facility ("Revolving Credit Facility"). The table below summarizes the carrying value of the Term Loan: (in thousands) June 30, 2023 Term loan $ 369,375 Less: Unamortized debt discount and issuance costs (6,062) Term loan, net of issuance costs 363,313 Less: Term loan, net, current (1) (2,704) Term loan, net of issuance costs (net of current portion) $ 360,609 _______________ (1) Term loan, net current is included in other current liabilities on our consolidated balance sheets. On June 1, 2023, we began using the Secured Overnight Financing Rate ("SOFR") instead of LIBOR. The Term Loan bears interest at a rate of 2.75% per annum over SOFR, subject to a 0.50% floor, plus a credit spread adjustment depending on the interest period. The Term Loan is being amortized at 1% per annum in equal quarterly installments until the final payment of $350.6 million on the July 7, 2028 maturity date. Our Term Loan is recorded at its carrying value. At June 30, 2023, the fair value of our Term Loan was approximately $367.5 million. In the fair value hierarchy, our Term Loan is classified as Level 2 as it is traded in less active markets. The maturities of the Term Loan at June 30, 2023 were as follows: (in thousands) Year ending December 31, 2023 (1) $ 1,875 2024 3,750 2025 3,750 2026 3,750 2027 3,750 Thereafter 352,500 Total $ 369,375 _______________ (1) Represents the six months ending December 31, 2023. We may be subject to mandatory Term Loan prepayments related to the excess cash flow provisions. These prepayments would only be required if our first lien net leverage ratio (as defined in our Credit Agreement) exceeds 3.5 at the end of each year. At June 30, 2023, our first lien net leverage ratio was 1.25. The Revolving Credit Facility bears interest at a rate, depending on first lien net leverage, ranging from 2.00% to 2.50% over SOFR and matures on July 7, 2026. Additionally, we pay a commitment fee during the term ranging from 0.25% to 0.375% per annum of the average daily undrawn portion of the revolving commitments based on the first lien net leverage ratio. The Revolving Credit Facility contains a $15.0 million letter of credit sublimit. At June 30, 2023, we had $0.2 million of standby letters of credit outstanding under our Revolving Credit Facility related to one of our operating leases. At June 30, 2023, we were in compliance with the covenants under the Credit Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In July 2021, we entered into a contract with Amazon Web Services, Inc. ("AWS") for cloud services from August 2021 through July 2024. Under the terms of the contract, we committed to spend $43.7 million, $46.8 million and $50.1 million in contract years one, two and three, respectively, for a total of $140.6 million. If we do not meet the minimum purchase obligation during any of those years, we will be required to pay the difference. At June 30, 2023, we have met our commitments for both the first and second years of our contract with AWS. Letters of Credit At June 30, 2023, we had $8.2 million of standby letters of credit related to our grant agreements with the State of Maryland and our operating leases. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Under the evergreen provision in our 2018 Equity Incentive Plan, in January 2023 we reserved an additional 5.7 million shares of our common stock. At June 30, 2023, there were 24.0 million shares available for grant. Stock-based compensation expense included in the consolidated statements of operations was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Cost of revenue $ 2,906 $ 2,114 $ 5,531 $ 3,627 Sales and marketing 16,423 12,766 30,817 22,831 Research and development 9,764 8,077 18,629 14,540 General and administrative 8,767 8,956 17,000 16,313 Total stock-based compensation expense $ 37,860 $ 31,913 $ 71,977 $ 57,311 At June 30, 2023, the unrecognized stock-based compensation expense related to unvested restricted stock units ("RSUs") was $315.7 million, which is expected to be recognized over an estimated remaining weighted average period of 2.8 years. At June 30, 2023, the unrecognized stock-based compensation expense related to unvested performance stock units ("PSUs") was $9.1 million, which is expected to be recognized over an estimated remaining weighted average period of 3.3 years. At June 30, 2023, the unrecognized stock-based compensation expense related to our 2018 ESPP was $8.8 million, which is expected to be recognized over an estimated weighted average period of 0.7 years. RSUs and PSUs A summary of our RSU and PSU activity is presented below: RSUs PSUs (in thousands, except for per share data) Number Weighted Number Weighted Unvested balance at December 31, 2022 6,894 $ 43.26 196 $ 44.97 Granted 3,376 43.08 188 43.24 Performance adjustment (1) — — 12 44.97 Vested (1,930) 42.34 (65) 44.97 Forfeited (377) 45.45 — — Unvested balance at June 30, 2023 7,963 43.30 331 43.99 _______________ (1) Represents adjustments due to the achievement of predefined financial performance targets. Stock Options A summary of our stock option activity is presented below: (in thousands, except for exercise prices and years) Number Weighted Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2022 5,485 $ 8.96 4.5 $ 160,135 Granted — — Exercised (166) 9.24 5,407 Forfeited/canceled — — Outstanding and exercisable at June 30, 2023 5,319 8.95 4.0 184,051 2018 Employee Stock Purchase Plan Under the evergreen provision in our 2018 Employee Stock Purchase Plan ("2018 ESPP"), in January 2023 we reserved an additional 1.7 million shares of our common stock. At June 30, 2023, there were 8.9 million shares reserved for issuance under our 2018 ESPP. In the six months ended June 30, 2023, employees purchased 311,614 shares of our common stock at a weighted average price of $31.82 per share, resulting in $9.9 million of cash proceeds. At June 30, 2023, there was $6.6 million of employee contributions to the 2018 ESPP included in accrued compensation. The fair value of the 2018 ESPP purchase rights was estimated on the offering or modification dates using a Black-Scholes option-pricing model and the following assumptions: Six Months Ended June 30, 2023 2022 Expected term (in years) 0.5 — 2.0 0.5 — 2.0 Expected volatility 51.0% — 58.1% 42.8% — 51.7% Risk-free interest rate 4.8% — 5.0% 0.1% Expected dividend yield — — |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In the six months ended June 30, 2023, the provision for income taxes included $4.1 million of income taxes in foreign jurisdictions in which we conduct business and $2.2 million of discrete items primarily related to withholding taxes on sales to customers. In the six months ended June 30, 2022, the provision included $2.9 million of income taxes in foreign jurisdictions in which we conduct business, $1.6 million of current expense from the restructuring of our research and development operations in Israel, partially offset by $0.8 million of deferred tax benefits related to the Alsid acquisition. Additionally, the provision included $1.0 million of discrete items, primarily withholding taxes on sales to customers, which is more than offset by a benefit of $2.5 million from partially releasing the valuation allowance associated with the Bit Discovery acquisition. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2023 2022 2023 2022 Net loss $ (15,974) $ (27,499) $ (41,071) $ (52,005) Weighted-average shares used to compute net loss per share, basic and diluted 115,131 111,041 114,465 110,287 Net loss per share, basic and diluted $ (0.14) $ (0.25) $ (0.36) $ (0.47) The following potentially dilutive securities have been excluded from the diluted per share calculations because they would have been antidilutive: June 30, (in thousands) 2023 2022 RSUs 7,963 7,754 Stock options 5,319 5,727 Shares to be issued under the 2018 ESPP 210 160 PSUs 143 — Total 13,635 13,641 |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic InformationWe operate as one operating segment. Our Chief Executive Officer, who is our chief operating decision maker, reviews financial information on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. Revenue by region, based on the address of the end user as specified in our subscription, license or service agreements, was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 The Americas $ 122,210 $ 104,979 $ 241,494 $ 204,479 Europe, Middle East and Africa 50,781 41,523 99,040 84,662 Asia Pacific 22,045 17,839 43,341 34,568 Revenue $ 195,036 $ 164,341 $ 383,875 $ 323,709 Customers located in the United States accounted for 55% of revenue in the three and six months ended June 30, 2023 and 57% of revenue in the three and six months ended June 30, 2022. No other country accounted for 10% or more of revenue in the periods presented. Our property and equipment, net by geographic area is summarized as follows: (in thousands) June 30, 2023 December 31, 2022 United States $ 38,815 $ 39,843 International 5,949 6,883 Property and equipment, net $ 44,764 $ 46,726 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net loss | $ (15,974) | $ (27,499) | $ (41,071) | $ (52,005) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 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 | |
Mark Thurmond [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Rule 10b5-1 Plan Elections Mark Thurmond, our Chief Operating Officer, entered into a prearranged stock trading plan on May 24, 2023. Mr. Thurmond's plan includes the potential sale of 146,267 shares of our common stock between August 22, 2023 and November 29, 2024. Of the shares of common stock that may be sold pursuant to Mr. Thurmond's plan, 137,857 are shares to be issued upon the vesting of restricted stock units and include shares that will be automatically sold to cover mandatory tax withholding obligations. Mr. Thurmond’s trading plan was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and our policies regarding insider transactions. | |
Name | Mark Thurmond | |
Title | Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 24, 2023 | |
Arrangement Duration | 465 days | |
Aggregate Available | 146,267 | 146,267 |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidations | The accompanying consolidated financial statements include the accounts of Tenable Holdings, Inc. and our wholly owned subsidiaries and have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) for interim financial information. All intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Accounting | The consolidated statements are unaudited and should be read in conjunction with the consolidated financial statements and related notes included in our 2022 Annual Report on Form 10-K ("10-K") filed with the Securities and Exchange Commission on February 24, 2023. The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the 10-K and, in the opinion of management, include all adjustments of a normal recurring nature necessary to fairly state our financial position, our results of operations, and cash flows. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, the determination of the estimated economic life of perpetual licenses for revenue recognition, the estimated period of benefit for deferred commissions, the useful lives of long-lived assets, the fair value of acquired intangible assets, the valuation of stock-based compensation, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets and investments. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable. Actual results could differ significantly from these estimates. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue | The following table presents a summary of revenue: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Subscription revenue $ 176,767 $ 146,806 $ 347,865 $ 289,493 Perpetual license and maintenance revenue 12,154 12,683 24,335 25,556 Professional services and other revenue 6,115 4,852 11,675 8,660 Revenue $ 195,036 $ 164,341 $ 383,875 $ 323,709 |
Schedule of Activity of Deferred Contract Costs | The following summarizes the activity of deferred incremental costs of obtaining a contract: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 108,380 $ 99,263 $ 111,508 $ 99,949 Capitalization of contract acquisition costs 13,385 12,073 22,292 22,403 Amortization of deferred contract acquisition costs (12,183) (11,336) (24,218) (22,352) Ending balance $ 109,582 $ 100,000 $ 109,582 $ 100,000 |
Cash Equivalents and Short-Te_2
Cash Equivalents and Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Amortized Cost, Unrealized Gain and Loss and Estimated Fair Value | The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments: June 30, 2023 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents Money market funds $ 232,888 $ — $ — $ 232,888 Total cash equivalents $ 232,888 $ — $ — $ 232,888 Short-term investments Commercial paper $ 113,319 $ — $ (99) $ 113,220 Corporate bonds 50,115 — (246) 49,869 Asset backed securities 23,719 — (100) 23,619 Certificates of deposit 10,000 — — 10,000 Yankee bond 4,022 — (58) 3,964 U.S. Treasury and agency obligations 69,013 6 (204) 68,815 Total short-term investments $ 270,188 $ 6 $ (707) $ 269,487 December 31, 2022 (in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents Money market funds $ 201,476 $ — $ — $ 201,476 Total cash equivalents $ 201,476 $ — $ — $ 201,476 Short-term investments Commercial paper $ 144,093 $ 2 $ (377) $ 143,718 Corporate bonds 37,778 — (194) 37,584 Asset backed securities 19,723 11 (161) 19,573 Certificates of deposit 10,000 — — 10,000 Supranational bonds 4,017 — (67) 3,950 U.S. Treasury and agency obligations 52,309 — (565) 51,744 Total short-term investments $ 267,920 $ 13 $ (1,364) $ 266,569 |
Schedule of Investments Classified by Contractual Maturity Date | The contractual maturities of our short-term investments are as follows: June 30, 2023 December 31, 2022 (in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 241,042 $ 240,552 $ 243,430 $ 242,129 Due between one and two years 29,146 28,935 24,490 24,440 Total short-term investments $ 270,188 $ 269,487 $ 267,920 $ 266,569 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured At Fair Value on Recurring Basis | The following tables summarize assets that are measured at fair value on a recurring basis: June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 232,888 $ — $ — $ 232,888 Total cash equivalents $ 232,888 $ — $ — $ 232,888 Short-term investments Commercial paper $ — $ 113,220 $ — $ 113,220 Corporate bonds — 49,869 — 49,869 Asset backed securities — 23,619 — 23,619 Certificates of deposit — 10,000 — 10,000 Yankee bond — 3,964 — 3,964 U.S. Treasury and agency obligations — 68,815 — 68,815 Total short-term investments $ — $ 269,487 $ — $ 269,487 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 201,476 $ — $ — $ 201,476 Total cash equivalents $ 201,476 $ — $ — $ 201,476 Short-term investments Commercial paper $ — $ 143,718 $ — $ 143,718 Corporate bonds — 37,584 — 37,584 Asset backed securities — 19,573 — 19,573 Certificates of deposit — 10,000 — 10,000 Supranational bonds — 3,950 — 3,950 U.S. Treasury and agency obligations — 51,744 — 51,744 Total short-term investments $ — $ 266,569 $ — $ 266,569 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: (in thousands) June 30, 2023 December 31, 2022 Computer software and equipment $ 21,972 $ 21,676 Internally developed software 26,979 23,479 Furniture and fixtures 5,940 5,940 Leasehold improvements 28,506 28,214 Right-of-use assets under finance leases 748 748 Total 84,145 80,057 Less: accumulated depreciation and amortization (39,381) (33,331) Property and equipment, net $ 44,764 $ 46,726 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-lived Intangible Assets | Acquired intangible assets subject to amortization are as follows: June 30, 2023 December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology $ 97,037 $ (27,825) $ 69,212 $ 97,037 $ (21,738) $ 75,299 Trade name 490 (478) 12 490 (413) 77 $ 97,527 $ (28,303) $ 69,224 $ 97,527 $ (22,151) $ 75,376 |
Schedule of Finite-lived Intangible Assets, Future Amortization Expense | At June 30, 2023, estimated future amortization of acquired intangible assets is as follows: (in thousands) Year ending December 31, 2023 (1) $ 6,099 2024 12,175 2025 12,175 2026 11,990 2027 9,960 Thereafter 16,825 Total $ 69,224 _______________ (1) Represents the six months ending December 31, 2023. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense and Supplemental Information | The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Operating lease cost $ 1,902 $ 1,770 $ 3,790 $ 3,587 Supplemental information related to leases was as follows: June 30, 2023 December 31, 2022 Operating leases Weighted average remaining lease term 7.8 years 8.2 years Weighted average discount rate 5.6% 5.6% Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 ROU assets obtained in exchange for lease obligations Operating leases $ 1,234 $ 393 $ 1,234 $ 393 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities at June 30, 2023 were as follows: (in thousands) Year ending December 31, 2023 (1) $ 4,090 2024 8,988 2025 9,536 2026 8,860 2027 8,386 Thereafter 30,809 Total lease payments 70,669 Less: Imputed interest (14,044) Total $ 56,625 _______________ (1) Represents the six months ending December 31, 2023. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of The Carrying Value of The Term Loan | The table below summarizes the carrying value of the Term Loan: (in thousands) June 30, 2023 Term loan $ 369,375 Less: Unamortized debt discount and issuance costs (6,062) Term loan, net of issuance costs 363,313 Less: Term loan, net, current (1) (2,704) Term loan, net of issuance costs (net of current portion) $ 360,609 _______________ (1) Term loan, net current is included in other current liabilities on our consolidated balance sheets. |
Schedule of Maturities of The Term Loan | The maturities of the Term Loan at June 30, 2023 were as follows: (in thousands) Year ending December 31, 2023 (1) $ 1,875 2024 3,750 2025 3,750 2026 3,750 2027 3,750 Thereafter 352,500 Total $ 369,375 _______________ (1) Represents the six months ending December 31, 2023. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation Expense | Stock-based compensation expense included in the consolidated statements of operations was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Cost of revenue $ 2,906 $ 2,114 $ 5,531 $ 3,627 Sales and marketing 16,423 12,766 30,817 22,831 Research and development 9,764 8,077 18,629 14,540 General and administrative 8,767 8,956 17,000 16,313 Total stock-based compensation expense $ 37,860 $ 31,913 $ 71,977 $ 57,311 |
Summary of RSUs and PSUs | A summary of our RSU and PSU activity is presented below: RSUs PSUs (in thousands, except for per share data) Number Weighted Number Weighted Unvested balance at December 31, 2022 6,894 $ 43.26 196 $ 44.97 Granted 3,376 43.08 188 43.24 Performance adjustment (1) — — 12 44.97 Vested (1,930) 42.34 (65) 44.97 Forfeited (377) 45.45 — — Unvested balance at June 30, 2023 7,963 43.30 331 43.99 _______________ (1) Represents adjustments due to the achievement of predefined financial performance targets. |
Schedule of Stock Option Activity | A summary of our stock option activity is presented below: (in thousands, except for exercise prices and years) Number Weighted Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2022 5,485 $ 8.96 4.5 $ 160,135 Granted — — Exercised (166) 9.24 5,407 Forfeited/canceled — — Outstanding and exercisable at June 30, 2023 5,319 8.95 4.0 184,051 |
Schedule of ESPP Valuation Assumptions | The fair value of the 2018 ESPP purchase rights was estimated on the offering or modification dates using a Black-Scholes option-pricing model and the following assumptions: Six Months Ended June 30, 2023 2022 Expected term (in years) 0.5 — 2.0 0.5 — 2.0 Expected volatility 51.0% — 58.1% 42.8% — 51.7% Risk-free interest rate 4.8% — 5.0% 0.1% Expected dividend yield — — |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2023 2022 2023 2022 Net loss $ (15,974) $ (27,499) $ (41,071) $ (52,005) Weighted-average shares used to compute net loss per share, basic and diluted 115,131 111,041 114,465 110,287 Net loss per share, basic and diluted $ (0.14) $ (0.25) $ (0.36) $ (0.47) |
Schedule of Potentially Dilutive Securities | The following potentially dilutive securities have been excluded from the diluted per share calculations because they would have been antidilutive: June 30, (in thousands) 2023 2022 RSUs 7,963 7,754 Stock options 5,319 5,727 Shares to be issued under the 2018 ESPP 210 160 PSUs 143 — Total 13,635 13,641 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Region | Revenue by region, based on the address of the end user as specified in our subscription, license or service agreements, was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 The Americas $ 122,210 $ 104,979 $ 241,494 $ 204,479 Europe, Middle East and Africa 50,781 41,523 99,040 84,662 Asia Pacific 22,045 17,839 43,341 34,568 Revenue $ 195,036 $ 164,341 $ 383,875 $ 323,709 |
Schedule of Property and Equipment, Net by Geographic Area | Our property and equipment, net by geographic area is summarized as follows: (in thousands) June 30, 2023 December 31, 2022 United States $ 38,815 $ 39,843 International 5,949 6,883 Property and equipment, net $ 44,764 $ 46,726 |
Revenue - Summary of Revenue (D
Revenue - Summary of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 195,036 | $ 164,341 | $ 383,875 | $ 323,709 |
Subscription revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 176,767 | 146,806 | 347,865 | 289,493 |
Perpetual license and maintenance revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,154 | 12,683 | 24,335 | 25,556 |
Professional services and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 6,115 | $ 4,852 | $ 11,675 | $ 8,660 |
Revenue - Concentrations (Detai
Revenue - Concentrations (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenue | Customer Concentration Risk | One Distributor | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 36% | 38% | 36% | 38% | |
Accounts Receivable | Customer Concentration Risk | One Distributor | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 31% | 36% | |||
Channel Network | Revenue | Sales Method Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 93% | 92% | 93% | 92% |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized that was included in deferred revenue | $ 179 | $ 148.2 | $ 319.2 | $ 260.6 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future estimated revenue | $ 662.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected recognized percentage over succeeding 12 months | 76% |
Expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 4 years |
Revenue - Activity of Deferred
Revenue - Activity of Deferred Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Capitalized Contract Cost [Roll Forward] | ||||
Beginning balance | $ 108,380 | $ 99,263 | $ 111,508 | $ 99,949 |
Capitalization of contract acquisition costs | 13,385 | 12,073 | 22,292 | 22,403 |
Amortization of deferred contract acquisition costs | (12,183) | (11,336) | (24,218) | (22,352) |
Ending balance | $ 109,582 | $ 100,000 | $ 109,582 | $ 100,000 |
Cash Equivalents and Short-Te_3
Cash Equivalents and Short-Term Investments - Summary of Amortized Cost, Unrealized Gain and Loss and Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | $ 232,888 | $ 201,476 |
Amortized Cost | 270,188 | 267,920 |
Unrealized Gain | 6 | 13 |
Unrealized Loss | (707) | (1,364) |
Estimated Fair Value | 269,487 | 266,569 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Estimated Fair Value | 113,220 | 143,718 |
Corporate bonds | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 50,115 | 37,778 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (246) | (194) |
Estimated Fair Value | 49,869 | 37,584 |
Asset backed securities | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 23,719 | 19,723 |
Unrealized Gain | 0 | 11 |
Unrealized Loss | (100) | (161) |
Estimated Fair Value | 23,619 | 19,573 |
Certificates of deposit | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 10,000 | 10,000 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 10,000 | 10,000 |
Supranational bonds | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 4,017 | |
Unrealized Gain | 0 | |
Unrealized Loss | (67) | |
Estimated Fair Value | 3,950 | |
Yankee bond | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 4,022 | |
Unrealized Gain | 0 | |
Unrealized Loss | (58) | |
Estimated Fair Value | 3,964 | |
U.S. Treasury and agency obligations | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 69,013 | 52,309 |
Unrealized Gain | 6 | 0 |
Unrealized Loss | (204) | (565) |
Estimated Fair Value | 68,815 | 51,744 |
Total cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | 232,888 | 201,476 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | 232,888 | 201,476 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Amortized Cost | 113,319 | 144,093 |
Unrealized Gain | 0 | 2 |
Unrealized Loss | (99) | (377) |
Estimated Fair Value | $ 113,220 | $ 143,718 |
Cash Equivalents and Short-Te_4
Cash Equivalents and Short-Term Investments - Contractual Maturities on Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Amortized Cost, Due within on year | $ 241,042 | $ 243,430 |
Amortized Cost, Due between one and two years | 29,146 | 24,490 |
Amortized Cost | 270,188 | 267,920 |
Estimated Fair Value, Due within one year | 240,552 | 242,129 |
Estimated Fair Value, Due between one and two years | 28,935 | 24,440 |
Estimated Fair Value | $ 269,487 | $ 266,569 |
Cash Equivalents and Short-Te_5
Cash Equivalents and Short-Term Investments - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Collateral For Letters of Credit | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 8.6 | $ 5.8 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 232,888 | $ 201,476 |
Short-term investments | 269,487 | 266,569 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 113,220 | 143,718 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 49,869 | 37,584 |
Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 23,619 | 19,573 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 10,000 | 10,000 |
Supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,950 | |
Yankee bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,964 | |
U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 68,815 | 51,744 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 232,888 | 201,476 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 232,888 | 201,476 |
Short-term investments | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Level 1 | Yankee bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Level 1 | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 232,888 | 201,476 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 269,487 | 266,569 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 113,220 | 143,718 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 49,869 | 37,584 |
Level 2 | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 23,619 | 19,573 |
Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 10,000 | 10,000 |
Level 2 | Supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,950 | |
Level 2 | Yankee bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,964 | |
Level 2 | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 68,815 | 51,744 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Level 3 | Yankee bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Level 3 | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
SAFE investments, carrying value | $ 15 | $ 15 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Right-of-use assets under finance leases | $ 748 | $ 748 |
Total | 84,145 | 80,057 |
Less: accumulated depreciation and amortization | (39,381) | (33,331) |
Property and equipment, net | 44,764 | 46,726 |
Computer software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 21,972 | 21,676 |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 26,979 | 23,479 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,940 | 5,940 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 28,506 | $ 28,214 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 3.2 | $ 2.4 | $ 6.5 | $ 4.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 316,520 | $ 316,520 | $ 316,520 | ||
Amortization of acquired intangible assets | $ 3,100 | $ 2,800 | $ 6,200 | $ 5,200 | |
Estimated useful life | 6 years 2 months 12 days |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 97,527 | $ 97,527 |
Accumulated Amortization | (28,303) | (22,151) |
Total | 69,224 | 75,376 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 97,037 | 97,037 |
Accumulated Amortization | (27,825) | (21,738) |
Total | 69,212 | 75,299 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 490 | 490 |
Accumulated Amortization | (478) | (413) |
Total | $ 12 | $ 77 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2023 | $ 6,099 | |
2024 | 12,175 | |
2025 | 12,175 | |
2026 | 11,990 | |
2027 | 9,960 | |
Thereafter | 16,825 | |
Total | $ 69,224 | $ 75,376 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,902 | $ 1,770 | $ 3,790 | $ 3,587 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Operating leases | |||||
Weighted average remaining lease term (in years) | 7 years 9 months 18 days | 7 years 9 months 18 days | 8 years 2 months 12 days | ||
Weighted average discount rate (in percent) | 5.60% | 5.60% | 5.60% | ||
ROU assets obtained in exchange for lease obligations, Operating leases | $ 1,234 | $ 393 | $ 1,234 | $ 393 |
Leases - Operating Lease Liabil
Leases - Operating Lease Liability Maturities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 4,090 |
2024 | 8,988 |
2025 | 9,536 |
2026 | 8,860 |
2027 | 8,386 |
Thereafter | 30,809 |
Total lease payments | 70,669 |
Less: Imputed interest | (14,044) |
Total | $ 56,625 |
Debt- Narrative (Details)
Debt- Narrative (Details) | 1 Months Ended | ||
Jun. 01, 2023 | Jul. 31, 2021 USD ($) | Jun. 30, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |||
Standby letters of credit | $ 8,200,000 | ||
Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 375,000,000 | ||
Annual amortization amount, percent | 1% | ||
Final payment to be paid at maturity | $ 350,600,000 | ||
Fair value of term loan | $ 367,500,000 | ||
Secured Debt | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, leverage ratio, maximum | 3.5 | ||
Debt instrument, leverage ratio | 1.25 | ||
Secured Debt | Secured Overnight Financing Rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.75% | ||
Debt instrument, basis spread on variable rate, variable rate floor | 0.50% | ||
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Standby letters of credit | $ 200,000 | ||
Revolving Credit Facility | Credit Agreement | Minimum | |||
Line of Credit Facility [Line Items] | |||
Unused capacity, commitment fee percentage | 0.25% | ||
Revolving Credit Facility | Credit Agreement | Maximum | |||
Line of Credit Facility [Line Items] | |||
Unused capacity, commitment fee percentage | 0.375% | ||
Revolving Credit Facility | Secured Overnight Financing Rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 2% | ||
Revolving Credit Facility | Secured Overnight Financing Rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.50% | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 15,000,000 |
Debt - Carrying Value of Senior
Debt - Carrying Value of Senior Notes (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
Term loan | $ 369,375 |
Secured Debt | |
Debt Instrument [Line Items] | |
Term loan | 369,375 |
Less: Unamortized debt discount and issuance costs | (6,062) |
Term loan, net of issuance costs | 363,313 |
Less: Term loan, net, current | (2,704) |
Term loan, net of issuance costs (net of current portion) | $ 360,609 |
Debt - Maturities of Senior Not
Debt - Maturities of Senior Notes (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 1,875 |
2024 | 3,750 |
2025 | 3,750 |
2026 | 3,750 |
2027 | 3,750 |
Thereafter | 352,500 |
Total | $ 369,375 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jul. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase obligation, to be paid, year one | $ 43.7 | |
Purchase obligation, to be paid, year two | 46.8 | |
Purchase obligation, to be paid, year three | 50.1 | |
Purchase obligation | $ 140.6 | |
Standby letters of credit | $ 8.2 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from stock issued in connection with the employee stock purchase plan | $ 9,914 | $ 8,882 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense, unvested RSUs or PSUs | $ 315,700 | ||
Estimated remaining weighted average period | 2 years 9 months 18 days | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense, unvested RSUs or PSUs | $ 9,100 | ||
Estimated remaining weighted average period | 3 years 3 months 18 days | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares reserved (in shares) | 1,700,000 | ||
Shares available for grant (in shares) | 8,900,000 | ||
Estimated remaining weighted average period | 8 months 12 days | ||
Unrecognized stock-based compensation expense | $ 8,800 | ||
Common stock purchased (in shares) | 311,614 | ||
Share price (in usd per share) | $ 31.82 | ||
Employee contributions | $ 6,600 | ||
2018 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares reserved (in shares) | 5,700,000 | ||
Shares available for grant (in shares) | 24,000,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 37,860 | $ 31,913 | $ 71,977 | $ 57,311 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 2,906 | 2,114 | 5,531 | 3,627 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 16,423 | 12,766 | 30,817 | 22,831 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 9,764 | 8,077 | 18,629 | 14,540 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 8,767 | $ 8,956 | $ 17,000 | $ 16,313 |
Stock-Based Compensation - RSUs
Stock-Based Compensation - RSUs and PSUs (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
RSUs | |
Number of Shares | |
Number of shares unvested, beginning of period (in shares) | shares | 6,894 |
Number of shares, granted (in shares) | shares | 3,376 |
Number of shares, performance adjustment (in shares) | shares | 0 |
Number of shares, vested (in shares) | shares | (1,930) |
Number of shares, forfeited (in shares) | shares | (377) |
Number of shares unvested, end of period (in shares) | shares | 7,963 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in usd per share) | $ / shares | $ 43.26 |
Weighted average grant date fair value, granted (in usd per share) | $ / shares | 43.08 |
Weighted average grant date fair value, performance adjustment (in usd per share) | $ / shares | 0 |
Weighted average grant date fair value, vested (in usd per share) | $ / shares | 42.34 |
Weighted average grant date fair value, forfeited (in usd per share) | $ / shares | 45.45 |
Weighted average grant date fair value, end of period (in usd per share) | $ / shares | $ 43.30 |
PSUs | |
Number of Shares | |
Number of shares unvested, beginning of period (in shares) | shares | 196 |
Number of shares, granted (in shares) | shares | 188 |
Number of shares, performance adjustment (in shares) | shares | 12 |
Number of shares, vested (in shares) | shares | (65) |
Number of shares, forfeited (in shares) | shares | 0 |
Number of shares unvested, end of period (in shares) | shares | 331 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in usd per share) | $ / shares | $ 44.97 |
Weighted average grant date fair value, granted (in usd per share) | $ / shares | 43.24 |
Weighted average grant date fair value, performance adjustment (in usd per share) | $ / shares | 44.97 |
Weighted average grant date fair value, vested (in usd per share) | $ / shares | 44.97 |
Weighted average grant date fair value, forfeited (in usd per share) | $ / shares | 0 |
Weighted average grant date fair value, end of period (in usd per share) | $ / shares | $ 43.99 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Shares | ||
Number of shares outstanding, beginning of period (in shares) | shares | 5,485 | |
Number of shares, granted (in shares) | shares | 0 | |
Number of shares, exercised (in shares) | shares | (166) | |
Number of shares, forfeited/canceled (in shares) | shares | 0 | |
Number of shares outstanding, end of period (in shares) | shares | 5,319 | 5,485 |
Number of shares exercisable (in shares) | shares | 5,319 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, outstanding, beginning of period (in usd per share) | $ / shares | $ 8.96 | |
Weighted average exercise price, granted (in usd per share) | $ / shares | 0 | |
Weighted average exercise price, exercised (in usd per share) | $ / shares | 9.24 | |
Weighted average exercise price, forfeited/canceled (in usd per share) | $ / shares | 0 | |
Weighted average exercise price, outstanding, end of period (in usd per share) | $ / shares | 8.95 | $ 8.96 |
Weighted average exercise price, exercisable (in usd per share) | $ / shares | $ 8.95 | |
Weighted Average Remaining Contractual Term/ Aggregate Intrinsic Value | ||
Weighted average remaining contractual term (in years), outstanding | 4 years | 4 years 6 months |
Weighted average remaining contractual term (in years), exercisable | 4 years | |
Aggregate intrinsic value, outstanding | $ | $ 184,051 | $ 160,135 |
Aggregate intrinsic value, exercised | $ | 5,407 | |
Aggregate intrinsic value, exercisable | $ | $ 184,051 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - Employee Stock Purchase Plan | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 51% | 42.80% |
Expected volatility, maximum | 58.10% | 51.70% |
Risk-free interest rate, minimum | 4.80% | 0.10% |
Risk-free interest rate, maximum | 5% | |
Expected dividend yield | 0% | 0% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 2 years | 2 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Examination [Line Items] | ||
Foreign tax expense | $ 4.1 | $ 2.9 |
Discrete expenses | $ 2.2 | 1 |
Change in valuation allowance | 2.5 | |
Alsid SAS | ||
Income Tax Examination [Line Items] | ||
Deferred tax benefit | 0.8 | |
Israel | ||
Income Tax Examination [Line Items] | ||
Income tax expense, research and development | $ 1.6 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (15,974) | $ (27,499) | $ (41,071) | $ (52,005) |
Weighted-average shares used to compute net loss per share, basic (in shares) | 115,131 | 111,041 | 114,465 | 110,287 |
Weighted-average shares used to compute net loss per share, diluted (in shares) | 115,131 | 111,041 | 114,465 | 110,287 |
Net loss per share, basic (in usd per share) | $ (0.14) | $ (0.25) | $ (0.36) | $ (0.47) |
Net loss per share, diluted (in usd per share) | $ (0.14) | $ (0.25) | $ (0.36) | $ (0.47) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Potentially Dilutive Securities (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 13,635 | 13,641 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,963 | 7,754 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,319 | 5,727 |
Shares to be issued under the 2018 ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 210 | 160 |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 143 | 0 |
Geographic Information - Narrat
Geographic Information - Narrative (Details) - segment | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Concentration Risk [Line Items] | ||||
Number of operating segments | 1 | |||
United States | Revenue | Geographic Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 55% | 57% | 55% | 57% |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 195,036 | $ 164,341 | $ 383,875 | $ 323,709 |
The Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 122,210 | 104,979 | 241,494 | 204,479 |
Europe, Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 50,781 | 41,523 | 99,040 | 84,662 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 22,045 | $ 17,839 | $ 43,341 | $ 34,568 |
Geographic Information - Proper
Geographic Information - Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 44,764 | $ 46,726 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 38,815 | 39,843 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 5,949 | $ 6,883 |