Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38825 | |
Entity Registrant Name | LIVEVOX HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-3447941 | |
Entity Address, Address Line One | 655 Montgomery Street | |
Entity Address, Address Line Two | Suite 1000 | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94111 | |
City Area Code | 415 | |
Local Phone Number | 671-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 94,203,022 | |
Amendment Flag | false | |
Entity Central Index Key | 0001723648 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock, par value $0.0001 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | LVOX | |
Security Exchange Name | NASDAQ | |
Redeemable Warrants, each whole Warrant exercisable to purchase one share of Class A common stock at an exercise price of $11.50 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Redeemable Warrants, each whole Warrant exercisable to purchase one share of Class A common stock at an exercise price of $11.50 | |
Trading Symbol | LVOXW | |
Security Exchange Name | NASDAQ | |
Units, each consisting of one share of Class A common stock and one-half of one redeemable Warrant | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Units, each consisting of one share of Class A common stock and one-half of one redeemable Warrant | |
Trading Symbol | LVOXU | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 17,671 | $ 20,742 |
Restricted cash, current | 0 | |
Marketable securities—available for sale debt securities, current (amortized cost of $44,563 and $49,593 as of June 30, 2023 and December 31, 2022, respectively) | 43,738 | 48,182 |
Accounts receivable, net of allowance of credit losses of $2,362 and $1,459 as of June 30, 2023 and December 31, 2022, respectively | 21,429 | 21,447 |
Deferred sales commissions, current | 3,507 | 3,171 |
Prepaid expenses and other current assets | 4,790 | 5,211 |
Total current assets | 91,135 | 98,753 |
Property and equipment, net | 2,230 | 2,618 |
Goodwill | 47,481 | 47,481 |
Intangible assets, net | 15,054 | 16,655 |
Operating lease right-of-use assets | 3,734 | 4,920 |
Deposits and other | 363 | 371 |
Deferred sales commissions, net of current | 7,769 | 7,356 |
Deferred tax asset, net | 19 | 1 |
Total assets | 167,785 | 178,155 |
Current liabilities: | ||
Accounts payable | 5,831 | 5,987 |
Accrued expenses | 10,614 | 12,399 |
Deferred revenue, current | 1,533 | 1,318 |
Term loan, current | 1,332 | 982 |
Operating lease liabilities, current | 1,342 | 1,655 |
Finance lease liabilities, current | 0 | 11 |
Total current liabilities | 20,652 | 22,352 |
Deferred revenue, net of current | 382 | 338 |
Term loan, net of current | 52,604 | 53,585 |
Operating lease liabilities, net of current | 3,166 | 3,649 |
Warrant liability | 450 | 633 |
Other long-term liabilities | 363 | 363 |
Total liabilities | 77,617 | 80,920 |
Commitments and contingencies (Note 9 and 21) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value per share; 25,000 shares authorized and none issued and outstanding as of June 30, 2023 and December 31, 2022. | 0 | 0 |
Common stock, $0.0001 par value per share; 500,000 shares authorized and 94,202 shares issued and outstanding as of June 30, 2023; 500,000 shares authorized and 92,729 shares issued and outstanding as of December 31, 2022. | 9 | 9 |
Additional paid-in capital | 269,918 | 264,919 |
Accumulated other comprehensive loss | (1,404) | (2,196) |
Accumulated deficit | (178,355) | (165,497) |
Total stockholders’ equity | 90,168 | 97,235 |
Total liabilities & stockholders’ equity | $ 167,785 | $ 178,155 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Available-for-sale debt securities, amortized cost, current | $ 44,563 | $ 49,593 |
Allowance for doubtful accounts, current | $ 2,362 | $ 1,459 |
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 94,201,711 | 92,729,127 |
Common stock, shares outstanding (in shares) | 94,201,711 | 92,729,127 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - 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 | $ 35,375 | $ 32,987 | $ 72,241 | $ 65,080 |
Cost of revenue | 11,140 | 12,548 | 24,402 | 26,180 |
Gross profit | 24,235 | 20,439 | 47,839 | 38,900 |
Operating expenses | ||||
Sales and marketing expense | 11,293 | 14,502 | 24,773 | 29,036 |
General and administrative expense | 9,393 | 8,014 | 18,564 | 15,600 |
Research and development expense | 6,859 | 8,167 | 14,842 | 16,657 |
Total operating expenses | 27,545 | 30,683 | 58,179 | 61,293 |
Loss from operations | (3,310) | (10,244) | (10,340) | (22,393) |
Interest expense, net | 1,326 | 744 | 2,422 | 1,494 |
Change in the fair value of warrant liability | (116) | (92) | (183) | (484) |
Other expense (income), net | (42) | 113 | (112) | 49 |
Total other expense, net | 1,168 | 765 | 2,127 | 1,059 |
Pre-tax loss | (4,478) | (11,009) | (12,467) | (23,452) |
Provision for (benefit from) income taxes | (89) | (229) | 391 | 315 |
Net loss | (4,389) | (10,780) | (12,858) | (23,767) |
Comprehensive loss | ||||
Net loss | (4,389) | (10,780) | (12,858) | (23,767) |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment | 140 | (153) | 206 | (202) |
Net unrealized gain (loss) on marketable securities | 159 | (288) | 586 | (1,176) |
Total other comprehensive income (loss), net of tax | 299 | (441) | 792 | (1,378) |
Comprehensive loss | $ (4,090) | $ (11,221) | $ (12,066) | $ (25,145) |
Net loss per share | ||||
Net loss per share—basic (in dollars per share) | $ (0.05) | $ (0.12) | $ (0.14) | $ (0.26) |
Net loss per share—diluted (in dollars per share) | $ (0.05) | $ (0.12) | $ (0.14) | $ (0.26) |
Weighted average shares outstanding—basic (in shares) | 93,562 | 91,562 | 93,204 | 91,520 |
Weighted average shares outstanding—diluted (in shares) | 93,562 | 91,562 | 93,204 | 91,520 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - 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 | 90,697 | ||||
Balance, beginning of period at Dec. 31, 2021 | $ 124,978 | $ 9 | $ 253,468 | $ (477) | $ (128,022) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (49) | (49) | |||
Net unrealized gain on marketable securities | (888) | (888) | |||
Stock-based compensation | 2,479 | 2,479 | |||
Net loss | (12,987) | (12,987) | |||
Ending balance (in shares) at Mar. 31, 2022 | 90,697 | ||||
Balance, end of period at Mar. 31, 2022 | 113,533 | $ 9 | 255,947 | (1,414) | (141,009) |
Beginning balance (in shares) at Dec. 31, 2021 | 90,697 | ||||
Balance, beginning of period at Dec. 31, 2021 | 124,978 | $ 9 | 253,468 | (477) | (128,022) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (202) | ||||
Net unrealized gain on marketable securities | (1,176) | ||||
Net loss | (23,767) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 91,547 | ||||
Balance, end of period at Jun. 30, 2022 | 105,418 | $ 9 | 259,053 | (1,855) | (151,789) |
Beginning balance (in shares) at Mar. 31, 2022 | 90,697 | ||||
Balance, beginning of period at Mar. 31, 2022 | 113,533 | $ 9 | 255,947 | (1,414) | (141,009) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Gross issuance of shares upon vesting of stock-based awards (in shares) | 1,055 | ||||
Shares withheld to cover employees’ withholding taxes for stock-based awards (in shares) | (205) | ||||
Shares withheld to cover employees’ withholding taxes for stock-based awards | (317) | (317) | |||
Foreign currency translation adjustment | (153) | (153) | |||
Net unrealized gain on marketable securities | (288) | (288) | |||
Stock-based compensation | 3,423 | 3,423 | |||
Net loss | (10,780) | (10,780) | |||
Ending balance (in shares) at Jun. 30, 2022 | 91,547 | ||||
Balance, end of period at Jun. 30, 2022 | 105,418 | $ 9 | 259,053 | (1,855) | (151,789) |
Beginning balance (in shares) at Dec. 31, 2022 | 92,729 | ||||
Balance, beginning of period at Dec. 31, 2022 | 97,235 | $ 9 | 264,919 | (2,196) | (165,497) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Gross issuance of shares upon vesting of stock-based awards (in shares) | 316 | ||||
Shares withheld to cover employees’ withholding taxes for stock-based awards (in shares) | (108) | ||||
Shares withheld to cover employees’ withholding taxes for stock-based awards | (294) | (294) | |||
Net transfer from LiveVox TopCo | 219 | 219 | |||
Foreign currency translation adjustment | 66 | 66 | |||
Net unrealized gain on marketable securities | 427 | 427 | |||
Stock-based compensation | 2,649 | 2,649 | |||
Net loss | (8,469) | (8,469) | |||
Ending balance (in shares) at Mar. 31, 2023 | 92,937 | ||||
Balance, end of period at Mar. 31, 2023 | 91,833 | $ 9 | 267,493 | (1,703) | (173,966) |
Beginning balance (in shares) at Dec. 31, 2022 | 92,729 | ||||
Balance, beginning of period at Dec. 31, 2022 | 97,235 | $ 9 | 264,919 | (2,196) | (165,497) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net transfer from LiveVox TopCo | 200 | ||||
Foreign currency translation adjustment | 206 | ||||
Net unrealized gain on marketable securities | 586 | ||||
Net loss | (12,858) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 94,202 | ||||
Balance, end of period at Jun. 30, 2023 | 90,168 | $ 9 | 269,918 | (1,404) | (178,355) |
Beginning balance (in shares) at Mar. 31, 2023 | 92,937 | ||||
Balance, beginning of period at Mar. 31, 2023 | 91,833 | $ 9 | 267,493 | (1,703) | (173,966) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Gross issuance of shares upon vesting of stock-based awards (in shares) | 1,570 | ||||
Shares withheld to cover employees’ withholding taxes for stock-based awards (in shares) | (305) | ||||
Shares withheld to cover employees’ withholding taxes for stock-based awards | (835) | (835) | |||
Net transfer from LiveVox TopCo | 18 | 18 | |||
Foreign currency translation adjustment | 140 | 140 | |||
Net unrealized gain on marketable securities | 159 | 159 | |||
Stock-based compensation | 3,242 | 3,242 | |||
Net loss | (4,389) | (4,389) | |||
Ending balance (in shares) at Jun. 30, 2023 | 94,202 | ||||
Balance, end of period at Jun. 30, 2023 | $ 90,168 | $ 9 | $ 269,918 | $ (1,404) | $ (178,355) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities: | ||||
Net loss | $ (4,389) | $ (10,780) | $ (12,858) | $ (23,767) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 481 | 556 | ||
Amortization of identified intangible assets | 800 | 800 | 1,601 | 1,875 |
Amortization of deferred loan origination costs | 89 | 54 | ||
Amortization of deferred sales commissions | 900 | 800 | 1,759 | 1,507 |
Non-cash lease expense | 666 | 931 | ||
Stock-based compensation expense | 5,891 | 5,902 | ||
Credit loss expense | 494 | 369 | 907 | 402 |
Loss on disposition or impairment of asset | 509 | 0 | ||
Deferred income tax benefit | (18) | (91) | ||
Net realized loss on sale of marketable securities | 24 | 33 | 75 | 42 |
Amortization of premium paid on marketable securities | 181 | 246 | ||
Change in the fair value of the warrant liability | (116) | (92) | (183) | (484) |
Changes in assets and liabilities | ||||
Accounts receivable | (889) | 1,203 | ||
Other assets | 431 | 2,340 | ||
Deferred sales commissions | (2,507) | (1,919) | ||
Accounts payable | (156) | (409) | ||
Accrued expenses | (1,344) | (3,647) | ||
Deferred revenue | 259 | (169) | ||
Operating lease liabilities | (795) | (990) | ||
Net cash used in operating activities | (5,901) | (16,418) | ||
Investing activities: | ||||
Purchases of property and equipment | (48) | (772) | ||
Purchases of marketable securities | (12,965) | (5,413) | ||
Proceeds from sale of marketable securities | 2,493 | 1,936 | 10,097 | 3,451 |
Proceeds from maturities and principal paydowns of marketable securities | 7,643 | 2,652 | ||
Net cash provided by (used in) investing activities | 4,727 | (82) | ||
Financing activities: | ||||
Repayments on loan payable | (421) | (280) | ||
Proceeds from drawdown on line of credit | 320 | 0 | ||
Repayments of drawdown on line of credit | (320) | 0 | ||
Debt issuance costs | (299) | 0 | ||
Repayments on finance lease obligations | (11) | (13) | ||
Payments of employees’ withholding taxes on net share settlement of stock-based awards | (1,133) | (317) | ||
Principal payments under the structured payable arrangement | (441) | 0 | ||
Net transfer from LiveVox TopCo | 237 | 0 | ||
Net cash used in financing activities | (2,068) | (610) | ||
Effect of foreign currency translation | 171 | (234) | ||
Net decrease in cash, cash equivalents and restricted cash | (3,071) | (17,344) | ||
Cash, cash equivalents, and restricted cash beginning of period | 20,742 | 47,317 | ||
Cash, cash equivalents, and restricted cash end of period | 17,671 | 29,973 | 17,671 | 29,973 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 2,696 | 1,626 | ||
Income taxes paid | 899 | 247 | ||
Supplemental schedule of non-cash investing activities: | ||||
Net unrealized loss (gain) on marketable securities | (586) | 1,176 | ||
Additional right-of-use assets | 0 | 617 | ||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents: | ||||
Cash and cash equivalents | 17,671 | 29,873 | 17,671 | 29,873 |
Restricted cash, current | 0 | 100 | 0 | 100 |
Total cash, cash equivalents and restricted cash | $ 17,671 | $ 29,973 | $ 17,671 | $ 29,973 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization LiveVox Holdings, Inc. (formerly known as Crescent Acquisition Corp (“Crescent”) ), and its subsidiaries (collectively, the “Company,” “LiveVox,” “we,” “us” or “our”) is engaged in the business of developing and marketing a cloud-hosted Contact Center as a Service ( “ CCaaS”) customer engagement platform that leverages microservice technology to rapidly innovate and scale digital engagement functionality that also incorporates the capabilities of fully integrated omnichannel customer connectivity, multichannel enabled Customer Relationship Management and Workforce Optimization applications. LiveVox’s customers are located primarily in the United States. LiveVox’s services are used to initiate and manage customer contact campaigns primarily for companies in the accounts receivable management, tele-sales and customer care industries. On June 18, 202 1 (the “Closing Date” or “Closing”), Crescent, a Delaware corporation, consummated the business combination pursuant to an Agreement and Plan of Merger, dated January 13, 2021 (the “Merger Agreement”), by and among Crescent, Function Acquisition I Corp, a Delaware corporation and direct, wholly owned subsidiary of Crescent (“First Merger Sub”), Function Acquisition II LLC, a Delaware limited liability company and a direct, wholly owned subsidiary of Crescent (“Second Merger Sub”), LiveVox Holdings, Inc., a Delaware corporation (“Old LiveVox”), and GGC Services Holdco, Inc., a Delaware corporation, solely in its capacity as the representative, agent and attorney-in-fact (in such capacity, the “Stockholder Representative”) of LiveVox TopCo, LLC (“ LiveVox TopCo ”), a Delaware limited liability company and the sole stockholder of Old LiveVox as of immediately prior to Closing (the “LiveVox Stockholder”) . Pursuant to the Merger Agreement, a business combination between Crescent and Old LiveVox was effected through (a) the merger of First Merger Sub with and into Old LiveVox, with Old LiveVox continuing as the surviving corporation (the “First Merger”) and (b) immediately following the First Merger and as part of the same overall transaction as the First Merger, the merger of Old LiveVox with and into Second Merger Sub, with Second Merger Sub continuing as the surviving entity (the “Second Merger”, and collectively with the other transactions described in the Merger Agreement, the “Merger”). On the Closing Date, Crescent changed its name to “LiveVox Holdings, Inc.” and Second Merger Sub changed its name to “LiveVox Intermediate LLC”. On June 22, 2021, the Company’s ticker symbols on The Nasdaq Stock Market LLC (“Nasdaq”) for its Class A common stock, warrants to purchase Class A common stock and public units were changed to “LVOX”, “LVOXW” and “LVOXU”, respectively. LiveVox, Inc. was a direct, wholly owned subsidiary of Old LiveVox prior to the Merger and is a wholly owned subsidiary of the Company after the Merger. LiveVox, Inc. was first incorporated in Delaware in 1998 under the name “Tools for Health” and in 2005 changed its name to “LiveVox, Inc.” On March 21, 2014, LiveVox, Inc. and its subsidiaries were acquired by Old LiveVox. The principal United States operations of the Company are located in San Francisco, California. The Company has five main operating subsidiaries: LiveVox, Inc., which is wholly owned and incorporated in Delaware, LiveVox Colombia SAS which is wholly owned with an office located in Medellin, Colombia, LiveVox Solutions Private Ltd with an office located in Bangalore, India, Speech IQ, LLC which is wholly owned and organized in Ohio, and Engage Holdings, LLC (d/b/a BusinessPhone.com) (“BusinessPhone.com”) which is wholly owned and organized in Ohio. Additionally, the Company has a wholly owned subsidiary, LiveVox International, Inc., that is incorporated in Delaware. LiveVox, Inc. and LiveVox International, Inc. own 99.99% and 0.01%, respectively, of LiveVox Solutions Private Ltd. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies a) Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations or if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the SEC on March 2, 2023. The information as of December 31, 2022 included in the consolidated balance sheets was derived from those audited consolidated financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. All intercompany transactions and balances have been eliminated in consolidation. Results of operations for the three and six months ended June 30, 2023 and 2022 are not necessarily indicative of the results to be expected for the full annual periods. Certain prior period amounts have been reclassified to conform to current period presentation. The reclassifications had no impact on the Company’s net income, financial position, stockholders’ equity or cash flows as previously reported. b) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and such differences could be material to the Company’s consolidated financial position and results of operations, requiring adjustment to these balances in future periods. Significant items subject to such estimates and assumptions include, but are not limited to, the determination of the useful lives of long-lived assets, period of benefit of deferred sales commissions, allowances for credit losses, fair value of marketable securities, fair value of goodwill and long-lived assets, fair value of incentive awards, fair value of warrants, establishing standalone selling price, valuation of deferred tax assets, income tax uncertainties and other contingencies, including the Company’s ability to exercise its right to repurchase incentive options from terminated employees. c) Segment Information The Company has determined that its Chief Executive Officer (“CEO”) is its chief operating decision maker. The Company’s CEO reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. d) Foreign Currency Translation The financial position and results of operations of the Company’s international subsidiaries are measured using the local currency as the functional currency. Revenue and expenses have been translated into U.S. dollars at average exchange rates prevailing during the periods presented. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of stockholders’ equity (accumulated other comprehensive loss), unless there is a sale or complete liquidation of the underlying foreign investments, or the adjustment is inconsequential. e) Fair Value of Financial Instruments Fair value is defined as the price that would be received from the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a fair value hierarchy to classify fair value amounts of the Company’s assets and liabilities recognized or disclosed in the Company’s consolidated financial statements based on the lowest level of input that is significant to the fair value measurement. The levels of the hierarchy are described below: • Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. • Level 3—Unobservable inputs that are supported by little or no market activity. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available. The Company recognizes transfers into and out of the levels as of the end of each reporting period. Refer to Note 19 for additional information regarding the fair value measurements. f) Liquidity and Capital Resources LiveVox’s consolidated financial statements have been prepared assuming the Company will continue as a going concern for the 12-month period from the date of issuance of the consolidated financial statements, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company’s main sources of liquidity include: • Available-for-sale (“AFS”) debt securities, which are all classified as short-term securities to fund current operations and may be liquidated at the Company’s discretion if the need arises. The Company held AFS debt securities of $43.7 million and $48.2 million as of June 30, 2023 and December 31, 2022, respectively. S ee Note 4 for more information ; • The term loan and revolving credit facility that the Company entered into with PNC Bank on November 7, 2016 (as amended, the “Credit Facility”), which has been amended several times, most recently as of May 31, 2023. As of June 30, 2023, the term loan commitment was $54.5 million, the revolver commitment was $5.0 million and the letter of credit sublimit was $1.5 million. S ee Notes 9 and 10 for more information. The Company’s primary use of cash is for operating and administrative activities including employee-related expenses, and general, operating and overhead expenses. Future capital requirements will depend on many factors, including the Company’s customer growth rate, customer retention, timing and extent of development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced services offerings, the continuing market acceptance of the Company’s services, effective integration of acquisition activities, if any, and maintaining the Company’s bank credit facility. Additionally, the duration and extent of the impact from the current macroeconomic and geopolitical conditions continues to depend on future developments that cannot be accurately predicted at this time, such as a tight labor market, inflationary pressures, rising interest rates, volatility in foreign exchange rates, supply chain constraints, recessionary fears and the specific impact of these and other factors on LiveVox’s business, employees, customers and partners. While those factors have caused operational difficulties, and may continue to create challenges for the Company’s performance, they have not, thus far, had a substantial net impact on the Company’s liquidity position. The Company believes it has sufficient financial resources for at least the next 12 months from the date these consolidated financial statements are issued. g) Debt Discount and Issuance Costs The Company’s debt issuance costs and debt discount are recorded as a direct reduction of the carrying amount of the debt liability and are amortized to interest expense over the contractual term of the term loan. h) Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at fair value. The Company considers all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company limits its credit risk associated with the cash and cash equivalents by placing investments with banks it believes are highly creditworthy. The Company has exposure to credit risk to the extent cash balances exceed amounts covered by Federal deposit insurance. At June 30, 2023 and December 31, 2022, the Company had no restricted cash. Cash and cash equivalents consist of bank deposits and money market funds. i) Marketable Securities The Company invests in various marketable securities. As of June 30, 2023 and December 31, 2022, the Company designated all of these marketable securities as debt securities and classified them as available-for-sale (“AFS”). No debt securities were classified as held-to-maturity (“HTM”) or trading. Debt securities are classified as current or non-current, based on maturities and the Company’s expectations of sales and redemptions in the next 12 months. The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Debt securities classified as AFS are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of stockholders’ equity (accumulated other comprehensive loss) in the consolidated balance sheets until the securities are sold or the unrealized losses are related to credit losses. Gains and losses on sales of AFS debt securities are recorded on the trade date in other income (expense), net, in the consolidated statements of operations and comprehensive loss. The cost of AFS debt securities sold or the amount reclassified out of accumulated other comprehensive loss into earnings is determined using the specific identification method. At each reporting date, the Company evaluates the amortized cost of AFS debt securities compared to their fair value to determine whether an AFS debt security is impaired. The Company first assesses whether it intends to sell the security or whether it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through other income (expense), net, in the consolidated statements of operations and comprehensive loss. If neither of these criteria is met, the Company evaluates whether the decline in fair value below amortized cost basis has resulted from credit losses or other factors. In making this assessment, the Company considers factors such as the extent to which fair value is less than amortized cost basis, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security. Credit related unrealized losses are recognized as an allowance for credit losses in the consolidated balance sheets with a corresponding charge in other income (expense), net, in the consolidated statements of operations and comprehensive loss. Non-credit related unrealized losses are recorded in other comprehensive income (loss), as applicable, net of applicable taxes. On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and all subsequent updates (collectively, the “ASC 326”) and applied to its AFS debt securities. Please refer to Note 2(aa) for more information about ASC 326. See Note 4 for additional information relating to the Company’s marketable securities. In connection with the adoption of new standards, the Company elected to exclude accrued interest from both the fair value and the amortized cost basis of AFS debt securities and present it within prepaid expenses and other current assets in the Company’s consolidated balance sheets. The Company elected not to measure an allowance for credit losses for accrued interest receivable. As such, accrued interest receivable is written off in a timely manner when deemed uncollectible, by reversing previously recognized interest income. j) Accounts Receivable Trade accounts receivable are stated net of any write-offs and the allowance for credit losses, at the amount the Company expects to collect. The Company performs ongoing credit evaluations of its customers and generally does not require collateral unless a customer has previously defaulted. The Company maintains an allowance for credit losses, which represents the best estimate of lifetime expected credit losses against the existing accounts receivable, inclusive of unbilled receivables, based on certain factors including the age of the receivable balance, historical write-off experience, past collection experience with the customer, credit quality of the customer, current economic conditions, and reasonable and supportable forecasts of future economic conditions. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Accounts receivable are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. Recoveries of accounts receivable previously written off are recorded as income when received. The allowance for credit losses activities for the three and six months ended June 30, 2023 and 2022 are as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 1,868 $ 1,385 $ 1,459 $ 1,282 Credit loss expense 494 369 907 402 Accounts receivable write-offs — (386) (4) (403) Accounts receivable recoveries — 86 — 173 Balance, end of period $ 2,362 $ 1,454 $ 2,362 $ 1,454 On January 1, 2023, the Company applied ASC 326 to its trade accounts receivable. The Company determined that the allowance for credit losses as of December 31, 2022 recorded under the accounting standards in effect during that period is sufficient and that no additional allowance for credit losses on its trade accounts receivable is required upon adoption of ASC 326. Please refer to Note 2(aa) for more information about ASC 326. k) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs, including planned major maintenance activities, are charged to expense as incurred. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from the accounts and any gain or loss is reflected in the consolidated statements of operations and comprehensive loss. Amortization expense on capitalized software is included in depreciation expense. Depreciation of leasehold improvements is recorded over the shorter of the estimated useful life of the leasehold improvement or lease terms that are reasonably assured. Depreciation of property and equipment is provided using the straight-line method based on the following estimated useful lives: Years Computer equipment 3 - 5 Computer software 3 Furniture and fixtures 5 - 10 Leasehold improvements 5 Website development 2 l) Identified Intangible Assets On March 21, 2014, LiveVox, Inc. and subsidiaries were acquired by LiveVox Holdings, Inc. On October 16, 2019, the Company acquired the rights to certain assets of Teckst Inc. On December 16, 2019, the Company acquired the rights to Speech IQ, LLC. On February 5, 2021, the Company completed its asset acquisition of BusinessPhone. The acquisitions resulted in identified marketing-based, technology-based, customer-based, trademark-based, and workforce-based intangible assets. The fair value of the identified assets was determined as of the date of the acquisition by management with the assistance of an independent valuation firm. The identified intangible assets are being amortized using the straight-line method based on the following estimated useful lives: Years Marketing-based 7 Technology-based 4 - 10 Customer-based 7 - 16 Trademark-based 4 Workforce-based 10 m) Goodwill Goodwill represents the excess of the purchase price of acquired business over the fair value of the underlying net tangible and intangible assets. The Company performs its annual impairment review of goodwill on October 1 of each year, and when a triggering event occurs between annual impairment tests. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine if it is more likely than not that the fair value of the Company’s single reporting unit is less than its carrying amount, including goodwill, or bypass the qualitative assessment and proceed directly to the quantitative impairment test in accordance with Accounting Standards Codification (“ASC”) 350-20-35, as amended by ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , to determine if the fair value of the reporting unit exceeds its carrying amount. If the fair value is determined to be less than the carrying value, an impairment charge is recorded for the amount by which the reporting unit’s carrying amount exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. During the three and six months ended June 30, 2023 and 2022, no triggering events have occurred that would require an impairment review of goodwill outside of the required annual impairment review, and therefore, no impairment charges were recorded during those periods. Refer to Note 6 for more information. n) Impairment of Long-Lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset and long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value. On January 30, 2023, the Company announced the closure of certain underutilized physical offices within the United States as more of the Company’s employees shift to a hybrid or remote work environment. During the six months ended June 30, 2023, the Company recognized an impairment charge of $0.5 million to reflect the write-down of the carrying amount excess over the fair value of the right-of-use asset for the offices closed. No impairment losses were recognized during the three months ended June 30, 2023 or the three and six months ended June 30, 2022. o) Amounts Due to Related Parties In the ordinary course of business, the Company has a nd expects to continue to have transactions with its stockh olders and affiliates. Refer to Note 11 for more information. p) Concentration of Risk Concentration of Credit and Customer Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Risks associated with cash and cash equivalents and marketable securities are mitigated using what the Company considers creditworthy institutions. The Company performs ongoing credit evaluations of its customers’ financial condition. Substantially all of the Company’s assets are in the United States. As of June 30, 2023 and December 31, 2022, no single issuer represented more than 10% of the Company’s marketable securities. The Company’s customers are primarily in the receivables management, tele-sales and customer care industries. During the three and six months ended June 30, 2023 and 2022, substantially all the Company’s revenue was generated in the United States. For the three and six months ended June 30, 2023 and 2022, no single customer represented more than 10% of the Company’s revenue. As of June 30, 2023 and December 31, 2022, no single customer represented more than 10% of the Company’s accounts receivable. Concentration of Supplier Risk The Company relies on third parties for telecommunication, bandwidth, and co-location services that are included in cost of revenue. As of June 30, 2023, two vendors accounted for approximately 33.4% of the Company’s accounts payable. No other single vendor exceeded 10% of the Company’s accounts payable at June 30, 2023. At December 31, 2022, one vendor accounted for approximately 37.7% of the Company’s accounts payable. No other single vendor exceeded 10% of the Company’s accounts payable at December 31, 2022. The Company believes there could be a material impact on future operating results should a relationship with an existing significant supplier cease. q) Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers . The Company derives substantially all of its revenue by providing cloud-based contact center products under a usage-based model, with prices calculated on a per-call, per-seat, or, more typically, a per-minute basis and contracted minimum usage in accordance with the terms of the underlying agreements. Other immaterial ancillary revenue is derived from call recording, local caller identification packages, performance/speech analytics, text messaging services and professional services billed monthly on primarily usage-based fees and, to a lesser extent, fixed fees. Revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services excluding amounts collected on behalf of third parties such as sales taxes, which are collected on behalf of and remitted to governmental authorities based on local tax law. The Company determines revenue recognition through the following steps: a. Identification of the contract, or contracts, with a customer; b. Identification of the performance obligations in the contract; c. Determination of the transaction price; d. Allocation of the transaction price to the performance obligations in the contract; and e. Recognition of revenue when, or as, the performance obligations are satisfied. The Company enters into contracts that can include various combinations of services, each of which are distinct and accounted for as separate performance obligations. The Company’s cloud-based contact center solutions typically include a promise to provide continuous access to its hosted technology platform solutions through its data centers. Arrangements with customers do not provide the customer with the right to take possession of the Company’s software platform at any time. LiveVox’s performance obligations are satisfied over time as the customer simultaneously receives and consumes the benefits and the Company performs its services. The Company’s contract terms typically range from one The Company’s arrangements typically include monthly minimum usage commitments and specify the rate at which the customer must pay for actual usage above the monthly minimum. Additional usage in excess of contractual minimum commitments is deemed to be specific to the month that the usage occurs, since the minimum usage commitments reset at the beginning of each month. The Company has determined these arrangements meet the variable consideration allocation exception and therefore, it recognizes contractual monthly commitments and any overages as revenue in the month they are earned. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may receive credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company records reductions to revenue for these estimated customer credits at the time the related revenue is recognized. These customer credits are estimated based on current and historical customer trends, and communications with its customers. Such customer credits have not been significant to date. For contracts with multiple performance obligations, the Company allocates the contract price to each performance obligation based on its relative standalone selling price (“SSP”). The Company generally determines SSP based on the prices charged to customers. In instances where SSP is not directly observable, such as when the Company does not sell the service separately, the SSP is determined using information that generally includes market conditions or other observable inputs. Professional services for configuration, system integration, optimization or education are billed on a fixed-price or time and material basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue, which represents approximately 2.0% of revenue, is recognized over time as the services are rendered. Deferred revenue represents billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual or multi-year minimum usage agreements not yet provided as of the balance sheet date. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as deferred revenue, current in the consolidated balance sheets, with the remainder recorded as deferred revenue, net of current in the Company’s consolidated balance sheets. r) Costs to Obtain Customer Contracts (Deferred Sales Commissions) Sales commissions are paid for initial contracts and expansions of existing customer contracts. Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which the Company has estimated to be five years. The Company determined the period of benefit by taking into consideration the length of the Company’s customer contracts, the customer attrition rate, the life of the technology provided and other factors. Amortization expense is recorded in sales and marketing expense within the Company’s consolidated statements of operations and comprehensive loss. Amortization expense for the three months ended June 30, 2023 and 2022 was $0.9 million and $0.8 million, respectively, and for the six months ended June 30, 2023 and 2022 was $1.8 million and $1.5 million, respectively. No impairment losses were recognized during the three and six months ended June 30, 2023 and 2022. s) Advertising The Company expenses non-direct response advertising costs as they are incurred. There were no advertising costs capitalized during the three and six months ended June 30, 2023 and 2022. Advertising expense for the three months ended June 30, 2023 and 2022 was $0.7 million and $1.1 million, respectively, and for the six months ended June 30, 2023 and 2022 was $1.2 million and $1.7 million, respectively. Advertising expense is included under sales and marketing expense in the accompanying consolidated statements of operations and comprehensive loss. t) Research and Development Costs Research and development costs not related to the development of internal use software are charged to operations as incurred. Research and development expenses primarily include payroll and employee benefits, consulting services, travel, and software and support costs. u) Software Development Costs The Company capitalizes costs of materials, consultants, payroll, and payroll-related costs of employees incurred in developing internal-use software after certain capitalization criteria are met and includes these costs in the computer software . Refer to Note 5 for additional information. Software development costs are expensed as incurred until preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. To date, all software development costs have been charged to research and development expense in the accompanying consolidated statements of operations and comprehensive loss. There were no capitalized software development costs related to internal-use software during the three and six months ended June 30, 2023 and 2022. v) Income Taxes Deferred Taxes The Company accounts for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recognized for the future tax consequences arising from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will be paid or refunds received, as provided for under currently enacted tax law. A valuation allowance is provided for deferred tax assets that, based on available evidence, are not expected to be realized. Enactment of the Tax Cuts and Jobs Act in 2017 subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. Under U.S. GAAP, an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year of the GILTI inclusion (i.e., as a period expense). The Company has elected to recognize the tax on GILTI as a period expense in the period of inclusion. As such, no deferred taxes are recorded on the Company’s temporary differences that might reverse as GILTI in future years. Uncertain Tax Positions The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained in a court of last resort. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company does not believe its consolidated financial statements include any uncertain tax positions. It is the Company’s policy to recognize interest and penalties accrued on any unrecognized tax benefit as a component of income tax expense. w) Stock-Based Compensation The Company measures compensation expense for stock awards granted to employees and non-employees in accordance with ASC 718, Compensation—Stock Compensation . Stock-based compensation is measured at fair value on grant date. The Company classified all stock awards as equity awards at the grant date, and reassesses the liability versus equity treatment on a quarterly basis for any changes that have occurred during the period presented that may result in a reclassification. Equity-classified awards are recognized as stock-based compensation expense over an employee’s requisite service period or a non-employee’s vesting period on the basis of the grant date fair value. The Company elects to account for forfeitures as they occur, rather than making estimates of future forfeitures. Management Incentive Units During 2019, LiveVox TopCo established a Management Incentive Unit program whereby the LiveVox TopCo board of directors has the power and discretion to approve the issuance of Class B Units that represent management incentive units (“MIUs”) to any manager, director, employee, officer or consultant of the Company or its subsidiaries. Vesting begins on the date of issuance, and the MIUs vest ratably over five years with 20% of the MIUs vesting on each anniversa |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Balance The following table provides information about accounts receivable, net, and contract liabilities from contracts with customers. The Company did not have any contract assets as of June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Accounts receivable, net $ 21,429 $ 21,447 Contract liabilities, current (deferred revenue) 1,533 1,318 Contract liabilities, non-current (deferred revenue) 382 338 Changes in the contract liabilities balances are as follows (dollars in thousands): June 30, 2023 December 31, 2022 $ Change Contract liabilities (deferred revenue) $ 1,915 $ 1,656 $ 259 The increase in deferred revenue was due to billings in advance of performance obligations being satisfied, net of revenue recognized for services rendered during the period presented. Revenue of $0.3 million and $1.1 million was recognized during the three and six months ended June 30, 2023, respectively, which was included in the deferred revenue balance at the beginning of the period. Revenue of $0.4 million and $0.9 million was recognized during the three and six months ended June 30, 2022, respectively, which was included in the deferred revenue balance at the beginning of the period. Remaining Performance Obligations one |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities As of June 30, 2023 and December 31, 2022, the Company designated all marketable securities as debt securities and classified them as AFS. There were no transfers of debt securities among AFS, HTM and trading categories during the three and six months ended June 30, 2023 and 2022. The following table presents the amortized cost, gross unrealized gains and losses, and fair value of the Company’s AFS debt securities at June 30, 2023 aggregated by major security type (dollars in thousands): Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. corporate securities $ 33,220 $ 1 $ (665) $ 32,556 U.S. government securities 2,450 — (16) 2,434 Asset-backed securities 8,144 103 (228) 8,019 Other debt securities 749 — (20) 729 Total available for sale securities 44,563 104 (929) 43,738 Total debt securities $ 44,563 $ 104 $ (929) $ 43,738 The following table presents the amortized cost, gross unrealized gains and losses, and fair value of the Company’s AFS debt securities at December 31, 2022 aggregated by major security type (dollars in thousands): Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. corporate securities $ 40,186 $ 4 $ (1,112) $ 39,078 U.S. government securities 1,479 — (2) 1,477 Asset-backed securities 7,181 8 (277) 6,912 Other debt securities 747 — (32) 715 Total available for sale securities 49,593 12 (1,423) 48,182 Total debt securities $ 49,593 $ 12 $ (1,423) $ 48,182 Refer to Note 19 for additional information regarding the fair value measurements of the Company’s marketable securities. Maturity Analysis The following table presents the amortized cost and fair value of the Company’s AFS debt securities by contractual maturities at June 30, 2023 (dollars in thousands): As of June 30, 2023 Amortized Cost Fair Value Due in one year or less $ 20,701 $ 20,277 Due after one year through five years 23,862 23,461 Total available for sale securities 44,563 43,738 Total debt securities $ 44,563 $ 43,738 Sales of Marketable Securities Proceeds from sale of AFS debt securities and the associated gains and losses realized in earnings during the three and six months ended June 30, 2023 and 2022 are listed below (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Proceeds from sale of available for sale debt securities $ 2,493 $ 1,936 $ 10,097 $ 3,451 Gross realized gain $ — $ — $ — $ — Gross realized loss (24) (33) (75) (42) Net realized loss on sale of available for sale debt securities $ (24) $ (33) $ (75) $ (42) Allowance for Credit Losses At June 30, 2023, the Company reviewed 79 individual AFS debt securities in unrealized loss positions and determined that it does not intend to sell these securities and it is not more likely than not that it will be required to sell these securities before recovery of their amortized cost bases. The Company concluded that the unrealized losses identified as of June 30, 2023 are due to short-term interest rate fluctuations, and not credit losses. Further, the Company noted that the present value of future cash flows discounted using the effective interest rate at the date the security was acquired was equal to or greater than the book value of the security, which further supports the conclusion that there is no credit loss. As such, the Company determined no credit loss existed and did not record an allowance for credit losses for its AFS debt securities at June 30, 2023. The Company will continue to monitor its AFS debt securities on a quarterly basis to assess whether there have been any additional indicators of credit losses. The following table presents the fair value and unrealized losses of the Company’s AFS debt securities that are in unrealized loss positions and for which an allowance for credit losses has not been recorded at June 30, 2023 (dollars in thousands): In Unrealized Loss Position For In Unrealized Loss Position For Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. corporate securities $ 21,133 $ (450) $ 11,423 $ (215) U.S. government securities 486 (3) 1,948 (13) Asset-backed securities 3,361 (120) 4,658 (108) Other debt securities 729 (20) — — Total available for sale securities 25,709 (593) 18,029 (336) Total debt securities $ 25,709 $ (593) $ 18,029 $ (336) At December 31, 2022, the Company reviewed 83 individual AFS debt securities in unrealized loss positions and determined that it did not intend to sell these securities and it is not more likely than not that it would be required to sell these securities before recovery of their amortized cost bases. The Company concluded that the unrealized losses identified as of December 31, 2022 were due to short-term interest rate fluctuations, and did not result from credit losses. Further, the Company noted that the present value of future cash flows discounted using the effective interest rate at the date the security was acquired was equal to or greater than the book value of the security, which further supports the conclusion that there was no credit loss. As such, the unrealized loss remains appropriately recorded in other comprehensive income (loss) as of December 31, 2022 and is not adjusted at adoption of ASC 326. The following table presents the fair value and unrealized losses of the Company’s AFS debt securities that are in an unrealized loss position at December 31, 2022 (dollars in thousands): In Unrealized Loss Position For In Unrealized Loss Position For Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. corporate securities $ 23,625 $ (464) $ 15,453 $ (648) U.S. government securities 995 (2) 482 — Asset-backed securities 1,034 (13) 5,878 (264) Other debt securities — — 715 (32) Total available for sale securities 25,654 (479) 22,528 (944) Total debt securities $ 25,654 $ (479) $ 22,528 $ (944) Accrued Interest Accrued interest receivable on AFS debt securities at June 30, 2023 and December 31, 2022 was $0.2 million and $0.2 million, respectively, and was excluded from both the fair value and the amortized cost basis of AFS debt securities and was recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets. There was no interest reversed during the three and six months ended June 30, 2023 and 2022. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following at June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Computer software $ 426 $ 426 Computer equipment 3,566 3,408 Furniture and fixtures 1,734 1,736 Leasehold improvements 1,537 1,525 Total 7,263 7,095 Less: accumulated depreciation and amortization (5,033) (4,477) Property and equipment, net $ 2,230 $ 2,618 Depreciation and amortization expense for property and equipment totaled $0.2 million and $0.3 million for the three months ended June 30, 2023 and 2022, respectively, and totaled $0.5 million and $0.6 million for the six months ended June 30, 2023 and 2022, respectively. Amortization of computer software charged to operations for the three months ended June 30, 2023 and 2022 was immaterial for both periods, and is included in depreciation expense. Amortization of computer software charged to operations for the six months ended June 30, 2023 and 2022 was immaterial and $0.1 million, respectively. |
Goodwill and Identified Intangi
Goodwill and Identified Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identified Intangible Assets | Goodwill and Identified Intangible Assets Goodwill Goodwill was recorded as a result of the acquisition of the Company in 2014 by funds affiliated with Golden Gate Capital and the acquisitions made by the Company in 2019 of Teckst Inc. and SpeechIQ LLC. Subsequent to the annual impairment test completed during the fourth quarter of 2022, the Company believes there have been no triggering events that would require an impairment review of goodwill outside of the required annual impairment review. For the three and six months ended June 30, 2023 and 2022, there was no impairment to the carrying value of the Company’s goodwill. There were no changes in the carrying amount of goodwill during the six months ended June 30, 2023 or the year ended December 31, 2022. Identified Intangible Assets Intangible assets were acquired in connection with the acquisition of the Company in March 2014 by Golden Gate Capital, and the Company’s acquisition of Teckst Inc., SpeechIQ LLC and BusinessPhone in October 2019, December 2019, and February 2021, respectively. Amortization expense related to the Company’s identified intangible assets was $0.8 million and $0.8 million for the three months ended June 30, 2023 and 2022, respectively, and $1.6 million and $1.9 million for the six months ended June 30, 2023 and 2022, respectively. On the face of the consolidated statements of operations and comprehensive loss the amortization of technology-based intangible assets is included within cost of revenue, the amortization of marketing-based and customer-based intangible assets are included within sales and marketing expense, and the amortization of the acquired workforce is included within cost of revenue and research and development expense. Identified intangible assets consisted of the following at June 30, 2023 (dollars in thousands): Cost Accumulated Carrying Weighted Average Marketing-based $ 1,400 $ (1,366) $ 34 0.46 Technology-based 18,300 (17,592) 708 0.80 Customer-based 27,700 (13,619) 14,081 6.89 Workforce-based 380 (149) 231 7.60 $ 47,780 $ (32,726) $ 15,054 Identified intangible assets consisted of the following at December 31, 2022 (dollars in thousands): Cost Accumulated Carrying Weighted Average Marketing-based $ 1,400 $ (1,328) $ 72 0.96 Technology-based 18,300 (17,082) 1,218 1.25 Customer-based 27,700 (12,581) 15,119 7.38 Workforce-based 380 (134) 246 6.48 $ 47,780 $ (31,125) $ 16,655 Future amortization of identified intangible assets at June 30, 2023 is shown below (dollars in thousands): As of June 30, 2023 Amount Remaining 2023 $ 1,581 2024 2,321 2025 2,106 2026 2,088 2027 2,020 2028 and beyond 4,938 Total future identified intangible asset amortization $ 15,054 |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued ExpensesAccrued expenses consisted of the following at June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Accrued bonuses $ 2,774 $ 4,078 Accrued paid time off 2,414 2,743 Accrued commissions 1,487 1,726 Principal and interest payable under the structured payable arrangement — 444 Other accrued expenses 3,939 3,408 Total accrued expenses $ 10,614 $ 12,399 In July 2022, the Company entered into a financing arrangement with a third-party intermediary to establish a structured payable arrangement related to the Company’s commercial insurance policy on directors and officers. The structured payable arrangement was paid through three quarterly installment payments on August 22, 2022, November 22, 2022 and February 22, 2023. The following table summarizes the changes in the principal and interest payable under the structured payable arrangement during the six months ended June 30, 2023 (dollars in thousands): Structured payable arrangement Liability as of December 31, 2022 $ 444 Cash payments (444) Liability as of June 30, 2023 $ — |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company accounts for operating leases and finance leases in accordance with ASC 842, Leases . The Company has leases for offices, data centers and other computer and networking equipment that expire at various dates through 2027. The Company’s leases have remaining terms of one There were no finance leases as of June 30, 2023 and the balance of finance leases was immaterial as of December 31, 2022. The operating lease cost was as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Operating lease cost $ 412 $ 555 $ 1,343 $ 1,075 On January 30, 2023, the Company announced the closure of certain underutilized physical offices within the United States as more of the Company’s employees shift to a hybrid or remote work environment. During the six months ended June 30, 2023, the Company recognized an impairment charge of $0.5 million to reflect the write-down of the carrying amount excess over the fair value of the right-of-use asset for the offices closed, which is included in the operating lease cost discussed above. No impairment charge was recorded during the three months ended June 30, 2023 or the three and six months ended June 30, 2022. Supplemental cash flow information related to operating leases was as follows (dollars in thousands): Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash used in operating leases $ 987 $ 1,168 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 617 Supplemental balance sheet information related to operating leases was as follows (dollars in thousands): June 30, December 31, Operating lease right-of-use assets $ 3,734 $ 4,920 Operating lease liabilities: Operating lease liabilities—current $ 1,342 $ 1,655 Operating lease liabilities—less current portion 3,166 3,649 Total operating lease liabilities $ 4,508 $ 5,304 Weighted average remaining terms were as follows: June 30, December 31, Weighted average remaining lease term Operating leases 3.50 years 3.77 years Weighted average discount rates were as follows: June 30, December 31, Weighted average discount rate Operating leases 9.2 % 8.9 % Maturities of lease liabilities were as follows (dollars in thousands): As of June 30, 2023 Operating Remaining 2023 $ 956 2024 1,245 2025 1,085 2026 1,031 2027 517 Total lease payments 4,834 Less: imputed interest (326) Total $ 4,508 As of June 30, 2023, the Company had no operating leases which had been executed but not yet commenced. |
Leases | Leases The Company accounts for operating leases and finance leases in accordance with ASC 842, Leases . The Company has leases for offices, data centers and other computer and networking equipment that expire at various dates through 2027. The Company’s leases have remaining terms of one There were no finance leases as of June 30, 2023 and the balance of finance leases was immaterial as of December 31, 2022. The operating lease cost was as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Operating lease cost $ 412 $ 555 $ 1,343 $ 1,075 On January 30, 2023, the Company announced the closure of certain underutilized physical offices within the United States as more of the Company’s employees shift to a hybrid or remote work environment. During the six months ended June 30, 2023, the Company recognized an impairment charge of $0.5 million to reflect the write-down of the carrying amount excess over the fair value of the right-of-use asset for the offices closed, which is included in the operating lease cost discussed above. No impairment charge was recorded during the three months ended June 30, 2023 or the three and six months ended June 30, 2022. Supplemental cash flow information related to operating leases was as follows (dollars in thousands): Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash used in operating leases $ 987 $ 1,168 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 617 Supplemental balance sheet information related to operating leases was as follows (dollars in thousands): June 30, December 31, Operating lease right-of-use assets $ 3,734 $ 4,920 Operating lease liabilities: Operating lease liabilities—current $ 1,342 $ 1,655 Operating lease liabilities—less current portion 3,166 3,649 Total operating lease liabilities $ 4,508 $ 5,304 Weighted average remaining terms were as follows: June 30, December 31, Weighted average remaining lease term Operating leases 3.50 years 3.77 years Weighted average discount rates were as follows: June 30, December 31, Weighted average discount rate Operating leases 9.2 % 8.9 % Maturities of lease liabilities were as follows (dollars in thousands): As of June 30, 2023 Operating Remaining 2023 $ 956 2024 1,245 2025 1,085 2026 1,031 2027 517 Total lease payments 4,834 Less: imputed interest (326) Total $ 4,508 As of June 30, 2023, the Company had no operating leases which had been executed but not yet commenced. |
Borrowings Under Term Loan and
Borrowings Under Term Loan and Line of Credit | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings Under Term Loan and Line of Credit | Borrowings Under Term Loan and Line of Credit At June 30, 2023 and December 31, 2022, term loan borrowings were as follows (dollars in thousands): June 30, 2023 December 31, 2022 Total term loan obligations $ 53,936 $ 54,567 Less: current portion of term loan (1,332) (982) Long-term term loan obligations $ 52,604 $ 53,585 The Company entered into a term loan and revolving credit facility with PNC Bank on November 7, 2016 (as amended, the “Credit Facility”), which has been amended several times. The term loan is due December 31, 2025. On March 31, 2023, the Company entered into the Eighth Amendment to the Credit Facility (the “Eighth Amendment”). The Eighth Amendment, among other changes, (a) resets the existing annual recurring revenue financial covenant beginning with the testing period ending March 31, 2023, and (b) amends the interest rate provisions, including to replace the LIBOR benchmark interest rate with an adjusted SOFR benchmark interest rate (as defined in the agreement governing the Credit Facility). As amended, borrowings under the Credit Facility will accrue interest at a per annum rate, at the Company’s option, based on either (a) a base rate (as defined in the agreement governing the Credit Facility) plus a margin of 4.0% or (b) an adjusted term SOFR (based on one- or three-month interest periods) plus a margin of 5.0%. On May 31, 2023, the Company entered into the Ninth Amendment to the Credit Facility, which provides clarification related to the letter of credit fees. All other terms and conditions remain the same. The Company elected an adjusted SOFR rate at June 30, 2023 and the interest rate for the term loan portion of the Credit Facility was 10.2%. As of June 30, 2023, the term loan commitment was $54.5 million, the revolver commitment was $5.0 million and the letter of credit sublimit was $1.5 million. Term loan repayments made by the Company totaled $0.3 million and $0.1 million during the three months ended June 30, 2023 and 2022, respectively, and $0.4 million and $0.3 million during the six months ended June 30, 2023 and 2022, respectively. The Company incurred original issue discount of $0.3 million related to the Eighth Amendment, which, along with the remaining balance of the previously deferred original issue discount and loan fees in the amount of $0.3 million related to the original Credit Facility and all previous amendments, is amortized and recorded to interest expense over the remaining term of the amended Credit Facility using the effective interest method. Third party loan fees associated with the Eighth Amendment were $0.1 million and expensed upon close of the loan. Total unamortized loan costs associated with the term loan totaled $0.5 million and $0.3 million at June 30, 2023 and December 31, 2022, respectively and are recorded within term loan, net of current. The Company was in compliance with all debt covenants at June 30, 2023 and December 31, 2022 and was in compliance with all debt covenants as of the date of issuance of these consolidated financial statements. There was no unused borrowing capacity under the term loan portion of the Credit Facility at June 30, 2023 and December 31, 2022. On March 31, 2023, the Company drew down approximately $0.3 million under the revolving portion of the Credit Facility to pay for the original issue discount related to the Eighth Amendment, which was repaid in full by the Company as of June 30, 2023. The interest rate for the revolving portion of the Credit Facility on June 30, 2023 was zero. There were no amounts outstanding under the revolving portion of the Credit Facility as of December 31, 2022. Aggregate principal maturities of the term loan as of June 30, 2023 were as follows (dollars in thousands): As of June 30, 2023 Amount to Mature Remaining 2023 $ 561 2024 1,753 2025 52,158 Total $ 54,472 The net carrying amount of the liability component of the term loan was as follows (dollars in thousands): June 30, 2023 December 31, 2022 Principal $ 54,472 $ 54,893 Less: Unamortized issuance costs (536) (326) Net carrying amount $ 53,936 $ 54,567 |
Letters of Credit
Letters of Credit | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Letters of Credit | Borrowings Under Term Loan and Line of Credit At June 30, 2023 and December 31, 2022, term loan borrowings were as follows (dollars in thousands): June 30, 2023 December 31, 2022 Total term loan obligations $ 53,936 $ 54,567 Less: current portion of term loan (1,332) (982) Long-term term loan obligations $ 52,604 $ 53,585 The Company entered into a term loan and revolving credit facility with PNC Bank on November 7, 2016 (as amended, the “Credit Facility”), which has been amended several times. The term loan is due December 31, 2025. On March 31, 2023, the Company entered into the Eighth Amendment to the Credit Facility (the “Eighth Amendment”). The Eighth Amendment, among other changes, (a) resets the existing annual recurring revenue financial covenant beginning with the testing period ending March 31, 2023, and (b) amends the interest rate provisions, including to replace the LIBOR benchmark interest rate with an adjusted SOFR benchmark interest rate (as defined in the agreement governing the Credit Facility). As amended, borrowings under the Credit Facility will accrue interest at a per annum rate, at the Company’s option, based on either (a) a base rate (as defined in the agreement governing the Credit Facility) plus a margin of 4.0% or (b) an adjusted term SOFR (based on one- or three-month interest periods) plus a margin of 5.0%. On May 31, 2023, the Company entered into the Ninth Amendment to the Credit Facility, which provides clarification related to the letter of credit fees. All other terms and conditions remain the same. The Company elected an adjusted SOFR rate at June 30, 2023 and the interest rate for the term loan portion of the Credit Facility was 10.2%. As of June 30, 2023, the term loan commitment was $54.5 million, the revolver commitment was $5.0 million and the letter of credit sublimit was $1.5 million. Term loan repayments made by the Company totaled $0.3 million and $0.1 million during the three months ended June 30, 2023 and 2022, respectively, and $0.4 million and $0.3 million during the six months ended June 30, 2023 and 2022, respectively. The Company incurred original issue discount of $0.3 million related to the Eighth Amendment, which, along with the remaining balance of the previously deferred original issue discount and loan fees in the amount of $0.3 million related to the original Credit Facility and all previous amendments, is amortized and recorded to interest expense over the remaining term of the amended Credit Facility using the effective interest method. Third party loan fees associated with the Eighth Amendment were $0.1 million and expensed upon close of the loan. Total unamortized loan costs associated with the term loan totaled $0.5 million and $0.3 million at June 30, 2023 and December 31, 2022, respectively and are recorded within term loan, net of current. The Company was in compliance with all debt covenants at June 30, 2023 and December 31, 2022 and was in compliance with all debt covenants as of the date of issuance of these consolidated financial statements. There was no unused borrowing capacity under the term loan portion of the Credit Facility at June 30, 2023 and December 31, 2022. On March 31, 2023, the Company drew down approximately $0.3 million under the revolving portion of the Credit Facility to pay for the original issue discount related to the Eighth Amendment, which was repaid in full by the Company as of June 30, 2023. The interest rate for the revolving portion of the Credit Facility on June 30, 2023 was zero. There were no amounts outstanding under the revolving portion of the Credit Facility as of December 31, 2022. Aggregate principal maturities of the term loan as of June 30, 2023 were as follows (dollars in thousands): As of June 30, 2023 Amount to Mature Remaining 2023 $ 561 2024 1,753 2025 52,158 Total $ 54,472 The net carrying amount of the liability component of the term loan was as follows (dollars in thousands): June 30, 2023 December 31, 2022 Principal $ 54,472 $ 54,893 Less: Unamortized issuance costs (536) (326) Net carrying amount $ 53,936 $ 54,567 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company pays monthly board of director fees plus reimbursement of expenses incurred on behalf of the Company to members of the Company’s board of directors. During the three and six months ended June 30, 2023, board of director fees totaled $0.3 million and $0.6 million, respectively, and expense reimbursements were immaterial during both periods. The Company also granted RSUs to directors on August 18, 2021, August 5, 2022 and June 16, 2023 under the 2021 Plan. Stock-based compensation expense relating to the RSU awards granted to the board of directors totaled $0.5 million and $1.0 million during the three and six months ended June 30, 2023, respectively. During the three and six months ended June 30, 2022, board of director fees totaled $0.2 million and $0.4 million, respectively, and expense reimbursements were immaterial during both periods. Stock-based compensation expense relating to the RSU awards granted to the board of directors totaled $0.2 million and $0.3 million during the three and six months ended June 30, 2022, respectively. The unpaid balance of board of director fees due to related parties was immaterial as of June 30, 2023 and December 31, 2022. There were no related party accounts receivable as of June 30, 2023 and December 31, 2022. The related party transactions with affiliate companies were immaterial during the three and six months ended June 30, 2023 and 2022. |
Stock Warrants
Stock Warrants | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stock Warrants | Stock Warrants Public and Forward Purchase Warrants Immediately following the Merger, LiveVox assumed 833,333 Forward Purchase Warrants and 12,499,995 Public Warrants that had been previously issued by Crescent. Each whole Warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustments. The Company may redeem the outstanding Public Warrants, in whole and not in part, upon a minimum of 30 days’ prior written notice of redemption (“Redemption Period”). For purposes of the redemption, “Redemption Price” shall mean the last reported sales price of the Company’s common stock for any twenty trading days within the thirty The Forward Purchase Warrants and the shares of Class A common stock issuable upon the exercise of the Forward Purchase Warrants are transferable, assignable and salable, subject to certain limited exceptions. Additionally, the Forward Purchase Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Forward Purchase Warrants are held by someone other than the initial purchasers or their permitted transferees then such Warrants will be redeemable by the Company and exercisable by the warrant holders on the same basis as the Public Warrants. As of June 30, 2023, there were 13,333,328 Warrants outstanding, and no Warrants have been exercised. Common Stock On June 22, 2021, the Company’s Class A common stock, publicly traded warrants and publicly traded units began trading on Nasdaq under the ticker symbols “LVOX”, “LVOXW” and “LVOXU,” respectively. Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 500,000,000 shares of Class A common stock with a par value of $0.0001 per share. As of June 30, 2023, the Company had 94,201,711 shares of Class A common stock issued and outstanding (101,745,461 shares of common stock, less 7,543,750 of which are held in an escrow account to be released only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021 (the “Escrowed Shares”)). As of December 31, 2022, 500,000,000 shares of Class A common stock were authorized, and 92,729,127 shares were issued and outstanding (100,272,877 shares of common stock, less 7,543,750 Escrowed Shares). The accumulated other comprehensive loss and accumulated deficit are included in stockholders’ equity. At June 30, 2023 and December 31, 2022, the accumulated other comprehensive loss totaled $1.4 million and $2.2 million, respectively. The Company’s accumulated deficit totaled $178.4 million and $165.5 million at June 30, 2023 and December 31, 2022, respectively. Preferred Stock Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 25,000,000 shares of preferred stock having a par value of $0.0001 per share. As of June 30, 2023, no shares of LiveVox preferred stock were issued and outstanding. As of December 31, 2022, 25,000,000 shares of preferred stock were authorized, and no shares of preferred stock were issued and outstanding. Net Transfer from LiveVox TopCo During the six months ended June 30, 2023, the Company received $0.2 million from LiveVox TopCo to pay for the bonuses to the Company’s Chief Financial Officer in connection with the consummation of the Merger, and recorded it as additional paid-in-capital in the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stock Warrants Public and Forward Purchase Warrants Immediately following the Merger, LiveVox assumed 833,333 Forward Purchase Warrants and 12,499,995 Public Warrants that had been previously issued by Crescent. Each whole Warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustments. The Company may redeem the outstanding Public Warrants, in whole and not in part, upon a minimum of 30 days’ prior written notice of redemption (“Redemption Period”). For purposes of the redemption, “Redemption Price” shall mean the last reported sales price of the Company’s common stock for any twenty trading days within the thirty The Forward Purchase Warrants and the shares of Class A common stock issuable upon the exercise of the Forward Purchase Warrants are transferable, assignable and salable, subject to certain limited exceptions. Additionally, the Forward Purchase Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Forward Purchase Warrants are held by someone other than the initial purchasers or their permitted transferees then such Warrants will be redeemable by the Company and exercisable by the warrant holders on the same basis as the Public Warrants. As of June 30, 2023, there were 13,333,328 Warrants outstanding, and no Warrants have been exercised. Common Stock On June 22, 2021, the Company’s Class A common stock, publicly traded warrants and publicly traded units began trading on Nasdaq under the ticker symbols “LVOX”, “LVOXW” and “LVOXU,” respectively. Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 500,000,000 shares of Class A common stock with a par value of $0.0001 per share. As of June 30, 2023, the Company had 94,201,711 shares of Class A common stock issued and outstanding (101,745,461 shares of common stock, less 7,543,750 of which are held in an escrow account to be released only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021 (the “Escrowed Shares”)). As of December 31, 2022, 500,000,000 shares of Class A common stock were authorized, and 92,729,127 shares were issued and outstanding (100,272,877 shares of common stock, less 7,543,750 Escrowed Shares). The accumulated other comprehensive loss and accumulated deficit are included in stockholders’ equity. At June 30, 2023 and December 31, 2022, the accumulated other comprehensive loss totaled $1.4 million and $2.2 million, respectively. The Company’s accumulated deficit totaled $178.4 million and $165.5 million at June 30, 2023 and December 31, 2022, respectively. Preferred Stock Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 25,000,000 shares of preferred stock having a par value of $0.0001 per share. As of June 30, 2023, no shares of LiveVox preferred stock were issued and outstanding. As of December 31, 2022, 25,000,000 shares of preferred stock were authorized, and no shares of preferred stock were issued and outstanding. Net Transfer from LiveVox TopCo During the six months ended June 30, 2023, the Company received $0.2 million from LiveVox TopCo to pay for the bonuses to the Company’s Chief Financial Officer in connection with the consummation of the Merger, and recorded it as additional paid-in-capital in the consolidated balance sheets. |
Analysis of the Changes in Accu
Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) | Analysis of the Changes in Accumulated Other Comprehensive Income (Loss)Accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets includes foreign currency translation items associated with the Company’s foreign operations, and unrealized gain (loss) on the Company’s AFS debt securities. Following is an analysis of the changes in accumulated other comprehensive loss, net of applicable taxes, at June 30, 2023 and 2022 (dollars in thousands): June 30, 2022 Foreign currency translation adjustment Net unrealized gain (loss) on marketable securities Total accumulated other comprehensive loss Balance, beginning of period $ (300) $ (177) $ (477) Other comprehensive loss (202) (1,176) (1,378) Balance, end of period $ (502) $ (1,353) $ (1,855) June 30, 2023 Foreign currency translation adjustment Net unrealized gain (loss) on marketable securities Total accumulated other comprehensive loss Balance, beginning of period $ (784) $ (1,412) $ (2,196) Other comprehensive income 206 586 792 Balance, end of period $ (578) $ (826) $ (1,404) Components of other comprehensive income (loss) and related taxes for the three and six months ended June 30, 2023 and 2022 are as follows (dollars in thousands): Three Months Ended 2023 2022 Before tax Tax effect Net of tax Before tax Tax effect Net of tax Foreign currency translation adjustment $ 143 $ 3 $ 140 $ (156) $ (3) $ (153) Net unrealized gain (loss) on marketable securities 162 3 159 (295) (7) (288) Total other comprehensive income (loss) $ 305 $ 6 $ 299 $ (451) $ (10) $ (441) Six Months Ended June 30, 2023 2022 Before tax Tax effect Net of tax Before tax Tax effect Net of tax Foreign currency translation adjustment $ 200 $ (6) $ 206 $ (199) $ 3 $ (202) Net unrealized gain (loss) on marketable securities 568 (18) 586 (1,160) 16 (1,176) Total other comprehensive income (loss) $ 768 $ (24) $ 792 $ (1,359) $ 19 $ (1,378) |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Management Incentive Units As of June 30, 2023, all MIUs are classified as equity. MIU activities for the six months ended June 30, 2023 are summarized as follows (in thousands, except for per share data): Number of Shares Weighted-average Grant Date Fair Value (per share) Weighted-average Remaining Contractual Term (1) Outstanding at December 31, 2022 1,896 $ 0.79 Granted — — Vested (632) 0.79 Forfeited (215) 0.79 Outstanding at June 30, 2023 1,049 $ 0.79 1.00 year (1) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. 2021 Equity Incentive Plan Restricted Stock Units As of June 30, 2023, all RSUs granted to employees and non-employees are classified as equity. Employee RSU activities for the six months ended June 30, 2023 are summarized as follows (in thousands, except for per share data): Equity-classified RSUs - employee (1) Number of Shares Weighted-average Grant Date Fair Value (per share) Weighted-average Remaining Contractual Term (2) Outstanding at December 31, 2022 8,110 $ 4.00 Granted 3,992 2.62 Vested (1,881) 3.51 Forfeited (981) 4.47 Outstanding at June 30, 2023 9,240 $ 3.45 1.65 years (1) Represents awards granted to employees, executives and directors of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. The aggregate fair value of employee RSUs outstanding as of June 30, 2023, based on the fair value at the reporting period end, was $25.4 million. The aggregate fair value of employee RSUs vested during the six months ended June 30, 2023, based on the fair value on the vest date, was $5.1 million. Non-employee RSU activities for the six months ended June 30, 2023 are summarized as follows (in thousands, except for per share data): Equity-classified RSUs - non-employee (1) Number of Shares Weighted-average Grant Date Fair Value (per share) Weighted-average Remaining Contractual Term (2) Outstanding at December 31, 2022 19 $ 2.91 Granted — — Vested (4) 2.77 Forfeited — — Outstanding at June 30, 2023 15 $ 2.96 1.39 years (1) Represents awards granted to eligible consultants of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. The aggregate fair value of non-employee RSUs outstanding as of June 30, 2023, based on the fair value at the reporting period end, was immaterial. The aggregate fair value of non-employee RSUs vested during the six months ended June 30, 2023, based on the fair value on the vest date, was immaterial. Performance-Based Restricted Stock Units As of June 30, 2023, all PSUs granted to employees are classified as equity. As discussed in Note 2(w), the Company estimates the fair value of the PSUs at each measurement date by using a Monte Carlo simulation. The key inputs used in the Monte Carlo simulation are stock price, expected share price volatility, expected life, risk-free interest rate, and vesting hurdles. The stock price is based on the closing price of the Company’s Class A common stock on Nasdaq as of the valuation date. The volatility input is estimated using the volatility of the Company’s peer companies as well as the Company’s own implied volatility. The expected life of the PSUs is 30 years and all PSUs are assumed to be fully vested at the end of year 30. The risk-free interest rate is based on the Thirty-year Constant Maturity Treasury Rate. The vesting hurdles are set forth in the PSU agreement. The weighted average assumptions (weighted by relative grant date fair value) used in the Monte Carlo simulation to value PSUs granted during the periods presented are as follows: June 30, 2023 December 31, 2022 Stock price $ 2.59 $ 4.94 Measurement period 30.00 years 30.00 years Expected volatility 52.50 % 47.50 % Risk-free rate 3.73 % 2.24 % Vesting hurdle 1 $ 4.42 $ 12.50 Vesting hurdle 2 $ — $ 15.00 Vesting hurdle 3 $ — $ 17.50 PSU activities for the six months ended June 30, 2023 are summarized as follows (in thousands, except for per share data): Equity-classified PSUs - employee (1) Number of Shares Weighted-average Grant Date Fair Value (per share) Weighted-average Remaining Contractual Term (2) Outstanding at December 31, 2022 1,707 $ 6.39 Granted 211 2.59 Vested — — Forfeited (170) 6.28 Outstanding at June 30, 2023 1,748 $ 5.94 8.91 years (1) Represents awards granted to employees and executives of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. The aggregate fair value of PSUs outstanding as of June 30, 2023, based on the fair value at the reporting period end, was $4.8 million. None of the PSUs vested during the six months ended June 30, 2023. Stock-Based Compensation Expense The following tables present the Company’s stock-based compensation expense by financial statement line item and by award type for the three and six months ended June 30, 2023 and 2022 (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Cost of revenue $ 257 $ 403 $ 365 $ 715 Sales and marketing expense 557 870 876 1,477 General and administrative expense 1,512 941 2,889 1,601 Research and development expense 916 1,209 1,761 2,109 Total stock-based compensation $ 3,242 $ 3,423 $ 5,891 $ 5,902 Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Equity-classified awards: MIUs $ 104 $ 139 $ 207 $ 278 RSUs - employee 2,879 2,997 5,330 5,064 RSUs - non-employee 5 15 10 23 PSUs - employee 254 272 344 537 Total equity-classified awards 3,242 3,423 5,891 5,902 Total stock-based compensation $ 3,242 $ 3,423 $ 5,891 $ 5,902 There were no income tax benefits recognized for the six months ended June 30, 2023 and 2022, related to tax deductions from RSU awards vesting during that period. Due to the Company’s net operating loss, the related tax deductions result in deferred tax assets that are fully offset with a valuation allowance. As of June 30, 2023, unrecognized stock-based compensation expense related to unvested awards by award type and their expected weighted-average recognition periods are summarized in the following table (dollars in thousands): Unrecognized Stock-based Compensation Expense Weighted-average Recognition Period (1) Equity-classified awards: MIUs $ 622 1.50 years RSUs - employee 30,062 3.03 years RSUs - non-employee 42 2.64 years PSUs - employee 8,597 8.91 years Total equity-classified awards 39,323 Total unrecognized stock-based compensation $ 39,323 (1) The weighted-average recognition period is calculated as the sum of the weighted remaining period to recognize expense for unvested awards divided by the sum of the shares that are expected to vest for all awards that have not vested or expired by the end of the reporting period. For awards for which the straight-line method is used for expense recognition, the remaining recognition period is the amount of time between the end of the reporting period and the end of the entire award. For awards for which the accelerated attribution method is used for expense recognition, the remaining recognition period is the amount of time between the end of the reporting period and the end of each separately vesting portion of the award. |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Disaggregation of Revenue The following table disaggregates the Company’s revenue by geographic area for the three and six months ended June 30, 2023 and 2022 (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 United States $ 32,940 $ 30,756 $ 67,411 $ 60,305 Americas (excluding United States) 794 936 1,704 1,988 Asia 1,618 1,256 3,080 2,715 Europe 23 39 46 72 Total revenue $ 35,375 $ 32,987 $ 72,241 $ 65,080 In addition, 99.5% of the Company’s revenue is denominated in U.S. dollars and 0.5% is denominated in foreign currencies. Property and Equipment The following table summarizes total property and equipment, net in the respective locations at June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 United States $ 1,043 $ 1,291 Americas (excluding United States) 291 309 Asia 896 1,018 Property and equipment, net $ 2,230 $ 2,618 The geographical location of the Company’s customers affects the nature, amount, timing and uncertainty of revenue and cash flows due to the potential for unfavorable and uncertain regulatory, political, economic and tax conditions. These uncertainties can impact the amount of revenue recognized through price adjustments and uncertainty of cash flows that may arise due to local regulations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific discrete events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon several significant estimates and judgments, including the estimated annual pre-tax income of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The provision for (benefit from) income taxes was $(0.1) million and $(0.2) million for the three months ended June 30, 2023 and 2022, respectively, and $0.4 million and $0.3 million for the six months ended June 30, 2023 and 2022, respectively. The benefit from or provision for income taxes for the three and six months ended June 30, 2023 and 2022 consisted primarily of foreign and state income taxes. The effective tax rates were 2.00% and 2.21% for the three months ended June 30, 2023 and 2022, respectively, and (3.15)% and (1.38)% for the six months ended June 30, 2023 and 2022, respectively. The change in the effective tax rate for the six months ended June 30, 2023, relative to 2022, was primarily attributable to the change in valuation allowance, an increase in state taxes and certain non-deductible expenses. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, India and Colombia. The tax returns are subject to statutes of limitations that vary by jurisdiction. At June 30, 2023, the Company remains subject to U.S. and certain state income tax examinations for tax years 2019 through 2022, and in certain other states for tax years 2018 through 2022. However, due to the Company’s net operating loss carryforwards in various jurisdictions, tax authorities have the ability to adjust carryforwards related to closed years. |
Retirement Benefit Plan
Retirement Benefit Plan | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plan | Retirement Benefit PlanThe Company amended its existing 401(k) |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The following table sets forth the fair value of the Company’s assets and liabilities at June 30, 2023 (dollars in thousands): Level 1 Level 2 Level 3 Totals Cash and cash equivalents $ 17,671 $ — $ — $ 17,671 Marketable securities—available for sale debt securities — 43,738 — 43,738 Total assets $ 17,671 $ 43,738 $ — $ 61,409 Term loan $ — $ 53,936 $ — $ 53,936 Warrant liability—Forward Purchase Warrants — — 450 450 Total liabilities $ — $ 53,936 $ 450 $ 54,386 The following table sets forth the fair value of the Company’s assets and liabilities at December 31, 2022 (dollars in thousands): Level 1 Level 2 Level 3 Totals Cash and cash equivalents $ 20,742 $ — $ — $ 20,742 Marketable securities—available for sale debt securities — 48,182 — 48,182 Total assets $ 20,742 $ 48,182 $ — $ 68,924 Term loan $ — $ 54,567 $ — $ 54,567 Finance lease obligations — 11 — 11 Warrant liability—Forward Purchase Warrants — — 633 633 Total liabilities $ — $ 54,578 $ 633 $ 55,211 Level 1 and Level 2 of the Fair Value Hierarchy As of June 30, 2023 and December 31, 2022, the carrying amounts of the Company’s cash, cash equivalents and restricted cash approximate their fair values due to their short maturities and have been classified as Level 1 of the fair value hierarchy. The fair value of the term loan and finance lease obligations approximates their carrying value. The fair value is determined based on observable inputs on the price of the term loan in the market and has been classified as Level 2 of the fair value hierarchy. The fair value of the Company’s AFS debt securities is determined based on valuations provided by external investment managers who obtain them from a variety of industry standard data providers and has been classified as Level 2 of the fair value hierarchy. Refer to Note 4 for additional information regarding the fair value of the Company’s marketable securities. Level 3 of the Fair Value Hierarchy The Company’s liability related to the Forward Purchase Warrants is measured at fair value on a recurring basis and is classified as Level 3 within the fair value hierarchy. There were no other assets or liabilities measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022. Warrant liability—Forward Purchase Warrants As discussed in Note 2(y), 833,333 Forward Purchase Warrants were issued pursuant to the Forward Purchase Agreement dated January 13, 2021 between Crescent and Old LiveVox. Upon consummation of the Merger, the Company concluded that the Forward Purchase Warrants do not meet the derivative scope exception and are accounted for as derivative liabilities. The Forward Purchase Warrants are classified as Level 3 fair value measurement. The Company employed a Black-Scholes option pricing model specific to the contractual terms of the Forward Purchase Warrants to determine their fair value at each reporting period, with changes in fair value recognized in the consolidated statements of operations and comprehensive loss. Inherent in the options pricing model are assumptions related to current stock price, exercise price, expected share price volatility, expected life, risk-free interest rate and dividend yield. The stock price is based on the closing price of the Company’s Class A common stock on Nasdaq as of the valuation date. The exercise price is based on the terms of the warrant agreement. The volatility input is estimated using the implied volatility of the Public Warrants and the volatility of the Company’s peer companies. The expected life of the Forward Purchase Warrants is based on the time from valuation date to the contractual expiration date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of issuance for zero-coupon U.S. Treasury notes with maturities corresponding to the expected five-year term. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero. Future change in these assumptions could result in a material change to the fair value of the Forward Purchase Warrants, and such changes will be recorded in the consolidated statements of operations and comprehensive loss. The following table provides quantitative information regarding assumptions used in the Black Scholes option-pricing model to determine the fair value of the Forward Purchase Warrants: June 30, 2023 December 31, 2022 Stock price $ 2.75 $ 2.97 Exercise price $ 11.50 $ 11.50 Contractual term 3.00 years 3.50 years Expected volatility 77.50% 77.50% Risk-free rate 4.50% 4.20% Dividend yield 0.00% 0.00% Changes in the Level 3 Fair Value Measurement The changes in fair value of the Level 3 liabilities are as follows (dollars in thousands): June 30, 2023 December 31, 2022 Balance, beginning of period $ 633 $ 767 Changes in fair value of warrant liability (183) (134) Balance, end of period $ 450 $ 633 |
Basic and Diluted Loss Per Shar
Basic and Diluted Loss Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss Per Share | Basic and Diluted Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted average number of shares of Class A common stock outstanding during the period presented, including net issuance of shares upon vesting stock-based payment awards and excluding unvested stock-based payment awards and shares withheld to cover employees’ withholding taxes upon vesting of stock-based payment awards. Diluted net loss per share is computed giving effect to all potentially dilutive shares of Class A common stock, including Class A common stock issuable upon vesting of stock-based payment awards and contingent earnout shares. Basic and diluted loss per share was the same for each period presented as the inclusion of all potential Class A common stock outstanding would have been antidilutive. The computation of loss per share and weighted average shares of the Company’s common stock outstanding for the three and six months ended June 30, 2023 and 2022 are as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Loss attributable to common stockholders—basic and diluted $ (4,389) $ (10,780) $ (12,858) $ (23,767) Denominator: Weighted average shares outstanding—basic and diluted 93,562 91,562 93,204 91,520 Loss per share: Basic and diluted $ (0.05) $ (0.12) $ (0.14) $ (0.26) The following outstanding common stock equivalents were either considered antidilutive or were contingently issuable upon the resolution of their contingencies, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Earn-Out Shares (1) 5,000 5,000 5,000 5,000 Lock-Up Shares (2) 2,544 2,544 2,544 2,544 Finders Agreement Shares (3) 1,644 1,644 1,644 1,644 Warrants to purchase common stock 13,333 13,333 13,333 13,333 Shares withheld to cover employees’ withholding taxes upon vesting of RSUs 305 205 413 205 Unvested RSUs 9,255 5,749 9,255 5,749 Unvested PSUs 1,748 1,737 1,748 1,737 Total 33,829 30,212 33,937 30,212 (1) As additional consideration payable to the LiveVox Stockholder, the Company issued 5,000,000 shares of Class A common stock (the “Earn-Out Shares”) held in an escrow account to be released only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021. No contingent consideration shares were issued or released during the three and six months ended June 30, 2023 and 2022. (2) Represents 2,543,750 shares of converted Class A common stock held by the SPAC sponsor and certain independent directors (the “Lock-Up Shares”) immediately following the closing, which were placed in an escrow account to be subject to release only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021. No contingent consideration shares were issued or released during the three and six months ended June 30, 2023 and 2022. (3) Represents 1,643,750 shares of Class A common stock (the “Finders Agreement Shares”) to be issued only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021, pursuant to the terms of the Finders Agreement. No contingent consideration shares were issued during the three and six months ended June 30, 2023 and 2022. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of June 30, 2023 and December 31, 2022, $54.5 million and $54.9 million of the term loan principal was outstanding, respectively. The term loan is due December 31, 2025. See Note 9 for more information. On June 29, 2023, the Company renewed an agreement for cloud services under which the Company has a non-cancelable minimum spend commitment in exchange for negotiated discounts on fees for use of eligible services. The total non-cancelable spend commitment is approximately $40.3 million for the period from July 1, 2023 to June 30, 2026. Contingencies The Company is subject to the possibility of various gain or loss contingencies arising in the ordinary course of business that will ultimately be resolved depending on future events. The Company considers the likelihood of loss or impairment of an asset, or the incurrence of a liability, as well as the ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the consolidated financial statements, and the amount or range of loss can be reasonably estimated. Legal costs are expensed as incurred. Gain contingencies are not recognized until they are realized or realizable. Indemnification Agreements The Company has entered into indemnification agreements with its directors, officers and certain employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. As of June 30, 2023 and December 31, 2022, there were no claims that the Company is aware of that could have a material effect on its consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows. Litigation and Claims From time to time and in the ordinary course of business, the Company may be subject to various claims, charges, investigations, and litigation. As of the date of issuance of these consolidated financial statements, the Company is not a party to any claims that would have a material adverse effect on its business operations or financial position. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring 2022 Restructuring Plan On August 1, 2022, the Company initiated a restructuring plan (the “2022 Restructuring Plan”), following a review of the Company’s business, operating expenses and the macroeconomic environment. The purpose of the 2022 Restructuring Plan was to reduce the Company’s cost structure and improve its operational efficiency. The 2022 Restructuring Plan included a reduction of approximately 3% of the Company’s global workforce. Restructuring charges incurred as a result of the 2022 Restructuring Plan totaled $0.9 million, and consist primarily of employee severance and termination benefits. The unpaid balance of restructuring charges was $0.1 million as of June 30, 2023, which the Company expects to pay off by the end of 2023. 2023 Restructuring Plan On January 13, 2023, the Company authorized a new restructuring plan (the “2023 Restructuring Plan”). Management, with the oversight and guidance of the Company’s board of directors, determined to implement the 2023 Restructuring Plan following a review of the Company’s business, operating expenses and the macroeconomic environment. The 2023 Restructuring Plan was intended to reduce the Company’s cost structure and improve its operational efficiency. The 2023 Restructuring Plan included a reduction of approximately 98 employees, comprising approximately 16% of the Company’s global workforce. Restructuring charges incurred as a result of the 2023 Restructuring Plan totaled $3.2 million, and consist primarily of employee severance and termination benefits. The 2023 Restructuring Plan charges were fully paid off in the second quarter of 2023. Restructuring Charges The following table summarizes (a) restructuring charges incurred as a result of the 2022 Restructuring Plan and the 2023 Restructuring Plan, by major type of cost and by financial statement line item, and (b) the changes in the liability for restructuring charges, included within accrued expenses on the consolidated balance sheets (dollars in thousands): 2022 Restructuring Plan 2023 Restructuring Plan Aggregate Total Employee severance and termination benefits Subtotal Employee severance and termination benefits Non-lease contract termination costs Other costs Subtotal Liability as of December 31, 2021 $ — $ — $ — $ — $ — $ — $ — Restructuring charges Cost of revenue 400 400 — — — — 400 Sales and marketing expense 147 147 — — — — 147 General and administrative expense — — — — — — — Research and development expense 5 5 — — — — 5 Total restructuring charges 552 552 — — — — 552 Cash payments (552) (552) — — — — (552) Liability as of December 31, 2022 $ — $ — $ — $ — $ — $ — $ — Restructuring charges Cost of revenue — — 1,110 63 2 1,175 1,175 Sales and marketing expense 242 242 1,350 — — 1,350 1,592 General and administrative expense — — 43 — — 43 43 Research and development expense 101 101 658 — — 658 759 Total restructuring charges 343 343 3,161 63 2 3,226 3,569 Cash payments — — (2,991) (37) (2) (3,030) (3,030) Liability as of March 31, 2023 $ 343 $ 343 $ 170 $ 26 $ — $ 196 $ 539 Restructuring charges Cost of revenue — — (20) — — (20) (20) Sales and marketing expense 4 4 (21) — — (21) (17) General and administrative expense — — — — — — — Research and development expense — — (6) — — (6) (6) Total restructuring charges 4 4 (47) — — (47) (43) Cash payments (224) (224) (123) (26) — (149) (373) Liability as of June 30, 2023 $ 123 $ 123 $ — $ — $ — $ — $ 123 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the consolidated financial statements were issued. Other than as described below, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the consolidated financial statements. RSU Grants On July 1, 2023, the Company granted 2,463,452 annual refresh RSU grants to non-executive employees and eligible consultants, pursuant to the Company’s 2021 Plan. Each RSU had a grant date fair value of $2.75. The total stock-based compensation expense for RSUs of $6.8 million shall be amortized over the vesting period of 46 months and recorded to cost of revenue and operating expenses within the consolidated statements of operations and comprehensive loss. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations or if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the SEC on March 2, 2023. The information as of December 31, 2022 included in the consolidated balance sheets was derived from those audited consolidated financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. All intercompany transactions and balances have been eliminated in consolidation. Results of operations for the three and six months ended June 30, 2023 and 2022 are not necessarily indicative of the results to be expected for the full annual periods. Certain prior period amounts have been reclassified to conform to current period presentation. The reclassifications had no impact on the Company’s net income, financial position, stockholders’ equity or cash flows as previously reported. |
Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and such differences could be material to the Company’s consolidated financial position and results of operations, requiring adjustment to these balances in future periods. Significant items subject to such estimates and assumptions include, but are not limited to, the determination of the useful lives of long-lived assets, period of benefit of deferred sales commissions, allowances for credit losses, fair value of marketable securities, fair value of goodwill and long-lived assets, fair value of incentive awards, fair value of warrants, establishing standalone selling price, valuation of deferred tax assets, income tax uncertainties and other contingencies, including the Company’s ability to exercise its right to repurchase incentive options from terminated employees. |
Segment Information | Segment InformationThe Company has determined that its Chief Executive Officer (“CEO”) is its chief operating decision maker. The Company’s CEO reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. |
Foreign Currency Translation | Foreign Currency TranslationThe financial position and results of operations of the Company’s international subsidiaries are measured using the local currency as the functional currency. Revenue and expenses have been translated into U.S. dollars at average exchange rates prevailing during the periods presented. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of stockholders’ equity (accumulated other comprehensive loss), unless there is a sale or complete liquidation of the underlying foreign investments, or the adjustment is inconsequential. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received from the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a fair value hierarchy to classify fair value amounts of the Company’s assets and liabilities recognized or disclosed in the Company’s consolidated financial statements based on the lowest level of input that is significant to the fair value measurement. The levels of the hierarchy are described below: • Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. • Level 3—Unobservable inputs that are supported by little or no market activity. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available. The Company recognizes transfers into and out of the levels as of the end of each reporting period. Refer to Note 19 for additional information regarding the fair value measurements. |
Liquidity and Capital Resources | Liquidity and Capital ResourcesLiveVox’s consolidated financial statements have been prepared assuming the Company will continue as a going concern for the 12-month period from the date of issuance of the consolidated financial statements, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.The Company believes it has sufficient financial resources for at least the next 12 months from the date these consolidated financial statements are issued. |
Debt Discount and Issuance Costs | Debt Discount and Issuance CostsThe Company’s debt issuance costs and debt discount are recorded as a direct reduction of the carrying amount of the debt liability and are amortized to interest expense over the contractual term of the term loan. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashCash and cash equivalents are stated at fair value. The Company considers all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company limits its credit risk associated with the cash and cash equivalents by placing investments with banks it believes are highly creditworthy. The Company has exposure to credit risk to the extent cash balances exceed amounts covered by Federal deposit insurance. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashAt June 30, 2023 and December 31, 2022, the Company had no restricted cash. Cash and cash equivalents consist of bank deposits and money market funds. |
Marketable Securities | Marketable Securities The Company invests in various marketable securities. As of June 30, 2023 and December 31, 2022, the Company designated all of these marketable securities as debt securities and classified them as available-for-sale (“AFS”). No debt securities were classified as held-to-maturity (“HTM”) or trading. Debt securities are classified as current or non-current, based on maturities and the Company’s expectations of sales and redemptions in the next 12 months. The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Debt securities classified as AFS are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of stockholders’ equity (accumulated other comprehensive loss) in the consolidated balance sheets until the securities are sold or the unrealized losses are related to credit losses. Gains and losses on sales of AFS debt securities are recorded on the trade date in other income (expense), net, in the consolidated statements of operations and comprehensive loss. The cost of AFS debt securities sold or the amount reclassified out of accumulated other comprehensive loss into earnings is determined using the specific identification method. At each reporting date, the Company evaluates the amortized cost of AFS debt securities compared to their fair value to determine whether an AFS debt security is impaired. The Company first assesses whether it intends to sell the security or whether it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through other income (expense), net, in the consolidated statements of operations and comprehensive loss. If neither of these criteria is met, the Company evaluates whether the decline in fair value below amortized cost basis has resulted from credit losses or other factors. In making this assessment, the Company considers factors such as the extent to which fair value is less than amortized cost basis, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security. Credit related unrealized losses are recognized as an allowance for credit losses in the consolidated balance sheets with a corresponding charge in other income (expense), net, in the consolidated statements of operations and comprehensive loss. Non-credit related unrealized losses are recorded in other comprehensive income (loss), as applicable, net of applicable taxes. On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and all subsequent updates (collectively, the “ASC 326”) and applied to its AFS debt securities. Please refer to Note 2(aa) for more information about ASC 326. See Note 4 for additional information relating to the Company’s marketable securities. |
Accounts Receivable | Accounts ReceivableTrade accounts receivable are stated net of any write-offs and the allowance for credit losses, at the amount the Company expects to collect. The Company performs ongoing credit evaluations of its customers and generally does not require collateral unless a customer has previously defaulted. The Company maintains an allowance for credit losses, which represents the best estimate of lifetime expected credit losses against the existing accounts receivable, inclusive of unbilled receivables, based on certain factors including the age of the receivable balance, historical write-off experience, past collection experience with the customer, credit quality of the customer, current economic conditions, and reasonable and supportable forecasts of future economic conditions. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Accounts receivable are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. Recoveries of accounts receivable previously written off are recorded as income when received. |
Property and Equipment | Property and EquipmentProperty and equipment are stated at cost less accumulated depreciation. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs, including planned major maintenance activities, are charged to expense as incurred. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from the accounts and any gain or loss is reflected in the consolidated statements of operations and comprehensive loss. Amortization expense on capitalized software is included in depreciation expense. Depreciation of leasehold improvements is recorded over the shorter of the estimated useful life of the leasehold improvement or lease terms that are reasonably assured. |
Identified Intangible Assets | Identified Intangible AssetsOn March 21, 2014, LiveVox, Inc. and subsidiaries were acquired by LiveVox Holdings, Inc. On October 16, 2019, the Company acquired the rights to certain assets of Teckst Inc. On December 16, 2019, the Company acquired the rights to Speech IQ, LLC. On February 5, 2021, the Company completed its asset acquisition of BusinessPhone. The acquisitions resulted in identified marketing-based, technology-based, customer-based, trademark-based, and workforce-based intangible assets. The fair value of the identified assets was determined as of the date of the acquisition by management with the assistance of an independent valuation firm. |
Goodwill | GoodwillGoodwill represents the excess of the purchase price of acquired business over the fair value of the underlying net tangible and intangible assets. The Company performs its annual impairment review of goodwill on October 1 of each year, and when a triggering event occurs between annual impairment tests. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine if it is more likely than not that the fair value of the Company’s single reporting unit is less than its carrying amount, including goodwill, or bypass the qualitative assessment and proceed directly to the quantitative impairment test in accordance with Accounting Standards Codification (“ASC”) 350-20-35, as amended by ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsLong-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset and long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value. |
Amounts Due to Related Parties | Amounts Due to Related Parties In the ordinary course of business, the Company has a nd expects to continue to have transactions with its stockh olders and affiliates. Refer to Note 11 for more information. |
Concentration of Risk | Concentration of Risk Concentration of Credit and Customer Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Risks associated with cash and cash equivalents and marketable securities are mitigated using what the Company considers creditworthy institutions. The Company performs ongoing credit evaluations of its customers’ financial condition. Substantially all of the Company’s assets are in the United States. As of June 30, 2023 and December 31, 2022, no single issuer represented more than 10% of the Company’s marketable securities. The Company’s customers are primarily in the receivables management, tele-sales and customer care industries. During the three and six months ended June 30, 2023 and 2022, substantially all the Company’s revenue was generated in the United States. For the three and six months ended June 30, 2023 and 2022, no single customer represented more than 10% of the Company’s revenue. As of June 30, 2023 and December 31, 2022, no single customer represented more than 10% of the Company’s accounts receivable. Concentration of Supplier Risk The Company relies on third parties for telecommunication, bandwidth, and co-location services that are included in cost of revenue. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers . The Company derives substantially all of its revenue by providing cloud-based contact center products under a usage-based model, with prices calculated on a per-call, per-seat, or, more typically, a per-minute basis and contracted minimum usage in accordance with the terms of the underlying agreements. Other immaterial ancillary revenue is derived from call recording, local caller identification packages, performance/speech analytics, text messaging services and professional services billed monthly on primarily usage-based fees and, to a lesser extent, fixed fees. Revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services excluding amounts collected on behalf of third parties such as sales taxes, which are collected on behalf of and remitted to governmental authorities based on local tax law. The Company determines revenue recognition through the following steps: a. Identification of the contract, or contracts, with a customer; b. Identification of the performance obligations in the contract; c. Determination of the transaction price; d. Allocation of the transaction price to the performance obligations in the contract; and e. Recognition of revenue when, or as, the performance obligations are satisfied. The Company enters into contracts that can include various combinations of services, each of which are distinct and accounted for as separate performance obligations. The Company’s cloud-based contact center solutions typically include a promise to provide continuous access to its hosted technology platform solutions through its data centers. Arrangements with customers do not provide the customer with the right to take possession of the Company’s software platform at any time. LiveVox’s performance obligations are satisfied over time as the customer simultaneously receives and consumes the benefits and the Company performs its services. The Company’s contract terms typically range from one The Company’s arrangements typically include monthly minimum usage commitments and specify the rate at which the customer must pay for actual usage above the monthly minimum. Additional usage in excess of contractual minimum commitments is deemed to be specific to the month that the usage occurs, since the minimum usage commitments reset at the beginning of each month. The Company has determined these arrangements meet the variable consideration allocation exception and therefore, it recognizes contractual monthly commitments and any overages as revenue in the month they are earned. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may receive credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company records reductions to revenue for these estimated customer credits at the time the related revenue is recognized. These customer credits are estimated based on current and historical customer trends, and communications with its customers. Such customer credits have not been significant to date. For contracts with multiple performance obligations, the Company allocates the contract price to each performance obligation based on its relative standalone selling price (“SSP”). The Company generally determines SSP based on the prices charged to customers. In instances where SSP is not directly observable, such as when the Company does not sell the service separately, the SSP is determined using information that generally includes market conditions or other observable inputs. Professional services for configuration, system integration, optimization or education are billed on a fixed-price or time and material basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue, which represents approximately 2.0% of revenue, is recognized over time as the services are rendered. Deferred revenue represents billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual or multi-year minimum usage agreements not yet provided as of the balance sheet date. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as deferred revenue, current in the consolidated balance sheets, with the remainder recorded as deferred revenue, net of current in the Company’s consolidated balance sheets. |
Costs to Obtain Customer Contracts (Deferred Sales Commissions) | Costs to Obtain Customer Contracts (Deferred Sales Commissions)Sales commissions are paid for initial contracts and expansions of existing customer contracts. Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which the Company has estimated to be five years. The Company determined the period of benefit by taking into consideration the length of the Company’s customer contracts, the customer attrition rate, the life of the technology provided and other factors. Amortization expense is recorded in sales and marketing expense within the Company’s consolidated statements of operations and comprehensive loss. |
Advertising | AdvertisingThe Company expenses non-direct response advertising costs as they are incurred. |
Research and Development Costs | Research and Development CostsResearch and development costs not related to the development of internal use software are charged to operations as incurred. Research and development expenses primarily include payroll and employee benefits, consulting services, travel, and software and support costs. |
Software Development Costs | Software Development Costs The Company capitalizes costs of materials, consultants, payroll, and payroll-related costs of employees incurred in developing internal-use software after certain capitalization criteria are met and includes these costs in the computer software . Refer to Note 5 for additional information. Software development costs are expensed as incurred until preliminary development efforts are successfully completed, management has authorized and committed project funding, |
Income Taxes | Income Taxes Deferred Taxes The Company accounts for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recognized for the future tax consequences arising from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will be paid or refunds received, as provided for under currently enacted tax law. A valuation allowance is provided for deferred tax assets that, based on available evidence, are not expected to be realized. Enactment of the Tax Cuts and Jobs Act in 2017 subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. Under U.S. GAAP, an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year of the GILTI inclusion (i.e., as a period expense). The Company has elected to recognize the tax on GILTI as a period expense in the period of inclusion. As such, no deferred taxes are recorded on the Company’s temporary differences that might reverse as GILTI in future years. Uncertain Tax Positions The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained in a court of last resort. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company does not believe its consolidated financial statements include any uncertain tax positions. It is the Company’s policy to recognize interest and penalties accrued on any unrecognized tax benefit as a component of income tax expense. |
Stock-Based Compensation | Stock-Based Compensation The Company measures compensation expense for stock awards granted to employees and non-employees in accordance with ASC 718, Compensation—Stock Compensation . Stock-based compensation is measured at fair value on grant date. The Company classified all stock awards as equity awards at the grant date, and reassesses the liability versus equity treatment on a quarterly basis for any changes that have occurred during the period presented that may result in a reclassification. Equity-classified awards are recognized as stock-based compensation expense over an employee’s requisite service period or a non-employee’s vesting period on the basis of the grant date fair value. The Company elects to account for forfeitures as they occur, rather than making estimates of future forfeitures. Management Incentive Units During 2019, LiveVox TopCo established a Management Incentive Unit program whereby the LiveVox TopCo board of directors has the power and discretion to approve the issuance of Class B Units that represent management incentive units (“MIUs”) to any manager, director, employee, officer or consultant of the Company or its subsidiaries. Vesting begins on the date of issuance, and the MIUs vest ratably over five years with 20% of the MIUs vesting on each anniversary of a specified vesting commencement date, subject to the grantee’s continued employment with the Company on the applicable vesting date. Vesting of the MIUs will accelerate upon consummation of a “sale of the company”, which is defined by the LiveVox TopCo limited liability company agreement. The Company measures stock-based compensation expense for MIUs based on the grant date fair value of the award estimated by using a Monte Carlo simulation. Monte Carlo simulation is a widely accepted approach for financial instruments with path dependencies. The Company records stock-based compensation expense for the issued and outstanding MIUs based on the service condition on a straight-line basis over the requisite service period of five years, reduced for actual forfeited MIUs. Please see Note 15 for further detail about stock-based compensation expenses related to MIUs under the Management Incentive Unit program. 2021 Equity Incentive Plan On June 16, 2021, the stockholders of the Company approved the 2021 Equity Incentive Plan (as amended, the “2021 Plan”), which became effective upon the closing of the Merger on June 18, 2021. On June 13, 2023, the Compensation Committee approved an amendment to the 2021 Plan to clarify that the limitation on the maximum grant date fair value for awards shall apply only to the Company’s non-employee directors. As of June 30, 2023, the number of shares reserved for issuance is 19,695,679. The Company grants Restricted Stock Units (“RSUs”) and Performance-based Restricted Stock Units (“PSUs”) awards to employees, executives, directors, and eligible consultants of the Company. RSUs are subject to service conditions only. The Company estimates the grant date fair value of RSUs using the closing price of the Company’s Class A common stock on Nasdaq on the measurement date. Stock-based compensation expense for RSUs issued to employees is recognized on a straight-line basis over the vesting period for the entire award, reduced for actual forfeited RSUs. Stock-based compensation expense for RSUs issued to non-employees is recognized as the goods are received or services are performed. The requisite service period typically ranges from one PSUs, which are granted to certain key employees, vest either based on the achievement of predetermined market conditions or based on both service and market conditions. The Company estimates the grant date fair value of PSUs using a Monte Carlo simulation. The Company recognizes stock-based compensation expense for PSUs on a tranche-by-tranche basis (i.e., the accelerated attribution method) over an employee’s requisite service period, which is the longer of the time-vesting period or the derived service period inferred from the valuation model. Stock-based compensation expense of equity-classified PSUs is recognized provided that the good is delivered or the service is rendered, regardless of when, if ever, the market conditions are satisfied. Payment of the underlying shares in connection with the vesting of employee RSUs and PSUs generally triggers a tax obligation for the employee, which is required to be remitted to the relevant tax authorities. The Company withholds otherwise deliverable RSU or PSU shares having a fair value at the vest date equal to the maximum statutory withholding tax amount and remits the remaining RSU or PSU shares to the employee recipients. Any cash received and paid to meet an employees’ statutory withholding tax requirement is reflected as a financing activity within the consolidated statements of cash flows. During the six months ended June 30, 2023, the Company withheld 412,692 shares to cover employee recipients’ withholding tax obligations. Non-employee directors acting in their role as members of a board of directors are treated as employees for purpose of ASC 718 if (a) those directors were elected by the Company’s stockholders and (b) the awards granted to non-employee directors are for their services as directors but not for other services. While a non-employee director may be considered an employee under ASC |
Acquisitions | AcquisitionsThe Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs which would meet the definition of a business. Significant judgment is required in the application of the screen test to determine whether an acquisition is a business combination or an acquisition of assets. |
Public and Forward Purchase Warrants | Public and Forward Purchase WarrantsSee Note 12 for further information on stock warrants.Upon consummation of the Merger, the Company concluded that (a) the Public Warrants meet the derivative scope exception for contracts in the Company’s own stock and are recorded in stockholders’ equity and (b) the Forward Purchase Warrants do not meet the derivative scope exception and are accounted for as derivative liabilities. Specifically, the Forward Purchase Warrants contain provisions that cause the settlement amounts to be dependent upon the characteristics of the holder of the Warrant which is not an input into the pricing of a fixed-for-fixed option on equity shares. Therefore, the Forward Purchase Warrants are not considered indexed to the Company’s stock and should be classified as a liability. Since the Forward Purchase Warrants meet the definition of a derivative, the Company recorded the Forward Purchase Warrants as liabilities on the consolidated balance sheets at fair value upon the Merger, with an offsetting entry to additional paid-in capital. The gain or loss resulting from decrease or increase in the fair value of the Forward Purchase Warrants in the subsequent periods is recognized in the consolidated statements of operations and comprehensive loss. The fair value of the Forward Purchase Warrants was measured using the Black-Scholes option-pricing model at each measurement date. See Note 19 for further information on fair value. |
Restructuring Charges | Restructuring Charges Restructuring charges associated with management-approved restructuring plans may include employee severance and termination benefits, lease and non-lease contract termination costs, impairment of long-lived assets, and other related costs associated with restructuring activities. The Company accounts for employee severance and termination benefits that represent a one-time benefit in accordance with ASC 420, Exit or Disposal Cost Obligations . The Company accrues employee severance and termination benefits associated with a one-time benefit arrangement when employees are notified of their termination benefits. The Company records employee severance and termination benefits in accordance with ASC 712, Compensation - Nonretirement and Postemployment Benefits , if it pays the benefits as part of an ongoing benefit arrangement, which includes benefits provided as part of its established severance policies, a consistent past practice or in accordance with statutory requirements. The Company accrues employee severance and termination benefits associated with an ongoing benefit arrangement when the payment is probable and the amount is reasonably estimable. Non-lease contract termination costs and other costs associated with restructuring activities are recorded in accordance with ASC 420. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time the Company is no longer considered to be an EGC. The Company adopted the following new accounting pronouncements during the six months ended June 30, 2023: ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) and Codification Improvement Amendments In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, which changes the impairment model for most financial assets, which includes the Company’s accounts receivable and other financial instruments. The new standard replaces the existing incurred loss impairment model with a current expected credit loss impairment model. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to AFS debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies that receivables arising from operating leases are not within the scope of Topic 326, Financial Instruments—Credit Losses . Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases . In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , which clarifies treatment of certain credit losses. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief , which permits an entity, upon adoption of ASU No. 2016-13, to irrevocably elect the fair value option (on an instrument-by-instrument basis) for eligible financial assets measured at amortized cost basis. In November 2019, FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which changes the effective dates for Topic 326 to give implementation relief to certain types of entities. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which includes various narrow-scope improvements and clarifications. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments , which clarifies and improves certain financial instruments guidance. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which eliminates the recognition and measurement guidance for a troubled debt restructuring for creditors that have adopted ASU No. 2016-13 and also requires public business entities to present current-period gross write-offs (on a current year-to-date basis for interim-period disclosures) by year of origination in their vintage disclosures. ASU 2016-13 and all subsequent updates are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, for annual reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. The Company adopted these new standards effective January 1, 2023 on a modified retrospective basis, and the adoption did not result in a material cumulative-effect adjustment in its consolidated financial statements. Please refer to Note 2(i) and Note 2(j) for additional information relating to the Company’s application of new standards to its marketable securities and accounts receivable, respectively. ASU No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50) In September 2022, the FASB issued ASU No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about their obligations outstanding at the end of the reporting period, including a rollforward of those obligations. The guidance is effective for all entities for fiscal years beginning after December 15, 2022, including interim periods in those fiscal years, except for the rollforward requirement, which is effective for fiscal years beginning after December 15, 2023. The Company adopted this standard effective January 1, 2023 utilizing a retrospective method of transition, except for the rollforward requirement which the Company applied prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures. See Note 7 for further information on the Company's supplier finance program. bb) Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Fair Value Measurement | Level 1 and Level 2 of the Fair Value Hierarchy As of June 30, 2023 and December 31, 2022, the carrying amounts of the Company’s cash, cash equivalents and restricted cash approximate their fair values due to their short maturities and have been classified as Level 1 of the fair value hierarchy. The fair value of the term loan and finance lease obligations approximates their carrying value. The fair value is determined based on observable inputs on the price of the term loan in the market and has been classified as Level 2 of the fair value hierarchy. The fair value of the Company’s AFS debt securities is determined based on valuations provided by external investment managers who obtain them from a variety of industry standard data providers and has been classified as Level 2 of the fair value hierarchy. Refer to Note 4 for additional information regarding the fair value of the Company’s marketable securities. Level 3 of the Fair Value Hierarchy The Company’s liability related to the Forward Purchase Warrants is measured at fair value on a recurring basis and is classified as Level 3 within the fair value hierarchy. There were no other assets or liabilities measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable, Allowance for Credit Loss | The allowance for credit losses activities for the three and six months ended June 30, 2023 and 2022 are as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 1,868 $ 1,385 $ 1,459 $ 1,282 Credit loss expense 494 369 907 402 Accounts receivable write-offs — (386) (4) (403) Accounts receivable recoveries — 86 — 173 Balance, end of period $ 2,362 $ 1,454 $ 2,362 $ 1,454 |
Schedule of Estimated Useful Lives of Property and Equipment | Depreciation of property and equipment is provided using the straight-line method based on the following estimated useful lives: Years Computer equipment 3 - 5 Computer software 3 Furniture and fixtures 5 - 10 Leasehold improvements 5 Website development 2 Property and equipment consisted of the following at June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Computer software $ 426 $ 426 Computer equipment 3,566 3,408 Furniture and fixtures 1,734 1,736 Leasehold improvements 1,537 1,525 Total 7,263 7,095 Less: accumulated depreciation and amortization (5,033) (4,477) Property and equipment, net $ 2,230 $ 2,618 |
Schedule of Estimated Useful Lives of Identified Intangible Assets | The identified intangible assets are being amortized using the straight-line method based on the following estimated useful lives: Years Marketing-based 7 Technology-based 4 - 10 Customer-based 7 - 16 Trademark-based 4 Workforce-based 10 Identified intangible assets consisted of the following at June 30, 2023 (dollars in thousands): Cost Accumulated Carrying Weighted Average Marketing-based $ 1,400 $ (1,366) $ 34 0.46 Technology-based 18,300 (17,592) 708 0.80 Customer-based 27,700 (13,619) 14,081 6.89 Workforce-based 380 (149) 231 7.60 $ 47,780 $ (32,726) $ 15,054 Identified intangible assets consisted of the following at December 31, 2022 (dollars in thousands): Cost Accumulated Carrying Weighted Average Marketing-based $ 1,400 $ (1,328) $ 72 0.96 Technology-based 18,300 (17,082) 1,218 1.25 Customer-based 27,700 (12,581) 15,119 7.38 Workforce-based 380 (134) 246 6.48 $ 47,780 $ (31,125) $ 16,655 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Information About Accounts Receivable, Net, and Contract Liabilities From Contracts with Customers | The following table provides information about accounts receivable, net, and contract liabilities from contracts with customers. The Company did not have any contract assets as of June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Accounts receivable, net $ 21,429 $ 21,447 Contract liabilities, current (deferred revenue) 1,533 1,318 Contract liabilities, non-current (deferred revenue) 382 338 Changes in the contract liabilities balances are as follows (dollars in thousands): June 30, 2023 December 31, 2022 $ Change Contract liabilities (deferred revenue) $ 1,915 $ 1,656 $ 259 |
Marketable Securities - (Tables
Marketable Securities - (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment In Debt Securities | The following table presents the amortized cost, gross unrealized gains and losses, and fair value of the Company’s AFS debt securities at June 30, 2023 aggregated by major security type (dollars in thousands): Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. corporate securities $ 33,220 $ 1 $ (665) $ 32,556 U.S. government securities 2,450 — (16) 2,434 Asset-backed securities 8,144 103 (228) 8,019 Other debt securities 749 — (20) 729 Total available for sale securities 44,563 104 (929) 43,738 Total debt securities $ 44,563 $ 104 $ (929) $ 43,738 The following table presents the amortized cost, gross unrealized gains and losses, and fair value of the Company’s AFS debt securities at December 31, 2022 aggregated by major security type (dollars in thousands): Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. corporate securities $ 40,186 $ 4 $ (1,112) $ 39,078 U.S. government securities 1,479 — (2) 1,477 Asset-backed securities 7,181 8 (277) 6,912 Other debt securities 747 — (32) 715 Total available for sale securities 49,593 12 (1,423) 48,182 Total debt securities $ 49,593 $ 12 $ (1,423) $ 48,182 The following table presents the amortized cost and fair value of the Company’s AFS debt securities by contractual maturities at June 30, 2023 (dollars in thousands): As of June 30, 2023 Amortized Cost Fair Value Due in one year or less $ 20,701 $ 20,277 Due after one year through five years 23,862 23,461 Total available for sale securities 44,563 43,738 Total debt securities $ 44,563 $ 43,738 Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Proceeds from sale of available for sale debt securities $ 2,493 $ 1,936 $ 10,097 $ 3,451 Gross realized gain $ — $ — $ — $ — Gross realized loss (24) (33) (75) (42) Net realized loss on sale of available for sale debt securities $ (24) $ (33) $ (75) $ (42) |
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table presents the fair value and unrealized losses of the Company’s AFS debt securities that are in unrealized loss positions and for which an allowance for credit losses has not been recorded at June 30, 2023 (dollars in thousands): In Unrealized Loss Position For In Unrealized Loss Position For Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. corporate securities $ 21,133 $ (450) $ 11,423 $ (215) U.S. government securities 486 (3) 1,948 (13) Asset-backed securities 3,361 (120) 4,658 (108) Other debt securities 729 (20) — — Total available for sale securities 25,709 (593) 18,029 (336) Total debt securities $ 25,709 $ (593) $ 18,029 $ (336) In Unrealized Loss Position For In Unrealized Loss Position For Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. corporate securities $ 23,625 $ (464) $ 15,453 $ (648) U.S. government securities 995 (2) 482 — Asset-backed securities 1,034 (13) 5,878 (264) Other debt securities — — 715 (32) Total available for sale securities 25,654 (479) 22,528 (944) Total debt securities $ 25,654 $ (479) $ 22,528 $ (944) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | Depreciation of property and equipment is provided using the straight-line method based on the following estimated useful lives: Years Computer equipment 3 - 5 Computer software 3 Furniture and fixtures 5 - 10 Leasehold improvements 5 Website development 2 Property and equipment consisted of the following at June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Computer software $ 426 $ 426 Computer equipment 3,566 3,408 Furniture and fixtures 1,734 1,736 Leasehold improvements 1,537 1,525 Total 7,263 7,095 Less: accumulated depreciation and amortization (5,033) (4,477) Property and equipment, net $ 2,230 $ 2,618 |
Goodwill and Identified Intan_2
Goodwill and Identified Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Estimated Useful Lives of Identified Intangible Assets | The identified intangible assets are being amortized using the straight-line method based on the following estimated useful lives: Years Marketing-based 7 Technology-based 4 - 10 Customer-based 7 - 16 Trademark-based 4 Workforce-based 10 Identified intangible assets consisted of the following at June 30, 2023 (dollars in thousands): Cost Accumulated Carrying Weighted Average Marketing-based $ 1,400 $ (1,366) $ 34 0.46 Technology-based 18,300 (17,592) 708 0.80 Customer-based 27,700 (13,619) 14,081 6.89 Workforce-based 380 (149) 231 7.60 $ 47,780 $ (32,726) $ 15,054 Identified intangible assets consisted of the following at December 31, 2022 (dollars in thousands): Cost Accumulated Carrying Weighted Average Marketing-based $ 1,400 $ (1,328) $ 72 0.96 Technology-based 18,300 (17,082) 1,218 1.25 Customer-based 27,700 (12,581) 15,119 7.38 Workforce-based 380 (134) 246 6.48 $ 47,780 $ (31,125) $ 16,655 |
Schedule of Future Amortization of Finite-lived Intangible Assets | Future amortization of identified intangible assets at June 30, 2023 is shown below (dollars in thousands): As of June 30, 2023 Amount Remaining 2023 $ 1,581 2024 2,321 2025 2,106 2026 2,088 2027 2,020 2028 and beyond 4,938 Total future identified intangible asset amortization $ 15,054 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 Accrued bonuses $ 2,774 $ 4,078 Accrued paid time off 2,414 2,743 Accrued commissions 1,487 1,726 Principal and interest payable under the structured payable arrangement — 444 Other accrued expenses 3,939 3,408 Total accrued expenses $ 10,614 $ 12,399 |
Schedule of Changes in Principal and Interest Payable Under the Structured Payable Arrangement | The following table summarizes the changes in the principal and interest payable under the structured payable arrangement during the six months ended June 30, 2023 (dollars in thousands): Structured payable arrangement Liability as of December 31, 2022 $ 444 Cash payments (444) Liability as of June 30, 2023 $ — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The operating lease cost was as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Operating lease cost $ 412 $ 555 $ 1,343 $ 1,075 Supplemental cash flow information related to operating leases was as follows (dollars in thousands): Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash used in operating leases $ 987 $ 1,168 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 617 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to operating leases was as follows (dollars in thousands): June 30, December 31, Operating lease right-of-use assets $ 3,734 $ 4,920 Operating lease liabilities: Operating lease liabilities—current $ 1,342 $ 1,655 Operating lease liabilities—less current portion 3,166 3,649 Total operating lease liabilities $ 4,508 $ 5,304 Weighted average remaining terms were as follows: June 30, December 31, Weighted average remaining lease term Operating leases 3.50 years 3.77 years Weighted average discount rates were as follows: June 30, December 31, Weighted average discount rate Operating leases 9.2 % 8.9 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows (dollars in thousands): As of June 30, 2023 Operating Remaining 2023 $ 956 2024 1,245 2025 1,085 2026 1,031 2027 517 Total lease payments 4,834 Less: imputed interest (326) Total $ 4,508 |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | Maturities of lease liabilities were as follows (dollars in thousands): As of June 30, 2023 Operating Remaining 2023 $ 956 2024 1,245 2025 1,085 2026 1,031 2027 517 Total lease payments 4,834 Less: imputed interest (326) Total $ 4,508 |
Borrowings Under Term Loan an_2
Borrowings Under Term Loan and Line of Credit (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | At June 30, 2023 and December 31, 2022, term loan borrowings were as follows (dollars in thousands): June 30, 2023 December 31, 2022 Total term loan obligations $ 53,936 $ 54,567 Less: current portion of term loan (1,332) (982) Long-term term loan obligations $ 52,604 $ 53,585 |
Schedule of Principal Maturities of Long-term Debt | Aggregate principal maturities of the term loan as of June 30, 2023 were as follows (dollars in thousands): As of June 30, 2023 Amount to Mature Remaining 2023 $ 561 2024 1,753 2025 52,158 Total $ 54,472 |
Schedule of Debt | The net carrying amount of the liability component of the term loan was as follows (dollars in thousands): June 30, 2023 December 31, 2022 Principal $ 54,472 $ 54,893 Less: Unamortized issuance costs (536) (326) Net carrying amount $ 53,936 $ 54,567 |
Analysis of the Changes in Ac_2
Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Following is an analysis of the changes in accumulated other comprehensive loss, net of applicable taxes, at June 30, 2023 and 2022 (dollars in thousands): June 30, 2022 Foreign currency translation adjustment Net unrealized gain (loss) on marketable securities Total accumulated other comprehensive loss Balance, beginning of period $ (300) $ (177) $ (477) Other comprehensive loss (202) (1,176) (1,378) Balance, end of period $ (502) $ (1,353) $ (1,855) June 30, 2023 Foreign currency translation adjustment Net unrealized gain (loss) on marketable securities Total accumulated other comprehensive loss Balance, beginning of period $ (784) $ (1,412) $ (2,196) Other comprehensive income 206 586 792 Balance, end of period $ (578) $ (826) $ (1,404) |
Schedule of Components of other Comprehensive Income (Loss) | Components of other comprehensive income (loss) and related taxes for the three and six months ended June 30, 2023 and 2022 are as follows (dollars in thousands): Three Months Ended 2023 2022 Before tax Tax effect Net of tax Before tax Tax effect Net of tax Foreign currency translation adjustment $ 143 $ 3 $ 140 $ (156) $ (3) $ (153) Net unrealized gain (loss) on marketable securities 162 3 159 (295) (7) (288) Total other comprehensive income (loss) $ 305 $ 6 $ 299 $ (451) $ (10) $ (441) Six Months Ended June 30, 2023 2022 Before tax Tax effect Net of tax Before tax Tax effect Net of tax Foreign currency translation adjustment $ 200 $ (6) $ 206 $ (199) $ 3 $ (202) Net unrealized gain (loss) on marketable securities 568 (18) 586 (1,160) 16 (1,176) Total other comprehensive income (loss) $ 768 $ (24) $ 792 $ (1,359) $ 19 $ (1,378) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation by Award | MIU activities for the six months ended June 30, 2023 are summarized as follows (in thousands, except for per share data): Number of Shares Weighted-average Grant Date Fair Value (per share) Weighted-average Remaining Contractual Term (1) Outstanding at December 31, 2022 1,896 $ 0.79 Granted — — Vested (632) 0.79 Forfeited (215) 0.79 Outstanding at June 30, 2023 1,049 $ 0.79 1.00 year (1) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. Employee RSU activities for the six months ended June 30, 2023 are summarized as follows (in thousands, except for per share data): Equity-classified RSUs - employee (1) Number of Shares Weighted-average Grant Date Fair Value (per share) Weighted-average Remaining Contractual Term (2) Outstanding at December 31, 2022 8,110 $ 4.00 Granted 3,992 2.62 Vested (1,881) 3.51 Forfeited (981) 4.47 Outstanding at June 30, 2023 9,240 $ 3.45 1.65 years (1) Represents awards granted to employees, executives and directors of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. Non-employee RSU activities for the six months ended June 30, 2023 are summarized as follows (in thousands, except for per share data): Equity-classified RSUs - non-employee (1) Number of Shares Weighted-average Grant Date Fair Value (per share) Weighted-average Remaining Contractual Term (2) Outstanding at December 31, 2022 19 $ 2.91 Granted — — Vested (4) 2.77 Forfeited — — Outstanding at June 30, 2023 15 $ 2.96 1.39 years (1) Represents awards granted to eligible consultants of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. PSU activities for the six months ended June 30, 2023 are summarized as follows (in thousands, except for per share data): Equity-classified PSUs - employee (1) Number of Shares Weighted-average Grant Date Fair Value (per share) Weighted-average Remaining Contractual Term (2) Outstanding at December 31, 2022 1,707 $ 6.39 Granted 211 2.59 Vested — — Forfeited (170) 6.28 Outstanding at June 30, 2023 1,748 $ 5.94 8.91 years (1) Represents awards granted to employees and executives of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. |
Schedule of PSU Award Valuation Assumptions | The weighted average assumptions (weighted by relative grant date fair value) used in the Monte Carlo simulation to value PSUs granted during the periods presented are as follows: June 30, 2023 December 31, 2022 Stock price $ 2.59 $ 4.94 Measurement period 30.00 years 30.00 years Expected volatility 52.50 % 47.50 % Risk-free rate 3.73 % 2.24 % Vesting hurdle 1 $ 4.42 $ 12.50 Vesting hurdle 2 $ — $ 15.00 Vesting hurdle 3 $ — $ 17.50 |
Schedule of Stock-based Compensation Expense | The following tables present the Company’s stock-based compensation expense by financial statement line item and by award type for the three and six months ended June 30, 2023 and 2022 (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Cost of revenue $ 257 $ 403 $ 365 $ 715 Sales and marketing expense 557 870 876 1,477 General and administrative expense 1,512 941 2,889 1,601 Research and development expense 916 1,209 1,761 2,109 Total stock-based compensation $ 3,242 $ 3,423 $ 5,891 $ 5,902 Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Equity-classified awards: MIUs $ 104 $ 139 $ 207 $ 278 RSUs - employee 2,879 2,997 5,330 5,064 RSUs - non-employee 5 15 10 23 PSUs - employee 254 272 344 537 Total equity-classified awards 3,242 3,423 5,891 5,902 Total stock-based compensation $ 3,242 $ 3,423 $ 5,891 $ 5,902 There were no income tax benefits recognized for the six months ended June 30, 2023 and 2022, related to tax deductions from RSU awards vesting during that period. Due to the Company’s net operating loss, the related tax deductions result in deferred tax assets that are fully offset with a valuation allowance. As of June 30, 2023, unrecognized stock-based compensation expense related to unvested awards by award type and their expected weighted-average recognition periods are summarized in the following table (dollars in thousands): Unrecognized Stock-based Compensation Expense Weighted-average Recognition Period (1) Equity-classified awards: MIUs $ 622 1.50 years RSUs - employee 30,062 3.03 years RSUs - non-employee 42 2.64 years PSUs - employee 8,597 8.91 years Total equity-classified awards 39,323 Total unrecognized stock-based compensation $ 39,323 (1) The weighted-average recognition period is calculated as the sum of the weighted remaining period to recognize expense for unvested awards divided by the sum of the shares that are expected to vest for all awards that have not vested or expired by the end of the reporting period. For awards for which the straight-line method is used for expense recognition, the remaining recognition period is the amount of time between the end of the reporting period and the end of the entire award. For awards for which the accelerated attribution method is used for expense recognition, the remaining recognition period is the amount of time between the end of the reporting period and the end of each separately vesting portion of the award. |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | Disaggregation of Revenue The following table disaggregates the Company’s revenue by geographic area for the three and six months ended June 30, 2023 and 2022 (dollars in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 United States $ 32,940 $ 30,756 $ 67,411 $ 60,305 Americas (excluding United States) 794 936 1,704 1,988 Asia 1,618 1,256 3,080 2,715 Europe 23 39 46 72 Total revenue $ 35,375 $ 32,987 $ 72,241 $ 65,080 |
Schedule of Property and Equipment, Net by Location | The following table summarizes total property and equipment, net in the respective locations at June 30, 2023 and December 31, 2022 (dollars in thousands): June 30, 2023 December 31, 2022 United States $ 1,043 $ 1,291 Americas (excluding United States) 291 309 Asia 896 1,018 Property and equipment, net $ 2,230 $ 2,618 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on a Non-recurring Basis | The following table sets forth the fair value of the Company’s assets and liabilities at June 30, 2023 (dollars in thousands): Level 1 Level 2 Level 3 Totals Cash and cash equivalents $ 17,671 $ — $ — $ 17,671 Marketable securities—available for sale debt securities — 43,738 — 43,738 Total assets $ 17,671 $ 43,738 $ — $ 61,409 Term loan $ — $ 53,936 $ — $ 53,936 Warrant liability—Forward Purchase Warrants — — 450 450 Total liabilities $ — $ 53,936 $ 450 $ 54,386 The following table sets forth the fair value of the Company’s assets and liabilities at December 31, 2022 (dollars in thousands): Level 1 Level 2 Level 3 Totals Cash and cash equivalents $ 20,742 $ — $ — $ 20,742 Marketable securities—available for sale debt securities — 48,182 — 48,182 Total assets $ 20,742 $ 48,182 $ — $ 68,924 Term loan $ — $ 54,567 $ — $ 54,567 Finance lease obligations — 11 — 11 Warrant liability—Forward Purchase Warrants — — 633 633 Total liabilities $ — $ 54,578 $ 633 $ 55,211 |
Schedule of Valuation Assumptions | The following table provides quantitative information regarding assumptions used in the Black Scholes option-pricing model to determine the fair value of the Forward Purchase Warrants: June 30, 2023 December 31, 2022 Stock price $ 2.75 $ 2.97 Exercise price $ 11.50 $ 11.50 Contractual term 3.00 years 3.50 years Expected volatility 77.50% 77.50% Risk-free rate 4.50% 4.20% Dividend yield 0.00% 0.00% |
Schedule of Changes in Fair Value of Level 3 Liabilities | The changes in fair value of the Level 3 liabilities are as follows (dollars in thousands): June 30, 2023 December 31, 2022 Balance, beginning of period $ 633 $ 767 Changes in fair value of warrant liability (183) (134) Balance, end of period $ 450 $ 633 |
Basic and Diluted Loss Per Sh_2
Basic and Diluted Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Share | The computation of loss per share and weighted average shares of the Company’s common stock outstanding for the three and six months ended June 30, 2023 and 2022 are as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Loss attributable to common stockholders—basic and diluted $ (4,389) $ (10,780) $ (12,858) $ (23,767) Denominator: Weighted average shares outstanding—basic and diluted 93,562 91,562 93,204 91,520 Loss per share: Basic and diluted $ (0.05) $ (0.12) $ (0.14) $ (0.26) |
Schedule of Antidilutive Securities Excluded from the Computation of Earnings Per Share | The following outstanding common stock equivalents were either considered antidilutive or were contingently issuable upon the resolution of their contingencies, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 Earn-Out Shares (1) 5,000 5,000 5,000 5,000 Lock-Up Shares (2) 2,544 2,544 2,544 2,544 Finders Agreement Shares (3) 1,644 1,644 1,644 1,644 Warrants to purchase common stock 13,333 13,333 13,333 13,333 Shares withheld to cover employees’ withholding taxes upon vesting of RSUs 305 205 413 205 Unvested RSUs 9,255 5,749 9,255 5,749 Unvested PSUs 1,748 1,737 1,748 1,737 Total 33,829 30,212 33,937 30,212 (1) As additional consideration payable to the LiveVox Stockholder, the Company issued 5,000,000 shares of Class A common stock (the “Earn-Out Shares”) held in an escrow account to be released only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021. No contingent consideration shares were issued or released during the three and six months ended June 30, 2023 and 2022. (2) Represents 2,543,750 shares of converted Class A common stock held by the SPAC sponsor and certain independent directors (the “Lock-Up Shares”) immediately following the closing, which were placed in an escrow account to be subject to release only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021. No contingent consideration shares were issued or released during the three and six months ended June 30, 2023 and 2022. (3) Represents 1,643,750 shares of Class A common stock (the “Finders Agreement Shares”) to be issued only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021, pursuant to the terms of the Finders Agreement. No contingent consideration shares were issued during the three and six months ended June 30, 2023 and 2022. |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Restructuring Charges The following table summarizes (a) restructuring charges incurred as a result of the 2022 Restructuring Plan and the 2023 Restructuring Plan, by major type of cost and by financial statement line item, and (b) the changes in the liability for restructuring charges, included within accrued expenses on the consolidated balance sheets (dollars in thousands): 2022 Restructuring Plan 2023 Restructuring Plan Aggregate Total Employee severance and termination benefits Subtotal Employee severance and termination benefits Non-lease contract termination costs Other costs Subtotal Liability as of December 31, 2021 $ — $ — $ — $ — $ — $ — $ — Restructuring charges Cost of revenue 400 400 — — — — 400 Sales and marketing expense 147 147 — — — — 147 General and administrative expense — — — — — — — Research and development expense 5 5 — — — — 5 Total restructuring charges 552 552 — — — — 552 Cash payments (552) (552) — — — — (552) Liability as of December 31, 2022 $ — $ — $ — $ — $ — $ — $ — Restructuring charges Cost of revenue — — 1,110 63 2 1,175 1,175 Sales and marketing expense 242 242 1,350 — — 1,350 1,592 General and administrative expense — — 43 — — 43 43 Research and development expense 101 101 658 — — 658 759 Total restructuring charges 343 343 3,161 63 2 3,226 3,569 Cash payments — — (2,991) (37) (2) (3,030) (3,030) Liability as of March 31, 2023 $ 343 $ 343 $ 170 $ 26 $ — $ 196 $ 539 Restructuring charges Cost of revenue — — (20) — — (20) (20) Sales and marketing expense 4 4 (21) — — (21) (17) General and administrative expense — — — — — — — Research and development expense — — (6) — — (6) (6) Total restructuring charges 4 4 (47) — — (47) (43) Cash payments (224) (224) (123) (26) — (149) (373) Liability as of June 30, 2023 $ 123 $ 123 $ — $ — $ — $ — $ 123 |
Organization (Details)
Organization (Details) | Jun. 30, 2023 subsidiary |
Class of Stock [Line Items] | |
Number of operating subsidiaries | 5 |
LiveVox Private Solutions, LTD | LiveVox, Inc. | Subsidiaries | |
Class of Stock [Line Items] | |
Ownership percentage | 99.99% |
LiveVox Private Solutions, LTD | LiveVox International, Inc. | Subsidiaries | |
Class of Stock [Line Items] | |
Ownership percentage | 0.01% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2019 | Jun. 18, 2021 | Jan. 13, 2021 | Mar. 07, 2019 | |
Debt Instrument [Line Items] | |||||||||
Fair Value | $ 43,738,000 | $ 43,738,000 | $ 48,182,000 | ||||||
Restricted Cash | 0 | 0 | |||||||
Goodwill impairment charge | 0 | $ 0 | 0 | $ 0 | |||||
Impairment of long-lived assets | $ 500,000 | ||||||||
Deferred sales commission, amortization period | 5 years | ||||||||
Amortization of deferred sales commissions | 900,000 | 800,000 | $ 1,759,000 | 1,507,000 | |||||
Deferred sales commission, impairment loss | 0 | 0 | 0 | 0 | |||||
Capitalized advertising | 0 | 0 | 0 | 0 | |||||
Advertising expense | 700,000 | 1,100,000 | 1,200,000 | 1,700,000 | |||||
Capitalized software development costs related to internal-use software | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Number of warrants outstanding (in shares) | 13,333,328 | 13,333,328 | |||||||
Number of common shares called by each warrant (in shares) | 1 | 1 | |||||||
Exercise price (in dollars per share) | $ 11.50 | $ 11.50 | |||||||
PNC Bank | Term Loan | Eighth Amendment To The Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 54,500,000 | $ 54,500,000 | |||||||
PNC Bank | Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 5,000,000 | 5,000,000 | |||||||
PNC Bank | Line of Credit | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 1,500,000 | $ 1,500,000 | |||||||
2021 Equity Incentive Plan | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of potential award units (in shares) | 19,695,679 | 19,695,679 | |||||||
MIUs | |||||||||
Debt Instrument [Line Items] | |||||||||
Requisite service period | 1 year 6 months | ||||||||
MIUs | Management Incentive Unit Program | |||||||||
Debt Instrument [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Percent vested each anniversary | 20% | ||||||||
Requisite service period | 5 years | ||||||||
Unvested RSUs | Employee | |||||||||
Debt Instrument [Line Items] | |||||||||
Requisite service period | 3 years 10 days | ||||||||
Tax withholding obligation | 412,692 | ||||||||
Private Warrants | Crescent | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants issued (in shares) | 7,000,000 | ||||||||
Public Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of warrants outstanding (in shares) | 12,499,995 | ||||||||
Exercise price (in dollars per share) | $ 0.01 | ||||||||
Public Warrant | Crescent | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants issued (in shares) | 12,499,995 | ||||||||
Forward Purchase Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants issued (in shares) | 833,333 | ||||||||
Number of warrants outstanding (in shares) | 833,333 | ||||||||
Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Typical contract term | 1 year | ||||||||
Payment term | 10 days | ||||||||
Minimum | Unvested RSUs | Employee | 2021 Equity Incentive Plan | |||||||||
Debt Instrument [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Typical contract term | 3 years | ||||||||
Payment term | 60 days | ||||||||
Maximum | Unvested RSUs | Employee | 2021 Equity Incentive Plan | |||||||||
Debt Instrument [Line Items] | |||||||||
Vesting period | 6 years | ||||||||
Accounts Payable Benchmark | Supplier Concentration Risk | One Supplier | |||||||||
Debt Instrument [Line Items] | |||||||||
Concentration risk, percentage | 37.70% | ||||||||
Accounts Payable Benchmark | Supplier Concentration Risk | Two Suppliers | |||||||||
Debt Instrument [Line Items] | |||||||||
Concentration risk, percentage | 33.40% | ||||||||
Revenue Benchmark | Professional Service | Professional Services | |||||||||
Debt Instrument [Line Items] | |||||||||
Concentration risk, percentage | 2% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounts Receivable Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 1,868 | $ 1,385 | $ 1,459 | $ 1,282 |
Credit loss expense | 494 | 369 | 907 | 402 |
Accounts receivable write-offs | 0 | (386) | (4) | (403) |
Accounts receivable recoveries | 0 | 86 | 0 | 173 |
Balance, end of period | $ 2,362 | $ 1,454 | $ 2,362 | $ 1,454 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Details) | Jun. 30, 2023 |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Computer software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Website development | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Finite Lived Intangible Assets Useful Lives (Details) | Jun. 30, 2023 |
Marketing-based | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 7 years |
Technology-based | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 4 years |
Technology-based | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 10 years |
Customer-based | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 7 years |
Customer-based | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 16 years |
Trademark-based | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 4 years |
Workforce-based | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 10 years |
Revenue - Contract Details (Det
Revenue - Contract Details (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Accounts receivable, net | $ 21,429 | $ 21,447 |
Contract liabilities, current (deferred revenue) | 1,533 | 1,318 |
Contract liabilities, non-current (deferred revenue) | $ 382 | $ 338 |
Revenue - Changes in Contract (
Revenue - Changes in Contract (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Change in Contract Liabilities Balance [Roll Forward] | ||
Contract liabilities (deferred revenue) June, 30, 2023 | $ 1,656 | |
Contract liabilities (deferred revenue) December 31, 2022 | 1,915 | |
Deferred revenue | $ 259 | $ (169) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue recognized which was included in the deferred revenue balance at the beginning of the period | $ 0.3 | $ 0.4 | $ 1.1 | $ 0.9 |
Remaining amount of performance obligation | 176.5 | $ 176.5 | ||
Minimum | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Typical contract term | 1 year | |||
Maximum | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Typical contract term | 3 years | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining amount of performance obligation | $ 95.8 | $ 95.8 | ||
Expected timing of satisfaction | 1 year | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining amount of performance obligation | $ 80.7 | $ 80.7 | ||
Expected timing of satisfaction | 50 months | 50 months |
Marketable Securities - Amortiz
Marketable Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 44,563 | $ 49,593 |
Gross Unrealized Gain | 104 | 12 |
Gross Unrealized Loss | (929) | (1,423) |
Fair Value | 43,738 | 48,182 |
U.S. corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 33,220 | 40,186 |
Gross Unrealized Gain | 1 | 4 |
Gross Unrealized Loss | (665) | (1,112) |
Fair Value | 32,556 | 39,078 |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,450 | 1,479 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (16) | (2) |
Fair Value | 2,434 | 1,477 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,144 | 7,181 |
Gross Unrealized Gain | 103 | 8 |
Gross Unrealized Loss | (228) | (277) |
Fair Value | 8,019 | 6,912 |
Other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 749 | 747 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (20) | (32) |
Fair Value | $ 729 | $ 715 |
Marketable Securities - Maturit
Marketable Securities - Maturity of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 20,701 | |
Due after one year through five years | 23,862 | |
Amortized Cost | 44,563 | $ 49,593 |
Fair Value | ||
Due in one year or less | 20,277 | |
Due after one year through five years | 23,461 | |
Fair Value | $ 43,738 | $ 48,182 |
Marketable Securities - Proceed
Marketable Securities - Proceeds from Sales of Debt Securities and the Associated Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-Sale, Gain (Loss) [Abstract] | ||||
Proceeds from sale of available for sale debt securities | $ 2,493 | $ 1,936 | $ 10,097 | $ 3,451 |
Gross realized gain | 0 | 0 | 0 | 0 |
Gross realized loss | (24) | (33) | (75) | (42) |
Net realized loss on sale of available for sale debt securities | $ (24) | $ (33) | $ (75) | $ (42) |
Marketable Securities - Narrati
Marketable Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) position | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) position | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) position | |
Investments, Debt and Equity Securities [Abstract] | |||||
Number of positions | position | 79 | 79 | 83 | ||
Accrued interest receivable on debt securities | $ 200 | $ 200 | $ 200 | ||
Interest received | $ 0 | $ 0 | $ 0 | $ 0 |
Marketable Securities - Unreali
Marketable Securities - Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
AFS, Less than 12 months, Fair Value | $ 25,709 | $ 25,654 |
AFS, Less than 12 months, Gross Unrealized losses | (593) | (479) |
AFS, 12 months or longer, Fair Value | 18,029 | 22,528 |
AFS, 12 months or longer, Gross Unrealized Losses | (336) | (944) |
Total available for sale securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, Less than 12 months, Fair Value | 25,709 | 25,654 |
AFS, Less than 12 months, Gross Unrealized losses | (593) | (479) |
AFS, 12 months or longer, Fair Value | 18,029 | 22,528 |
AFS, 12 months or longer, Gross Unrealized Losses | (336) | (944) |
U.S. corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, Less than 12 months, Fair Value | 21,133 | 23,625 |
AFS, Less than 12 months, Gross Unrealized losses | (450) | (464) |
AFS, 12 months or longer, Fair Value | 11,423 | 15,453 |
AFS, 12 months or longer, Gross Unrealized Losses | (215) | (648) |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, Less than 12 months, Fair Value | 486 | 995 |
AFS, Less than 12 months, Gross Unrealized losses | (3) | (2) |
AFS, 12 months or longer, Fair Value | 1,948 | 482 |
AFS, 12 months or longer, Gross Unrealized Losses | (13) | 0 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, Less than 12 months, Fair Value | 3,361 | 1,034 |
AFS, Less than 12 months, Gross Unrealized losses | (120) | (13) |
AFS, 12 months or longer, Fair Value | 4,658 | 5,878 |
AFS, 12 months or longer, Gross Unrealized Losses | (108) | (264) |
Other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, Less than 12 months, Fair Value | 729 | 0 |
AFS, Less than 12 months, Gross Unrealized losses | (20) | 0 |
AFS, 12 months or longer, Fair Value | 0 | 715 |
AFS, 12 months or longer, Gross Unrealized Losses | $ 0 | $ (32) |
Property and Equipment (Details
Property and Equipment (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 | |
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | $ 7,263 | $ 7,263 | $ 7,095 | ||
Less: accumulated depreciation and amortization | (5,033) | (5,033) | (4,477) | ||
Property and equipment, net | 2,230 | 2,230 | 2,618 | ||
Depreciation and amortization | 481 | $ 556 | |||
Amortization expense | 100 | ||||
Computer software | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | 426 | 426 | 426 | ||
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | 3,566 | 3,566 | 3,408 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | 1,734 | 1,734 | 1,736 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, gross | 1,537 | 1,537 | $ 1,525 | ||
Property, Plant and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | $ 200 | $ 300 | $ 500 | $ 600 |
Goodwill and Identified Intan_3
Goodwill and Identified Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill impairment charge | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in goodwill | 0 | $ 0 | |||
Amortization of identified intangible assets | $ 800,000 | $ 800,000 | $ 1,601,000 | $ 1,875,000 |
Goodwill and Identified Intan_4
Goodwill and Identified Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 47,780 | $ 47,780 |
Accumulated Amortization | (32,726) | (31,125) |
Carrying Amount | 15,054 | 16,655 |
Marketing-based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,400 | 1,400 |
Accumulated Amortization | (1,366) | (1,328) |
Carrying Amount | $ 34 | $ 72 |
Weighted Average Remaining Life (In Years) | 5 months 15 days | 11 months 15 days |
Technology-based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 18,300 | $ 18,300 |
Accumulated Amortization | (17,592) | (17,082) |
Carrying Amount | $ 708 | $ 1,218 |
Weighted Average Remaining Life (In Years) | 9 months 18 days | 1 year 3 months |
Customer-based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 27,700 | $ 27,700 |
Accumulated Amortization | (13,619) | (12,581) |
Carrying Amount | $ 14,081 | $ 15,119 |
Weighted Average Remaining Life (In Years) | 6 years 10 months 20 days | 7 years 4 months 17 days |
Acquired workforce | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 380 | $ 380 |
Accumulated Amortization | (149) | (134) |
Carrying Amount | $ 231 | $ 246 |
Weighted Average Remaining Life (In Years) | 7 years 7 months 6 days | 6 years 5 months 23 days |
Goodwill and Identified Intan_5
Goodwill and Identified Intangible Assets - Schedule of Future Amortization of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remaining 2023 | $ 1,581 | |
2024 | 2,321 | |
2025 | 2,106 | |
2026 | 2,088 | |
2027 | 2,020 | |
2028 and beyond | 4,938 | |
Carrying Amount | $ 15,054 | $ 16,655 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued bonuses | $ 2,774 | $ 4,078 |
Accrued paid time off | 2,414 | 2,743 |
Accrued commissions | 1,487 | 1,726 |
Principal and interest payable under the structured payable arrangement | 0 | 444 |
Other accrued expenses | 3,939 | 3,408 |
Total accrued expenses | $ 10,614 | $ 12,399 |
Accrued Expenses - Schedule o_2
Accrued Expenses - Schedule of Changes in Principal and Interest Payable Under the Structured Payable Arrangement (Details) $ in Thousands | 1 Months Ended | 6 Months Ended |
Jul. 31, 2022 installmentPayment | Jun. 30, 2023 USD ($) | |
Payables and Accruals [Abstract] | ||
Number of installment payments | installmentPayment | 3 | |
Structured Payable Activity [Roll Forward] | ||
Beginning balance | $ 444 | |
Cash payments | (444) | |
Ending balance | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) lease | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) lease | Jun. 30, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Finance lease | $ 0 | $ 0 | ||
Impairment loss on right -of use assets | $ 0 | $ 0 | $ 500 | $ 0 |
Number of operating leases | lease | 0 | 0 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term of leases | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term of leases | 4 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expenses (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 | $ 412 | $ 555 | $ 1,343 | $ 1,075 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash used in operating leases | $ 987 | $ 1,168 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 0 | $ 617 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 3,734 | $ 4,920 |
Operating lease liabilities: | ||
Operating lease liabilities—current | 1,342 | 1,655 |
Operating lease liabilities—less current portion | 3,166 | 3,649 |
Total operating lease liabilities | $ 4,508 | $ 5,304 |
Weighted average remaining lease term | ||
Operating leases | 3 years 6 months | 3 years 9 months 7 days |
Weighted average discount rate | ||
Operating leases | 9.20% | 8.90% |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Operating leases | ||
Remaining 2023 | $ 956 | |
2024 | 1,245 | |
2025 | 1,085 | |
2026 | 1,031 | |
2027 | 517 | |
Total lease payments | 4,834 | |
Less: imputed interest | (326) | |
Total operating lease liabilities | $ 4,508 | $ 5,304 |
Borrowings Under Term Loan an_3
Borrowings Under Term Loan and Line of Credit - Schedule of Long-Term Debt Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Less: current portion of term loan | $ (1,332) | $ (982) |
Term Loan | ||
Debt Instrument [Line Items] | ||
Net carrying amount | 53,936 | 54,567 |
Less: current portion of term loan | (1,332) | (982) |
Long-term term loan obligations | $ 52,604 | $ 53,585 |
Borrowings Under Term Loan an_4
Borrowings Under Term Loan and Line of Credit - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Proceeds from credit facility | $ 300,000 | |||||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Deferred original issue discount and loan fees | $ 536,000 | $ 536,000 | $ 326,000 | |||
Term Loan | PNC Bank | ||||||
Debt Instrument [Line Items] | ||||||
Term loan repayments made | 300,000 | $ 100,000 | 400,000 | $ 300,000 | ||
Deferred original issue discount and loan fees | $ 500,000 | $ 500,000 | 300,000 | |||
Revolving Credit Facility | PNC Bank | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate at period end | 0% | 0% | ||||
Amount outstanding | $ 0 | $ 0 | ||||
Revolving Credit Facility | Line of Credit | PNC Bank | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 5,000,000 | 5,000,000 | ||||
Letter of Credit | Line of Credit | PNC Bank | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,500,000 | $ 1,500,000 | ||||
Eighth Amendment To The Credit Facility | Term Loan | PNC Bank | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate at period end | 10.20% | 10.20% | ||||
Face amount | $ 54,500,000 | $ 54,500,000 | ||||
Original issue discount | 300,000 | 300,000 | ||||
Loan fees | 100,000 | 100,000 | ||||
Unused borrowing capacity | 0 | 0 | $ 0 | |||
Eighth Amendment To The Credit Facility | Term Loan | PNC Bank | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin rate | 4% | |||||
Eighth Amendment To The Credit Facility | Term Loan | PNC Bank | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin rate | 5% | |||||
Credit Agreement Effective November 2016 And All Previous Amendments | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Deferred original issue discount and loan fees | $ 300,000 | $ 300,000 |
Borrowings Under Term Loan An_5
Borrowings Under Term Loan And Line of Credit - Schedule of Principal Maturities of Long-Term Debt (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Long-Term Debt, Fiscal Year Maturity [Abstract] | |
Remaining 2023 | $ 561 |
2024 | 1,753 |
2025 | 52,158 |
Total | $ 54,472 |
Borrowings Under Term Loan An_6
Borrowings Under Term Loan And Line of Credit - Schedule of Debt Instrument Carrying Amount (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal | $ 54,472 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Principal | 54,472 | $ 54,893 |
Less: Unamortized issuance costs | (536) | (326) |
Net carrying amount | $ 53,936 | $ 54,567 |
Letters of Credit (Details)
Letters of Credit (Details) - Letter of Credit - USD ($) $ in Millions | Jul. 20, 2022 | Nov. 08, 2016 |
Line of Credit Facility [Line Items] | ||
Automatic extension term | 1 year | |
Number of days prior to expiration date that written notice is required to terminate letter of credit | 60 days | |
Letter of credit decrease | $ 0.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Stock-based compensation expense | $ 3,242,000 | $ 3,423,000 | $ 5,891,000 | $ 5,902,000 | |
Related party accounts receivable | 0 | $ 0 | |||
Director | |||||
Related Party Transaction [Line Items] | |||||
Unpaid balance | $ 0 | ||||
Director | Board of Director Fees | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | 300,000 | 200,000 | 600,000 | 400,000 | |
Director | 2021 Equity Incentive Plan | Unvested RSUs | |||||
Related Party Transaction [Line Items] | |||||
Stock-based compensation expense | 500,000 | $ 200,000 | 1,000,000 | $ 300,000 | |
Director | Expense Reimbursements | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | $ 0 | $ 0 |
Stock Warrants (Details)
Stock Warrants (Details) | 6 Months Ended | ||
Jun. 18, 2021 day $ / shares shares | Jun. 30, 2023 shares | Jan. 13, 2021 $ / shares shares | |
Class of Warrant or Right [Line Items] | |||
Number of common shares called by each warrant (in shares) | 1 | 1 | |
Exercise price (in dollars per share) | $ / shares | $ 11.50 | $ 11.50 | |
Redemption period, prior written notice | 30 days | ||
Trading days used for redemption price | day | 20 | ||
Measurement period used for redemption price | 30 days | ||
Minimum reference value (in dollars per share) | $ / shares | $ 18 | ||
Number of warrants outstanding (in shares) | 13,333,328 | ||
Number of warrants exercised (in shares) | 0 | ||
Forward Purchase Warrant | |||
Class of Warrant or Right [Line Items] | |||
Number of warrants assumed (in shares) | 833,333 | ||
Number of warrants outstanding (in shares) | 833,333 | ||
Public Warrant | |||
Class of Warrant or Right [Line Items] | |||
Number of warrants assumed (in shares) | 12,499,995 | ||
Exercise price (in dollars per share) | $ / shares | $ 0.01 | ||
Number of warrants outstanding (in shares) | 12,499,995 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 94,201,711 | 94,201,711 | 92,729,127 | |
Common stock, shares outstanding (in shares) | 94,201,711 | 94,201,711 | 92,729,127 | |
Common stock, shares outstanding including shares held in escrow (in shares) | 101,745,461 | 101,745,461 | 100,272,877 | |
Common stock, shares issued including shares held in escrow (in shares) | 101,745,461 | 101,745,461 | 100,272,877 | |
Common stock, shares held in escrow (in shares) | 7,543,750 | 7,543,750 | 7,543,750 | |
Accumulated other comprehensive loss | $ (1,404) | $ (1,404) | $ (2,196) | |
Accumulated deficit | $ 178,355 | $ 178,355 | $ 165,497 | |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 | |
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |
Net transfer from LiveVox TopCo | $ 18 | $ 219 | $ 200 |
Analysis of the Changes in Ac_3
Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) - Analysis of Change (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 91,833 | $ 113,533 | $ 97,235 | $ 124,978 |
Other comprehensive loss | 299 | (441) | 792 | (1,378) |
Balance, end of period | 90,168 | 105,418 | 90,168 | 105,418 |
Total accumulated other comprehensive loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (1,703) | (1,414) | (2,196) | (477) |
Balance, end of period | (1,404) | (1,855) | (1,404) | (1,855) |
Foreign currency translation adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (784) | (300) | ||
Other comprehensive loss | 140 | (153) | 206 | (202) |
Balance, end of period | (578) | (502) | (578) | (502) |
Net unrealized gain (loss) on marketable securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (1,412) | (177) | ||
Other comprehensive loss | 159 | (288) | 586 | (1,176) |
Balance, end of period | $ (826) | $ (1,353) | $ (826) | $ (1,353) |
Analysis of the Changes in Ac_4
Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before tax | $ (305) | $ 451 | $ (768) | $ 1,359 |
Tax effect | 6 | (10) | (24) | 19 |
Total other comprehensive income (loss), net of tax | 299 | (441) | 792 | (1,378) |
Reclassification adjustment from AOCI for sale of securities | (100) | |||
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before tax | (143) | 156 | (200) | 199 |
Tax effect | 3 | (3) | (6) | 3 |
Total other comprehensive income (loss), net of tax | 140 | (153) | 206 | (202) |
Net unrealized gain (loss) on marketable securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before tax | (162) | 295 | (568) | 1,160 |
Tax effect | 3 | (7) | (18) | 16 |
Total other comprehensive income (loss), net of tax | $ 159 | $ (288) | $ 586 | $ (1,176) |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of MIU Activity (Details) - MIUs shares in Thousands | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Beginning Balance (in shares) | shares | 1,896 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (632) |
Forfeited (in shares) | shares | (215) |
Ending balance (in shares) | shares | 1,049 |
Weighted-average Grant Date Fair Value (per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 0.79 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0.79 |
Forfeited (in dollars per share) | $ / shares | 0.79 |
Ending balance (in dollars per share) | $ / shares | $ 0.79 |
Weighted-average Remaining Contractual Term | |
Outstanding | 1 year |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of RSU Activity (Details) - Unvested RSUs shares in Thousands | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Employee | |
Number of Shares | |
Beginning Balance (in shares) | shares | 8,110 |
Granted (in shares) | shares | 3,992 |
Vested (in shares) | shares | (1,881) |
Forfeited (in shares) | shares | (981) |
Ending balance (in shares) | shares | 9,240 |
Weighted-average Grant Date Fair Value (per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 4 |
Granted (in dollars per share) | $ / shares | 2.62 |
Vested (in dollars per share) | $ / shares | 3.51 |
Forfeited (in dollars per share) | $ / shares | 4.47 |
Ending balance (in dollars per share) | $ / shares | $ 3.45 |
Weighted-average Remaining Contractual Term | |
Outstanding | 1 year 7 months 24 days |
Nonemployee | |
Number of Shares | |
Beginning Balance (in shares) | shares | 19 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (4) |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 15 |
Weighted-average Grant Date Fair Value (per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 2.91 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 2.77 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 2.96 |
Weighted-average Remaining Contractual Term | |
Outstanding | 1 year 4 months 20 days |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Unvested RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Income tax benefit | $ 0 | $ 0 |
Unvested RSUs | Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs outstanding | 25,400 | |
RSUs vested | $ 5,100 | |
Vested (in shares) | 1,881,000 | |
Unvested RSUs | Nonemployee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs vested | $ 0 | |
Vested (in shares) | 4,000 | |
Unvested PSUs | Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs outstanding | $ 4,800 | |
Vested (in shares) | 0 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of PSU Activity (Details) - Unvested PSUs - Employee | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Beginning Balance (in shares) | shares | 1,707,000 |
Granted (in shares) | shares | 211,000 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (170,000) |
Ending balance (in shares) | shares | 1,748,000 |
Weighted-average Grant Date Fair Value (per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 6.39 |
Granted (in dollars per share) | $ / shares | 2.59 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 6.28 |
Ending balance (in dollars per share) | $ / shares | $ 5.94 |
Weighted-average Remaining Contractual Term | |
Outstanding | 8 years 10 months 28 days |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of PSU Assumptions (Details) - Unvested PSUs - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price (in dollars per share) | $ 2.59 | $ 4.94 |
Measurement period | 30 years | 30 years |
Expected volatility | 52.50% | 47.50% |
Risk-free rate | 3.73% | 2.24% |
Vesting hurdle 1 (in dollars per share) | $ 4.42 | $ 12.50 |
Vesting hurdle 2 (in dollars per share) | 0 | 15 |
Vesting hurdle 3 (in dollars per share) | $ 0 | $ 17.50 |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of 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] | ||||
Stock-based compensation expense | $ 3,242 | $ 3,423 | $ 5,891 | $ 5,902 |
MIUs | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 104 | 139 | 207 | 278 |
Unvested RSUs | Employee | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 2,879 | 2,997 | 5,330 | 5,064 |
Unvested RSUs | Nonemployee | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 5 | 15 | 10 | 23 |
Unvested PSUs | Employee | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 254 | 272 | 344 | 537 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 257 | 403 | 365 | 715 |
Sales and marketing expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 557 | 870 | 876 | 1,477 |
General and administrative expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1,512 | 941 | 2,889 | 1,601 |
Research and development expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 916 | $ 1,209 | $ 1,761 | $ 2,109 |
Stock-Based Compensation - Sc_6
Stock-Based Compensation - Schedule of Unrecognized Compensation Expense (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-based Compensation Expense | $ 39,323 |
MIUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-based Compensation Expense | $ 622 |
Weighted-average Recognition Period | 1 year 6 months |
Unvested RSUs | Employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-based Compensation Expense | $ 30,062 |
Weighted-average Recognition Period | 3 years 10 days |
Unvested RSUs | Nonemployee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-based Compensation Expense | $ 42 |
Weighted-average Recognition Period | 2 years 7 months 20 days |
Unvested PSUs | Employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-based Compensation Expense | $ 8,597 |
Weighted-average Recognition Period | 8 years 10 months 28 days |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue By Geographic Area (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] | ||||
Total revenue | $ 35,375 | $ 32,987 | $ 72,241 | $ 65,080 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 32,940 | 30,756 | 67,411 | 60,305 |
Americas (excluding United States) | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 794 | 936 | 1,704 | 1,988 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 1,618 | 1,256 | 3,080 | 2,715 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 23 | $ 39 | $ 46 | $ 72 |
Geographic Information - Narrat
Geographic Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Revenue, percentage denominated in domestic currency | 99.50% |
Revenue, percentage denominated in foreign currency | 0.50% |
Geographic Information - Sche_2
Geographic Information - Schedule of Property and Equipment, Net By Location (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 2,230 | $ 2,618 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 1,043 | 1,291 |
Americas (excluding United States) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 291 | 309 |
Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 896 | $ 1,018 |
Income Taxes - (Details)
Income Taxes - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ (89) | $ (229) | $ 391 | $ 315 |
Effective income tax rate | 2% | 2.21% | (3.15%) | (1.38%) |
Retirement Benefit Plan (Detail
Retirement Benefit Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2018 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |||||
Defined benefit plan, type [Extensible Enumeration] | Other Postretirement Benefits Plan [Member] | ||||
Employer matching contribution, percent of match | 50% | ||||
Maximum contribution per employee per pay period | $ 200 | ||||
Maximum annual contributions per employee | $ 4,800 | ||||
Employer matching contribution, vesting percentage | 100% | ||||
Contributions | $ 200,000 | $ 300,000 | $ 500,000 | $ 700,000 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Fair Value of Assets and Liabilities Measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities—available for sale debt securities | $ 43,738 | $ 48,182 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrant liability—Forward Purchase Warrants | 450 | 633 |
Fair Value, Nonrecurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 17,671 | 20,742 |
Marketable securities—available for sale debt securities | 43,738 | 48,182 |
Total assets | 61,409 | 68,924 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Term loan | 53,936 | 54,567 |
Finance lease obligations | 11 | |
Warrant liability—Forward Purchase Warrants | 450 | 633 |
Total liabilities | 54,386 | 55,211 |
Level 1 | Fair Value, Nonrecurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 17,671 | 20,742 |
Marketable securities—available for sale debt securities | 0 | 0 |
Total assets | 17,671 | 20,742 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Term loan | 0 | 0 |
Finance lease obligations | 0 | |
Warrant liability—Forward Purchase Warrants | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | Fair Value, Nonrecurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Marketable securities—available for sale debt securities | 43,738 | 48,182 |
Total assets | 43,738 | 48,182 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Term loan | 53,936 | 54,567 |
Finance lease obligations | 11 | |
Warrant liability—Forward Purchase Warrants | 0 | 0 |
Total liabilities | 53,936 | 54,578 |
Level 3 | Fair Value, Nonrecurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Marketable securities—available for sale debt securities | 0 | 0 |
Total assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Term loan | 0 | 0 |
Finance lease obligations | 0 | |
Warrant liability—Forward Purchase Warrants | 450 | 633 |
Total liabilities | $ 450 | $ 633 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jan. 13, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Class of warrant or right, expected term | 5 years | |||||
Warrants to purchase common stock | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Changes in fair value of warrant liability | $ 183 | $ 134 | ||||
Warrants to purchase common stock | Fair Value, Recurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Changes in fair value of warrant liability | $ 100 | $ 100 | $ 200 | $ 500 | ||
Forward Purchase Warrant | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Warrants issued (in shares) | 833,333 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Fair Value Assumptions (Details) | Jun. 30, 2023 $ / shares year | Dec. 31, 2022 year $ / shares |
Stock price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 2.75 | 2.97 |
Exercise price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 11.50 | 11.50 |
Contractual term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | year | 3 | 3.5 |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.7750 | 0.7750 |
Risk-free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0450 | 0.0420 |
Dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0 | 0 |
Fair Value Measurement - Sche_3
Fair Value Measurement - Schedule of Changes in Level 3 Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Warrants to purchase common stock | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Changes in fair value of warrant liability | $ (183) | $ (134) | |||
Level 3 | Fair Value, Recurring | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | 633 | $ 767 | 767 | ||
Balance, end of period | $ 450 | 450 | $ 633 | ||
Level 3 | Fair Value, Recurring | Warrants to purchase common stock | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Changes in fair value of warrant liability | $ (100) | $ (100) | $ (200) | $ (500) |
Basic and Diluted Loss Per Sh_3
Basic and Diluted Loss Per Share - Schedule of 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 | |
Numerator: | ||||
Loss attributable to common stockholders—basic | $ (4,389) | $ (10,780) | $ (12,858) | $ (23,767) |
Loss attributable to common stockholders—diluted | $ (4,389) | $ (10,780) | $ (12,858) | $ (23,767) |
Denominator: | ||||
Weighted average shares outstanding—basic (in shares) | 93,562 | 91,562 | 93,204 | 91,520 |
Weighted average shares outstanding—diluted (in shares) | 93,562 | 91,562 | 93,204 | 91,520 |
Net loss per share | ||||
Basic (in dollars per share) | $ (0.05) | $ (0.12) | $ (0.14) | $ (0.26) |
Diluted (in dollars per share) | $ (0.05) | $ (0.12) | $ (0.14) | $ (0.26) |
Basic and Diluted Loss Per Sh_4
Basic and Diluted Loss Per Share - Schedule of Antidilutive Securities Excluded from the Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 33,829,000 | 30,212,000 | 33,937,000 | 30,212,000 |
Earn-Out Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 |
Period after closing date, term | 7 years | |||
Number of contingent consideration shares issued during period (in shares) | 0 | 0 | ||
Earn-Out Shares | Class A common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 5,000,000 | |||
Lock-Up Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 2,544,000 | 2,544,000 | 2,544,000 | 2,544,000 |
Period after closing date, term | 7 years | |||
Number of contingent consideration shares issued during period (in shares) | 0 | 0 | ||
Lock-Up Shares | Class A common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 2,543,750 | |||
Finders Agreement Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 1,644,000 | 1,644,000 | 1,644,000 | 1,644,000 |
Period after closing date, term | 7 years | |||
Number of contingent consideration shares issued during period (in shares) | 0 | 0 | ||
Finders Agreement Shares | Class A common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 1,643,750 | |||
Warrants to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 13,333,000 | 13,333,000 | 13,333,000 | 13,333,000 |
Shares withheld to cover employees’ withholding taxes upon vesting of RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 305,000 | 205,000 | 413,000 | 205,000 |
Unvested RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 9,255,000 | 5,749,000 | 9,255,000 | 5,749,000 |
Unvested PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive securities excluded from the computation of earnings per share (in shares) | 1,748,000 | 1,737,000 | 1,748,000 | 1,737,000 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Thousands | Jun. 29, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | |||
Principal outstanding | $ 54,472 | ||
Non-cancelable spend commitment | $ 40,300 | ||
Term Loan | |||
Loss Contingencies [Line Items] | |||
Principal outstanding | $ 54,472 | $ 54,893 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Millions | Jan. 13, 2023 Employee | Aug. 01, 2022 | Jun. 30, 2023 USD ($) |
2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated | Employee | 98 | ||
Reduction in global workforce | 16% | ||
2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction in global workforce | 3% | ||
Expected cost remaining | $ | $ 0.1 |
Restructuring - Schedule of the
Restructuring - Schedule of the Changes in the Liability for Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | |||||
Liability, Beginning Balance | $ 539 | $ 0 | $ 0 | $ 0 | |
Restructuring charges | (43) | 3,569 | 552 | ||
Cash payments | (373) | (3,030) | (552) | ||
Liability, Ending Balance | 123 | 539 | 123 | $ 123 | 0 |
Cost of revenue | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (20) | 1,175 | 400 | ||
Sales and marketing expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (17) | 1,592 | 147 | ||
General and administrative expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 43 | 0 | ||
Research and development expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (6) | 759 | 5 | ||
2022 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Liability, Beginning Balance | 343 | 0 | 0 | 0 | |
Restructuring charges | 4 | 343 | 900 | 552 | |
Cash payments | (224) | 0 | (552) | ||
Liability, Ending Balance | 123 | 343 | 123 | 123 | 0 |
2022 Restructuring Plan | Cost of revenue | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 400 | ||
2022 Restructuring Plan | Sales and marketing expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 4 | 242 | 147 | ||
2022 Restructuring Plan | General and administrative expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 0 | ||
2022 Restructuring Plan | Research and development expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 101 | 5 | ||
2023 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Liability, Beginning Balance | 196 | 0 | 0 | 0 | |
Restructuring charges | (47) | 3,226 | 3,200 | 0 | |
Cash payments | (149) | (3,030) | 0 | ||
Liability, Ending Balance | 0 | 196 | 0 | 0 | 0 |
2023 Restructuring Plan | Cost of revenue | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (20) | 1,175 | 0 | ||
2023 Restructuring Plan | Sales and marketing expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (21) | 1,350 | 0 | ||
2023 Restructuring Plan | General and administrative expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 43 | 0 | ||
2023 Restructuring Plan | Research and development expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (6) | 658 | 0 | ||
Employee severance and termination benefits | 2022 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Liability, Beginning Balance | 343 | 0 | 0 | 0 | |
Restructuring charges | 4 | 343 | 552 | ||
Cash payments | (224) | 0 | (552) | ||
Liability, Ending Balance | 123 | 343 | 123 | 123 | 0 |
Employee severance and termination benefits | 2022 Restructuring Plan | Cost of revenue | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 400 | ||
Employee severance and termination benefits | 2022 Restructuring Plan | Sales and marketing expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 4 | 242 | 147 | ||
Employee severance and termination benefits | 2022 Restructuring Plan | General and administrative expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 0 | ||
Employee severance and termination benefits | 2022 Restructuring Plan | Research and development expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 101 | 5 | ||
Employee severance and termination benefits | 2023 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Liability, Beginning Balance | 170 | 0 | 0 | 0 | |
Restructuring charges | (47) | 3,161 | 0 | ||
Cash payments | (123) | (2,991) | 0 | ||
Liability, Ending Balance | 0 | 170 | 0 | 0 | 0 |
Employee severance and termination benefits | 2023 Restructuring Plan | Cost of revenue | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (20) | 1,110 | 0 | ||
Employee severance and termination benefits | 2023 Restructuring Plan | Sales and marketing expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (21) | 1,350 | 0 | ||
Employee severance and termination benefits | 2023 Restructuring Plan | General and administrative expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 43 | 0 | ||
Employee severance and termination benefits | 2023 Restructuring Plan | Research and development expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | (6) | 658 | 0 | ||
Non-lease contract termination costs | 2023 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Liability, Beginning Balance | 26 | 0 | 0 | 0 | |
Restructuring charges | 0 | 63 | 0 | ||
Cash payments | (26) | (37) | 0 | ||
Liability, Ending Balance | 0 | 26 | 0 | 0 | 0 |
Non-lease contract termination costs | 2023 Restructuring Plan | Cost of revenue | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 63 | 0 | ||
Non-lease contract termination costs | 2023 Restructuring Plan | Sales and marketing expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 0 | ||
Non-lease contract termination costs | 2023 Restructuring Plan | General and administrative expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 0 | ||
Non-lease contract termination costs | 2023 Restructuring Plan | Research and development expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 0 | ||
Other costs | 2023 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Liability, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring charges | 0 | 2 | 0 | ||
Cash payments | 0 | (2) | 0 | ||
Liability, Ending Balance | 0 | 0 | $ 0 | $ 0 | 0 |
Other costs | 2023 Restructuring Plan | Cost of revenue | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 2 | 0 | ||
Other costs | 2023 Restructuring Plan | Sales and marketing expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 0 | ||
Other costs | 2023 Restructuring Plan | General and administrative expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 0 | 0 | 0 | ||
Other costs | 2023 Restructuring Plan | Research and development expense | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | $ 0 | $ 0 | $ 0 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Subsequent Event [Line Items] | |||||
Stock-based compensation expense | $ 3,242 | $ 3,423 | $ 5,891 | $ 5,902 | |
Subsequent Event | RSU | Non-Executive Employees And Eligible Consultants | |||||
Subsequent Event [Line Items] | |||||
Granted (in shares) | 2,463,452 | ||||
Granted (in dollars per share) | $ 2.75 | ||||
Stock-based compensation expense | $ 6,800 | ||||
Vesting period | 46 months |