Eargo (EAR) 10-Q 13 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 05, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Registrant Name	Eargo, Inc.
Entity Central Index Key	0001719395
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		38,731,538
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	EAR
Security Exchange Name	NASDAQ
Entity File Number	001-39616
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-3879805
Entity Address, Address Line One	1600 Technology Drive
Entity Address, Address Line Two	6th Floor
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95110
City Area Code	650
Local Phone Number	351-7700
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 201,624	$ 212,185
Accounts receivable, net	5,339	3,793
Inventories	2,463	2,739
Prepaid expenses and other current assets	3,175	3,740
Total current assets	212,601	222,457
Operating lease right-of-use assets	1,218	1,079
Property and equipment, net	8,924	8,034
Other assets	1,086	1,062
Total assets	223,829	232,632
Current liabilities:
Accounts payable	6,604	6,020
Accrued expenses	10,992	13,909
Other current liabilities	3,950	2,448
Deferred revenue, current portion	173	311
Lease liability, current portion	1,050	1,030
Total current liabilities	22,769	23,718
Lease liability, noncurrent portion	263	166
Long-term debt, noncurrent portion	14,940	14,837
Total liabilities	37,972	38,721
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized as of March 31, 2021 and December 31, 2020, respectively; zero shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively
Common stock; $0.0001 par value; 110,000,000 shares authorized as of March 31, 2021 and December 31, 2020, respectively; 38,298,068 and 38,246,601 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	4	4
Additional paid in capital	398,532	392,965
Accumulated deficit	(212,679)	(199,058)
Total stockholders’ equity	185,857	193,911
Total liabilities and stockholders’ equity	$ 223,829	$ 232,632

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	110,000,000	110,000,000
Common stock, shares issued	38,298,068	38,246,601
Common stock, shares outstanding	38,298,068	38,246,601

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue, net	$ 22,048	$ 12,669
Cost of revenue	6,297	4,656
Gross profit	15,751	8,013
Operating expenses:
Research and development	4,778	2,809
Sales and marketing	16,855	10,859
General and administrative	7,487	6,078
Total operating expenses	29,120	19,746
Loss from operations	(13,369)	(11,733)
Other income (expense), net:
Interest income	11	21
Interest expense	(263)	(266)
Other income (expense), net		240
Total other income (expense), net	(252)	(5)
Loss before income taxes	(13,621)	(11,738)
Net loss and comprehensive loss	(13,621)	(11,738)
Net loss attributable to common stockholders, basic and diluted	$ (13,621)	$ (11,738)
Net loss per share attributable to common stockholders, basic and diluted	$ (0.36)	$ (43.76)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	38,283,360	268,214

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2019	$ (156,103)			$ 3,100	$ (159,203)
Temporary equity, Beginning balance, Shares at Dec. 31, 2019		11,825,812
Temporary equity, Beginning balance at Dec. 31, 2019		$ 152,880
Beginning balance, Shares at Dec. 31, 2019			265,943
Stock-based compensation	525			525
Exercise of stock options	8			8
Exercise of stock options, Shares			4,188
Net loss and comprehensive loss	(11,738)				(11,738)
Ending balance at Mar. 31, 2020	(167,308)			3,633	(170,941)
Temporary equity, Ending balance, Shares at Mar. 31, 2020		11,825,812
Temporary equity, Ending balance at Mar. 31, 2020		$ 152,880
Ending balance, Shares at Mar. 31, 2020			270,131
Beginning balance at Dec. 31, 2020	193,911		$ 4	392,965	(199,058)
Beginning balance, Shares at Dec. 31, 2020			38,246,601
Stock-based compensation	5,449			5,449
Exercise of stock options	$ 118			118
Exercise of stock options, Shares	51,467		51,467
Net loss and comprehensive loss	$ (13,621)				(13,621)
Ending balance at Mar. 31, 2021	$ 185,857		$ 4	$ 398,532	$ (212,679)
Ending balance, Shares at Mar. 31, 2021			38,298,068

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities:
Net loss	$ (13,621)	$ (11,738)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	735	565
Stock-based compensation	5,131	525
Non-cash interest expense and amortization of debt discount	103	157
Non-cash operating lease expense	295	274
Bad debt expense	62	253
Change in fair value of financial instruments		(243)
Changes in operating assets and liabilities:
Accounts receivable	(1,608)	129
Inventories	276	79
Prepaid expenses and other current assets	565	(3)
Other assets	(24)	1,089
Accounts payable	715	1,143
Accrued expenses	(2,985)	(1,385)
Other current liabilities	1,502	(3)
Deferred revenue	(138)	23
Operating lease liabilities	(317)	(287)
Other liabilities		(125)
Net cash used in operating activities	(9,309)	(9,547)
Investing activities:
Purchases of property and equipment	(296)	(219)
Capitalized software development costs	(1,074)	(1,005)
Net cash used in investing activities	(1,370)	(1,224)
Financing activities:
Proceeds from stock options exercised	118	8
Proceeds from issuance of convertible notes, net of issuance costs		8,845
Debt repayments		(1,200)
Net cash provided by financing activities	118	7,653
Net decrease in cash and cash equivalents and restricted cash	(10,561)	(3,118)
Cash and cash equivalents and restricted cash at beginning of period	212,185	13,384
Cash and cash equivalents and restricted cash at end of period	201,624	10,266
Supplemental disclosure of cash flow information:
Cash paid for taxes	176
Cash paid for interest	159	110
Non-cash operating activities:
Lease liability obtained in exchange for right-of-use asset	434	2,392
Non-cash investing and financing activities:
Property and equipment and capitalized software costs in accounts payable and accrued liabilities	330	308
Stock-based compensation included in capitalized software costs	318	0
Convertible preferred stock issuance costs included in accounts payable	$ 600
Derivative liability in connection with issuance of convertible promissory notes on issuance		$ 2,535

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	1. Description of business Eargo, Inc. (the “Company”) is a medical device company dedicated to improving the quality of life of people with hearing loss. The Eargo solution was developed to create a hearing aid that consumers actually want to use. The Company’s innovative product and go-to-market approach address the major challenges of traditional hearing aid adoption, including social stigma, accessibility and cost. Liquidity The Company has incurred losses and negative cash flows from operations since its inception and management expects to incur additional substantial losses in the foreseeable future. As of March 31, 2021, the Company had cash and cash equivalents of $201.6 million and an accumulated deficit of $212.7 million. The Company believes that its existing cash and cash equivalents as of March 31, 2021 will be sufficient for the Company to continue as a going concern for at least one year from the date these unaudited condensed consolidated financial statements are filed with the Securities and Exchange Commission (“SEC”). The Company’s future capital requirements will depend on many factors, including its growth rate, the timing and extent of its spending to support research and development activities and the timing and cost of establishing additional sales and marketing capabilities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of significant accounting policies Basis of presentation and principles of consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations SEC regarding interim financial reporting of Eargo, Inc. and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other future annual or interim period. The condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021 Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions, and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made in the accompanying unaudited condensed consolidated financial statements include, but are not limited to, allowance for sales returns, the fair value of lease liabilities, the fair value of equity securities, the fair value of financial instruments, the allowance for doubtful accounts, the net realizable value of inventory, the useful lives of long-lived assets, accrued product warranty reserve, certain other accruals and recoverability of the Company’s net deferred tax assets and the related valuation allowance. Management periodically evaluates its estimates, which are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates. Significant accounting policies There have been no significant changes to the accounting policies during the three months ended March 31, 2021, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of demand deposit accounts, money market accounts and accounts receivable, including credit card receivables. The Company maintains its cash and cash equivalents, which may, at times, exceed federally insured limits, with financial institutions of high credit standing. As of March 31, 2021, the Company has not experienced any losses on its deposit accounts and money market accounts. As of March 31, 2021, the Company does not believe there is significant financial risk from nonperformance by the issuers of the Company’s deposit accounts and money market accounts. Approximately 57% and 45% of the Company’s gross accounts receivable are related to reimbursement from a single insurance company as of March 31, 2021 and December 31, 2020, respectively. Accounts receivable, net Accounts receivable represents amounts due from third-party institutions for credit card and debit card transactions and trade accounts receivable. Accounts receivable are recorded at invoiced amounts, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on the Company’s assessment of the collectibility of accounts. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice, each customer’s expected ability to pay, and the collection history with each customer, when applicable, to determine whether a specific allowance is appropriate. As of March 31, 2021 and December 31, 2020, the Company recorded an allowance for doubtful accounts of $1.6 million and $1.9 million, respectively. The allowance for doubtful accounts charges are recorded as a component of general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. Revenue recognition The Company’s revenue is generated from the sale of products (hearing aid systems and related accessories) and services (extended warranties). These products and services are primarily sold directly to customers through the Eargo website and the Company sales representatives. Under ASC 606, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services by following a five step process: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Identify the contract with a customer . The Company generally considers completion of an Eargo sales order (which requires customer acceptance of the Company’s click-through terms and conditions for website sales and authorization of payment through credit card or another form of payment for sales made over the phone) as a customer contract provided that collection is considered probable. For payments that are not made upfront by credit card, the Company assesses insurance eligibility or customer creditworthiness based on credit checks, payment history, and/or other circumstances. For payments involving insurance payors, the Company validates customer eligibility and reimbursement amounts prior to shipping the product. Identify the performance obligations in the contract . Product performance obligations include hearing aid systems and related accessories and service performance obligations include extended warranty coverage. The Company also offers customers a one-time replacement of certain components of the hearing aid system for a fee (i.e., “loss and damage policy”), which represents an option with material right. However, as the historical redemption rate under the policy has been low, the option is not accounted for as a separate performance obligation. The Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. The Company has elected to treat shipping and handling activities performed after a customer obtains control of products as a fulfillment activity. Determine the transaction price and allocation to performance obligations . The transaction price in the Company’s customer contracts consists of both fixed and variable consideration. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes the 45-day right of return that applies to all products. To estimate product returns, the Company analyzes historical return levels, current economic trends, and changes in customer demand. Based on this information, the Company reserves a percentage of product sale revenue and accounts for the estimated impact as a reduction in the transaction price. Allocate the transaction price to the performance obligations in the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to, historical discounting trends for products and services, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles. Recognize revenue when or as the Company satisfies a performance obligation . Revenue for products (hearing aid systems and related accessories) is recognized at a point in time, which is generally upon shipment. Revenue for services (extended warranty) is recognized over time on a ratable basis over the warranty period. Contract costs The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period would be one year or less. These incremental costs include processing fees paid to third-party financing vendors, who provide the Company’s customers with the option to finance their purchases. If a customer elects to utilize this service, the Company receives a non-recourse upfront payment for the product sold, less processing fee withheld by the financing vendor. These processing fees are recognized in cost of revenue in the condensed consolidated statements of operations and comprehensive loss as incurred. Net loss per share attributable to common stockholders The Company follows the two-class method when computing net loss per share in periods in which shares that meet the definition of participating securities are outstanding. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive securities. Diluted net income loss attributable to common stockholders is computed by adjusting net loss attributable to common stockholders to reallocate undistributed earnings based on the potential impact of dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents of potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, convertible preferred stock, convertible notes, convertible preferred stock warrants and common stock options are considered to be potentially dilutive securities. Recent accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair value measurements There were no financial assets and liabilities outstanding that were remeasured at fair value on a recurring basis as of March 31, 2021 or December 31, 2020. The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term nature. The fair value of the Company’s outstanding term loan is estimated using the net present value of the payments, discounted at an interest rate that is consistent with a market interest rate. The fair value of the outstanding term loan approximates the carrying amount as the term loan bears a floating rate that approximates the market interest rate.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Balance Sheet Components	4. Balance sheet components Inventories Inventories consist primarily of raw materials related to component parts and finished goods. The following is a summary of the Company’s inventories by category: March 31, December 31, 2021 2020 (in thousands) Raw materials $ 946 $ 853 Finished goods 1,517 1,886 Total inventories $ 2,463 $ 2,739 Property and equipment, net Property and equipment, net, consists of the following: March 31, December 31, 2021 2020 (in thousands) Capitalized software $ 8,188 $ 6,744 Tools and lab equipment 4,607 4,426 Furniture and fixtures 906 906 Leasehold improvements 757 757 Computer and equipment 288 288 14,746 13,121 Less accumulated depreciation and amortization (5,822 ) (5,087 ) Total property and equipment, net $ 8,924 $ 8,034 Depreciation and amortization for the three months ended March 31, 2021 and 2020 amounted to $0.7 million and $0.6 million, respectively, which includes amortization of capitalized software costs of $0.2 million and $0.2 million, respectively. Accrued expenses Accrued expenses consist of the following: March 31, December 31, 2021 2020 (in thousands) Allowance for sales returns $ 2,939 $ 4,326 Accrued compensation 3,531 5,861 Accrued vendor costs 790 751 Refunds due to customers 745 581 Accrued warranty reserve 2,987 2,390 Total accrued expenses $ 10,992 $ 13,909 Accrued warranty reserve The accrued warranty reserve consists of the following activity: Three months ended March 31, Year ended December 31, 2021 2020 (in thousands) Accrued warranty reserve, beginning balance $ 2,390 $ 450 Charged to cost of revenue 950 3,178 Utilization of accrued warranty reserve (353 ) (1,238 ) Accrued warranty reserve, ending balance $ 2,987 $ 2,390

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	5. Commitments and contingencies Operating leases The Company has entered into non-cancelable operating leases for its offices. These leases generally contain scheduled rent increases and renewal options, which are not included in the determination of lease term unless the Company is reasonably certain that the renewal option would be exercised. In February 2021, the Company amended the operating lease for its Nashville, Tennessee office to extend the term of the initial lease through March 2023 and reduce the size of office space leased. This extension was accounted for as a lease modification and the Company recorded an increase to the right-of-use (“ROU”) asset and lease liability of $0.4 million at the time of the amendment. As of March 31, 2021, the Company recorded an aggregate ROU asset of $1.2 million and an aggregate lease liability of $1.3 million in the accompanying condensed consolidated balance sheet. The ROU asset and corresponding lease liability were estimated using a weighted-average incremental borrowing rate of 7.1%. The weighted-average remaining lease term is 1.3 years. For the three months ended March 31, 2021, the Company incurred $0.3 million of operating lease costs. Variable lease payments for operating expenses and costs related to short-term leases were immaterial for the three months ended March 31, 2021. As of March 31, 2021, undiscounted future minimum lease payments due under the non-cancelable operating leases are as follows: Operating leases (in thousands) Remainder of 2021 $ 910 2022 401 2023 59 Total minimum future lease payments 1,370 Present value adjustment for minimum lease commitments (57 ) Total lease liability $ 1,313 Litigation The Company may become involved in legal proceedings in the ordinary course of its business. The Company does not believe that any lawsuits or claims currently pending against it, individually or in the aggregate, are material, or will have a material adverse effect on its financial condition, results of operations or cash flows. The Company is subject to review from federal and state taxing authorities in order to validate the amounts of income, sales and/or use taxes which have been claimed and remitted. The Company has estimated exposure and established reserves for its estimated sales tax audit liability. In the normal course of business, the Company may agree to indemnify third parties with whom it enters into contractual relationships, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims that the Company’s products, when used for their intended purposes, infringe the intellectual property rights of such other third parties, or other claims made against certain parties. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim.

Debt Obligations

Debt Obligations	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Debt Obligations	6. Debt obligations 2018 Loan Agreement In June 2018, the Company entered into a Loan and Security Agreement (the “2018 Loan Agreement”) with Silicon Valley Bank. Under the terms of the 2018 Loan Agreement, Silicon Valley Bank made available to the Company term loans in an aggregate principal amount of $12.5 million and the Company borrowed $5.0 million in October 2018, $1.0 million in November 2018 and $1.0 million in December 2018. In connection with the execution of the 2018 Loan Agreement, the Company issued warrants to purchase 30,173 shares of Series C convertible preferred stock. The estimated fair value of the warrants at issuance was recorded as a discount on the loan and is amortized to interest expense over the term of the agreement using the effective interest method. Amendments to the 2018 Loan Agreement In January 2019, the Company executed the First Amendment to the Loan and Security Agreement, which extended the interest-only period for all borrowings under the agreement until January 2020. No other terms were amended. In June 2019, the Company borrowed an additional $5.0 million to increase the total principal balance to $12.0 million. In connection with the June 2019 borrowing, the Company issued Silicon Valley Bank warrants to purchase 14,999 shares of Series C convertible preferred stock. In May 2020, the Company executed the Second Amendment to its Loan and Security Agreement, which deferred the principal payments due between May 2020 and July 2020 such that the deferred amounts will be repaid in equal monthly payments that started in August 2020 through the scheduled maturity of the loan in June 2022. The amendment was accounted for as a modification. In September 2020, the Company executed the Third Amendment to the Loan and Security Agreement (the “Third Amendment”), under which Silicon Valley Bank made available to the Company additional term loans in an aggregate principal amount of $20.0 million through December 31, 2020. The Company borrowed $15.0 million in September 2020 and used $10.2 million of the proceeds to repay the outstanding balance of $9.5 million and final payment fee of $0.7 million, or 6.0% of the original aggregate principal amount, on the existing term loan. The Company’s ability to borrow any additional principal under the Third Amendment expired unused on December 31, 2020. The term loan under the Third Amendment matures in September 2024 with interest-only monthly payments until January 2022, which was extended to July 2022 upon the completion of the Company’s initial public offering (“IPO”) in October 2020. The term loan accrues interest at a per annum rate equal to the Wall Street Journal prime rate plus 1.0% (4.25% as of March 31, 2021) and includes a final payment fee equal to 6.25% of the original aggregate principal amount. In connection with the execution of the Third Amendment, the Company issued Silicon Valley Bank a warrant to purchase 53,487 shares of Series E convertible preferred stock. The amendment was accounted for as a modification. Borrowings under the Third Amendment are collateralized by substantially all the assets of the Company, excluding intellectual property (but including rights to payment and proceeds thereof). The Third Amendment contains customary affirmative and restrictive covenants, including with respect to the Company’s ability to enter into fundamental transactions, incur additional indebtedness, grant liens, pay any dividend or make any distributions to its holders, make investments, merge or consolidate with any other person or engage in transactions with the Company’s affiliates, but do not include any financial covenants. The Company was in compliance with all of the covenants as of March 31, 2021. As of March 31, 2021, outstanding principal on the term loan and accrual for the final payment fee amounted to $15.2 million. During the three months ended March 31, 2021 and 2020, the Company recognized interest expense related to the term loans of $0.3 million and $0.2 million, respectively, which is inclusive of amortization of debt discount. The effective interest rate was 7.12% as of March 31, 2021.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	7. Stock-based compensation Total stock-based compensation is as follows: Three months ended March 31, 2021 2020 (in thousands) Cost of revenue $ 186 $ 5 Research and development 1,067 164 Sales and marketing 1,856 123 General and administrative 2,022 233 Total stock-based compensation $ 5,131 $ 525 Stock-based compensation costs capitalized as part of capitalized software costs was $0.3 million during the three months ended March 31, 2021. No such costs were capitalized during the three months ended March 31, 2020. Determination of fair value The estimated grant-date fair value of the Company’s stock-based awards was calculated using the Black-Scholes option pricing model, based on the following assumptions: Three months ended March 31, Valuation assumptions: 2021 2020 Expected volatility 56.8%-57.2% 59.6%-60.1% Expected term 5.8-6.7 years 5.8-6.1 years Risk-free interest rate 0.62%-1.09% 1.18%-1.20% Dividend yield — — Equity incentive plans As of March 31, 2021, 6,053,922 shares of common stock are issuable upon the exercise of outstanding awards under the 2010 Equity Incentive Plan. As of March 31, 2021, the Company had reserved 6,877,638 shares of common stock for issuance under the 2020 Equity Incentive Plan (the “2020 Plan”), of which 6,359,105 are available for issuance in connection with grants of future awards. Stock option activity for the three months ended March 31, 2021 is set forth below: Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Balance December 31, 2020 6,468,844 $ 2.78 8.77 $ 271,944 Grants 184,420 55.03 Exercises (51,467 ) 2.29 Cancelled/forfeited (282,642 ) 2.86 Balance March 31, 2021 6,319,155 $ 4.31 8.55 $ 302,019 Vested and exercisable at March 31, 2021 1,960,772 $ 2.08 7.50 $ 99,904 The weighted-average grant-date fair value of options granted during the three months ended March 31, 2021 and 2020 were $29.13 and $5.63 per share, respectively. The aggregate intrinsic values of options outstanding and vested and exercisable were calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock. As of March 31, 2021, total unrecognized stock-based compensation related to outstanding unvested stock options was $17.9 million, which the Company expects to recognize over a remaining weighted-average period of 3.0 years. Restricted stock units Restricted stock units (“RSUs”) granted under the 2020 Plan are share awards that entitle the holder to receive freely tradable shares of the Company’s common stock upon vesting. RSUs cannot be transferred and the awards are subject to forfeiture if the holder’s service to the Company terminates prior to the release of the vesting restrictions. The fair value of the RSUs is equal to the closing price of the Company’s common stock on the grant date. RSU activity for the three months ended March 31, 2021 is set forth below: Number of shares Weighted average grant date fair value per share Balance December 31, 2020 8,270 $ 50.70 RSUs granted 245,030 54.17 Balance March 31, 2021 253,300 $ 54.06 Employee Stock Purchase Plan (ESPP) In October 2020, the Board of Directors and stockholders adopted and approved the 2020 Employee Stock Purchase Plan (the “ESPP”). As of March 31, 2021, the Company reserved 1,109,239 shares of common stock for future issuance under the ESPP. The ESPP provides for consecutive, overlapping 24-month offering periods, which are generally divided into four purchase periods of approximately six months. The offering periods are scheduled to start on the first trading day on or after May 16 and November 16 of each year, with exception of the first offering period which commenced on October 16, 2020, the first trading day after the effective date of the Company’s registration statement, and will end on November 15, 2022. Contributions under the ESPP are generally limited to a maximum of 15% of an employee’s eligible compensation. Each offering period consists of four six-month purchase periods. On each purchase date, which falls on the last date of each purchase period, ESPP participants will purchase shares of common stock at a price per share equal to 85% of the lesser of (1) the fair market value per share of the common stock at the start of the offering period or (2) the fair market value of the common stock on the purchase date. The Company recorded $3.4 million of stock-based compensation related to the ESPP for the three months ended March 31, 2021. The fair value of the ESPP shares is estimated using the Black-Scholes option pricing model.

Net Loss Per Share Attributable

Net Loss Per Share Attributable To Common Stockholders	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Loss Per Share Attributable To Common Stockholders	8. Net loss per share attributable to common stockholders The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net loss per share for the periods presented due to their anti-dilutive effect: Three months ended March 31, 2021 2020 Convertible preferred stock — 11,825,812 Common stock options issued and outstanding 6,319,155 3,483,384 Restricted stock units 253,300 — Shares issuable pursuant to ESPP 176,867 — Convertible preferred stock warrants — 73,913 Total 6,749,322 15,383,109

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of presentation and principles of consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations SEC regarding interim financial reporting of Eargo, Inc. and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other future annual or interim period. The condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021
Use of Estimates	Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions, and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made in the accompanying unaudited condensed consolidated financial statements include, but are not limited to, allowance for sales returns, the fair value of lease liabilities, the fair value of equity securities, the fair value of financial instruments, the allowance for doubtful accounts, the net realizable value of inventory, the useful lives of long-lived assets, accrued product warranty reserve, certain other accruals and recoverability of the Company’s net deferred tax assets and the related valuation allowance. Management periodically evaluates its estimates, which are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates.
Concentration of Credit Risk	Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of demand deposit accounts, money market accounts and accounts receivable, including credit card receivables. The Company maintains its cash and cash equivalents, which may, at times, exceed federally insured limits, with financial institutions of high credit standing. As of March 31, 2021, the Company has not experienced any losses on its deposit accounts and money market accounts. As of March 31, 2021, the Company does not believe there is significant financial risk from nonperformance by the issuers of the Company’s deposit accounts and money market accounts. Approximately 57% and 45% of the Company’s gross accounts receivable are related to reimbursement from a single insurance company as of March 31, 2021 and December 31, 2020, respectively.
Accounts Receivable, Net	Accounts receivable, net Accounts receivable represents amounts due from third-party institutions for credit card and debit card transactions and trade accounts receivable. Accounts receivable are recorded at invoiced amounts, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on the Company’s assessment of the collectibility of accounts. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice, each customer’s expected ability to pay, and the collection history with each customer, when applicable, to determine whether a specific allowance is appropriate. As of March 31, 2021 and December 31, 2020, the Company recorded an allowance for doubtful accounts of $1.6 million and $1.9 million, respectively. The allowance for doubtful accounts charges are recorded as a component of general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss.
Revenue Recognition	Revenue recognition The Company’s revenue is generated from the sale of products (hearing aid systems and related accessories) and services (extended warranties). These products and services are primarily sold directly to customers through the Eargo website and the Company sales representatives. Under ASC 606, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services by following a five step process: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Identify the contract with a customer . The Company generally considers completion of an Eargo sales order (which requires customer acceptance of the Company’s click-through terms and conditions for website sales and authorization of payment through credit card or another form of payment for sales made over the phone) as a customer contract provided that collection is considered probable. For payments that are not made upfront by credit card, the Company assesses insurance eligibility or customer creditworthiness based on credit checks, payment history, and/or other circumstances. For payments involving insurance payors, the Company validates customer eligibility and reimbursement amounts prior to shipping the product. Identify the performance obligations in the contract . Product performance obligations include hearing aid systems and related accessories and service performance obligations include extended warranty coverage. The Company also offers customers a one-time replacement of certain components of the hearing aid system for a fee (i.e., “loss and damage policy”), which represents an option with material right. However, as the historical redemption rate under the policy has been low, the option is not accounted for as a separate performance obligation. The Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. The Company has elected to treat shipping and handling activities performed after a customer obtains control of products as a fulfillment activity. Determine the transaction price and allocation to performance obligations . The transaction price in the Company’s customer contracts consists of both fixed and variable consideration. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes the 45-day right of return that applies to all products. To estimate product returns, the Company analyzes historical return levels, current economic trends, and changes in customer demand. Based on this information, the Company reserves a percentage of product sale revenue and accounts for the estimated impact as a reduction in the transaction price. Allocate the transaction price to the performance obligations in the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to, historical discounting trends for products and services, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles. Recognize revenue when or as the Company satisfies a performance obligation . Revenue for products (hearing aid systems and related accessories) is recognized at a point in time, which is generally upon shipment. Revenue for services (extended warranty) is recognized over time on a ratable basis over the warranty period. Contract costs The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period would be one year or less. These incremental costs include processing fees paid to third-party financing vendors, who provide the Company’s customers with the option to finance their purchases. If a customer elects to utilize this service, the Company receives a non-recourse upfront payment for the product sold, less processing fee withheld by the financing vendor. These processing fees are recognized in cost of revenue in the condensed consolidated statements of operations and comprehensive loss as incurred.
Net Loss per Share Attributable To Common Stockholders	Net loss per share attributable to common stockholders The Company follows the two-class method when computing net loss per share in periods in which shares that meet the definition of participating securities are outstanding. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive securities. Diluted net income loss attributable to common stockholders is computed by adjusting net loss attributable to common stockholders to reallocate undistributed earnings based on the potential impact of dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents of potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, convertible preferred stock, convertible notes, convertible preferred stock warrants and common stock options are considered to be potentially dilutive securities.
Recent Accounting Pronouncements Not Yet Adopted	Recent accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Inventories	Inventories consist primarily of raw materials related to component parts and finished goods. The following is a summary of the Company’s inventories by category: March 31, December 31, 2021 2020 (in thousands) Raw materials $ 946 $ 853 Finished goods 1,517 1,886 Total inventories $ 2,463 $ 2,739
Summary of Property And Equipment, Net	Property and equipment, net, consists of the following: March 31, December 31, 2021 2020 (in thousands) Capitalized software $ 8,188 $ 6,744 Tools and lab equipment 4,607 4,426 Furniture and fixtures 906 906 Leasehold improvements 757 757 Computer and equipment 288 288 14,746 13,121 Less accumulated depreciation and amortization (5,822 ) (5,087 ) Total property and equipment, net $ 8,924 $ 8,034
Summary of Accrued Expenses	Accrued expenses consist of the following: March 31, December 31, 2021 2020 (in thousands) Allowance for sales returns $ 2,939 $ 4,326 Accrued compensation 3,531 5,861 Accrued vendor costs 790 751 Refunds due to customers 745 581 Accrued warranty reserve 2,987 2,390 Total accrued expenses $ 10,992 $ 13,909
Summary of Accrued Warranty Reserve	The accrued warranty reserve consists of the following activity: Three months ended March 31, Year ended December 31, 2021 2020 (in thousands) Accrued warranty reserve, beginning balance $ 2,390 $ 450 Charged to cost of revenue 950 3,178 Utilization of accrued warranty reserve (353 ) (1,238 ) Accrued warranty reserve, ending balance $ 2,987 $ 2,390

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Schedule of Undiscounted Future Minimum Lease Payments Due under Non-cancelable Operating Leases	As of March 31, 2021, undiscounted future minimum lease payments due under the non-cancelable operating leases are as follows: Operating leases (in thousands) Remainder of 2021 $ 910 2022 401 2023 59 Total minimum future lease payments 1,370 Present value adjustment for minimum lease commitments (57 ) Total lease liability $ 1,313

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Total Stock-based Compensation	Total stock-based compensation is as follows: Three months ended March 31, 2021 2020 (in thousands) Cost of revenue $ 186 $ 5 Research and development 1,067 164 Sales and marketing 1,856 123 General and administrative 2,022 233 Total stock-based compensation $ 5,131 $ 525
Assumptions used in Estimating Grant-Date Fair Value of Stock-based Awards Using Black-Scholes Option Pricing Model	The estimated grant-date fair value of the Company’s stock-based awards was calculated using the Black-Scholes option pricing model, based on the following assumptions: Three months ended March 31, Valuation assumptions: 2021 2020 Expected volatility 56.8%-57.2% 59.6%-60.1% Expected term 5.8-6.7 years 5.8-6.1 years Risk-free interest rate 0.62%-1.09% 1.18%-1.20% Dividend yield — —
Summary of Stock Option Activity	Stock option activity for the three months ended March 31, 2021 is set forth below: Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Balance December 31, 2020 6,468,844 $ 2.78 8.77 $ 271,944 Grants 184,420 55.03 Exercises (51,467 ) 2.29 Cancelled/forfeited (282,642 ) 2.86 Balance March 31, 2021 6,319,155 $ 4.31 8.55 $ 302,019 Vested and exercisable at March 31, 2021 1,960,772 $ 2.08 7.50 $ 99,904
Schedule of RSU Activity	RSU activity for the three months ended March 31, 2021 is set forth below: Number of shares Weighted average grant date fair value per share Balance December 31, 2020 8,270 $ 50.70 RSUs granted 245,030 54.17 Balance March 31, 2021 253,300 $ 54.06

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable To Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Summary of Outstanding Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share	The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net loss per share for the periods presented due to their anti-dilutive effect: Three months ended March 31, 2021 2020 Convertible preferred stock — 11,825,812 Common stock options issued and outstanding 6,319,155 3,483,384 Restricted stock units 253,300 — Shares issuable pursuant to ESPP 176,867 — Convertible preferred stock warrants — 73,913 Total 6,749,322 15,383,109

Description of Business - Addit

Description of Business - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Cash and cash equivalents	$ 201,624	$ 212,185
Accumulated deficit	$ 212,679	$ 199,058

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Summary Of Significant Accounting Policies [Line Items]
Allowance for doubtful accounts receivable	$ 1.6	$ 1.9
Accounts Receivable | Credit Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	57.00%	45.00%

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Financial assets outstanding	$ 0	$ 0
Financial liabilities outstanding	$ 0	$ 0

Balance Sheet Components - Summ

Balance Sheet Components - Summary of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 946	$ 853
Finished goods	1,517	1,886
Total inventories	$ 2,463	$ 2,739

Balance Sheet Components - Su_2

Balance Sheet Components - Summary of Property And Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 14,746	$ 13,121
Less accumulated depreciation and amortization	(5,822)	(5,087)
Total property and equipment, net	8,924	8,034
Tools and Lab Equipment
Property Plant And Equipment [Line Items]
Total property and equipment, gross	4,607	4,426
Capitalized Software
Property Plant And Equipment [Line Items]
Total property and equipment, gross	8,188	6,744
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Total property and equipment, gross	906	906
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total property and equipment, gross	757	757
Computer and Equipment
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 288	$ 288

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property Plant And Equipment [Abstract]
Depreciation and amortization expense	$ 735	$ 565
Amortization of capitalized software costs	$ 200	$ 200

Balance Sheet Components - Su_3

Balance Sheet Components - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Allowance for sales returns	$ 2,939	$ 4,326
Accrued compensation	3,531	5,861
Accrued vendor costs	790	751
Refunds due to customers	745	581
Accrued warranty reserve	2,987	2,390
Total accrued expenses	$ 10,992	$ 13,909

Balance Sheet Components - Su_4

Balance Sheet Components - Summary of Accrued Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Accrued warranty reserve, beginning balance	$ 2,390	$ 450
Charged to cost of revenue	950	3,178
Utilization of accrued warranty reserve	(353)	(1,238)
Accrued warranty reserve, ending balance	$ 2,987	$ 2,390

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2021	Mar. 31, 2021	Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Initial lease extension of term month and year	2023-03
Operating lease right-of-use assets	$ 400	$ 1,218	$ 1,079
Operating lease liabilities	$ 400	$ 1,313
ROU asset and operating lease liability, weighted-average incremental borrowing rate		7.10%
Operating lease, weighted-average remaining lease term		1 year 3 months 18 days
Operating lease costs		$ 300

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Undiscounted Future Minimum Lease Payments Due under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Feb. 28, 2021
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2021	$ 910
2022	401
2023	59
Total minimum future lease payments	1,370
Present value adjustment for minimum lease commitments	(57)
Operating lease liabilities	$ 1,313	$ 400

Debt Obligations - Additional I

Debt Obligations - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended							3 Months Ended
	Sep. 30, 2020	May 31, 2020	Jun. 30, 2019	Jan. 31, 2019	Dec. 31, 2018	Nov. 30, 2018	Oct. 31, 2018	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2018
Debt Instrument [Line Items]
Debt, final payment as percentage of original aggregate principal amount	6.00%
Interest expense								$ 263	$ 266
2018 Loan Agreement
Debt Instrument [Line Items]
Aggregate principal amount										$ 12,500
Proceeds from debt financing					$ 1,000	$ 1,000	$ 5,000
2018 Loan Agreement | Series C Convertible Preferred Stock | Silicon Valley Bank
Debt Instrument [Line Items]
Warrants issued to purchase shares of convertible preferred stock										30,173
Amendments 2018 Loan Agreement
Debt Instrument [Line Items]
Aggregate principal amount	$ 20,000
Proceeds from debt financing	$ 15,000		$ 5,000
Principal value			$ 12,000
Maturity period	2024-09	2022-06		2020-01
Repayments on outstanding debt	$ 10,200
Final payment fee	9,500
Payments on existing term loan	$ 700
Debt, final payment as percentage of original aggregate principal amount	6.25%
Term loans, interest rate terms								The term loan under the Third Amendment matures in September 2024 with interest-only monthly payments until January 2022, which was extended to July 2022 upon the completion of the Company’s initial public offering (“IPO”) in October 2020. The term loan accrues interest at a per annum rate equal to the Wall Street Journal prime rate plus 1.0% (4.25% as of March 31, 2021) and includes a final payment fee equal to 6.25% of the original aggregate principal amount.
Accrued final payment fee								$ 15,200
Interest expense								$ 300	$ 200
Effective interest rate								7.12%
Amendments 2018 Loan Agreement | Wall Street Journal Prime Rate
Debt Instrument [Line Items]
Term loans, interest rate	1.00%							4.25%
Amendments 2018 Loan Agreement | Series C Convertible Preferred Stock | Silicon Valley Bank
Debt Instrument [Line Items]
Warrants issued to purchase shares of convertible preferred stock			14,999
Amendments 2018 Loan Agreement | Series E Convertible Preferred Stock | Silicon Valley Bank
Debt Instrument [Line Items]
Warrants issued to purchase shares of convertible preferred stock	53,487

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Total Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 5,131	$ 525
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	186	5
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	1,067	164
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	1,856	123
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 2,022	$ 233

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation costs capitalized		$ 318	$ 0
Shares of common stock issuable upon exercise of outstanding awards		1,960,772
Weighted-average grant-date fair value of options granted		$ 29.13	$ 5.63
Unrecognized stock-based compensation related to outstanding unvested stock options		$ 17,900
Unrecognized stock-based compensation related to outstanding unvested stock options, period of recognition		3 years
Stock-based compensation		$ 5,131	$ 525
2010 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock issuable upon exercise of outstanding awards		6,053,922
2020 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance		6,877,638
Number of shares available for grant		6,359,105
2020 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance		1,109,239
Employees Eligible Compensation Maximum Percentage		15.00%
Purchase shares of common stock at price per share equal to lesser	85.00%
Stock-based compensation		$ 3,400

Stock-based Compensation - Assu

Stock-based Compensation - Assumptions used in Estimating Grant-Date Fair Value of Stock-based Awards Using Black-Scholes Option Pricing Model (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Valuation assumptions:
Expected volatility, Minimum	56.80%	59.60%
Expected volatility, Maximum	57.20%	60.10%
Risk-free interest rate, Minimum	0.62%	1.18%
Risk-free interest rate, Maximum	1.09%	1.20%
Minimum
Valuation assumptions:
Expected term	5 years 9 months 18 days	5 years 9 months 18 days
Maximum
Valuation assumptions:
Expected term	6 years 8 months 12 days	6 years 1 month 6 days

Stock-based Compensation - Su_2

Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of shares, Balance	6,468,844
Number of shares, Grants	184,420
Number of shares, Exercises	(51,467)
Number of shares, Cancelled/forfeited	(282,642)
Number of shares, Balance	6,319,155	6,468,844
Number of shares, Vested and exercisable	1,960,772
Weighted average exercise price, Balance	$ 2.78
Weighted average exercise price, Grants	55.03
Weighted average exercise price, Exercises	2.29
Weighted average exercise price, Cancelled/forfeited	2.86
Weighted average exercise price, Balance	4.31	$ 2.78
Weighted average exercise price, Vested and exercisable	$ 2.08
Weighted average remaining contractual term, Balance	8 years 6 months 18 days	8 years 9 months 7 days
Weighted average remaining contractual term, Vested and exercisable	7 years 6 months
Aggregate intrinsic value, Balance	$ 302,019	$ 271,944
Aggregate intrinsic value, Vested and exercisable	$ 99,904

Stock-based Compensation - Su_3

Stock-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, Balance | shares	8,270
Number of shares, RSUs granted | shares	245,030
Number of shares, Balance | shares	253,300
Weighted average grant date fair value per share, Balance | $ / shares	$ 50.70
Weighted average grant date fair value per share, RSUs granted | $ / shares	54.17
Weighted average grant date fair value per share, Balance | $ / shares	$ 54.06

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable To Common Stockholders - Summary of Outstanding Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	6,749,322	15,383,109
Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share		11,825,812
Common Stock Options Issued and Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	6,319,155	3,483,384
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	253,300
Shares Issuable Pursuant to ESPP
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	176,867
Convertible Preferred Stock Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share		73,913