Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MNTV | ||
Entity Registrant Name | Momentive Global Inc. | ||
Entity Central Index Key | 0001739936 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 149,710,820 | ||
Entity Public Float | $ 1,138,341,000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-38664 | ||
Entity Tax Identification Number | 80-0765058 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | One Curiosity Way | ||
Entity Address, City or Town | San Mateo | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94403 | ||
City Area Code | 650 | ||
Local Phone Number | 543-8400 | ||
Title of 12(b) Security | Common Stock, par value $0.00001 per share | ||
Security Exchange Name | NASDAQ | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | San Francisco, California | ||
Auditor Firm ID | 42 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the registrant’s annual meeting of stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2022 . |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 202,816 | $ 305,525 |
Accounts receivable, net of allowance of $1,121 and $894 | 33,656 | 32,489 |
Deferred commissions, current | 9,775 | 7,945 |
Prepaid expenses and other current assets | 17,207 | 11,363 |
Total current assets | 263,454 | 357,322 |
Property and equipment, net | 1,006 | 5,442 |
Operating lease right-of-use assets | 32,252 | 52,232 |
Capitalized internal-use software, net | 29,595 | 28,158 |
Acquisition intangible assets, net | 5,156 | 10,773 |
Goodwill | 459,817 | 463,736 |
Deferred commissions, non-current | 14,307 | 13,200 |
Other assets | 4,568 | 9,061 |
Total assets | 810,155 | 939,924 |
Current liabilities: | ||
Accounts payable | 16,418 | 7,204 |
Accrued expenses and other current liabilities | 24,969 | 30,725 |
Accrued compensation | 31,893 | 45,873 |
Deferred revenue, current | 206,728 | 200,658 |
Operating lease liabilities, current | 8,046 | 9,587 |
Debt, current | 1,900 | 1,900 |
Total current liabilities | 289,954 | 295,947 |
Deferred revenue, non-current | 719 | 1,165 |
Deferred tax liabilities | 6,337 | 5,701 |
Debt, non-current | 182,916 | 209,816 |
Operating lease liabilities, non-current | 39,584 | 66,938 |
Other non-current liabilities | 3,885 | 5,883 |
Total liabilities | 523,395 | 585,450 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock ($0.00001 par value; 100,000 shares authorized; no shares issued and outstanding) | 0 | 0 |
Common stock ($0.00001 par value; 800,000 shares authorized; 149,711 and 150,398 shares issued and outstanding) | 1 | 2 |
Additional paid-in capital | 997,621 | 971,604 |
Accumulated other comprehensive income (loss) | (3,425) | 414 |
Accumulated deficit | (707,437) | (617,546) |
Total stockholders’ equity | 286,760 | 354,474 |
Total liabilities and stockholders’ equity | $ 810,155 | $ 939,924 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 1,121 | $ 894 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 149,711,000 | 150,398,000 |
Common stock, shares outstanding (in shares) | 149,711,000 | 150,398,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Revenue | $ 480,917 | $ 443,786 | $ 375,610 | |
Cost of revenue | [1],[2],[3] | 86,251 | 86,421 | 83,917 |
Gross profit | 394,666 | 357,365 | 291,693 | |
Operating expenses: | ||||
Research and development | [2],[3] | 138,091 | 139,262 | 112,989 |
Sales and marketing | [1],[2],[3] | 223,827 | 224,008 | 172,376 |
General and administrative | [2],[3] | 107,522 | 106,667 | 87,909 |
Restructuring | [1],[2] | 6,563 | 0 | 0 |
Total operating expenses | 476,003 | 469,937 | 373,274 | |
Loss from operations | (81,337) | (112,572) | (81,581) | |
Interest expense | 11,476 | 9,261 | 10,257 | |
Other non-operating (income) expense, net | (4,513) | 934 | (1,436) | |
Loss before income taxes | (88,300) | (122,767) | (90,402) | |
Provision for income taxes | 1,591 | 482 | 1,179 | |
Net loss | $ (89,891) | $ (123,249) | $ (91,581) | |
Net loss per common share, basic | $ (0.61) | $ (0.84) | $ (0.65) | |
Net loss per common share, diluted | $ (0.61) | $ (0.84) | $ (0.65) | |
Weighted average number of basic shares outstanding | 148,476 | 147,045 | 139,887 | |
Weighted average number of diluted shares outstanding | 148,476 | 147,045 | 139,887 | |
[1] Includes amortization of acquisition intangible assets as follows: Includes stock-based compensation, net of amounts capitalized as follows: Includes transaction expenses associated with the terminated merger with Zendesk. See Note 1 for additional information. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allocated share-based compensation expense | $ 98,692 | $ 98,564 | $ 79,167 |
Amortization of acquisition intangible assets | 5,600 | 10,142 | 12,602 |
Cost of revenue | |||
Allocated share-based compensation expense | 6,164 | 5,862 | 4,450 |
Amortization of acquisition intangible assets | 2,234 | 5,868 | 7,495 |
Research and development | |||
Allocated share-based compensation expense | 34,711 | 40,821 | 30,693 |
Sales and marketing | |||
Allocated share-based compensation expense | 22,860 | 23,585 | 19,707 |
Amortization of acquisition intangible assets | 2,916 | 4,274 | 5,107 |
General and administrative | |||
Allocated share-based compensation expense | 32,196 | 28,296 | 24,317 |
Restructuring expense | |||
Allocated share-based compensation expense | 2,761 | 0 | 0 |
Amortization of acquisition intangible assets | $ 450 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (89,891) | $ (123,249) | $ (91,581) | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | [1] | (3,839) | (4,794) | 5,652 |
Total other comprehensive income (loss) | [1] | (3,839) | (4,794) | 5,652 |
Total comprehensive loss | $ (93,730) | $ (128,043) | $ (85,929) | |
[1] Net of tax effect which was not material. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | |
Beginning Balance at Dec. 31, 2019 | $ 301,984 | $ 1 | $ 705,143 | $ (444) | $ (402,716) | |
Begining balance, Shares at Dec. 31, 2019 | 136,054,000 | |||||
Common stock issued upon vesting of restricted stock units, Shares | 4,115,000 | |||||
Common stock issued upon vesting of restricted stock units | 0 | $ 0 | 0 | 0 | 0 | |
Common stock issued upon stock option exercise, Shares | 3,088,000 | |||||
Common stock issued upon stock option exercise | 42,172 | $ 0 | 42,172 | 0 | 0 | |
Common stock issued under employee stock purchase plan, shares | 563,000 | |||||
Common stock issued under employee stock purchase plan | 6,719 | $ 0 | 6,719 | 0 | 0 | |
Stock-based compensation expense | 81,410 | 0 | 81,410 | 0 | 0 | |
Comprehensive income (loss) | 5,652 | [1] | 0 | 0 | 5,652 | 0 |
Net loss | (91,581) | 0 | 0 | 0 | (91,581) | |
Ending balance at Dec. 31, 2020 | 346,356 | $ 1 | 835,444 | 5,208 | (494,297) | |
Ending balance, Shares at Dec. 31, 2020 | 143,820,000 | |||||
Common stock issued upon vesting of restricted stock units, Shares | 3,841,000 | |||||
Common stock issued upon vesting of restricted stock units | 0 | $ 0 | 0 | 0 | 0 | |
Common stock issued upon stock option exercise, Shares | 2,003,000 | |||||
Common stock issued upon stock option exercise | 27,931 | $ 1 | 27,930 | 0 | 0 | |
Common stock issued under employee stock purchase plan, shares | 470,000 | |||||
Common stock issued under employee stock purchase plan | 7,453 | $ 0 | 7,453 | 0 | 0 | |
Issuance of restricted stock awards, Shares | 329,000 | |||||
Issuance of restricted stock awards | 0 | $ 0 | 0 | 0 | 0 | |
Cancellation of restricted stock awards, Shares | (65,000) | |||||
Cancellation of restricted stock awards | 0 | $ 0 | 0 | 0 | 0 | |
Stock-based compensation expense | 100,777 | 0 | 100,777 | 0 | 0 | |
Comprehensive income (loss) | (4,794) | [1] | 0 | 0 | (4,794) | 0 |
Net loss | (123,249) | 0 | 0 | 0 | (123,249) | |
Ending balance at Dec. 31, 2021 | 354,474 | $ 2 | 971,604 | 414 | (617,546) | |
Ending balance, Shares at Dec. 31, 2021 | 150,398,000 | |||||
Common stock issued upon vesting of restricted stock units, Shares | 4,003,000 | |||||
Common stock issued upon vesting of restricted stock units | $ 0 | $ 0 | 0 | 0 | 0 | |
Common stock issued upon stock option exercise, Shares | 206,132 | 206,000 | ||||
Common stock issued upon stock option exercise | $ 2,827 | $ 0 | 2,827 | 0 | 0 | |
Common stock issued under employee stock purchase plan, shares | 712,000 | |||||
Common stock issued under employee stock purchase plan | 5,589 | $ 0 | 5,589 | 0 | 0 | |
Issuance of restricted stock awards, Shares | 1,031,000 | |||||
Issuance of restricted stock awards | 0 | $ 0 | 0 | 0 | 0 | |
Cancellation of restricted stock awards, Shares | (404,000) | |||||
Cancellation of restricted stock awards | 0 | $ 0 | 0 | 0 | 0 | |
Issuance of performance stock awards, Shares | 361,000 | |||||
Issuance of performance stock awards | 0 | $ 0 | 0 | 0 | 0 | |
Repurchase of common stock, Shares | (6,596,000) | |||||
Repurchase of common stock | (83,487) | $ (1) | (83,486) | 0 | 0 | |
Stock-based compensation expense | 101,087 | 0 | 101,087 | 0 | 0 | |
Comprehensive income (loss) | (3,839) | [1] | 0 | 0 | (3,839) | 0 |
Net loss | (89,891) | 0 | 0 | 0 | (89,891) | |
Ending balance at Dec. 31, 2022 | $ 286,760 | $ 1 | $ 997,621 | $ (3,425) | $ (707,437) | |
Ending balance, Shares at Dec. 31, 2022 | 149,711,000 | |||||
[1] Net of tax effect which was not material. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net loss | $ (89,891) | $ (123,249) | $ (91,581) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 28,725 | 42,857 | 47,822 |
Non-cash leases expense | 10,693 | 13,057 | 13,092 |
Stock-based compensation expense, net of amounts capitalized | 98,692 | 98,564 | 79,167 |
Deferred income taxes | 415 | (331) | 814 |
Bad debt expense | 2,756 | 1,248 | 1,352 |
Gain on lease modification | (6,370) | 0 | 0 |
Gain on sale of private company investments | (3,202) | 0 | (1,001) |
Impairment of long-lived assets | 838 | 503 | 0 |
Unrealized foreign currency (gains) losses, net and other | 1,652 | 1,379 | 1,588 |
Changes in assets and liabilities: | |||
Accounts receivable | (4,500) | (9,817) | (7,643) |
Prepaid expenses and other assets | (11,728) | (14,231) | (12,106) |
Accounts payable and accrued liabilities | 1,788 | 17,453 | 1,148 |
Accrued compensation | (13,669) | 14,044 | 7,865 |
Deferred revenue | 5,592 | 31,249 | 29,742 |
Operating lease liabilities | (12,990) | (14,959) | (14,629) |
Net cash provided by operating activities | 8,801 | 57,767 | 55,630 |
Cash flows from investing activities | |||
Purchases of property and equipment | (449) | (735) | (782) |
Capitalized internal-use software | (8,205) | (8,443) | (9,220) |
Proceeds from sale of a private company investment and other | 0 | 170 | 1,095 |
Net cash used in investing activities | (8,654) | (9,008) | (8,907) |
Cash flows from financing activities | |||
Proceeds from stock option exercises | 2,827 | 27,953 | 42,150 |
Proceeds from employee stock purchase plan | 5,589 | 7,453 | 6,719 |
Payments to repurchase common stock | (83,487) | 0 | 0 |
Repayment of debt | (27,200) | (2,200) | (2,200) |
Net cash provided by (used in) financing activities | (102,271) | 33,206 | 46,669 |
Effect of exchange rate changes on cash | (739) | (458) | (461) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (102,863) | 81,507 | 92,931 |
Cash, cash equivalents and restricted cash at beginning of period | 306,121 | 224,614 | 131,683 |
Cash, cash equivalents and restricted cash at end of period | 203,258 | 306,121 | 224,614 |
Supplemental cash flow data: | |||
Interest paid for term debt | 10,668 | 8,620 | 9,590 |
Income taxes paid | 695 | 996 | 583 |
Non-cash investing and financing transactions: | |||
Stock compensation included in capitalized software costs | 2,395 | 2,213 | 2,243 |
Lease liabilities arising from obtaining right-of-use assets, net of terminations and modifications | $ (13,620) | $ 2,676 | $ 0 |
Company Overview and Basis of P
Company Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview and Basis of Presentation | 1. Company Overview and Basis of Presentation Business Momentive Global Inc. (the “Company”) provides Software-as-a-Service (“SaaS”) solutions that enable organizations to collect and analyze market, customer and employee sentiment data quickly and at scale. The Company offers three product categories, Surveys, Customer Experience, and Insights Solutions, that address three major business use cases: (i) building market leadership, (ii) delighting customers, and (iii) engaging employees. The Company was incorporated in 2011 as SVMK Inc., a Delaware corporation, and is the successor to operations originally started in 1999. In June 2021, SVMK Inc. was rebranded and changed its legal name to Momentive Global Inc. As a result, its common stock began trading under the ticker symbol “MNTV” instead of “SVMK” on The Nasdaq Global Select Market. In February 2022, the company announced plans to consolidate its product portfolio under two brands and web surfaces—Momentive and SurveyMonkey. The Momentive brand represents the Company's suite of upmarket solutions, while SurveyMonkey represents the Company's complementary products for value-oriented customers who prioritize speed and ease of use. The Company’s headquarters are located in the United States and its international operations are primarily based in Ireland, Canada and the Netherlands . Termination of Proposed Merger with Zendesk On February 25, 2022, the Agreement and Plan of Merger (the “Merger Agreement”) the Company entered into with Zendesk Inc. (“Zendesk”) and Milky Way Acquisition Corp. (“Merger Sub”) on October 28, 2021 was terminated due to Zendesk stockholders’ failure to approve the issuance of Zendesk shares in connection with the proposed merger (the “Merger”). None of the Company, Zendesk or Merger Sub are expected to have any further liability under the Merger Agreement, subject to its terms. The Company incurred transaction expenses related to employee retention bonuses, legal, accounting, financial advisory, and other costs associated with the Merger. For the year ended December 31, 2022 , transaction expenses amounted to $ 11.9 million, of which, $ 0.6 million is included in cost of revenue, $ 3.4 million is included in research and development, $ 3.1 million is included in sales and marketing, and $ 4.8 million is included in general and administrative expenses in the accompanying consolidated statement of operations. For the year ended December 31, 2021, transaction expenses amounted to $ 12.8 million, of which, $ 0.3 million is included in cost of revenue, $ 1.3 million is included in research and development, $ 1.2 million is included in sales and marketing, and $ 10.0 million is included in general and administrative expenses in the accompanying consolidated statement of operations. The employee retention bonuses granted in connection with the transaction were subject to the employee's continued service through June 30, 2022 and paid in July 2022. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the results of operations of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. Certain other prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect our results of operations or operating, investing and financing cash flows. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods covered by the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates due to a variety of factors. The Company is not aware of any specific event or circumstances that would require an update to its estimates, judgments or assumptions or a revision to the carrying value of its assets or liabilities as of the date of issuance of its financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable. The Company’s most significant estimates and use of judgment involve the determination of distinct performance obligations in enterprise customer contracts, the valuation of acquired goodwill and intangibles from acquisitions and the fair value of goodwill, right-of-use assets and other long-lived assets when evaluating for impairments. Segment Information The Company operates as a single operating segment. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer, who reviews the Company’s operating results on a consolidated basis in order to make decisions about allocating resources and assessing performance for the entire company. The CODM uses one measure of profitability and does not segment the Company’s business for internal reporting. See Note 4 for additional information regarding the Company’s revenue and long-lived assets by geographic area. Related Party Transactions Certain members of the Company’s board of directors serve as board members, are executive officers of and/or (in some cases) are investors in companies that are customers and/or vendors of the Company. The Company incurred related party expenses of $ 4.0 million, $ 3.5 million and $ 4.3 million during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition and Deferred Revenue The Company generates a majority of its revenue from the sale of subscriptions to its software products for survey feedback and customer experience. The Company also generates a portion of revenue from its transactional insight/market research solutions services. The Company normally sells each of these products in separate contracts to its customers and each product is distinct. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. For subscription products, the Company provides customers the option of monthly, annual or multi-year contractual terms. In general, the Company’s customers elect contractual terms of one year or less. Subscription revenue is recognized on a straight-line basis over the related subscription term beginning on the date the Company provides access. Access to the Company’s subscription product is an obligation representing a series of distinct services (and which comprise a single performance obligation) that the Company provides to its end customer over the subscription term. The Company recognizes its subscription revenue on a straight-line basis because the customer benefits from access to the products throughout the contractual term. The transactional insight/market research solution services are generally billed in advance and revenue is recognized after the services have been delivered. The Company's contracts are generally non-cancellable and do not contain refund-type provisions and are billed in advance. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred or services have been delivered. The Company records contract liabilities to deferred revenue when cash payments are received or due. Deferred revenue consists of the unearned portion of customer billings. Cost of Revenue Cost of revenue associated with the delivery of the Company’s online platform to its users generally consists of infrastructure costs, personnel costs and other related costs. Infrastructure costs generally include expenses related to website hosting costs, amortization of capitalized software, credit card processing fees, charity donations and external sample costs. Personnel costs include salaries and bonuses, stock-based compensation expense, other employee benefits and travel-related expenses for employees whose primary responsibilities relate to supporting the Company’s infrastructure and delivering user support. Other related costs include amortization of acquired developed technology intangible assets and allocated overhead. Deferred Commissions Certain commissions earned by the Company’s salesforce are considered to be incremental and recoverable costs of obtaining a contract with a customer. Such costs are deferred and amortized on a straight-line basis over their estimated period of benefit which is generally estimated as four years . The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in its industry. Amortization of deferred commissions, which is included in the sales and marketing expense line within the consolidated statements of operations, was $ 9.5 million, $ 6.9 million and $ 4.2 million during the years ended December 31, 2022, 2021 and 2020 , respectively. There was no impairment loss in relation to the deferred commissions for any period presented. Stock-Based Compensation The Company recognizes stock-based compensation expense for all share-based payments to employees, including restricted stock units, stock options, restricted stock awards, and shares issuable under the Company’s 2018 employee stock purchase plan, as amended (“the ESPP”) based on the grant-date fair value of the Company’s common stock estimated in accordance with the provisions of ASC 718, Compensation‑Stock Compensation . For time-based equity awards, stock-based compensation expense is recognized on a straight-line basis over the award’s requisite service period, which is generally four years for new hires and generally three years for subsequent grants to existing employees. For shares issuable under the ESPP, stock-based compensation expense is recognized on a straight-line basis over the award’s requisite service period, which is an offering period. For performance-based stock awards, stock-based compensation expense is recognized using the attribution method over the requisite service period. The Company recognizes excess tax benefits from stock-based compensation expense in earnings, which are substantially offset by a valuation allowance. The Company made a policy election to account for forfeitures as they occur. The Company estimates the fair value of time-based restricted stock units and restricted stock awards based on the fair value of the Company’s common stock on the grant date. The Company estimates the fair values of its time-based stock options and shares issuable under the ESPP using the Black-Scholes-Merton option-pricing model. The Company uses the Monte Carlo simulation model to determine the fair value of its performance-based stock awards. The valuation models require input of the following key assumptions: • Expected Term: As the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior, the Company determines the expected term based on the average period the stock options or ESPP are expected to remain outstanding. For stock options, expected term is calculated as the midpoint of the stock options vesting term and contractual expiration period. • Expected Volatility: As the Company does not have sufficient trading history of its common stock, stock price volatility is estimated at the applicable grant date by taking the weighted-average historical volatility of a group of comparable publicly-traded companies over a period equal to the expected life of the options or ESPP. • Expected Dividend Rate: The Company has not paid and does not anticipate paying cash dividends on its shares of common stock in the foreseeable future; therefore, the expected dividend yield is assumed to be zero. • Risk-Free Interest Rate: The Company determined the risk-free interest rate by using a weighted average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate as of the date of grant. Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on deposit with banks and investments in money market funds with maturities of 90 days or less from the date of purchase. The Company also classifies amounts in transit from payment processors for customer credit card and debit card transactions as cash equivalents, because such amounts generally convert to cash within five days with little or no default risk. Accounts Receivable Accounts receivable are presented at amortized cost net of amounts not expected to be collected. Accounts receivable are customer obligations that arise due to the time taken to settle transactions through direct customer payments. The Company bills in advance for monthly contracts and generally bills annually in advance for contracts with terms of one year or longer when it has an unconditional contractual right to consideration. The Company also recognizes an immaterial amount of contract assets, or unbilled receivables, primarily relating to rights to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer. The Company records an allowance for credit losses based upon its assessment of various factors including the Company’s a) historical experience (including historical bad debt expense trends), the age of a customers’ accounts receivable balance, and a customers’ credit quality, b) expected losses over the remaining estimated contractual life of the receivable and c) other reasonable and supportable factors pertaining to a customers’ ability to pay (including consideration of current economic conditions). Amounts deemed uncollectible and expected credit losses are recorded to the allowance for doubtful accounts with an offsetting charge in the consolidated statements of operations. The Company evaluated its allowance for credit losses using its consolidated gross accounts receivable balance as a single portfolio segment. Accounts receivables are written off against the recorded allowance when the Company has exhausted collection efforts without success. Bad debt expense recognized in the consolidated statements of operations was $ 2.8 million, $ 1.2 million and $ 1.4 million during the years ended December 31, 2022, 2021 and 2020, respectively. Write-off of uncollectible accounts receivable was $ 2.5 million, $ 0.9 million and $ 1.0 million during the years ended December 31, 2022, 2021 and 2020 , respectively, and was recorded against the allowance for doubtful accounts. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents in banks that management believes are high-credit quality financial institutions. Such amounts may at times exceed the federally insured limits. Cash equivalents consist of short-term money market funds which are managed by reputable financial institutions. As of December 31, 2022, $ 163.0 million of the Company’s cash and cash equivalents are held in one financial institution. For purposes of its customer concentration disclosure, the Company defines a customer as an organization. An organization may consist of an individual paying user, multiple paying users within an organization or the organization itself. No single customer accounted for more than 10% of revenue during each of the years ended December 31, 2022, 2021 and 2020 . No customers accounted for more than 10% of accounts receivable, net as of December 31, 2022 and 2021 , respectively. Business Combinations When the Company acquires a business, the purchase consideration is allocated to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated respective fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require the Company to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users including related attrition rates, acquired developed technology including the estimated obsolescence of the technology, and trade names from a market participant perspective, future expected cash flows for operating expenses, useful lives and discount rates. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to non-operating (income) expense in the consolidated statements of operations. Impairment of Long-Lived Assets Long-lived assets with finite lives include property and equipment, operating lease assets, capitalized internal-use software and acquisition intangible assets. Long-lived assets are depreciated or amortized over their estimated useful lives which are as follows: Computer equipment 2 to 5 years Furniture, fixtures, and other assets 5 years Leasehold improvements Shorter of remaining lease term or 5 years Purchased software 3 years Capitalized internal-use software 3 years Acquisition intangible assets: customer relationships 3 to 7 years Acquisition intangible assets: trade name 5 years Acquisition intangible assets: developed technology 3 years The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of depreciable or amortizable long-lived assets may warrant revision or that the remaining balance may not be recoverable. When factors indicate that long-lived assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted future cash flows over the remaining life of the long-lived assets in measuring whether they are recoverable. If the estimated undiscounted future cash flows do not exceed the carrying value of the asset, a loss is recorded as the excess of the asset’s carrying value over its fair value. In 2022, in connection with the restructuring plan implemented in March 2022 (the “March 2022 Restructuring Plan”), the Company executed a partial termination to reduce the leased space for its San Mateo, CA headquarters. As a result, the Company recorded $ 0.8 million impairment on certain leasehold improvements associated with the vacated space. Also in connection with the March 2022 Restructuring Plan, the Company concluded that the acquired trade name from a prior acquisition had no future economic benefit due to its plan to simplify its brand positioning by the end of 2022. As such, the Company has accelerated the amortization of the related intangible. These charges were included in restructuring in the consolidated statement of operations for the year ended December 31, 2022. See Note 15 for additional information. In 2021, the Company entered into a sublease agreement for its existing office space in San Francisco, CA. As a result of the sublease transaction, the Company recorded a lease impairment charge of $ 0.5 million during the year ended December 31, 2021, which was the excess of the carrying value of the associated operating lease ROU asset over its estimated fair value. The Company estimated the fair value using cash flows from the estimated sublease rental income. The impairment charge is included in general and administrative expense in the consolidated statement of operations for the year ended December 31, 2021. The Company did no t recognize any impairment of long-lived assets during the year ended December 31, 2020. The Company believes that the carrying values of long-lived assets as of December 31, 2022 are recoverable. Goodwill is not amortized but rather tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill impairment is recognized when the carrying value of goodwill exceeds the implied fair value of the Company. The Company did no t recognize any impairment of goodwill during each of the years ended December 31, 2022, 2021 and 2020 . Foreign Currencies Where the functional currency of the Company’s foreign subsidiaries is the U.S. dollar, monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets are remeasured based on historical exchange rates. Gains and losses due to foreign currency are the result of remeasurements of transactions denominated in foreign currencies and are included in other non-operating (income) expense, net in the consolidated statements of operations. Where the functional currency of the Company’s foreign subsidiaries is the local currency, the assets and liabilities of those foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date and revenue and expense amounts are translated at a rate approximating the average exchange rate for the period. Foreign currency translation gains and losses are recorded to accumulated other comprehensive income (loss). Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurement , to assets and liabilities that are required to be measured at fair value, which include investments in marketable debt and equity securities and derivative financial instruments. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive loss until realized. See Note 6 for additional disclosures regarding fair value measurements. Private Company Investment The Company accounts for one private company investment, without readily determinable fair value, under the cost method. This investment, for which the Company is not able to exercise significant influence over the investee, is measured and accounted for using an alternative measurement basis of a) the security’s carrying value at cost, b) less any impairment and c) plus or minus any qualifying observable price changes. Observable price changes or impairments recognized on the Company’s private company investment would be classified as a Level 3 financial instrument within the fair value hierarchy based on the nature of the fair value inputs. Any adjustments to the carrying value are recognized in other non-operating (income) expense, net in the consolidated statements of operations. As of December 31, 2021, the carrying value of the Company's private company investment at cost was $ 3.6 million and was classified as other asset on the consolidated balance sheet as this investment did not have a stated contractual maturity date. There were no impairments or observable price changes during the year ended December 31, 2021. In December 2022, the Company sold its private company investment for a cash consideration of $ 6.8 million which was subsequently received in January 2023. As such, the Company included the expected proceeds from the sale as a receivable in prepaid expenses and other current assets in the consolidated balance sheet as of December 31, 2022, and recorded a gain on the sale within other non-operating (income) expense in the consolidated statement of operations for the year ended December 31, 2022. As of December 31, 2022, the Company had no private company investments. Impairment of Investments The Company periodically reviews its investments for impairment. If the Company concludes that if any of these investments are impaired, the Company determines whether such impairment is other-than-temporary. Factors considered to make such determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and the Company’s intent to sell. For debt securities, the Company also considers whether (1) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result of credit losses. If the investment is considered to be other-than-temporarily impaired, the Company will record the investment at fair value by recognizing an impairment within other non-operating (income) expense in the consolidated statements of operations and establishing a new carrying value for the investment. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures that improve an asset or extend its estimated useful life are capitalized. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Capitalized Internal-Use Software The Company incurs development costs relating to its online platform as well as other software solely for internal-use. Costs relating to the planning and post‑implementation phases of development are expensed as incurred. Costs incurred in the application development phase are capitalized and included in capitalized internal-use software, net and amortized over their estimated useful life, generally three years . Maintenance and training costs are expensed as incurred. Leases At contract inception, the Company performs an evaluation to determine if it is conveyed the right to control the use of identified property, plant or equipment. To the extent such rights of control are conveyed, the Company further makes an assessment as to the applicable lease classification. The Company leases facilities and equipment, which are generally accounted for as operating leases (as further described in Note 10). Operating Leases Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities, current, and operating lease liabilities, non-current, in the consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating ROU assets and lease liabilities are recognized at the lease inception date based on the present value of lease payments over the lease term discounted based on the more readily determinable of (i) the rate implicit in the lease or (ii) the Company’s incremental borrowing rate (which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease). Because the Company’s operating leases generally do not provide an implicit rate, an analysis of publicly traded debt securities of companies with credit and financial profiles similar to the Company’s is used to estimate the incremental borrowing rate. The Company’s operating lease terms have generally ranged between 1 year to 12 years and may include options to extend the lease term, generally at market rates. The Company’s ROU assets are measured based on the corresponding operating lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives under the lease. The Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options at commencement. The Company does not allocate consideration between lease and non-lease components. Lease expense is recognized on a straight-line basis over the lease term. For short-term leases, the Company records lease expense in its consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred. Subleases The Company additionally has entered into subleases for unoccupied leased office space. To the extent there were losses associated with the sublease, they were recognized in the period the sublease was executed. Gains are recognized over the sublease term. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded in other non-operating (income) expense. The Company’s sublease agreements do not contain any variable payments, material residual value guarantees or material restrictive covenants. Restructuring From time to time, the Company may implement a management-approved restructuring plan to improve efficiencies across the organization, reduce its cost structure, and/or better align its resources with the Company’s strategy. Restructuring charges can include severance costs to eliminate a specified number of employees, expenses to vacate real estate and consolidate operations, contract cancellation costs, impairment of certain assets, and other related costs. Costs associated with a restructuring plan are recognized and measured at fair value in the consolidated statement of operations in the period in which the liability is incurred. These restructuring initiatives may require the Company to make estimates in several areas including: (i) expenses for employee severance and other separation costs; and (ii) realizable values of assets made redundant, obsolete, or excessive. Legal and Other Contingencies The Company accrues a liability for either claims arising in the ordinary course of business, assessments resulting from non-income-based audits or litigation when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. See Note 11 for additional information pertaining to legal and other contingencies. Liability for Sabbatical Leave The Company provides an employee sabbatical leave program accounted for in accordance with ASC 710, Compensated Absences . As of December 31, 2022, the accrued balance was $ 5.9 million ( $ 2.9 million included in accrued compensation and $ 3.0 million in other non-current liabilities). As of December 31, 2021, the accrued balance was $ 6.5 million ( $ 3.1 million included in accrued compensation and $ 3.4 million in other non-current liabilities). Advertising and Promotion Costs Expenses related to advertising, marketing and promotion of the Company’s product offerings are expensed as incurred. These costs mainly consist of search engine marketing related costs. The Company incurred $ 70.5 million, $ 68.5 million and $ 44.6 million during the years ended December 31, 2022, 2021 and 2020 , respectively, which are included in sales and marketing expenses in the consolidated statements of operations. Other Non-Operating (Income) Expense Other non-operating (income) expense, net consists primarily of interest income, net foreign currency exchange (gains) losses, gain on sale of private company investments, net realized gains and losses related to investments, and other. The components of other non-operating (income) expense recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Interest Income $ ( 3,263 ) $ ( 556 ) $ ( 780 ) Foreign currency (gains) losses, net 2,045 1,077 225 Gain on sale of private company investments ( 3,202 ) — ( 1,001 ) Other (income) expense, net ( 93 ) 413 120 Other non-operating (income) expense, net $ ( 4,513 ) $ 934 $ ( 1,436 ) Income Taxes The Company accounts for income taxes using the asset and liability method. ASC 740, Accounting for Income Taxes, requires the recognition of deferred tax assets and liabilities based upon the temporary differences between the financial reporting and tax bases of assets and liabilities and using enacted rates in effect for the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce the deferred tax assets when it is more likely than not that a portion or all of the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company records uncertain tax positions on the basis of a two-step process in which: (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of technical merits of the position, and (2) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement with the related tax authority. From time to time, the Company engages in certain intercompany transactions and legal entity restructurings. The Company considers many factors when evaluating these transactions, including the alignment of their corporate structure with their organizational objectives and the operational and tax efficiency of their corporate structure, as well as the long-term cash flows and cash needs of its business. These transactions may impact the Company’s overall tax rate and/or result in additional cash tax payments. The impact in any period may be significant. These transactions may be complex and the impact of such transactions on future periods may be difficult to estimate. Accounting Pronouncements Not Yet Adopted Reference Rate Reform : In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the LIBOR and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. In December 2022, the FASB extended the effective date through December 31, 2024. The Company’s 2018 Credit Facility has clauses to facilitate the use of a successor rate index agreed to by lenders. As such, the Company does not expect this update will have a material impact on its consolidated financial statements and related disclosures . |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Deferred Revenue | 3. Revenue and Deferred Revenue Disaggregated revenue Revenue by sales channel was as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Self-serve revenue $ 299,592 $ 301,097 $ 267,703 Sales-assisted revenue 181,325 142,689 107,907 Revenue $ 480,917 $ 443,786 $ 375,610 Self-serve revenues are generated from products purchased independently through our website. Sales-assisted revenues are generated from products sold to organizations through our sales team. In addition, see Note 4 for information regarding the Company’s revenue by geographic area. Deferred revenue The Company recognized into revenue $ 197.0 million, $ 167.1 million and $ 137.6 million during the years ended December 31, 2022, 2021 and 2020, respectively, that was included in the deferred revenue balances at the beginning of each respective period. Transaction price allocated to the remaining performance obligations As of December 31, 2022, future estimated revenue related to non-cancelable performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period was $ 238.8 million . The substantial majority of the unsatisfied performance obligations will be satisfied over the next twelve months . |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Geographical Information | 4. Geographical Information Revenue by geography is generally based on the billing address of the customer. For purposes of its geographic revenue disclosure, the Company defines a customer as an organization. An organization may consist of an individual paying user, multiple paying users within an organization or the organization itself. The following table sets forth the percentage of revenue by geographic area: Year Ended December 31, 2022 2021 2020 United States 65 % 64 % 65 % Rest of world 35 % 36 % 35 % No other country outside of the United States comprised 10% or greater of the Company’s revenue for each of the years ended December 31, 2022, 2021 and 2020. As of December 31, 2022 and 2021, the following table summarizes the percentage of the Company’s long-lived assets by geographic area: Operating lease ROU assets Acquisition intangibles, net Property and equipment, net December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 United States 94 % 94 % 64 % 56 % 9 % 57 % Canada 4 % 2 % — * 81 % 38 % Ireland 2 % 2 % 36 % 28 % 2 % 1 % Netherlands * 2 % — 15 % 8 % 4 % Rest of world — * — 1 % — * * less than 1% |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5. Cash and Cash Equivalents As of December 31, 2022 and 2021, the following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of such amounts shown in the consolidated statements of cash flows: (in thousands) December 31, 2022 December 31, 2021 Cash and cash equivalents $ 202,816 $ 305,525 Restricted cash included in prepaid expenses and other current assets 442 271 Restricted cash included in other assets — 325 Total cash, cash equivalents and restricted cash $ 203,258 $ 306,121 Included in cash and cash equivalents are cash in transit from payment processors for credit and debit card transactions of $ 1.1 million and $ 1.1 million as of December 31, 2022 and 2021 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based on the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which directly relate to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1 – Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of the Company’s financial instruments, which generally include cash equivalents, accounts receivable and accounts payable, approximate their fair values due to their short maturities. Based on borrowing rates currently available to the Company for debt with similar terms and consideration of default and credit risk, the fair value of the Company’s debt was approximately $ 180.1 million and $ 211.8 million as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, respectively, the Company did not have any significant financial instruments accounted for pursuant to ASC 820, Fair Value Measurement . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 7. Property and Equipment As of December 31, 2022 and 2021, property and equipment consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Computer equipment $ 7,492 $ 8,017 Leasehold improvements 45,710 54,500 Furniture, fixtures, and other assets 7,565 10,577 Gross property and equipment 60,767 73,094 Less: Accumulated depreciation ( 59,761 ) ( 67,652 ) Property and equipment, net $ 1,006 $ 5,442 Depreciation expense was $ 3.6 million, $ 13.2 million and $ 16.2 million, during the years ended December 31, 2022, 2021 and 2020, respectively. In May 2022, in connection with the March 2022 Restructuring Plan, the Company executed a partial termination to reduce the leased space for its San Mateo, CA headquarters. As a result, the Company impaired certain leasehold improvements associated with the vacated space, which is included in restructuring in the consolidated statement of operations for the year ended December 31, 2022 . See Note 15 for additional information. |
Acquisitions, Intangible Assets
Acquisitions, Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions Intangible Assets And Goodwill [Abstract] | |
Acquisitions, Intangible Assets and Goodwill | 8. Acquisitions, Intangible Assets and Goodwill Acquisition intangible assets, net As of December 31, 2022 and 2021, intangible assets, net consisted of the following: December 31, 2022 December 31, 2021 (in thousands) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 10,100 $ ( 4,944 ) $ 5,156 $ 20,426 $ ( 12,927 ) $ 7,499 Trade name 900 ( 900 ) — 2,125 ( 1,094 ) 1,031 Developed technology — — — 17,074 ( 14,831 ) 2,243 Acquisition intangible assets, net $ 11,000 $ ( 5,844 ) $ 5,156 $ 39,625 $ ( 28,852 ) $ 10,773 Amortization expense was $ 5.6 million, $ 10.1 million and $ 12.6 million during the years ended December 31, 2022, 2021 and 2020, respectively. The decrease in gross acquisition intangible assets is due to the removal of $ 26.8 million of fully amortized acquisition intangible assets during the fourth quarter of 2022. In connection with the March 2022 Restructuring Plan, the Company simplified its brand positioning. As a result, the Company concluded that the acquired trade name from a prior acquisition had no future economic benefit beyond that date and has accelerated the amortization of the related intangible, which is included in restructuring in the consolidated statement of operations. See Note 15 for additional information. Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Balance as of December 31, 2020 $ 468,764 Foreign currency translation ( 5,028 ) Balance as of December 31, 2021 $ 463,736 Foreign currency translation ( 3,919 ) Balance as of December 31, 2022 $ 459,817 Capitalized internal-use software As of December 31, 2022 and 2021, capitalized internal-use software consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Gross capitalized internal-use software $ 62,249 $ 51,395 Less: Accumulated amortization ( 32,654 ) ( 23,237 ) Capitalized internal-use software, net $ 29,595 $ 28,158 Amortization expense related to capitalized internal-use software was $ 9.4 million, $ 11.9 million and $ 14.2 million during the years ended December 31, 2022, 2021 and 2020, respectively, and is included in cost of revenue in the consolidated statements of operations. Future amortization expense As of December 31, 2022, future amortization expense by year is expected to be as follows: (in thousands) Capitalized Acquisition 2023 $ 4,735 $ 1,483 2024 2,203 1,483 2025 697 1,390 2026 — 800 Total amortization expense $ 7,635 $ 5,156 Future capitalized internal-use software amortization excludes $ 22.0 million of costs which are currently in the development phase. |
Stockholders' Equity and Employ
Stockholders' Equity and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders Equity And Employee Benefit Plans [Abstract] | |
Stockholders Equity and Employee Benefit Plans | 9. Stockholders’ Equity and Employee Benefit Plans Common stock and preferred stock Pursuant to the Company’s Fifth Amended and Restated Certificate of Incorporation, as amended, the Company stockholders authorized the issuance of up to 900,000,000 shares, consisting of 800,000,000 shares of common stock at par value of $ 0.00001 per share and 100,000,000 shares of preferred stock at par value $ 0.00001 per share. Common Stock Repurchases On February 26, 2022, the Company's board of directors authorized a share repurchase program to repurchase up to $ 200.0 million of the Company’s common stock in the open market or in privately negotiated transactions (through 10b5-1 trading plans or otherwise). The share repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended at any time at the Company’s discretion, and the share repurchase program does not have an expiration date. The actual timing, number and value of shares repurchased is determined by management at its discretion and depends on a number of factors, including the market price of the Company’s stock, general business and market conditions, and other investment opportunities. During the year ended December 31, 2022, the Company repurchased approximately 6.6 million shares of common stock for approximately $ 83.5 million. As of December 31, 2022, the Company’s remaining share repurchase authorization was approximately $ 116.5 million. Equity Incentive Plans The Company sponsors the 2018 Equity Incentive Plan (the “2018 Plan”), which was approved by stockholders on September 5, 2018. Under the 2018 Plan, the board of directors or a committee of the board of directors, may grant incentive and nonqualified stock options, stock appreciation rights, restricted or unrestricted stock awards, restricted stock units (“RSUs”), phantom stock, performance awards or other stock-based awards to employees, directors and other individuals providing services to the Company. The purpose of the 2018 Plan is to promote the long-term growth and profitability of the Company by (i) providing employees with incentives to improve stockholder value and to contribute to the growth and financial success of the Company through their future services, and (ii) enabling the Company to attract, retain and reward the best-available persons. The options granted under the 2018 Plan, may be granted at a price not less than the fair market value on the grant date. The board of directors, or a committee of the board of directors, has granted options with an exercise price at fair value on the grant date. Grants of time-based awards generally vest over a four-year period for new hires and over a three-year period for subsequent grants to existing employees. Options expire as determined by the board of directors, or committee of the board of directors, but not more than ten years after the date of the grant. The 2018 Plan provides for annual increases in the number of shares available for issuance on the first day of each year equal to the lesser of (i) 12,500,000 shares, (ii) 5 % of the outstanding shares on the last date of the preceding year, and (iii) a lower amount determined by the plan administrator. As of December 31, 2022, 18,575,514 shares of common stock remain available for grant under the 2018 Plan. The following is a summary of restricted stock units for the year ended December 31, 2022: Restricted Stock Units Number of Weighted Average Weighted Average Unvested at December 31, 2021 5,996,059 $ 21.33 1.1 Granted 8,646,868 $ 13.56 Vested ( 4,002,985 ) $ 18.91 Forfeited/cancelled ( 2,616,769 ) $ 18.54 Unvested at December 31, 2022 8,023,173 $ 15.07 1.2 The following is a summary of stock options for the year ended December 31, 2022: Stock Options Number of Weighted Average Aggregate Weighted Average (in years) Outstanding at December 31, 2021 14,527,520 $ 17.11 $ 61,227 6.3 Granted 940,000 $ 7.14 Exercised ( 206,132 ) $ 13.71 Forfeited ( 868,071 ) $ 19.57 Expired ( 1,259,871 ) $ 17.64 Outstanding, vested and expected to vest at December 31, 2022 13,133,446 $ 16.24 $ — 4.2 Vested and exercisable at December 31, 2022 10,921,225 $ 16.50 $ — 3.9 The following is a summary of restricted stock awards for the year ended December 31, 2022: Restricted Stock Awards Number of Weighted Average Weighted Average Unvested at December 31, 2021 241,765 $ 24.17 2.0 Granted 1,392,871 $ 16.72 Vested ( 340,235 ) $ 18.40 Forfeited/cancelled ( 404,182 ) $ 18.22 Unvested at December 31, 2022 890,219 $ 17.43 1.9 On March 13, 2022, the Company granted performance-based restricted stock awards (“Executive RSA Grant”) to its Chief Executive Officer whereby the number of shares that become eligible to vest under the performance-based Executive RSA Grant is based on a market condition of the Company's relative total shareholder return (“TSR”) performance as compared to the TSR of the S&P Software & Services Select Industry Index over the scheduled performance period. The performance period commenced on the grant date and will end on December 31, 2024 (the “Three-Year Performance Period”), with additional performance periods that commenced on the grant date and (i) will end on December 31, 2022 (the “One-Year Performance Period”), and (ii) will end on December 31, 2023 (the “Two-Year Performance Period”). For purposes of measuring TSR, the starting value of the Company's common stock is its average closing price for the 60 trading days immediately following the grant date and the ending values for the One, Two and Three-Year Performance Periods is its average closing price for the 60 trading days immediately preceding the end of each of the performance periods. The potential payouts under the performance-based Executive RSA Grant vary from zero for performance below the threshold performance metric to 200 % of the target performance-based Executive RSA Grant for performance above the maximum performance metric. The grant-date fair value of the award is $ 3.4 million, which will be recognized using the accelerated attribution method over the performance period. The grant-date fair value was determined using the Monte Carlo valuation method, which incorporates various assumptions including expected stock price volatility, contractual term, dividend yield, and stock price at grant date. During the year ended December 31, 2022, the Company recognized $ 1.7 million of stock-based compensation expense related to this award, which is included in general and administrative expense in the consolidated statement of operations. Fair Value of Stock Options The Company used the Black-Scholes-Merton option pricing model to estimate the fair value of time-based stock options granted using the following weighted-average assumptions: Year Ended December 31, 2022 2021 2020 Expected life (in years) 2.0 5.8 5.8 Risk-free interest rate 3.4 % 0.8 % 1.2 % Volatility 53 % 52 % 49 % Dividend yield — % — % — % Fair value of common stock $ 7.14 $ 21.51 $ 21.46 2018 Employee Stock Purchase Plan, As Amended The Company sponsors the 2018 Employee Stock Purchase Plan, as amended (the “ESPP”), which was approved by stockholders on September 5, 2018. The ESPP provides for annual increases in the number of shares available for issuance on the first day of each year equal to the lesser of (i) 5,346,888 shares, (ii) 1 % of the outstanding shares on the last date of the preceding year, and (iii) a lower amount determined by the plan administrator. The ESPP provides for 24 -month offering periods beginning May 22 and November 22 of each year, and each offering period will consist of four six-month purchase periods, subject to a reset provision. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85 % of the lesser of (1) the fair market value of the Company’s common stock on the offering date, or (2) the fair market value of its common stock on the purchase date. Under the reset provision, if the closing stock price on the purchase date falls below the closing stock price on the offering date of an ongoing offering period, the ongoing offering terminates immediately following the purchase of ESPP shares on the purchase date and participants in the terminated offering are automatically enrolled in the new offering period (“ESPP reset”), resulting in a modification charge to be recognized over the new offering period. During the year ended December 31, 2022 , there were ESPP resets that resulted in a total modification charge of $ 12.2 million, which is being recognized over the new offering period ending in November 2024. During the year ended December 31, 2022, the Company’s employees purchased 711,771 shares of its common stock under the ESPP with a weighted average purchase price of $ 7.85 per share and aggregate proceeds to the Company of $ 5.6 million. During the year ended December 31, 2021, the Company’s employees purchased 469,721 shares of its common stock under the ESPP with a weighted average purchase price of $ 15.87 per share and aggregate proceeds to the Company of $ 7.5 million. As of December 31, 2022, 5,984,411 shares of common stock remain available for grant under the ESPP. The Company used the Black-Scholes-Merton option pricing model to estimate the fair value of ESPP purchase rights granted using the following weighted-average assumptions: Year Ended December 31, 2022 2021 2020 Expected life (in years) 1.3 1.3 1.3 Risk-free interest rate 3.0 % 0.1 % 0.1 % Volatility 55 % 53 % 56 % Dividend yield — % — % — % Fair value of common stock $ 10.52 $ 19.12 $ 20.42 Stock-Based Compensation Expense Stock-based compensation expense recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Cost of revenue $ 6,164 $ 5,862 $ 4,450 Research and development 34,711 40,821 30,693 Sales and marketing 22,860 23,585 19,707 General and administrative 32,196 28,296 24,317 Restructuring 2,761 — — Stock-based compensation expense, net of amounts capitalized 98,692 98,564 79,167 Capitalized stock-based compensation expense 2,395 2,213 2,243 Stock-based compensation expense $ 101,087 $ 100,777 $ 81,410 During the first quarter of 2022, the Company modified the terms of approximately 1.2 million stock options and 0.1 million restricted stock units and awards in connection with the March 2022 Restructuring Plan (see Note 15 for additional discussion). The modification resulted in additional stock-based compensation expense of $ 2.8 million which was fully recognized at the modification date as restructuring costs in the consolidated statement of operations for the year ended December 31, 2022 . As of December 31, 2022, unamortized stock-based compensation was as follows: Unrecognized Weighted (in years) Restricted stock units $ 110,623 2.1 Stock options 8,485 1.2 Restricted stock awards 9,901 2.1 ESPP 14,057 1.9 Total unrecognized stock-based compensation $ 143,066 401(k) Plan In the United States, the Company offers its employees a defined contribution plan that qualifies as a deferred salary arrangement under Section 401 of the U.S. Internal Revenue Code (“401(k) Plan”). Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings not to exceed the maximum amount allowed by the Internal Revenue Service. The Company currently provides a matching contribution of 25 % of deferrals for eligible employees. Compensation expense for the Company's matching contributions was $ 5.1 million, $ 4.9 million and $ 4.2 million during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 10. Leases The Company leases certain equipment and facilities under operating leases which expire at various dates through 2028 . The Company’s operating lease costs were as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Operating lease cost (gross lease expense) $ 10,721 $ 13,141 $ 13,377 Variable lease costs 4,487 4,737 5,636 Sublease income (including reimbursed expenses) 2,277 4,817 5,303 During the years ended December 31, 2022, 2021 and 2020, the Company’s short-term lease costs were nominal. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The weighted average remaining operating lease term was 5.7 years and 6.7 years as of December 31, 2022 and 2021, respectively. The weighted average discount rate used to estimate operating lease liabilities was 7.1 % and 7.5 % as of December 31, 2022 and 2021, respectively. In May 2022, in connection with the March 2022 Restructuring Plan, the Company executed a partial termination to reduce the leased space for its San Mateo, CA headquarters. The amendment resulted in the reduction in total future undiscounted fixed minimum lease cost payments and associated right-of-use assets. See Note 15 for additional information. As of December 31, 2022, maturities of operating lease liabilities and sublease income, by year, are as follows: (in thousands) Operating Lease Payments Sublease 2023 $ 11,143 $ ( 1,781 ) 2024 9,599 ( 372 ) 2025 9,243 — 2026 9,515 — 2027 9,787 — Thereafter 9,363 — Gross lease payments (income) $ 58,650 $ ( 2,153 ) Less: Imputed interest 10,603 Less: Tenant improvement receivables 417 Total operating lease liabilities $ 47,630 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Non-Cancellable Purchase Commitments The Company enters into commitments under non-cancellable purchase orders for the procurement of goods and services in the ordinary course of business. As of December 31, 2022, expected payments under such commitments are as follows (in thousands): 2023 $ 18,748 2024 7,289 2025 1,521 2026 49 2027 3 Total purchase commitments $ 27,610 Letters of Credit The Company has a standby letter of credit for $ 1.0 million which is issued in connection with the San Mateo headquarters. Legal Matters From time to time, the Company is subject to legal proceedings, claims and litigation arising in the ordinary course of business, which may include, but are not limited to, patent and privacy matters, labor and employment claims, class action lawsuits, as well as inquiries, investigations, audits and other regulatory proceedings. Periodically, the Company evaluates developments in its legal matters and records a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both the likelihood of there being, and the estimated amount of, a loss related to such matters, and the Company's judgment may be incorrect. There are currently no legal matters or claims that have arisen from the normal course of business that the Company believes would have a material impact on the Company’s financial position, results of operations or cash flows. Warranties and Indemnification The Company’s subscription services are generally warranted to perform materially in accordance with the Company’s online help documentation under normal use and circumstances. Additionally, the Company’s arrangements generally include provisions for indemnifying customers against liabilities if its subscription services infringe a third party’s intellectual property rights. Furthermore, the Company may also incur liabilities if it breaches the security or confidentiality obligations in its arrangements. To date, the Company has not incurred significant costs and has not accrued a liability in the accompanying consolidated financial statements as a result of these obligations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 12. Debt As of December 31, 2022 and 2021, the carrying values of debt were as follows: December 31, 2022 December 31, 2021 Issuance Maturity Amount (in thousands) Effective Amount (in thousands) Effective 2018 Refinancing Facility Agreement October 2018 October 2025 $ 185,650 3.9 % - 8.1 % $ 212,850 3.8 % - 3.9 % Less: Unamortized issuance discount and issuance costs, net 834 1,134 Less: Debt, current 1,900 1,900 Debt, non-current $ 182,916 $ 209,816 In October 2018, the Company entered into a Refinancing Facility Agreement (“2018 Credit Facility”), comprising a $ 220.0 million term loan (the “Term Loan”) and $ 75.0 million revolving credit facility. Loans under the 2018 Credit Facility accrue interest based upon, at the Company’s option, either at an alternate base interest rate (“ABR”) or a Eurocurrency rate, plus, in each case, an applicable margin. The applicable margin for the Term Loan is 2.75 % in the case of a ABR loan and 3.75 % in the case of a Eurocurrency loan, and the applicable margin for the revolving loan ranges from 0.75 % to 1.50 % in the case of a ABR loan and 1.75 % to 2.50 % in the case of a Eurocurrency loan, and is based on the Company’s leverage ratio. The Company will make quarterly principal payments of $ 550,000 on the Term Loan with any remaining principal amounts due on October 10, 2025 . The principal amount on the revolving credit facility is due and all revolver commitments terminate on October 10, 2023 . On March 2, 2022, the Company repaid $ 25.0 million of principal under the Term Loan, which was in accordance with the prepayment terms of the 2018 Credit Facility. The Company has $ 74.0 million of borrowing available under the line of credit portion of the 2018 Credit Facility. The Company’s obligations under the 2018 Credit Facility are guaranteed by certain of its subsidiaries and secured by liens on substantially all of the assets of the Company and such subsidiaries. The 2018 Credit Facility contains financial, affirmative and negative covenants that, if violated, may require the Company to pay down the loans earlier than the stated maturity dates with higher interest rates. As of December 31, 2022, the Company was compliant with all of its debt covenant requirements in the 2018 Credit Facility. The Company believes that it will continue to comply with the terms of the loan agreements through the stated maturity dates. However, if the Company’s projections do not materialize, the Company may require additional equity or debt financing. There can be no assurance that additional financing, if required, will be available on terms satisfactory to the Company. As of December 31, 2022, future minimum payment obligations of principal amounts due by year under the 2018 Credit Facility were as follows (in thousands): 2023 $ 2,200 2024 2,200 2025 181,250 Total principal outstanding $ 185,650 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Loss from operations before income taxes is categorized geographically as follows: Year Ended December 31, (in thousands) 2022 2021 2020 United States $ ( 86,035 ) $ ( 101,742 ) $ ( 46,409 ) Foreign ( 2,265 ) ( 21,025 ) ( 43,993 ) Total loss from operations before income taxes $ ( 88,300 ) $ ( 122,767 ) $ ( 90,402 ) The provision for (benefit from) income taxes consisted of the following: Year Ended December 31, (in thousands) 2022 2021 2020 Current income tax expense: Federal $ — $ — $ — State 343 119 28 Foreign 834 695 337 Total current income tax expense 1,177 814 365 Deferred income tax expense: Federal 300 318 324 State 350 261 3 Foreign ( 236 ) ( 911 ) 487 Total deferred income tax expense (benefit) 414 ( 332 ) 814 Total provision for income taxes $ 1,591 $ 482 $ 1,179 A reconciliation of the Company’s effective tax rate to the federal statutory rate is as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Tax at federal statutory rate $ ( 18,543 ) $ ( 25,781 ) $ ( 18,984 ) State income tax, net of federal tax benefit ( 2,517 ) ( 6,517 ) ( 4,468 ) Foreign tax rate differential 1,062 3,450 10,009 Stock-based compensation 11,870 1,305 ( 3,429 ) Research and development credits ( 2,002 ) ( 3,752 ) ( 3,066 ) Other 1,111 387 492 Change in valuation allowance 10,610 31,390 20,625 Total provision for income taxes $ 1,591 $ 482 $ 1,179 As of December 31, 2022 and 2021, the tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows: (in thousands) December 31, 2022 December 31, 2021 Deferred tax assets: Net operating losses $ 99,689 $ 96,340 Tax credits 44,370 43,696 Stock-based compensation 21,994 21,469 Accrued compensation and related expenses 1,829 3,690 Lease liabilities 12,468 19,780 Financing related 15,337 13,519 Intangible assets 74,962 75,059 Depreciation and amortization 6,773 4,766 Capitalized research and development expenses 10,649 — Other 1,698 5,051 Total deferred tax assets: 289,769 283,370 Valuation allowance ( 248,720 ) ( 239,045 ) Total deferred tax assets, net of valuation allowance: 41,049 44,325 Deferred tax liabilities: Goodwill ( 32,523 ) ( 29,638 ) Right-of-use assets ( 11,312 ) ( 17,060 ) Total deferred tax liabilities: ( 43,835 ) ( 46,698 ) Total net deferred tax liabilities: $ ( 2,786 ) $ ( 2,373 ) As of December 31, 2022 , the Company had federal and state net operating losses of $ 353.1 million and $ 215.7 million, respectively. Unutilized federal and state net operating loss carryforwards will continue to expire in 2023 and onwards. As of December 31, 2022 , the Company had federal research and development credits of $ 27.5 million which will begin to expire in 2034 ; state research and development credits of $ 23.6 million which will carryforward indefinitely; and foreign research and development credits of $ 2.1 million which will begin to expire in 2039 . Assessing the realizability of the Company’s deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. The Company has evaluated the criteria for realization of deferred tax assets and, as a result, has determined that certain deferred tax assets are not realizable on a more likely than not basis. Accordingly, the Company recorded a valuation allowance of $ 248.7 million, $ 239.0 million, and $ 201.8 million as of December 31, 2022 , 2021 and 2020, respectively. The $ 9.7 million increase in the 2022 valuation allowance was primarily attributable to an increase in deferred tax assets related to capitalized research and development cost. The $ 37.2 million increase in the 2021 valuation allowance and the $ 26.9 million increase in the 2020 valuation allowance were primarily attributable to an increase in deferred tax assets related to U.S. research and development credits and net operating losses carried forward. Internal Revenue Code Section 382 and similar state provisions limit the use of net operating losses and tax credit carryforwards in certain situations where changes occur in the stock ownership of a company. In the event the Company has a change of ownership, utilization of net operating losses and tax credit carryforwards may be limited. Certain acquired net operating losses and tax credits are subject to limitations. Net operating losses and tax credits have been reduced to reflect the amounts that can be utilized to reduce taxes payable in the future. The Company does not provide deferred taxes on unremitted earnings of its foreign subsidiaries as the Company intends to indefinitely reinvest such earnings. The Company recorded cumulative unrecognized tax benefits pursuant to ASC 740-10 in the amount of $ 9.3 million, $ 9.9 million and $ 6.9 million during the years ended December 31, 2022, 2021 and 2020, respectively. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes. Amounts accrued for interest and penalties were not significant as of December 31, 2022 and 2021, respectively or during years ended December 31, 2022, 2021 and 2020, respectively. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the audits cannot be predicted with certainty, if any issues addressed in the Company's tax audits are resolved in a manner inconsistent with management's expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. The Tax Cuts and Jobs Act of 2017 made a significant change to Section 174 that went into effect for taxable years beginning after December 31, 2021, requiring companies to capitalize and amortize Section 174 expenses over a period of five years if conducted in the U.S. or 15 years if associated outside of the U.S. Although the implications apply to the Company, this provision is not expected to have a significant impact on the Company’s consolidated financial statements. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion invalidating the regulations relating to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued by the Tax Court in December 2015. The Internal Revenue Service appealed the Tax Court decision in June 2016. On July 24, 2018, the Ninth Circuit Federal Court issued a decision that was subsequently withdrawn and a reconstituted panel conferred on the appeal. On June 7, 2019, the Ninth Circuit Federal Court panel upheld the cost-sharing regulations. On July 22, 2019, Intel Corporation, which acquired Altera Corp., filed a request for rehearing of the case by the entire Ninth Circuit Federal Court, which was denied on November 11, 2019. On February 10, 2020, Intel Corporation filed a petition with the United States Supreme Court which was denied on June 22, 2020, therefore validating the Ninth Circuit Federal Court decision to uphold the cost sharing regulations. Upon resolution of all appeals, the Company recorded a cumulative reduction to its deferred tax assets related to net operating losses of $ 9.0 million, offset by a corresponding valuation allowance release. In addition, the Company has commenced including stock-based compensation in its cost share allocation. Due to the full valuation allowance the Company has against its deferred tax assets in the United States and Ireland, the change does not have a material impact to its effective tax rate and income tax expense. Changes in balances during 2022 and 2021 and ending balances as of December 31, 2022 and 2021 in gross unrecognized tax benefits were as follows: (in thousands) December 31, 2022 December 31, 2021 Beginning balances $ 9,902 $ 6,867 Increases related to tax positions taken during a prior year — 387 Increases related to tax positions taken during the current year 737 2,648 Decreases related to tax positions taken during a prior year ( 1,357 ) — Decreases related to tax settlements with taxing authorities — — Ending balances $ 9,282 $ 9,902 The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly increase or decrease within the next 12 months. None of the unrecognized tax benefits, if recognized, would affect the income tax provision. The Company files income tax returns in the U.S. federal, state, and certain foreign jurisdictions. The Company’s U.S federal income tax return years 2015 through 2022 remain open to examination. The Company’s respective state and foreign income tax return years 2014 through 2022 remain open to examination. There are no income tax audits currently in progress. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 14. Net Loss Per Share Basic earnings per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period which includes potential dilutive common shares assuming the dilutive effect of outstanding restricted stock units, stock options, restricted stock awards, and shares issuable under the ESPP calculated using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31, (in thousands, except per share amounts) 2022 2021 2020 Numerator: Net loss $ ( 89,891 ) $ ( 123,249 ) $ ( 91,581 ) Denominator: Weighted-average shares outstanding - basic and diluted 148,476 147,045 139,887 Net loss per common share - basic and diluted: $ ( 0.61 ) $ ( 0.84 ) $ ( 0.65 ) The Company was in a loss position for the periods presented. Accordingly, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Prior to application of the treasury stock method, share equivalents (comprising of restricted stock units, stock options, restricted stock awards, and shares issuable under the ESPP) excluded from the calculations of diluted net loss per share were 24.2 million, 21.4 million and 23.0 million during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | 15. Restructuring Costs March 2022 Restructuring Plan In March 2022, the Company implemented the March 2022 Restructuring Plan to streamline its business, increase operating efficiency, and reduce costs over the long-term after the termination of its proposed merger with Zendesk. During the year ended December 31, 2022 , the Company incurred costs of approximately $ 2.4 million associated with the March 2022 Restructuring Plan, which are primarily comprised of employee severance, stock-based compensation expense, the partial termination of its San Mateo, CA headquarters lease and related leasehold improvement impairment costs, and other contract termination costs related to the Company's decision to abandon its future office expansion plans. Additionally, the Company has streamlined its brand positioning and will focus on the SurveyMonkey and Momentive brands. As such, it has determined that its brand-related intangibles from a prior acquisition has no future economic benefit and has accelerated the amortization of such through the end of 2022, when the Company has discontinued those brand names. As part of the restructuring plan, the Company partially terminated the lease for its San Mateo, CA headquarters, which resulted in an estimated reduction in total future undiscounted fixed lease cost payments of approximately $ 26.9 million as of the lease amendment date in May 2022. The Company also recorded leasehold improvement impairment costs as the Company estimates that the leasehold improvements at the vacated headquarters would not be recoverable. Substantially all of the costs related to the March 2022 Restructuring Plan has been recognized as of December 31, 2022. October 2022 Restructuring Plan On October 10, 2022, the Company committed to a plan designed to improve operating margin and create efficiencies in its go-to-market motion and in other areas throughout the Company (the “October 2022 Restructuring Plan”). The October 2022 Restructuring Plan resulted in a reduction of the Company’s workforce by approximately 11 %. The total estimated restructuring costs associated with the October 2022 Restructuring Plan was approximately $ 4.5 million, consisting of cash expenditures for employee severance, employee benefits, and related facilitation costs, and was substantially recognized during the fourth quarter of 2022. The restructuring plans were subject to applicable laws and consultation processes as part of the Company's strategic plan to reduce costs and improve efficiencies. In connection with these actions, the Company incurred the following pre-tax costs for the year ended December 31, 2022 (in thousands): Employee severance $ 7,224 Gain on lease modification ( 6,370 ) Impairment of property and equipment 838 Stock-based compensation 2,761 Contract termination and other costs 1,660 Amortization of intangible assets 450 Total restructuring costs $ 6,563 Restructuring costs included $ 0.7 million recorded in accrued compensation and accrued expenses and other current liabilities lines in the consolidated balance sheet as of December 31, 2022. The majority of the amounts accrued pertain to severance costs which will be paid through the first quarter of 2023. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On February 15, 2023, the Company committed to a plan designed to improve operating margin (the “February 2023 Restructuring Plan”). The February 2023 Restructuring Plan includes a reduction of the Company’s workforce by approximately 14 %. The Company estimates that it will incur approximately $ 7.0 million to $ 9.0 million in charges related to employee severance, employee benefits, and related facilitation costs in connection with the February 2023 Restructuring Plan. The Company expects that the majority of these costs will be incurred and paid in the first quarter of 2023. Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process beyond the first quarter of 2023 in certain countries. The charges that the Company expects to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the results of operations of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. Certain other prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect our results of operations or operating, investing and financing cash flows. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods covered by the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates due to a variety of factors. The Company is not aware of any specific event or circumstances that would require an update to its estimates, judgments or assumptions or a revision to the carrying value of its assets or liabilities as of the date of issuance of its financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable. The Company’s most significant estimates and use of judgment involve the determination of distinct performance obligations in enterprise customer contracts, the valuation of acquired goodwill and intangibles from acquisitions and the fair value of goodwill, right-of-use assets and other long-lived assets when evaluating for impairments. |
Segment Information | Segment Information The Company operates as a single operating segment. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer, who reviews the Company’s operating results on a consolidated basis in order to make decisions about allocating resources and assessing performance for the entire company. The CODM uses one measure of profitability and does not segment the Company’s business for internal reporting. See Note 4 for additional information regarding the Company’s revenue and long-lived assets by geographic area. |
Related Party Transactions | Related Party Transactions Certain members of the Company’s board of directors serve as board members, are executive officers of and/or (in some cases) are investors in companies that are customers and/or vendors of the Company. The Company incurred related party expenses of $ 4.0 million, $ 3.5 million and $ 4.3 million during the years ended December 31, 2022, 2021 and 2020 , respectively. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue The Company generates a majority of its revenue from the sale of subscriptions to its software products for survey feedback and customer experience. The Company also generates a portion of revenue from its transactional insight/market research solutions services. The Company normally sells each of these products in separate contracts to its customers and each product is distinct. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. For subscription products, the Company provides customers the option of monthly, annual or multi-year contractual terms. In general, the Company’s customers elect contractual terms of one year or less. Subscription revenue is recognized on a straight-line basis over the related subscription term beginning on the date the Company provides access. Access to the Company’s subscription product is an obligation representing a series of distinct services (and which comprise a single performance obligation) that the Company provides to its end customer over the subscription term. The Company recognizes its subscription revenue on a straight-line basis because the customer benefits from access to the products throughout the contractual term. The transactional insight/market research solution services are generally billed in advance and revenue is recognized after the services have been delivered. The Company's contracts are generally non-cancellable and do not contain refund-type provisions and are billed in advance. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred or services have been delivered. The Company records contract liabilities to deferred revenue when cash payments are received or due. Deferred revenue consists of the unearned portion of customer billings. |
Cost of Revenue | Cost of Revenue Cost of revenue associated with the delivery of the Company’s online platform to its users generally consists of infrastructure costs, personnel costs and other related costs. Infrastructure costs generally include expenses related to website hosting costs, amortization of capitalized software, credit card processing fees, charity donations and external sample costs. Personnel costs include salaries and bonuses, stock-based compensation expense, other employee benefits and travel-related expenses for employees whose primary responsibilities relate to supporting the Company’s infrastructure and delivering user support. Other related costs include amortization of acquired developed technology intangible assets and allocated overhead. |
Deferred Commissions | Deferred Commissions Certain commissions earned by the Company’s salesforce are considered to be incremental and recoverable costs of obtaining a contract with a customer. Such costs are deferred and amortized on a straight-line basis over their estimated period of benefit which is generally estimated as four years . The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in its industry. Amortization of deferred commissions, which is included in the sales and marketing expense line within the consolidated statements of operations, was $ 9.5 million, $ 6.9 million and $ 4.2 million during the years ended December 31, 2022, 2021 and 2020 , respectively. There was no impairment loss in relation to the deferred commissions for any period presented. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense for all share-based payments to employees, including restricted stock units, stock options, restricted stock awards, and shares issuable under the Company’s 2018 employee stock purchase plan, as amended (“the ESPP”) based on the grant-date fair value of the Company’s common stock estimated in accordance with the provisions of ASC 718, Compensation‑Stock Compensation . For time-based equity awards, stock-based compensation expense is recognized on a straight-line basis over the award’s requisite service period, which is generally four years for new hires and generally three years for subsequent grants to existing employees. For shares issuable under the ESPP, stock-based compensation expense is recognized on a straight-line basis over the award’s requisite service period, which is an offering period. For performance-based stock awards, stock-based compensation expense is recognized using the attribution method over the requisite service period. The Company recognizes excess tax benefits from stock-based compensation expense in earnings, which are substantially offset by a valuation allowance. The Company made a policy election to account for forfeitures as they occur. The Company estimates the fair value of time-based restricted stock units and restricted stock awards based on the fair value of the Company’s common stock on the grant date. The Company estimates the fair values of its time-based stock options and shares issuable under the ESPP using the Black-Scholes-Merton option-pricing model. The Company uses the Monte Carlo simulation model to determine the fair value of its performance-based stock awards. The valuation models require input of the following key assumptions: • Expected Term: As the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior, the Company determines the expected term based on the average period the stock options or ESPP are expected to remain outstanding. For stock options, expected term is calculated as the midpoint of the stock options vesting term and contractual expiration period. • Expected Volatility: As the Company does not have sufficient trading history of its common stock, stock price volatility is estimated at the applicable grant date by taking the weighted-average historical volatility of a group of comparable publicly-traded companies over a period equal to the expected life of the options or ESPP. • Expected Dividend Rate: The Company has not paid and does not anticipate paying cash dividends on its shares of common stock in the foreseeable future; therefore, the expected dividend yield is assumed to be zero. • Risk-Free Interest Rate: The Company determined the risk-free interest rate by using a weighted average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate as of the date of grant. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on deposit with banks and investments in money market funds with maturities of 90 days or less from the date of purchase. The Company also classifies amounts in transit from payment processors for customer credit card and debit card transactions as cash equivalents, because such amounts generally convert to cash within five days with little or no default risk. |
Accounts Receivable | Accounts Receivable Accounts receivable are presented at amortized cost net of amounts not expected to be collected. Accounts receivable are customer obligations that arise due to the time taken to settle transactions through direct customer payments. The Company bills in advance for monthly contracts and generally bills annually in advance for contracts with terms of one year or longer when it has an unconditional contractual right to consideration. The Company also recognizes an immaterial amount of contract assets, or unbilled receivables, primarily relating to rights to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer. The Company records an allowance for credit losses based upon its assessment of various factors including the Company’s a) historical experience (including historical bad debt expense trends), the age of a customers’ accounts receivable balance, and a customers’ credit quality, b) expected losses over the remaining estimated contractual life of the receivable and c) other reasonable and supportable factors pertaining to a customers’ ability to pay (including consideration of current economic conditions). Amounts deemed uncollectible and expected credit losses are recorded to the allowance for doubtful accounts with an offsetting charge in the consolidated statements of operations. The Company evaluated its allowance for credit losses using its consolidated gross accounts receivable balance as a single portfolio segment. Accounts receivables are written off against the recorded allowance when the Company has exhausted collection efforts without success. Bad debt expense recognized in the consolidated statements of operations was $ 2.8 million, $ 1.2 million and $ 1.4 million during the years ended December 31, 2022, 2021 and 2020, respectively. Write-off of uncollectible accounts receivable was $ 2.5 million, $ 0.9 million and $ 1.0 million during the years ended December 31, 2022, 2021 and 2020 , respectively, and was recorded against the allowance for doubtful accounts. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents in banks that management believes are high-credit quality financial institutions. Such amounts may at times exceed the federally insured limits. Cash equivalents consist of short-term money market funds which are managed by reputable financial institutions. As of December 31, 2022, $ 163.0 million of the Company’s cash and cash equivalents are held in one financial institution. For purposes of its customer concentration disclosure, the Company defines a customer as an organization. An organization may consist of an individual paying user, multiple paying users within an organization or the organization itself. No single customer accounted for more than 10% of revenue during each of the years ended December 31, 2022, 2021 and 2020 . No customers accounted for more than 10% of accounts receivable, net as of December 31, 2022 and 2021 , respectively. |
Business Combinations | Business Combinations When the Company acquires a business, the purchase consideration is allocated to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated respective fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require the Company to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users including related attrition rates, acquired developed technology including the estimated obsolescence of the technology, and trade names from a market participant perspective, future expected cash flows for operating expenses, useful lives and discount rates. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to non-operating (income) expense in the consolidated statements of operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets with finite lives include property and equipment, operating lease assets, capitalized internal-use software and acquisition intangible assets. Long-lived assets are depreciated or amortized over their estimated useful lives which are as follows: Computer equipment 2 to 5 years Furniture, fixtures, and other assets 5 years Leasehold improvements Shorter of remaining lease term or 5 years Purchased software 3 years Capitalized internal-use software 3 years Acquisition intangible assets: customer relationships 3 to 7 years Acquisition intangible assets: trade name 5 years Acquisition intangible assets: developed technology 3 years The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of depreciable or amortizable long-lived assets may warrant revision or that the remaining balance may not be recoverable. When factors indicate that long-lived assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted future cash flows over the remaining life of the long-lived assets in measuring whether they are recoverable. If the estimated undiscounted future cash flows do not exceed the carrying value of the asset, a loss is recorded as the excess of the asset’s carrying value over its fair value. In 2022, in connection with the restructuring plan implemented in March 2022 (the “March 2022 Restructuring Plan”), the Company executed a partial termination to reduce the leased space for its San Mateo, CA headquarters. As a result, the Company recorded $ 0.8 million impairment on certain leasehold improvements associated with the vacated space. Also in connection with the March 2022 Restructuring Plan, the Company concluded that the acquired trade name from a prior acquisition had no future economic benefit due to its plan to simplify its brand positioning by the end of 2022. As such, the Company has accelerated the amortization of the related intangible. These charges were included in restructuring in the consolidated statement of operations for the year ended December 31, 2022. See Note 15 for additional information. In 2021, the Company entered into a sublease agreement for its existing office space in San Francisco, CA. As a result of the sublease transaction, the Company recorded a lease impairment charge of $ 0.5 million during the year ended December 31, 2021, which was the excess of the carrying value of the associated operating lease ROU asset over its estimated fair value. The Company estimated the fair value using cash flows from the estimated sublease rental income. The impairment charge is included in general and administrative expense in the consolidated statement of operations for the year ended December 31, 2021. The Company did no t recognize any impairment of long-lived assets during the year ended December 31, 2020. The Company believes that the carrying values of long-lived assets as of December 31, 2022 are recoverable. Goodwill is not amortized but rather tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill impairment is recognized when the carrying value of goodwill exceeds the implied fair value of the Company. The Company did no t recognize any impairment of goodwill during each of the years ended December 31, 2022, 2021 and 2020 . |
Foreign Currencies | Foreign Currencies Where the functional currency of the Company’s foreign subsidiaries is the U.S. dollar, monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets are remeasured based on historical exchange rates. Gains and losses due to foreign currency are the result of remeasurements of transactions denominated in foreign currencies and are included in other non-operating (income) expense, net in the consolidated statements of operations. Where the functional currency of the Company’s foreign subsidiaries is the local currency, the assets and liabilities of those foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date and revenue and expense amounts are translated at a rate approximating the average exchange rate for the period. Foreign currency translation gains and losses are recorded to accumulated other comprehensive income (loss). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurement , to assets and liabilities that are required to be measured at fair value, which include investments in marketable debt and equity securities and derivative financial instruments. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive loss until realized. See Note 6 for additional disclosures regarding fair value measurements. |
Private Company Investment | Private Company Investment The Company accounts for one private company investment, without readily determinable fair value, under the cost method. This investment, for which the Company is not able to exercise significant influence over the investee, is measured and accounted for using an alternative measurement basis of a) the security’s carrying value at cost, b) less any impairment and c) plus or minus any qualifying observable price changes. Observable price changes or impairments recognized on the Company’s private company investment would be classified as a Level 3 financial instrument within the fair value hierarchy based on the nature of the fair value inputs. Any adjustments to the carrying value are recognized in other non-operating (income) expense, net in the consolidated statements of operations. As of December 31, 2021, the carrying value of the Company's private company investment at cost was $ 3.6 million and was classified as other asset on the consolidated balance sheet as this investment did not have a stated contractual maturity date. There were no impairments or observable price changes during the year ended December 31, 2021. In December 2022, the Company sold its private company investment for a cash consideration of $ 6.8 million which was subsequently received in January 2023. As such, the Company included the expected proceeds from the sale as a receivable in prepaid expenses and other current assets in the consolidated balance sheet as of December 31, 2022, and recorded a gain on the sale within other non-operating (income) expense in the consolidated statement of operations for the year ended December 31, 2022. As of December 31, 2022, the Company had no private company investments. |
Impairment of Investments | Impairment of Investments The Company periodically reviews its investments for impairment. If the Company concludes that if any of these investments are impaired, the Company determines whether such impairment is other-than-temporary. Factors considered to make such determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and the Company’s intent to sell. For debt securities, the Company also considers whether (1) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result of credit losses. If the investment is considered to be other-than-temporarily impaired, the Company will record the investment at fair value by recognizing an impairment within other non-operating (income) expense in the consolidated statements of operations and establishing a new carrying value for the investment. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures that improve an asset or extend its estimated useful life are capitalized. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. |
Capitalized Internal-Use Software | Capitalized Internal-Use Software The Company incurs development costs relating to its online platform as well as other software solely for internal-use. Costs relating to the planning and post‑implementation phases of development are expensed as incurred. Costs incurred in the application development phase are capitalized and included in capitalized internal-use software, net and amortized over their estimated useful life, generally three years . Maintenance and training costs are expensed as incurred. |
Leases | Leases At contract inception, the Company performs an evaluation to determine if it is conveyed the right to control the use of identified property, plant or equipment. To the extent such rights of control are conveyed, the Company further makes an assessment as to the applicable lease classification. The Company leases facilities and equipment, which are generally accounted for as operating leases (as further described in Note 10). Operating Leases Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities, current, and operating lease liabilities, non-current, in the consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating ROU assets and lease liabilities are recognized at the lease inception date based on the present value of lease payments over the lease term discounted based on the more readily determinable of (i) the rate implicit in the lease or (ii) the Company’s incremental borrowing rate (which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease). Because the Company’s operating leases generally do not provide an implicit rate, an analysis of publicly traded debt securities of companies with credit and financial profiles similar to the Company’s is used to estimate the incremental borrowing rate. The Company’s operating lease terms have generally ranged between 1 year to 12 years and may include options to extend the lease term, generally at market rates. The Company’s ROU assets are measured based on the corresponding operating lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives under the lease. The Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options at commencement. The Company does not allocate consideration between lease and non-lease components. Lease expense is recognized on a straight-line basis over the lease term. For short-term leases, the Company records lease expense in its consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred. Subleases The Company additionally has entered into subleases for unoccupied leased office space. To the extent there were losses associated with the sublease, they were recognized in the period the sublease was executed. Gains are recognized over the sublease term. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded in other non-operating (income) expense. The Company’s sublease agreements do not contain any variable payments, material residual value guarantees or material restrictive covenants. |
Restructuring | Restructuring From time to time, the Company may implement a management-approved restructuring plan to improve efficiencies across the organization, reduce its cost structure, and/or better align its resources with the Company’s strategy. Restructuring charges can include severance costs to eliminate a specified number of employees, expenses to vacate real estate and consolidate operations, contract cancellation costs, impairment of certain assets, and other related costs. Costs associated with a restructuring plan are recognized and measured at fair value in the consolidated statement of operations in the period in which the liability is incurred. These restructuring initiatives may require the Company to make estimates in several areas including: (i) expenses for employee severance and other separation costs; and (ii) realizable values of assets made redundant, obsolete, or excessive. |
Legal and Other Contingencies | Legal and Other Contingencies The Company accrues a liability for either claims arising in the ordinary course of business, assessments resulting from non-income-based audits or litigation when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. See Note 11 for additional information pertaining to legal and other contingencies. |
Advertising and Promotion Costs | Advertising and Promotion Costs Expenses related to advertising, marketing and promotion of the Company’s product offerings are expensed as incurred. These costs mainly consist of search engine marketing related costs. The Company incurred $ 70.5 million, $ 68.5 million and $ 44.6 million during the years ended December 31, 2022, 2021 and 2020 , respectively, which are included in sales and marketing expenses in the consolidated statements of operations. |
Liability for Sabbatical Leave | Liability for Sabbatical Leave The Company provides an employee sabbatical leave program accounted for in accordance with ASC 710, Compensated Absences . As of December 31, 2022, the accrued balance was $ 5.9 million ( $ 2.9 million included in accrued compensation and $ 3.0 million in other non-current liabilities). As of December 31, 2021, the accrued balance was $ 6.5 million ( $ 3.1 million included in accrued compensation and $ 3.4 million in other non-current liabilities). |
Other Non-Operating (Income) Expense | Other Non-Operating (Income) Expense Other non-operating (income) expense, net consists primarily of interest income, net foreign currency exchange (gains) losses, gain on sale of private company investments, net realized gains and losses related to investments, and other. The components of other non-operating (income) expense recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Interest Income $ ( 3,263 ) $ ( 556 ) $ ( 780 ) Foreign currency (gains) losses, net 2,045 1,077 225 Gain on sale of private company investments ( 3,202 ) — ( 1,001 ) Other (income) expense, net ( 93 ) 413 120 Other non-operating (income) expense, net $ ( 4,513 ) $ 934 $ ( 1,436 ) |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. ASC 740, Accounting for Income Taxes, requires the recognition of deferred tax assets and liabilities based upon the temporary differences between the financial reporting and tax bases of assets and liabilities and using enacted rates in effect for the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce the deferred tax assets when it is more likely than not that a portion or all of the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company records uncertain tax positions on the basis of a two-step process in which: (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of technical merits of the position, and (2) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement with the related tax authority. From time to time, the Company engages in certain intercompany transactions and legal entity restructurings. The Company considers many factors when evaluating these transactions, including the alignment of their corporate structure with their organizational objectives and the operational and tax efficiency of their corporate structure, as well as the long-term cash flows and cash needs of its business. These transactions may impact the Company’s overall tax rate and/or result in additional cash tax payments. The impact in any period may be significant. These transactions may be complex and the impact of such transactions on future periods may be difficult to estimate. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted Reference Rate Reform : In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the LIBOR and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. In December 2022, the FASB extended the effective date through December 31, 2024. The Company’s 2018 Credit Facility has clauses to facilitate the use of a successor rate index agreed to by lenders. As such, the Company does not expect this update will have a material impact on its consolidated financial statements and related disclosures . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Long-Lived Assets | Long-lived assets are depreciated or amortized over their estimated useful lives which are as follows: Computer equipment 2 to 5 years Furniture, fixtures, and other assets 5 years Leasehold improvements Shorter of remaining lease term or 5 years Purchased software 3 years Capitalized internal-use software 3 years Acquisition intangible assets: customer relationships 3 to 7 years Acquisition intangible assets: trade name 5 years Acquisition intangible assets: developed technology 3 years |
Components of Other Non-Operating (Income) Expense Recognized in Condensed Consolidated Financial Statements | The components of other non-operating (income) expense recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Interest Income $ ( 3,263 ) $ ( 556 ) $ ( 780 ) Foreign currency (gains) losses, net 2,045 1,077 225 Gain on sale of private company investments ( 3,202 ) — ( 1,001 ) Other (income) expense, net ( 93 ) 413 120 Other non-operating (income) expense, net $ ( 4,513 ) $ 934 $ ( 1,436 ) |
Revenue and Deferred Revenue (T
Revenue and Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenue by Sales Channel | Revenue by sales channel was as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Self-serve revenue $ 299,592 $ 301,097 $ 267,703 Sales-assisted revenue 181,325 142,689 107,907 Revenue $ 480,917 $ 443,786 $ 375,610 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Percentage of Revenue by Geographic Area | The following table sets forth the percentage of revenue by geographic area: Year Ended December 31, 2022 2021 2020 United States 65 % 64 % 65 % Rest of world 35 % 36 % 35 % |
Schedule of Percentage of Long-lived Assets by Geographic Area | As of December 31, 2022 and 2021, the following table summarizes the percentage of the Company’s long-lived assets by geographic area: Operating lease ROU assets Acquisition intangibles, net Property and equipment, net December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 United States 94 % 94 % 64 % 56 % 9 % 57 % Canada 4 % 2 % — * 81 % 38 % Ireland 2 % 2 % 36 % 28 % 2 % 1 % Netherlands * 2 % — 15 % 8 % 4 % Rest of world — * — 1 % — * * less than 1% |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |
Schedule of Reconciliation of the Amount of Cash, Cash Equivalents, and Restricted Cash | As of December 31, 2022 and 2021, the following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of such amounts shown in the consolidated statements of cash flows: (in thousands) December 31, 2022 December 31, 2021 Cash and cash equivalents $ 202,816 $ 305,525 Restricted cash included in prepaid expenses and other current assets 442 271 Restricted cash included in other assets — 325 Total cash, cash equivalents and restricted cash $ 203,258 $ 306,121 Included in cash and cash equivalents are cash in transit from payment processors for credit and debit card transactions of $ 1.1 million and $ 1.1 million as of December 31, 2022 and 2021 , respectively. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | As of December 31, 2022 and 2021, property and equipment consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Computer equipment $ 7,492 $ 8,017 Leasehold improvements 45,710 54,500 Furniture, fixtures, and other assets 7,565 10,577 Gross property and equipment 60,767 73,094 Less: Accumulated depreciation ( 59,761 ) ( 67,652 ) Property and equipment, net $ 1,006 $ 5,442 |
Acquisitions, Intangible Asse_2
Acquisitions, Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions Intangible Assets And Goodwill [Abstract] | |
Schedule of Intangible Assets, net | As of December 31, 2022 and 2021, intangible assets, net consisted of the following: December 31, 2022 December 31, 2021 (in thousands) Gross Accumulated Net Gross Accumulated Net Customer relationships $ 10,100 $ ( 4,944 ) $ 5,156 $ 20,426 $ ( 12,927 ) $ 7,499 Trade name 900 ( 900 ) — 2,125 ( 1,094 ) 1,031 Developed technology — — — 17,074 ( 14,831 ) 2,243 Acquisition intangible assets, net $ 11,000 $ ( 5,844 ) $ 5,156 $ 39,625 $ ( 28,852 ) $ 10,773 As of December 31, 2022 and 2021, capitalized internal-use software consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Gross capitalized internal-use software $ 62,249 $ 51,395 Less: Accumulated amortization ( 32,654 ) ( 23,237 ) Capitalized internal-use software, net $ 29,595 $ 28,158 |
Schedule of Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows (in thousands): Balance as of December 31, 2020 $ 468,764 Foreign currency translation ( 5,028 ) Balance as of December 31, 2021 $ 463,736 Foreign currency translation ( 3,919 ) Balance as of December 31, 2022 $ 459,817 |
Summary of Future Amortization Expense | As of December 31, 2022, future amortization expense by year is expected to be as follows: (in thousands) Capitalized Acquisition 2023 $ 4,735 $ 1,483 2024 2,203 1,483 2025 697 1,390 2026 — 800 Total amortization expense $ 7,635 $ 5,156 |
Stockholders' Equity and Empl_2
Stockholders' Equity and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Options Activity | The following is a summary of stock options for the year ended December 31, 2022: Stock Options Number of Weighted Average Aggregate Weighted Average (in years) Outstanding at December 31, 2021 14,527,520 $ 17.11 $ 61,227 6.3 Granted 940,000 $ 7.14 Exercised ( 206,132 ) $ 13.71 Forfeited ( 868,071 ) $ 19.57 Expired ( 1,259,871 ) $ 17.64 Outstanding, vested and expected to vest at December 31, 2022 13,133,446 $ 16.24 $ — 4.2 Vested and exercisable at December 31, 2022 10,921,225 $ 16.50 $ — 3.9 |
Summary of Estimated Fair Value of Stock Options Granted Using Weighted-average Assumptions | The Company used the Black-Scholes-Merton option pricing model to estimate the fair value of time-based stock options granted using the following weighted-average assumptions: Year Ended December 31, 2022 2021 2020 Expected life (in years) 2.0 5.8 5.8 Risk-free interest rate 3.4 % 0.8 % 1.2 % Volatility 53 % 52 % 49 % Dividend yield — % — % — % Fair value of common stock $ 7.14 $ 21.51 $ 21.46 |
Summary of Estimated Fair Value of ESPP Purchase Rights Granted Using Weighted-average Assumptions | The Company used the Black-Scholes-Merton option pricing model to estimate the fair value of ESPP purchase rights granted using the following weighted-average assumptions: Year Ended December 31, 2022 2021 2020 Expected life (in years) 1.3 1.3 1.3 Risk-free interest rate 3.0 % 0.1 % 0.1 % Volatility 55 % 53 % 56 % Dividend yield — % — % — % Fair value of common stock $ 10.52 $ 19.12 $ 20.42 |
Summary of Stock-based Compensation Expense Recognized in Financial Statements | Stock-based compensation expense recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Cost of revenue $ 6,164 $ 5,862 $ 4,450 Research and development 34,711 40,821 30,693 Sales and marketing 22,860 23,585 19,707 General and administrative 32,196 28,296 24,317 Restructuring 2,761 — — Stock-based compensation expense, net of amounts capitalized 98,692 98,564 79,167 Capitalized stock-based compensation expense 2,395 2,213 2,243 Stock-based compensation expense $ 101,087 $ 100,777 $ 81,410 During the first quarter of 2022, the Company modified the terms of approximately 1.2 million stock options and 0.1 million restricted stock units and awards in connection with the March 2022 Restructuring Plan (see Note 15 for additional discussion). The modification resulted in additional stock-based compensation expense of $ 2.8 million which was fully recognized at the modification date as restructuring costs in the consolidated statement of operations for the year ended December 31, 2022 . |
Summary of Unamortized Stock-based Compensation | As of December 31, 2022, unamortized stock-based compensation was as follows: Unrecognized Weighted (in years) Restricted stock units $ 110,623 2.1 Stock options 8,485 1.2 Restricted stock awards 9,901 2.1 ESPP 14,057 1.9 Total unrecognized stock-based compensation $ 143,066 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Units and Restricted Stock Awards | The following is a summary of restricted stock units for the year ended December 31, 2022: Restricted Stock Units Number of Weighted Average Weighted Average Unvested at December 31, 2021 5,996,059 $ 21.33 1.1 Granted 8,646,868 $ 13.56 Vested ( 4,002,985 ) $ 18.91 Forfeited/cancelled ( 2,616,769 ) $ 18.54 Unvested at December 31, 2022 8,023,173 $ 15.07 1.2 |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Units and Restricted Stock Awards | The following is a summary of restricted stock awards for the year ended December 31, 2022: Restricted Stock Awards Number of Weighted Average Weighted Average Unvested at December 31, 2021 241,765 $ 24.17 2.0 Granted 1,392,871 $ 16.72 Vested ( 340,235 ) $ 18.40 Forfeited/cancelled ( 404,182 ) $ 18.22 Unvested at December 31, 2022 890,219 $ 17.43 1.9 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs | The Company’s operating lease costs were as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Operating lease cost (gross lease expense) $ 10,721 $ 13,141 $ 13,377 Variable lease costs 4,487 4,737 5,636 Sublease income (including reimbursed expenses) 2,277 4,817 5,303 |
Schedule of Maturities of Operating Lease Liabilities and Sublease Income | As of December 31, 2022, maturities of operating lease liabilities and sublease income, by year, are as follows: (in thousands) Operating Lease Payments Sublease 2023 $ 11,143 $ ( 1,781 ) 2024 9,599 ( 372 ) 2025 9,243 — 2026 9,515 — 2027 9,787 — Thereafter 9,363 — Gross lease payments (income) $ 58,650 $ ( 2,153 ) Less: Imputed interest 10,603 Less: Tenant improvement receivables 417 Total operating lease liabilities $ 47,630 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Non-Cancellable Purchase Commitments | The Company enters into commitments under non-cancellable purchase orders for the procurement of goods and services in the ordinary course of business. As of December 31, 2022, expected payments under such commitments are as follows (in thousands): 2023 $ 18,748 2024 7,289 2025 1,521 2026 49 2027 3 Total purchase commitments $ 27,610 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values of Debt | As of December 31, 2022 and 2021, the carrying values of debt were as follows: December 31, 2022 December 31, 2021 Issuance Maturity Amount (in thousands) Effective Amount (in thousands) Effective 2018 Refinancing Facility Agreement October 2018 October 2025 $ 185,650 3.9 % - 8.1 % $ 212,850 3.8 % - 3.9 % Less: Unamortized issuance discount and issuance costs, net 834 1,134 Less: Debt, current 1,900 1,900 Debt, non-current $ 182,916 $ 209,816 |
Schedule of Future Minimum Payment Obligations of Principal Amounts Due | As of December 31, 2022, future minimum payment obligations of principal amounts due by year under the 2018 Credit Facility were as follows (in thousands): 2023 $ 2,200 2024 2,200 2025 181,250 Total principal outstanding $ 185,650 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Loss from Operations Before Income Taxes Categorized Geographically | Loss from operations before income taxes is categorized geographically as follows: Year Ended December 31, (in thousands) 2022 2021 2020 United States $ ( 86,035 ) $ ( 101,742 ) $ ( 46,409 ) Foreign ( 2,265 ) ( 21,025 ) ( 43,993 ) Total loss from operations before income taxes $ ( 88,300 ) $ ( 122,767 ) $ ( 90,402 ) |
Schedule of Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes consisted of the following: Year Ended December 31, (in thousands) 2022 2021 2020 Current income tax expense: Federal $ — $ — $ — State 343 119 28 Foreign 834 695 337 Total current income tax expense 1,177 814 365 Deferred income tax expense: Federal 300 318 324 State 350 261 3 Foreign ( 236 ) ( 911 ) 487 Total deferred income tax expense (benefit) 414 ( 332 ) 814 Total provision for income taxes $ 1,591 $ 482 $ 1,179 |
Summary of Reconciliation of Company's Effective Tax Rate to Federal Statutory Rate | A reconciliation of the Company’s effective tax rate to the federal statutory rate is as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Tax at federal statutory rate $ ( 18,543 ) $ ( 25,781 ) $ ( 18,984 ) State income tax, net of federal tax benefit ( 2,517 ) ( 6,517 ) ( 4,468 ) Foreign tax rate differential 1,062 3,450 10,009 Stock-based compensation 11,870 1,305 ( 3,429 ) Research and development credits ( 2,002 ) ( 3,752 ) ( 3,066 ) Other 1,111 387 492 Change in valuation allowance 10,610 31,390 20,625 Total provision for income taxes $ 1,591 $ 482 $ 1,179 |
Summary of Tax Effects of Temporary Differences Portions of Company's Deferred Tax Assets and Liabilities | As of December 31, 2022 and 2021, the tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows: (in thousands) December 31, 2022 December 31, 2021 Deferred tax assets: Net operating losses $ 99,689 $ 96,340 Tax credits 44,370 43,696 Stock-based compensation 21,994 21,469 Accrued compensation and related expenses 1,829 3,690 Lease liabilities 12,468 19,780 Financing related 15,337 13,519 Intangible assets 74,962 75,059 Depreciation and amortization 6,773 4,766 Capitalized research and development expenses 10,649 — Other 1,698 5,051 Total deferred tax assets: 289,769 283,370 Valuation allowance ( 248,720 ) ( 239,045 ) Total deferred tax assets, net of valuation allowance: 41,049 44,325 Deferred tax liabilities: Goodwill ( 32,523 ) ( 29,638 ) Right-of-use assets ( 11,312 ) ( 17,060 ) Total deferred tax liabilities: ( 43,835 ) ( 46,698 ) Total net deferred tax liabilities: $ ( 2,786 ) $ ( 2,373 ) |
Summary of Changes in Balances of Gross Unrecognized Tax Benefits | Changes in balances during 2022 and 2021 and ending balances as of December 31, 2022 and 2021 in gross unrecognized tax benefits were as follows: (in thousands) December 31, 2022 December 31, 2021 Beginning balances $ 9,902 $ 6,867 Increases related to tax positions taken during a prior year — 387 Increases related to tax positions taken during the current year 737 2,648 Decreases related to tax positions taken during a prior year ( 1,357 ) — Decreases related to tax settlements with taxing authorities — — Ending balances $ 9,282 $ 9,902 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31, (in thousands, except per share amounts) 2022 2021 2020 Numerator: Net loss $ ( 89,891 ) $ ( 123,249 ) $ ( 91,581 ) Denominator: Weighted-average shares outstanding - basic and diluted 148,476 147,045 139,887 Net loss per common share - basic and diluted: $ ( 0.61 ) $ ( 0.84 ) $ ( 0.65 ) |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring - pre-tax costs | The restructuring plans were subject to applicable laws and consultation processes as part of the Company's strategic plan to reduce costs and improve efficiencies. In connection with these actions, the Company incurred the following pre-tax costs for the year ended December 31, 2022 (in thousands): Employee severance $ 7,224 Gain on lease modification ( 6,370 ) Impairment of property and equipment 838 Stock-based compensation 2,761 Contract termination and other costs 1,660 Amortization of intangible assets 450 Total restructuring costs $ 6,563 |
Company Overview and Basis of_2
Company Overview and Basis of Presentation - Business - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 Product | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of major product categories offering SaaS feedback solutions | 3 |
Company Overview and Basis of_3
Company Overview and Basis of Presentation - Proposed Merger with Zendesk (Additional Information) (Details) - Momentive Global Inc. - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combination, Acquisition Related Costs | $ 11.9 | $ 12.8 |
Cost of revenue | ||
Business Combination, Acquisition Related Costs | 0.6 | 0.3 |
Research and development | ||
Business Combination, Acquisition Related Costs | 3.4 | 1.3 |
Sales and marketing | ||
Business Combination, Acquisition Related Costs | 3.1 | 1.2 |
General and administrative | ||
Business Combination, Acquisition Related Costs | $ 4.8 | $ 10 |
Company Overview and Basis of_4
Company Overview and Basis of Presentation - Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Company Overview and Basis of_5
Company Overview and Basis of Presentation - Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Related party expenses | $ 4 | $ 3.5 | $ 4.3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred commissions, amortization period | 4 years | |||
Amortization of deferred commissions | $ 9,500,000 | $ 6,900,000 | $ 4,200,000 | |
Impairment loss related to deferred commissions | 0 | 0 | 0 | |
Bad debt expense | 2,756,000 | 1,248,000 | 1,352,000 | |
Accounts receivable write-off | 2,500,000 | 900,000 | 1,000,000 | |
Cash and cash equivalents held in one financial institution | 202,816,000 | 305,525,000 | ||
Impairment of long-lived assets | 838,000 | 503,000 | 0 | |
Impairment of operating lease right-of-use asset | 500,000 | |||
Impairment of goodwill | 0 | 0 | 0 | |
Impairment on certain leasehold | 800,000 | |||
Private company investment | 0 | 3,600,000 | ||
Observable price changes for private company investment | 0 | |||
Liability for sabbatical leave, accrued balance | 5,900,000 | 6,500,000 | ||
Advertising and promotion costs | 70,500,000 | 68,500,000 | $ 44,600,000 | |
Subsequent Event | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cash consideration from sale of private company investment | $ 6,800,000 | |||
Accrued Compensation | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Liability for sabbatical leave, accrued balance | 2,900,000 | 3,100,000 | ||
Other Non-Current Liabilities | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Liability for sabbatical leave, accrued balance | $ 3,000,000 | $ 3,400,000 | ||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease terms | 1 year | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease terms | 12 years | |||
Capitalized Internal-Use Software | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets estimated useful life | 3 years | |||
Customer Concentration Risk | Sales Revenue, Net | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration of credit risk, customer | No single customer accounted for more than 10% of revenue | No single customer accounted for more than 10% of revenue | No single customer accounted for more than 10% of revenue | |
Customer Concentration Risk | Accounts Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration of credit risk, customer | No customers accounted for more than 10% of accounts receivable, net | No customers accounted for more than 10% of accounts receivable, net | ||
Cash and Cash Equivalents Held in One Financial Institution | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents held in one financial institution | $ 163,000,000 | |||
Equity Incentive Plans | Time-Based Awards | New Hires | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Stock-based compensation, requisite service period | 4 years | |||
Equity Incentive Plans | Time-Based Awards | Existing Employees | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Stock-based compensation, requisite service period | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Long-Lived Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computer Equipment | Minimum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 2 years |
Computer Equipment | Maximum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Furniture, Fixtures, and Other Assets | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Leasehold Improvements | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | Shorter of remaining lease term or 5 years |
Leasehold Improvements | Maximum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Purchased software | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Capitalized Internal-Use Software | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 3 years |
Customer Relationships | Minimum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 3 years |
Customer Relationships | Maximum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 7 years |
Trade Name | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 5 years |
Developed Technology | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Components of Other Non-Operating (Income) Expense Recognized in Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Nonoperating Income (Expense) [Abstract] | |||
Interest Income | $ (3,263) | $ (556) | $ (780) |
Foreign currency (gains) losses, net | 2,045 | 1,077 | 225 |
Gain on sale of private company investments | (3,202) | 0 | (1,001) |
Other (income) expense, net | (93) | 413 | 120 |
Other non-operating (income) expense, net | $ (4,513) | $ 934 | $ (1,436) |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Summary of Disaggregated Revenue by Sales Channel (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 480,917 | $ 443,786 | $ 375,610 |
Self-serve Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 299,592 | 301,097 | 267,703 |
Sales-assisted revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 181,325 | $ 142,689 | $ 107,907 |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue, revenue recognized | $ 197 | $ 167.1 | $ 137.6 |
Revenue and Deferred Revenue _3
Revenue and Deferred Revenue - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 $ in Millions | Dec. 31, 2022 USD ($) |
Disaggregation Of Revenue [Line Items] | |
Revenue, unsatisfied performance obligation | $ 238.8 |
Performance obligation, expected timing of satisfaction, period | 12 months |
Geographical Information - Sche
Geographical Information - Schedule of Percentage of Revenue by Geographic Area (Details) - Geographic Concentration Risk - Revenue | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue by geographic area | 65% | 64% | 65% |
Rest of World | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue by geographic area | 35% | 36% | 35% |
Geographical Information - Sc_2
Geographical Information - Schedule of Percentage of Long-lived Assets by Geographic Area (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of property and equipment, net by geographic area | 9% | 57% |
Percentage of operating lease ROU assets by geographic area | 94% | 94% |
Percentage of acquisition intangibles, net by geographic area | 64% | 56% |
Canada | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of property and equipment, net by geographic area | 81% | 38% |
Percentage of operating lease ROU assets by geographic area | 4% | 2% |
Percentage of acquisition intangibles, net by geographic area | 0% | |
Ireland | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of property and equipment, net by geographic area | 2% | 1% |
Percentage of operating lease ROU assets by geographic area | 2% | 2% |
Percentage of acquisition intangibles, net by geographic area | 36% | 28% |
Netherlands | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of property and equipment, net by geographic area | 8% | 4% |
Percentage of operating lease ROU assets by geographic area | 2% | |
Percentage of acquisition intangibles, net by geographic area | 0% | 15% |
Rest of World | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of property and equipment, net by geographic area | 0% | |
Percentage of operating lease ROU assets by geographic area | 0% | |
Percentage of acquisition intangibles, net by geographic area | 0% | 1% |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 202,816 | $ 305,525 | ||
Restricted cash included in prepaid expenses and other current assets | $ 442 | $ 271 | ||
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List] | Prepaid expenses and other current assets | Prepaid expenses and other current assets | ||
Restricted cash included in other assets | $ 0 | $ 325 | ||
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | ||
Total cash, cash equivalents and restricted cash | $ 203,258 | $ 306,121 | $ 224,614 | $ 131,683 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Cash in transit for credit and debit card transactions | $ 1.1 | $ 1.1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Fair value of debt | $ 180.1 | $ 211.8 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | $ 60,767 | $ 73,094 |
Less: Accumulated depreciation | (59,761) | (67,652) |
Property and equipment, net | 1,006 | 5,442 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | 7,492 | 8,017 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | 45,710 | 54,500 |
Furniture, Fixtures, and Other Assets | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | $ 7,565 | $ 10,577 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 3.6 | $ 13.2 | $ 16.2 |
Acquisitions, Intangible Asse_3
Acquisitions, Intangible Assets and Goodwill - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Gross Carrying Amount | $ 11,000 | $ 39,625 |
Acquisition intangible assets, net, Accumulated Amortization | (5,844) | (28,852) |
Acquisition intangible assets, net, Net Carrying Amount | 5,156 | 10,773 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Gross Carrying Amount | 10,100 | 20,426 |
Acquisition intangible assets, net, Accumulated Amortization | (4,944) | (12,927) |
Acquisition intangible assets, net, Net Carrying Amount | 5,156 | 7,499 |
Trade Name | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Gross Carrying Amount | 900 | 2,125 |
Acquisition intangible assets, net, Accumulated Amortization | (900) | (1,094) |
Acquisition intangible assets, net, Net Carrying Amount | 0 | 1,031 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Gross Carrying Amount | 0 | 17,074 |
Acquisition intangible assets, net, Accumulated Amortization | 0 | (14,831) |
Acquisition intangible assets, net, Net Carrying Amount | $ 0 | $ 2,243 |
Acquisitions, Intangible Asse_4
Acquisitions, Intangible Assets and Goodwill - Schedule of Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 463,736 | $ 468,764 |
Foreign currency translation | (3,919) | (5,028) |
Ending Balance | $ 459,817 | $ 463,736 |
Acquisitions, Intangible Asse_5
Acquisitions, Intangible Assets and Goodwill - Schedule of Capitalized Internal-Use Software (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Capitalized Computer Software, Net [Abstract] | ||
Gross capitalized internal-use software | $ 62,249 | $ 51,395 |
Less: Accumulated amortization | (32,654) | (23,237) |
Capitalized internal-use software, net | $ 29,595 | $ 28,158 |
Acquisitions, Intangible Asse_6
Acquisitions, Intangible Assets and Goodwill - Summary of Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Capitalized Internal-Use Software, Net | |
Finite Lived Intangible Assets [Line Items] | |
2023 | $ 4,735 |
2024 | 2,203 |
2025 | 697 |
2026 | 0 |
Acquisition intangible assets, net, Net Carrying Amount, Total | 7,635 |
Acquisition Intangible Assets, Net | |
Finite Lived Intangible Assets [Line Items] | |
2023 | 1,483 |
2024 | 1,483 |
2025 | 1,390 |
2026 | 800 |
Acquisition intangible assets, net, Net Carrying Amount, Total | $ 5,156 |
Acquisitions, Intangible Asse_7
Acquisitions, Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisitions Intangible Assets And Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 5,600 | $ 10,142 | $ 12,602 | |
Removal of fully amortized acquisition intangible assets | $ 26,800 | |||
Amortization expense related to capitalized internal-use software | 9,400 | 11,900 | $ 14,200 | |
Capitalized internal-use software, net | 29,595 | 29,595 | $ 28,158 | |
Capitalized Internal-Use Software Net in Development Phase | ||||
Acquisitions Intangible Assets And Goodwill [Line Items] | ||||
Capitalized internal-use software, net | $ 22,000 | $ 22,000 |
Stockholders' Equity and Empl_3
Stockholders' Equity and Employee Benefit Plans - Common Stock and Preferred Stock - Additional Information (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Maximum | ||
Class Of Stock [Line Items] | ||
Shares authorized for issuance | 900,000,000 |
Stockholders' Equity and Empl_4
Stockholders' Equity and Employee Benefit Plans - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 13, 2022 | Mar. 31, 2022 shares | Dec. 31, 2022 USD ($) Offering_period $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) shares | Feb. 26, 2022 USD ($) | Sep. 05, 2018 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payments for repurchase of common stock | $ 83,487 | $ 0 | $ 0 | ||||
Stock repurchase authorization amount | $ 116,500 | ||||||
Fair value assumptions, method used | Black-Scholes-Merton option pricing model | ||||||
Proceeds under the plan | $ 5,589 | 7,453 | 6,719 | ||||
Stock option granted | shares | 940,000 | ||||||
Exercise price | $ / shares | $ 7.14 | ||||||
Grant-date fair value of award | $ 3,400 | ||||||
Allocated share-based compensation expense | $ 98,692 | $ 98,564 | $ 79,167 | ||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Authorized repurchase amount, stock repurchase program | $ 200,000 | ||||||
Stock Repurchased During Period, Shares | shares | 6,596,000 | ||||||
Payments for repurchase of common stock | $ 83,500 | ||||||
Number of shares purchased by employees | shares | 712,000 | 470,000 | 563,000 | ||||
2018 Equity Incentive Plan | Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant | shares | 18,575,514 | ||||||
2018 Employees Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Offering period | 24 months | ||||||
Number of offering periods | Offering_period | 4 | ||||||
Length of purchase period | 6 months | ||||||
Employee share purchase price percentage | 85% | ||||||
Proceeds under the plan | $ 5,600 | $ 7,500 | |||||
Modification charges under the reset provision | $ 12,200 | ||||||
2018 Employees Stock Purchase Plan | Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant | shares | 5,984,411 | ||||||
Number of shares purchased by employees | shares | 711,771 | 469,721 | |||||
Weighted average purchase price | $ / shares | $ 7.85 | $ 15.87 | |||||
Time-Based Awards | Equity Incentive Plans | New Hires | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Time-Based Awards | Equity Incentive Plans | Existing Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options, modified | shares | 100,000 | ||||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options, modified | shares | 1,200,000 | ||||||
Three-Year Performance Period | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance period grant date | Dec. 31, 2024 | ||||||
One-Year Performance Period | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance period grant date | Dec. 31, 2022 | ||||||
Two-Year Performance Period | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance period grant date | Dec. 31, 2023 | ||||||
Restructuring expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 2,761 | $ 0 | $ 0 | ||||
Modification charges under the reset provision | 2,800 | ||||||
General and Administrative Expenses | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | 32,196 | $ 28,296 | $ 24,317 | ||||
General and Administrative Expenses | Chief Executive Officer Member | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 1,700 | ||||||
Maximum | Equity Incentive Plans | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
Maximum | 2018 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual increases in number of shares available for issuance | shares | 12,500,000 | ||||||
Percentage of outstanding shares | 5% | ||||||
Maximum | 2018 Employees Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual increases in number of shares available for issuance | shares | 5,346,888 | ||||||
Percentage of outstanding shares | 1% | ||||||
Maximum | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of target shares that may be earned upon achievement of threshold performance metric | 200 | ||||||
Minimum | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of target shares that may be earned upon achievement of threshold performance metric | 0 |
Stockholders' Equity and Empl_5
Stockholders' Equity and Employee Benefit Plans - Summary of Restricted Stock Units (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Unvested, Beginning balance | 5,996,059 | |
Granted | 8,646,868 | |
Vested | (4,002,985) | |
Forfeited/cancelled | (2,616,769) | |
Unvested, Ending balance | 8,023,173 | 5,996,059 |
Weighted Average Grant-Date Fair Value | ||
Unvested, Beginning balance | $ 21.33 | |
Granted | 13.56 | |
Vested | 18.91 | |
Forfeited/cancelled | 18.54 | |
Unvested, Ending balance | $ 15.07 | $ 21.33 |
Weighted Average Remaining Contractual Term (in years) | ||
Unvested, Weighted Average Remaining Contractual Term | 1 year 2 months 12 days | 1 year 1 month 6 days |
Stockholders' Equity and Empl_6
Stockholders' Equity and Employee Benefit Plans - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Outstanding, vested and expected to vest, Beginning balance | 14,527,520 | |
Granted | 940,000 | |
Exercised | (206,132) | |
Forfeited | (868,071) | |
Expired | (1,259,871) | |
Outstanding, vested and expected to vest, Ending balance | 13,133,446 | 14,527,520 |
Vested and exercisable at December 31, 2022 | 10,921,225 | |
Weighted Average Exercise Price | ||
Outstanding, vested and expected to vest, Beginning balance | $ 17.11 | |
Granted | 7.14 | |
Exercised | 13.71 | |
Forfeited | 19.57 | |
Expired | 17.64 | |
Outstanding, vested and expected to vest, Ending balance | 16.24 | $ 17.11 |
Vested and exercisable at December 31, 2022 | $ 16.50 | |
Additional Disclosures | ||
Outstanding, vested and expected to vest, Aggregate Intrinsic Value, Beginning balance | $ 0 | $ 61,227 |
Vested and exercisable at December 31, 2022 | $ 0 | |
Outstanding, vested and expected to vest, Weighted Average Remaining Contractual Term | 4 years 2 months 12 days | 6 years 3 months 18 days |
Vested and exercisable, Weighted Average Remaining Contractual Term | 3 years 10 months 24 days |
Stockholders' Equity and Empl_7
Stockholders' Equity and Employee Benefit Plans - Summary of Restricted Stock Awards Activity (Details) - Restricted Stock Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Unvested, Beginning balance | 241,765 | |
Granted | 1,392,871 | |
Vested | (340,235) | |
Forfeited/cancelled | (404,182) | |
Unvested, Ending balance | 890,219 | 241,765 |
Weighted Average Grant-Date Fair Value | ||
Unvested, Beginning balance | $ 24.17 | |
Granted | 16.72 | |
Vested | 18.40 | |
Forfeited/cancelled | 18.22 | |
Unvested, Ending balance | $ 17.43 | $ 24.17 |
Weighted Average Remaining Contractual Term (in years) | ||
Unvested, Weighted Average Remaining Contractual Term | 1 year 10 months 24 days | 2 years |
Stockholders' Equity and Empl_8
Stockholders' Equity and Employee Benefit Plans - Summary of Estimated Fair Value of Stock Options Granted Using Weighted-average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Compensation Related Costs [Abstract] | |||
Expected life (in years) | 2 years | 5 years 9 months 18 days | 5 years 9 months 18 days |
Risk-free interest rate | 3.40% | 0.80% | 1.20% |
Volatility | 53% | 52% | 49% |
Dividend yield | 0% | 0% | 0% |
Fair value of common stock | $ 7.14 | $ 21.51 | $ 21.46 |
Stockholders' Equity and Empl_9
Stockholders' Equity and Employee Benefit Plans - Summary of Estimated Fair Value of ESPP Purchase Rights Granted Using Weighted-average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 2 years | 5 years 9 months 18 days | 5 years 9 months 18 days |
Risk-free interest rate | 3.40% | 0.80% | 1.20% |
Volatility | 53% | 52% | 49% |
Dividend yield | 0% | 0% | 0% |
2018 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 3 months 18 days |
Risk-free interest rate | 3% | 0.10% | 0.10% |
Volatility | 55% | 53% | 56% |
Dividend yield | 0% | 0% | 0% |
Fair value of common stock | $ 10.52 | $ 19.12 | $ 20.42 |
Stockholders' Equity and Emp_10
Stockholders' Equity and Employee Benefit Plans - Summary of Stock-based Compensation Expense Recognized in Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, net of amounts capitalized | $ 98,692 | $ 98,564 | $ 79,167 |
Capitalized stock-based compensation expense | 2,395 | 2,213 | 2,243 |
Stock-based compensation expense | 101,087 | 100,777 | 81,410 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, net of amounts capitalized | 6,164 | 5,862 | 4,450 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, net of amounts capitalized | 34,711 | 40,821 | 30,693 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, net of amounts capitalized | 22,860 | 23,585 | 19,707 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, net of amounts capitalized | 32,196 | 28,296 | 24,317 |
Restructuring expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, net of amounts capitalized | $ 2,761 | $ 0 | $ 0 |
Stockholders' Equity and Emp_11
Stockholders' Equity and Employee Benefit Plans - Unamortized Stock-based Compensation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation (in thousands) | $ 143,066 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation (in thousands) | $ 110,623 |
Weighted average vesting period (in years) | 2 years 1 month 6 days |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation (in thousands) | $ 8,485 |
Weighted average vesting period (in years) | 1 year 2 months 12 days |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation (in thousands) | $ 9,901 |
Weighted average vesting period (in years) | 2 years 1 month 6 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation (in thousands) | $ 14,057 |
Weighted average vesting period (in years) | 1 year 10 months 24 days |
Stockholders' Equity and Emp_12
Stockholders' Equity and Employee Benefit Plans - 401(k) Plan - Additional Information (Details) - United States - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution of deferrals for eligible employees | 25% | ||
Matching contribution compensation expense | $ 5.1 | $ 4.9 | $ 4.2 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease expiration year | 2028 | |
Operating lease, Weighted average remaining operating lease term | 5 years 8 months 12 days | 6 years 8 months 12 days |
Operating lease, weighted average discount rate, percent | 7.10% | 7.50% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost (gross lease expense) | $ 10,721 | $ 13,141 | $ 13,377 |
Variable lease costs | 4,487 | 4,737 | 5,636 |
Sublease income (including reimbursed expenses) | $ 2,277 | $ 4,817 | $ 5,303 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities and Sublease Income (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases Payments | |
2023 | $ 11,143 |
2024 | 9,599 |
2025 | 9,243 |
2026 | 9,515 |
2027 | 9,787 |
Thereafter | 9,363 |
Gross lease payments (income) | 58,650 |
Less: Imputed interest | 10,603 |
Less: Tenant improvement receivables | 417 |
Total operating lease liabilities | 47,630 |
Sublease Income | |
2023 | (1,781) |
2024 | (372) |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Gross lease payments (income) | $ (2,153) |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Non-Cancellable Purchase Commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2023 | $ 18,748 |
2024 | 7,289 |
2025 | 1,521 |
2026 | 49 |
2027 | 3 |
Total purchase commitments | $ 27,610 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
San Mateo Facility | |
Other Commitments [Line Items] | |
Standby letter of credit issued | $ 1 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total debt | $ 185,650 | |
Less: Unamortized issuance discount and issuance costs, net | 834 | $ 1,134 |
Debt, current | 1,900 | 1,900 |
Debt, non-current | $ 182,916 | 209,816 |
2018 Refinancing Facility Agreement | ||
Debt Instrument [Line Items] | ||
Issuance date | Oct. 31, 2018 | |
Maturity date | Oct. 10, 2025 | |
Total debt | $ 185,650 | $ 212,850 |
2018 Refinancing Facility Agreement | Minimum | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 3.90% | 3.80% |
2018 Refinancing Facility Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 8.10% | 3.90% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Mar. 02, 2022 | Oct. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Repayment of debt | $ (27,200,000) | $ (2,200,000) | $ (2,200,000) | ||
2018 Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, due date | Oct. 10, 2025 | ||||
Repayment of debt | $ (25,000,000) | ||||
Line of credit facility, remaining borrowing capacity | $ 74,000,000 | ||||
2018 Credit Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 220,000,000 | ||||
Debt instrument, quarterly principal payments | $ 550,000 | ||||
Debt instrument, due date | Oct. 10, 2025 | ||||
2018 Credit Facility | Domestic Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 75,000,000 | ||||
Debt instrument, due date | Oct. 10, 2023 | ||||
2018 Credit Facility | Alternate Base Rate | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Applicable margin | 2.75% | ||||
2018 Credit Facility | Alternate Base Rate | Domestic Line of Credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Applicable margin | 0.75% | ||||
2018 Credit Facility | Alternate Base Rate | Domestic Line of Credit | Maximum | |||||
Debt Instrument [Line Items] | |||||
Applicable margin | 1.50% | ||||
2018 Credit Facility | Eurocurrency Rate | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Applicable margin | 3.75% | ||||
2018 Credit Facility | Eurocurrency Rate | Domestic Line of Credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Applicable margin | 1.75% | ||||
2018 Credit Facility | Eurocurrency Rate | Domestic Line of Credit | Maximum | |||||
Debt Instrument [Line Items] | |||||
Applicable margin | 2.50% |
Debt - Schedule of Future Minim
Debt - Schedule of Future Minimum Payment Obligations of Principal Amounts Due (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 2,200 |
2024 | 2,200 |
2025 | 181,250 |
Total principal outstanding | $ 185,650 |
Income Taxes - Summary of Loss
Income Taxes - Summary of Loss from Operations Before Income Taxes Categorized Geographically (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 86,035 | $ (101,742) | $ (46,409) |
Foreign | 2,265 | (21,025) | (43,993) |
Loss before income taxes | $ (88,300) | $ (122,767) | $ (90,402) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax expense: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 343 | 119 | 28 |
Foreign | 834 | 695 | 337 |
Total current income tax expense | 1,177 | 814 | 365 |
Deferred income tax expense: | |||
Federal | 300 | 318 | 324 |
State | 350 | 261 | 3 |
Foreign | (236) | (911) | 487 |
Total deferred income tax expense (benefit) | 414 | (332) | 814 |
Total provision for income taxes | $ 1,591 | $ 482 | $ 1,179 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Company's Effective Tax Rate to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ (18,543) | $ (25,781) | $ (18,984) |
State income tax, net of federal tax benefit | (2,517) | (6,517) | (4,468) |
Foreign tax rate differential | 1,062 | 3,450 | 10,009 |
Stock-based compensation | 11,870 | 1,305 | (3,429) |
Research and development credits | (2,002) | (3,752) | (3,066) |
Other | 1,111 | 387 | 492 |
Change in valuation allowance | 10,610 | 31,390 | 20,625 |
Total provision for income taxes | $ 1,591 | $ 482 | $ 1,179 |
Income Taxes - Summary of Tax E
Income Taxes - Summary of Tax Effects of Temporary Differences Portions of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | |||
Net operating losses | $ 99,689 | $ 96,340 | |
Tax credits | 44,370 | 43,696 | |
Stock-based compensation | 21,994 | 21,469 | |
Accrued compensation and related expenses | 1,829 | 3,690 | |
Lease liabilities | 12,468 | 19,780 | |
Financing related | 15,337 | 13,519 | |
Intangible assets | 74,962 | 75,059 | |
Depreciation and amortization | 6,773 | 4,766 | |
Capitalized research and development expenses | 10,649 | 0 | |
Other | 1,698 | 5,051 | |
Total deferred tax assets: | 289,769 | 283,370 | |
Valuation allowance | (248,720) | (239,045) | $ (201,800) |
Total deferred tax assets, net of valuation allowance: | 41,049 | 44,325 | |
Deferred tax liabilities: | |||
Goodwill | (32,523) | (29,638) | |
Right-of-use assets | (11,312) | (17,060) | |
Total deferred tax liabilities: | (43,835) | (46,698) | |
Total net deferred tax liabilities: | $ (2,786) | $ (2,373) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Valuation allowance | $ 248,720,000 | $ 239,045,000 | $ 201,800,000 |
Increase (decrease) in valuation allowance | 9,700,000 | 37,200,000 | 26,900,000 |
Cumulative unrecognized tax benefits | 9,282,000 | $ 9,902,000 | $ 6,867,000 |
Cumulative reduction to deferred tax assets related to net operating losses offset by valuation allowance | $ 9,000,000 | ||
Capitalized contract amortization period | 4 years | ||
Unrecognized tax benefits that would impact effective tax rate | $ 0 | ||
Federal | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 353,100,000 | ||
Operating loss carryforwards, expiration year | 2023 | ||
Capitalized contract amortization period | 5 years | ||
Federal | Research and Development | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Research and development credits | $ 27,500,000 | ||
Research and development credits, expiration year | 2034 | ||
State | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 215,700,000 | ||
Operating loss carryforwards, expiration year | 2023 | ||
State | Research and Development | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Research and development credits | $ 23,600,000 | ||
Foreign | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Capitalized contract amortization period | 15 years | ||
Foreign | Research and Development | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Research and development credits | $ 2,100,000 | ||
Research and development credits, expiration year | 2039 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Balances of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balances | $ 9,902 | $ 6,867 |
Increases related to tax positions taken during a prior year | 0 | 387 |
Increases related to tax positions taken during the current year | 737 | 2,648 |
Decreases related to tax positions taken during a prior year | (1,357) | 0 |
Decreases related to tax settlements with taxing authorities | 0 | 0 |
Ending balances | $ 9,282 | $ 9,902 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net loss | $ (89,891) | $ (123,249) | $ (91,581) |
Denominator: | |||
Weighted average number of basic shares outstanding | 148,476 | 147,045 | 139,887 |
Weighted average number of diluted shares outstanding | 148,476 | 147,045 | 139,887 |
Net loss per common share, basic | $ (0.61) | $ (0.84) | $ (0.65) |
Net loss per common share, diluted | $ (0.61) | $ (0.84) | $ (0.65) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of net loss per share | 24.2 | 21.4 | 23 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 10, 2022 | ||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | [1],[2] | $ 6,563 | $ 0 | $ 0 | |||
Restructuring reserve, current | $ 700 | 700 | |||||
March 2022 Restructuring Plan [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | $ 2,400 | ||||||
October 2022 Restructuring Plan [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | $ 4,500 | ||||||
Reduction of the company's workforce | 11% | ||||||
San Mateo Facility | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Future undiscounted lease payment | $ 26,900 | ||||||
[1] Includes amortization of acquisition intangible assets as follows: Includes stock-based compensation, net of amounts capitalized as follows: |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Costs - Pre -Tax Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Employee severance | $ 7,224 | |||
Gain on lease modification | (6,370) | $ 0 | $ 0 | |
Impairment of property and equipment | 838 | |||
Stock-based compensation | 2,761 | |||
Amortization of intangible assets | 5,600 | 10,142 | 12,602 | |
Restructuring Costs, Total | [1],[2] | 6,563 | 0 | 0 |
Restructuring expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Amortization of intangible assets | 450 | $ 0 | $ 0 | |
Contract termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination and other costs | $ 1,660 | |||
[1] Includes amortization of acquisition intangible assets as follows: Includes stock-based compensation, net of amounts capitalized as follows: |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Feb. 15, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Subsequent Event [Line Items] | |||||
Restructuring charges | [1],[2] | $ 6,563 | $ 0 | $ 0 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Reduction of the company's workforce | 14% | ||||
Subsequent Event | Minimum | |||||
Subsequent Event [Line Items] | |||||
Restructuring charges | $ 7,000 | ||||
Subsequent Event | Maximum | |||||
Subsequent Event [Line Items] | |||||
Restructuring charges | $ 9,000 | ||||
[1] Includes amortization of acquisition intangible assets as follows: Includes stock-based compensation, net of amounts capitalized as follows: |