Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38685 | |
Entity Registrant Name | Grid Dynamics Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-0632724 | |
Entity Address, Address Line One | 5000 Executive Parkway | |
Entity Address, Address Line Two | Suite 520 | |
Entity Address, City or Town | San Ramon | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94583 | |
City Area Code | 650 | |
Local Phone Number | 523-5000 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | GDYN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 75,336,445 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001743725 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 246,176 | $ 256,729 |
Accounts receivable, net of allowance of $524 and $443 as of June 30, 2023 and December 31, 2022, respectively | 48,804 | 48,358 |
Unbilled receivables | 8,079 | 5,591 |
Prepaid income taxes | 9,224 | 4,294 |
Prepaid expenses and other current assets | 9,189 | 8,154 |
Total current assets | 321,472 | 323,126 |
Property and equipment, net | 10,024 | 8,215 |
Operating lease right-of-use assets, net | 11,203 | 7,694 |
Intangible assets, net | 28,641 | 20,375 |
Goodwill | 54,633 | 45,514 |
Deferred tax assets | 3,734 | 4,998 |
Other noncurrent assets | 1,531 | 1,224 |
Total assets | 431,238 | 411,146 |
Current liabilities | ||
Accounts payable | 5,302 | 3,897 |
Accrued compensation and benefits | 20,832 | 13,065 |
Accrued income taxes | 14,215 | 10,718 |
Operating lease liabilities, current | 4,154 | 2,505 |
Accrued expenses and other current liabilities | 8,967 | 8,525 |
Total current liabilities | 53,470 | 38,710 |
Deferred tax liabilities | 3,524 | 3,756 |
Operating lease liabilities, noncurrent | 7,682 | 5,636 |
Total liabilities | 64,676 | 48,102 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value; 110,000,000 shares authorized; 75,333,893 and 74,156,458 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 7 | 7 |
Additional paid-in capital | 384,969 | 378,006 |
Accumulated deficit | (19,464) | (14,121) |
Accumulated other comprehensive income/(loss) | 1,050 | (848) |
Total stockholders’ equity | 366,562 | 363,044 |
Total liabilities and stockholders’ equity | $ 431,238 | $ 411,146 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 524 | $ 443 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 110,000,000 | 110,000,000 |
Common stock, shares issued (in shares) | 75,333,893 | 74,156,458 |
Common stock, shares outstanding (in shares) | 75,333,893 | 74,156,458 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 77,342 | $ 77,335 | $ 157,422 | $ 148,745 |
Cost of revenue | 49,037 | 48,474 | 100,542 | 93,105 |
Gross profit | 28,305 | 28,861 | 56,880 | 55,640 |
Operating expenses | ||||
Engineering, research, and development | 3,273 | 3,840 | 7,476 | 6,936 |
Sales and marketing | 5,963 | 5,132 | 11,597 | 9,347 |
General and administrative | 17,735 | 30,738 | 42,465 | 50,003 |
Total operating expenses | 26,971 | 39,710 | 61,538 | 66,286 |
Income/(loss) from operations | 1,334 | (10,849) | (4,658) | (10,646) |
Other income/(expenses), net | 3,008 | (626) | 4,690 | (1,326) |
Income/(loss) before income taxes | 4,342 | (11,475) | 32 | (11,972) |
Provision for income taxes | 1,715 | 1,711 | 5,375 | 3,881 |
Net income/(loss) | 2,627 | (13,186) | (5,343) | (15,853) |
Foreign currency translation adjustments, net of tax | 1,403 | (782) | 1,898 | (1,065) |
Comprehensive income/(loss) | $ 4,030 | $ (13,968) | $ (3,445) | $ (16,918) |
Income/(loss) per share | ||||
Basic (in dollars per share) | $ 0.03 | $ (0.20) | $ (0.07) | $ (0.24) |
Diluted (in dollars per share) | $ 0.03 | $ (0.20) | $ (0.07) | $ (0.24) |
Weighted average shares outstanding | ||||
Basic (in shares) | 75,145 | 67,136 | 74,804 | 67,028 |
Diluted (in shares) | 76,850 | 67,136 | 74,804 | 67,028 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings/(accumulated deficit) | Accumulated other comprehensive income/(loss) |
Beginning balance (in shares) at Dec. 31, 2021 | 66,851 | ||||
Beginning balance at Dec. 31, 2021 | $ 227,051 | $ 7 | $ 212,077 | $ 15,093 | $ (126) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | (2,667) | (2,667) | |||
Stock-based compensation | 8,661 | 8,661 | |||
Exercise of stock options (in shares) | 72 | ||||
Exercise of stock options | 292 | 292 | |||
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares) | 134 | ||||
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards | (1,802) | (1,802) | |||
Foreign currency translation adjustments, net of tax | (283) | (283) | |||
Ending balance (in shares) at Mar. 31, 2022 | 67,057 | ||||
Ending balance at Mar. 31, 2022 | 231,252 | $ 7 | 219,228 | 12,426 | (409) |
Beginning balance (in shares) at Dec. 31, 2021 | 66,851 | ||||
Beginning balance at Dec. 31, 2021 | 227,051 | $ 7 | 212,077 | 15,093 | (126) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | (15,853) | ||||
Foreign currency translation adjustments, net of tax | (1,065) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 67,294 | ||||
Ending balance at Jun. 30, 2022 | 232,925 | $ 7 | 234,869 | (760) | (1,191) |
Beginning balance (in shares) at Mar. 31, 2022 | 67,057 | ||||
Beginning balance at Mar. 31, 2022 | 231,252 | $ 7 | 219,228 | 12,426 | (409) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | (13,186) | (13,186) | |||
Stock-based compensation | 16,387 | 16,387 | |||
Exercise of stock options (in shares) | 160 | ||||
Exercise of stock options | 538 | 538 | |||
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares) | 77 | ||||
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards | (1,284) | (1,284) | |||
Foreign currency translation adjustments, net of tax | (782) | (782) | |||
Ending balance (in shares) at Jun. 30, 2022 | 67,294 | ||||
Ending balance at Jun. 30, 2022 | 232,925 | $ 7 | 234,869 | (760) | (1,191) |
Beginning balance (in shares) at Dec. 31, 2022 | 74,156 | ||||
Beginning balance at Dec. 31, 2022 | 363,044 | $ 7 | 378,006 | (14,121) | (848) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | (7,970) | (7,970) | |||
Stock-based compensation | 13,257 | 13,257 | |||
Exercise of stock options (in shares) | 1 | ||||
Exercise of stock options | 10 | 10 | |||
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares) | 739 | ||||
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards | (8,951) | (8,951) | |||
Foreign currency translation adjustments, net of tax | 495 | 495 | |||
Ending balance (in shares) at Mar. 31, 2023 | 74,896 | ||||
Ending balance at Mar. 31, 2023 | 359,885 | $ 7 | 382,322 | (22,091) | (353) |
Beginning balance (in shares) at Dec. 31, 2022 | 74,156 | ||||
Beginning balance at Dec. 31, 2022 | 363,044 | $ 7 | 378,006 | (14,121) | (848) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | (5,343) | ||||
Foreign currency translation adjustments, net of tax | 1,898 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 75,334 | ||||
Ending balance at Jun. 30, 2023 | 366,562 | $ 7 | 384,969 | (19,464) | 1,050 |
Beginning balance (in shares) at Mar. 31, 2023 | 74,896 | ||||
Beginning balance at Mar. 31, 2023 | 359,885 | $ 7 | 382,322 | (22,091) | (353) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | 2,627 | 2,627 | |||
Stock-based compensation | 7,153 | 7,153 | |||
Exercise of stock options (in shares) | 13 | ||||
Exercise of stock options | (66) | (66) | |||
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares) | 425 | ||||
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards | (4,440) | (4,440) | |||
Foreign currency translation adjustments, net of tax | 1,403 | 1,403 | |||
Ending balance (in shares) at Jun. 30, 2023 | 75,334 | ||||
Ending balance at Jun. 30, 2023 | $ 366,562 | $ 7 | $ 384,969 | $ (19,464) | $ 1,050 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Cash flows from operating activities | ||
Net loss | $ (5,343) | $ (15,853) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 3,777 | 3,280 |
Operating lease right-of-use assets amortization expense | 1,419 | 1,431 |
Bad debt expense | 113 | 132 |
Deferred income taxes | (1,203) | (731) |
Debt issuance cost amortization | 45 | 20 |
Change in fair value of contingent consideration issued for acquisition of business | (2,554) | 0 |
Stock-based compensation | 20,410 | 25,048 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,418 | (5,454) |
Unbilled receivables | (1,826) | (124) |
Prepaid income taxes | (4,791) | (587) |
Prepaid expenses and other current assets | (755) | (3,302) |
Accounts payable | 1,187 | 1,341 |
Accrued compensation and benefits | 6,829 | 7,947 |
Operating lease liabilities | (1,279) | (1,642) |
Accrued income taxes | 3,116 | 3,078 |
Accrued expenses and other current liabilities | 2,016 | 738 |
Net cash provided by operating activities | 22,579 | 15,322 |
Cash flows from investing activities | ||
Purchase of property and equipment | (3,753) | (3,213) |
Purchase of investment | 0 | (1,000) |
Acquisition of business, net of cash acquired | (17,830) | 0 |
Net cash used in investing activities | (21,583) | (4,213) |
Cash flows from financing activities | ||
Payments of tax obligations resulted from exercises of stock options, net of proceeds | (56) | 830 |
Payments of tax obligations resulted from net share settlement of vested stock awards | (13,391) | (3,086) |
Payment of contingent consideration related to previously acquired businesses | 0 | (1,933) |
Proceeds from debt | 0 | 5,000 |
Repayment of debt | 0 | 5,000 |
Debt issuance cost | 0 | (201) |
Net cash used in financing activities | (13,447) | (4,390) |
Effect of exchange rate changes on cash and cash equivalents | 1,898 | (1,065) |
Net increase/(decrease) in cash and cash equivalents | (10,553) | 5,654 |
Cash and cash equivalents, beginning of period | 256,729 | 144,364 |
Cash and cash equivalents, end of period | 246,176 | 150,018 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 8,142 | $ 1,880 |
Acquisition fair value of contingent consideration issued for acquisition of business | $ 932 |
Nature of operations and summar
Nature of operations and summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of operations and summary of significant accounting policies | Nature of operations and summary of significant accounting policies Grid Dynamics Holdings, Inc. (the “Company”) provides enterprise-level digital transformation in the areas of technology consulting, agile custom software development, and data analytics to Fortune 1000 companies. The Company’s headquarters and principal place of business is in San Ramon, California. The following is a summary of critical accounting policies consistently applied in the preparation of the accompanying unaudited condensed consolidated financial statements. Full description of significant accounting policies is provided in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the SEC on February 28, 2023. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2022 included in the Company’s annual report on Form 10-K that the Company filed with the SEC on February 28, 2023. Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries that are directly or indirectly owned or controlled. Intercompany transactions and balances have been eliminated upon consolidation. The Company provides services to its customers utilizing its own personnel as well as personnel from subcontractors. One of the subcontractors exclusively supports and performs services on behalf of the Company and its customers. The Company had no ownership in this subcontractor (“Affiliate”) as of June 30, 2023. The Company is required to apply accounting standards which address how a business enterprise should evaluate whether it has a controlling financial interest in a variable interest entity (“VIE”) through means other than voting rights and accordingly should determine whether or not to consolidate the entity. The Company has determined that it is required to consolidate the Affiliate because the Company has the power to direct the VIE’s most significant activities and is the primary beneficiary of the Affiliate. The assets and liabilities of the Affiliate primarily consist of inter-company balances and transactions all of which have been eliminated in consolidation. Use of estimates The preparation of the unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and such differences could be material. Significant estimates include determination of fair value, useful lives and recoverability of intangible assets and goodwill, stock-based compensation, contingent consideration payable, determination of provision for income taxes, deferred tax assets and liabilities and uncertain tax positions. Recently adopted accounting pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (the “FASB”), in the form of Accounting Standards Updates (“ASUs”), to the FASB’s ASC. The Company will adopt according these changes according to the various timetables the FASB specifies. Measurement of Credit Losses on Financial Instruments — In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments that was subsequently amended by ASU 2019-4, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, ASU 2019-5, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief, and clarified with the release of ASU 2020-2 Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842). These ASUs replace the current incurred loss impairment methodology with a methodology that reflects expected credit losses measured at amortized cost and certain other instruments, including loans, held-to-maturity debt securities, net investments in leases, and off-balance sheet credit exposures. The Company adopted Topic 326, effective January 1, 2023, using a modified-retrospective approach. Adoption of Topic 326 did not have any impact on its condensed consolidated financial statements. Recently issued accounting pronouncements |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions NextSphere — On April 18, 2023, the Company completed the acquisition of 100% of NextSphere Technologies, Inc. (“NextSphere”). Founded in 2006, NextSphere is headquartered in Tampa, FL, has an engineering presence in Phoenix, AZ, and operates two large engineering centers in India's tech hubs of Hyderabad and Chennai. NextSphere specializes in modern application development, systems monetization, product development, cloud and infrastructure services, and quality assurance. Over the years, NextSphere has worked with several brands across numerous industry verticals with expertise in Healthcare, Fintech and CPG/Manufacturing industries. The Company believes this acquisition will support the Company’s objectives of enhancing its technical capabilities, expanding its global footprint, and increasing its client base. The total purchase consideration is $25.2 million and consists of cash consideration of $24.3 million paid at closing, and fair value of the contingent consideration at the date of the acquisition of $0.9 million. The maximum amount of potential contingent cash consideration is $2.0 million. The contingent consideration is payable based on revenue and gross profit metrics to be achieved by NextSphere within 12 months. The Company recorded a liability for the contingent consideration amount based on the Company’s best estimate of the fair value of the expected payout. See Note 3 for further details on contingent consideration. Mutual Mobile — On December 23, 2022, the Company acquired 100% of the equity interest of the software company Mutual Mobile Inc. (“Mutual Mobile”). Founded in 2009, Mutual Mobile is based in the United States and India, offers end-to-end design and development of next-generation applications, combining mobile, augmented/virtual/mixed reality, and cloud edge / IoT practices. The acquisition of Mutual Mobile added approximately 180 employees to the Company’s headcount. The acquisition will accelerate Company’s strategic expansion into the India engineering market and further solidifies Grid Dynamics’ commitment to global growth. The total purchase consideration is $16.1 million and consists of cash consideration of $12.8 million paid at closing, and fair value of the contingent consideration at the date of the acquisition of $3.3 million. The maximum amount of potential contingent cash consideration is $5.0 million. The contingent consideration is payable based on revenue and gross profit metrics to be achieved by Mutual Mobile within 12 months. The Company recorded a liability for the contingent consideration amount based on the Company’s best estimate of the fair value of the expected payout. See Note 3 for further details on contingent consideration. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed: NextSphere Mutual Mobile (in thousands) Current assets $ 9,708 $ 4,982 Property, plant and equipment 192 132 Intangible assets 9,906 3,749 Goodwill 9,119 9,556 Other noncurrent assets 511 102 Total assets acquired $ 29,436 $ 18,521 Accounts payable, accrued expenses and other liabilities (1,990) (1,576) Deferred taxes (2,235) (875) Total liabilities assumed $ (4,225) $ (2,451) Purchase price allocation $ 25,211 $ 16,070 Current assets acquired include cash and cash equivalents in the amount of $6.4 million for NextSphere and $3.5 million for Mutual Mobile, respectively. The purchase price for all acquisitions was assigned to assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition, and any excess was allocated to goodwill, as shown in the table above. Goodwill represents the value the Company expects to achieve through the implementation of operational synergies and growth opportunities as the Company expands its global reach. Goodwill for NextSphere and Mutual Mobile is not deductible for income tax purposes. For the acquisition of NextSphere and Mutual Mobile, the estimated fair values of the assets acquired and liabilities assumed are provisional and based on the information that was available as of the acquisition date. The Company expects to finalize the purchase price allocations as soon as practicable but no later than one year from the acquisition date. The estimated fair value, useful lives and amortization methods of identifiable intangible assets as of the date of acquisition updated for any changes as of June 30, 2023 are as follows: NextSphere Mutual Mobile Fair Value Useful Life Fair Value Useful Life (in thousands, except in years) Customer relationships $ 8,415 10 years $ 3,453 8 years Acquired software 995 2.5 years — — Trade name 496 2 years 152 4 years Non-compete agreements — — 144 2 years Total identified intangible assets $ 9,906 $ 3,749 The Company used the acquisition method of accounting for all acquisitions, and consequently, the results of operations for all acquisitions are reported in the consolidated financial statements from the dates of acquisition. The following unaudited pro forma information presents the combined results of operations as if the acquisitions of Mutual Mobile and NextSphere had occurred at the beginning of the year preceding the acquisition date. Pre-acquisition results of business acquired have been added to the Company’s historical results. The pro forma results contained in the table below include adjustments for amortization of acquired intangibles and related income taxes. Any potential cost savings or other operational efficiencies that could result from the acquisition are not included in these pro forma results. These unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor are they necessarily an indication of future operating results. Three Months Ended Six Months Ended (in thousands) Revenue $ 82,515 $ 157,555 Net loss $ (12,559) $ (13,904) Diluted loss per share $ (0.19) $ (0.21) |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair value The Company’s financial assets and liabilities, with the exceptions of contingent consideration payable described further herein, are all short term in nature; therefore, the carrying value of these items approximates their fair value. The Company measures contingent consideration payable at fair value on a recurring basis using significant inputs that are not observable in the market. Fair value of the contingent consideration liability is based on the Monte-Carlo model which is primarily based on budgets and discounted cash flow analysis. The Company believes its estimates and assumptions are reasonable, however, there is significant judgment involved. Changes in the fair value of contingent consideration payable primarily result from changes in timing and amount of specific milestone estimates and changes in probability assumptions with respect to the likelihood of achieving the various earnout criteria. These changes could cause a material impact to, and volatility in the Company’s operating results. During the three months ended December 31, 2022 and three months ended June 30, 2023 the Company completed the acquisitions of NextSphere and Mutual Mobile under which the Company committed to make a cash earnout payment subject to attainment of specific performance targets. The weighted average discount rate used to determine the fair value of NextSphere and Mutual Mobile contingent considerations was 15.5% and 10.3%, respectively. The Company records contingent consideration payable in Other current liabilities in its unaudited consolidated balance sheet. A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration payable using significant unobservable inputs for the six months ended June 30, 2023 are as follows: Amount Contingent consideration payable as of December 31, 2022 $ 3,288 Acquisition date fair value of contingent consideration payable - NextSphere 932 Change in fair value of contingent consideration payable included in Other income/(expense) - Mutual Mobile (2,554) Contingent consideration payable as of June 30, 2023 $ 1,666 Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis Estimates of fair value of financial instruments not carried at fair value on a recurring basis are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Company’s financial assets and liabilities, are generally short-term in nature; therefore, the carrying value of these items approximates their fair value. The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) June 30, 2023 Financial Assets: Cash equivalents: Money market funds $ 197,211 $ 197,211 $ 197,211 $ — $ — December 31, 2022 Financial Assets: Cash equivalents: Money market funds $ 205,787 $ 205,787 $ 205,787 $ — $ — Non-Marketable Securities Without Readily Determinable Fair Values The Company holds investment in equity securities of a related party that does not have readily determinable fair values. This investment is recorded at cost and is remeasured to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of the investment was $1.0 million as of June 30, 2023 and December 31, 2022, and was classified as Other noncurrent assets in the Company’s unaudited condensed consolidated balance sheets. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other current assets | Prepaid expenses and other current assets The prepaid expenses and other current assets were as follows: As of June 30, December 31, (in thousands) Prepaid expenses $ 4,854 $ 3,323 Value added, goods and service taxes receivable 2,019 1,384 Guarantee deposits placed 2,004 2,295 Other prepaid and current assets 312 1,152 Total prepaid expenses and other current assets $ 9,189 $ 8,154 |
Property and equipment, net
Property and equipment, net | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, netProperty and equipment, net consisted of the following: Estimated As of June 30, December 31, (in years) (in thousands) Computers and equipment 2-5 $ 12,798 $ 11,679 Furniture and fixtures 3-10 1,706 1,614 Leasehold improvements 2-8 1,258 646 Software 3-5 1,196 1,053 Machinery and automobiles 4-6 559 349 $ 17,517 $ 15,341 Less: Accumulated depreciation and amortization (10,688) (8,614) $ 6,829 $ 6,727 Capitalized software development costs 2-3 $ 5,831 $ 6,210 Less: Accumulated amortization (2,636) (4,722) $ 3,195 $ 1,488 Property and equipment, net $ 10,024 $ 8,215 |
Intangible assets, net
Intangible assets, net | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | Intangible assets, net Intangible assets, net consisted of the following: Estimated As of June 30, December 31, (in years) (in thousands) Customer relationships 8-12 $ 27,839 $ 19,424 Tradenames 2-10 5,324 4,828 Acquired software 2.5 995 — Non-compete agreements 2 584 584 $ 34,742 $ 24,836 Less: Accumulated amortization (6,101) (4,461) Intangible assets, net $ 28,641 $ 20,375 Based on the carrying value of the Company’s existing intangible assets as of June 30, 2023, the estimated amortization expense for the future years is as follows: Years ending December 31, (in thousands) Amount 2023 (excluding six months ended June 30, 2023) 2,080 2024 4,048 2025 3,640 2026 3,168 2027 3,130 Thereafter 12,575 Total $ 28,641 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities The components of accrued expenses and other current liabilities were as follows: As of June 30, December 31, 2022 (in thousands) Accrued rebates $ 1,964 $ 473 Value added tax payable 1,846 1,345 Contingent consideration payable 1,666 3,288 Accrued expenses 1,621 829 Customer deposits 789 754 Other liabilities 1,081 1,836 Total accrued expenses and other current liabilities $ 8,967 $ 8,525 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facility — On March 15, 2022, the Company entered into a Credit Agreement (the “2022 Credit Agreement”) by and among the Company, as borrower, the guarantors party thereto from time to time, the lenders party thereto from time to time, and JPMorgan Chase Bank, N.A., as administrative agent for the lenders (the “Agent”). The 2022 Credit Agreement provides for a secured multicurrency revolving loan facility with an initial aggregate principal amount of up to $30.0 million, with a $10.0 million letter of credit sublimit. The Company may increase the size of the revolving loan facility up to $50.0 million, subject to certain conditions and additional commitments from existing and/or new lenders. The 2022 Credit Agreement matures on March 15, 2025. At the Company’s option, borrowings under the 2022 Credit Agreement accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 1.0% to 1.5%, (ii) an adjusted term Secured Overnight Financing Rate (“SOFR”) or adjusted the Euro Interbank Offer Rate (“EURIBOR”) (based on one, three or six-month interest periods) plus a margin ranging from 2.0% to 2.5%, or (iii) an adjusted daily simple SOFR rate (or SONIA rate in the case of loans denominated in pounds sterling, or SARON rate in the case of loans denominated in Swiss francs), plus a margin ranging from 2.0% to 2.5%, in each case, with the applicable margin determined based on the Company’s consolidated total leverage ratio. The Company is also obligated to pay other closing fees, administration fees, commitment fees and letter of credit fees customary for a credit facility of this size and type. The Company’s obligations under the 2022 Credit Agreement are required to be guaranteed by certain of its domestic subsidiaries meeting materiality thresholds set forth in the 2022 Credit Agreement. Such obligations, including the guaranties, are secured by substantially all of the personal property of the Company and the Company’s subsidiary guarantors. The 2022 Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company and its subsidiaries to, among other things, incur debt, grant liens, undergo certain fundamental changes, make investments and acquisitions, make certain restricted payments, dispose of assets, enter into certain transactions with affiliates, and enter into burdensome agreements, in each case, subject to limitations and exceptions set forth in the 2022 Credit Agreement. The Company is also required to maintain compliance with a consolidated total leverage ratio, determined in accordance with the terms of the 2022 Credit Agreement. As of June 30, 2023, the Company was in compliance with all covenants contained in the 2022 Credit Agreement. In October, 2017, the Company entered into a loan agreement for a revolving line of credit facility (the “Line of Credit”) with a borrowing capacity of $0.5 million. The Line of Credit is secured by substantially all of the Company’s assets and was secured in order to provide credit support for a letter of credit facility and balances under the Company’s credit cards. Borrowings under the Line of Credit are subject to a variable interest rate, based on changes in the Prime Rate, as calculated published by the Wall Street Journal. The Company closed the Line of Credit in March of 2022. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenues Disaggregation of revenues The tables below present disaggregated revenues from contracts with customer by customer location, industries and contract-types. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors. The Company has a single reportable segment for the six months ended June 30, 2023 and 2022. The following table shows the disaggregation of the Company’s revenues by major customer location. Revenues are attributed to geographic regions based upon billed client location. Substantially all of the revenue in our North America region relates to operations in the United States. Three Months Ended Six Months Ended 2023 2022 2023 2022 Customer Location (in thousands) North America $ 61,944 $ 63,658 $ 125,893 $ 121,267 Europe 15,251 13,596 31,145 27,331 Other 147 81 384 147 Total Revenues $ 77,342 $ 77,335 $ 157,422 $ 148,745 The following table shows the disaggregation of the Company’s revenues by main vertical markets: Three Months Ended Six Months Ended 2023 2022 2023 2022 Vertical (in thousands) Retail $ 26,032 $ 25,452 $ 51,428 $ 48,759 Technology, Media and Telecom 24,096 23,391 50,907 44,835 CPG/Manufacturing (1) 10,872 16,090 23,518 31,069 Finance 6,748 5,049 13,263 9,576 Other 9,594 7,353 18,306 14,506 Total Revenues $ 77,342 $ 77,335 $ 157,422 $ 148,745 __________________________ (1) CPG stands for Consumer Packaged Goods The following table shows the disaggregation of the Company’s revenues by contract types: Three Months Ended Six Months Ended 2023 2022 2023 2022 Contract Type (in thousands) Time-and-material $ 69,143 $ 71,002 $ 139,669 $ 136,208 Fixed-fee 7,731 6,333 17,285 12,537 Other revenues 468 — 468 — Total Revenues $ 77,342 $ 77,335 $ 157,422 $ 148,745 Contract balances A contract asset is a right to consideration that is conditional upon factors other than the passage of time. A contract liability, or deferred revenue, consists of advance payments and billings in excess of revenues recognized. As of June 30, 2023 and December 31, 2022 the Company did not have material contract assets. Contract liabilities were $0.4 million and $1.1 million as of June 30, 2023 and December 31, 2022, respectively. Remaining performance obligation ASC 606 “ Revenue from Contracts with Customers ” requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2023 and December 31, 2022. This disclosure is not required for: 1) contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty, 2) contracts for which the Company recognizes revenues based on the right to invoice for services performed, 3) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or 4) variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property. All of the Company’s contracts met one or more of these exemptions as of June 30, 2023 and December 31, 2022 . Customers concentration The following table shows the amount of revenue derived from each customer exceeding 10% of the Company’s revenue: Three Months Ended Six Months Ended 2023 2022 2023 2022 Customer 1 14.0 % 11.9 % 13.9 % 11.6 % Customer 2 n/a 11.1 % n/a 10.7 % During the three and six months ended June 30, 2023 the Company recorded revenues from its related parties of $2.3 million and $4.0 million, respectively. During the same periods of 2022 the Company recorded revenue from related parties of $1.4 million and $2.6 million, respectively. The following table shows number of customers exceeding 10% of the Company’s billed and unbilled receivable balances: As of June 30, December 31, Accounts receivable 1 2 Unbilled receivable 2 2 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases A major part of the Company's lease obligations is for office real estate. The Company may also lease corporate apartments, cars and office equipment. Payments on some of our leases may depend on index or rate, including Consumer Price Index. Such payments are included in the calculation of lease liability and assets at the commencement dates, all future changes are accounted as variable payments similar to other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost. The Company’s leases have remaining lease terms ranging from 0.4 to 4.8 years . Certain lease agreements may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancellable only by the payment of penalties. The Company includes these options in the lease term when it is reasonably certain that they will be exercised. As of June 30, 2023 and December 31, 2022, the Company had no finance leases. Operating lease expense is recorded on a straight-line basis over the lease term. During the three and six months ended June 30, 2023 and June 30, 2022 lease costs were as follows: Three months ended Six Months Ended 2023 2022 2023 2022 (in thousands) Operating lease cost $ 939 $ 858 $ 1,720 $ 1,552 Variable lease cost 68 (96) 262 (72) Short-term lease cost 98 28 196 267 Total lease cost $ 1,105 $ 790 $ 2,178 $ 1,747 Supplemental information related to operating lease transactions is as follows: Three months ended Six Months Ended 2023 2022 2023 2022 (in thousands) Lease liability payments $ 913 $ 752 $ 1,640 $ 1,618 Lease assets obtained in exchange for liabilities $ 3,614 $ 1,514 $ 4,636 $ 1,514 Non-cash net change in lease assets due to lease modifications $ 26 $ (858) $ 26 $ (886) Non-cash net change in lease liability due to lease modifications $ (26) $ 858 $ (26) $ 886 Weighted average remaining lease term and discount rate as of June 30, 2023 is as follows: As of June 30, December 31, Weighted average remaining lease term, in years 3.6 2.8 Weighted average discount rate 6.4 % 4.7 % As of June 30, 2023, operating lease liabilities will mature as follows: Years ending December 31, (in thousands) Lease Payments 2023 (excluding six months ended June 30, 2023) $ 2,121 2024 4,060 2025 3,092 2026 2,219 2027 1,844 2028 89 Total lease payments 13,425 Less: imputed interest (1,589) Total $ 11,836 There were no material lease agreements signed with related parties as of June 30, 2023 and December 31, 2022. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxesThe Company recorded income tax expense of $1.7 million and $1.7 million for the three months ended June 30, 2023 and 2022, respectively. The Company’s effective tax rate was 39.5% and (14.9)% for the second quarter of 2023 and 2022, respectively. On a year-to-date basis, the Company recorded income tax expense of $5.4 million and $3.9 million for 2023 and 2022, respectively. Effective tax rate was not meaningful and (32.4)% during the six months ended June 30, 2023 and 2022, respectively. Effective tax rate for six months ended June 30, 2023 was not meaningful due to immaterial income before tax compared to income tax expense recorded. The change in the effective tax rate for the three and six months ended June 30, 2023, as compared to the same period in 2022 was attributable mainly to Section 162(m) compensation deduction limitations and foreign inclusion adjustments. For the three and six months ended June 30, 2023, the Company used a discrete effective tax rate method to calculate income taxes due to sensitivity of the forecast. Through June 30, 2023, the Company determined that small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate causing material distortion in the year-to-date tax provision. As of June 30, 2023, the Company is unable to produce a reliable estimate of ordinary income for the quarter and year ending 2023 due to the inability to reliably or accurately forecast 2023 operating expenses. Similarly, for the three and six months ended June 30, 2023, due to uncertainties created by geopolitical risks, the Company’s estimated annual effective tax rate method would not provide a reliable estimate and therefore was not used. |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation Employee stock-based compensation cost recognized in the consolidated statements of loss and comprehensive loss was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Cost of revenue $ 520 $ 272 $ 980 $ 521 Engineering, research, and development 1,020 1,638 2,673 2,502 Sales and marketing 823 1,207 1,878 1,878 General and administrative 4,790 13,270 14,879 20,147 Total stock-based compensation $ 7,153 $ 16,387 $ 20,410 $ 25,048 Stock Options 2018 Plan Stock option activity under the Company’s 2018 Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term Options outstanding as of December 31, 2022 1,598,811 $ 3.54 $ 12,279 6.0 Options exercised (32,795) $ 3.54 Options outstanding as of June 30, 2023 1,566,016 $ 3.54 $ 8,942 5.6 Options vested and exercisable as of June 30, 2023 1,519,130 $ 3.54 $ 8,674 5.5 The total unrecognized compensation expenses related to 2018 Plan options as of June 30, 2023 was $0.01 million to be expensed on a straight-line basis over 0.2 years. 2020 Plan As of June 30, 2023, 7.3 million shares were available for grant under 2020 Incentive Stock Plan (“2020 Plan”). Stock option activity under the Company’s 2020 Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term Options outstanding as of December 31, 2022 3,003,611 $ 13.22 $ 3,883 8.3 Options granted 597,000 $ 11.68 Options exercised (2,123) $ 8.20 Options forfeited (164,708) $ 15.51 Options expired (14,639) $ 20.71 Options outstanding as of June 30, 2023 3,419,141 $ 12.82 $ 1,337 7.8 Options vested and exercisable as of June 30, 2023 1,415,499 $ 10.90 $ 1,069 6.6 The Company elected the policy to account for forfeitures as these occur. The total unrecognized compensation expenses related to 2020 Stock Plan options as of June 30, 2023 was $11.5 million to be expensed on a straight-line basis over the remaining 2.8 years. Restricted Stock Units RSUs granted do not participate in earnings, dividends, and do not have voting rights until vested. The following table summarizes activity of the Company’s RSUs for the six months ended June 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Unvested awards as of December 31, 2022 2,245,968 $ 11.99 Awards granted 143,000 $ 11.64 Awards vested and released (989,969) $ 12.40 Awards forfeited (101,883) $ 11.22 Unvested awards as of June 30, 2023 1,297,116 $ 11.69 During the six months ended June 30, 2023 the Company net withheld and returned to the 2020 Plan pool 0.5 million shares to cover $5.3 million tax obligations for RSU releases. The total unrecognized compensation expenses related to 2020 Stock Plan RSUs as of June 30, 2023 was $12.9 million to be expensed on a straight-line basis over 1.0 years. Performance Stock Units The following table summarizes activity of the Company's PSUs for the six months ended June 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Unvested awards as of December 31, 2022 1,328,482 $ 39.41 Awards granted 523,938 $ 11.97 Awards vested and released (1,328,482) $ 39.41 Awards forfeited (32,375) $ 11.97 Unvested awards as of June 30, 2023 491,563 $ 11.97 During first quarter of 2023, the Company withheld 0.7 million shares to cover the $8.1 million tax obligations related to the release of vested 2022 PSU shares certified at 256% performance goal achievement on February 21, 2023. The total estimated |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share (“EPS”) is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, restricted stock units, and performance stock units. The dilutive effect of potentially dilutive securities is reflected in diluted EPS in order of dilution and by application of the treasury stock method and the if-converted method for stock-based compensation and convertible preferred securities, respectively. The following table sets forth the computation of basic and diluted EPS of common stock as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands, except per share data) Numerator for basic and diluted loss per share Net income/(loss) 2,627 (13,186) (5,343) (15,853) Denominator: Weighted-average shares outstanding – basic 75,145 67,136 74,804 67,028 Net effect of dilutive stock options and restricted stock units 1,705 — — — Weighted-average shares outstanding – diluted 76,850 67,136 74,804 67,028 Net income/(loss) per share Basic $ 0.03 $ (0.20) $ (0.07) $ (0.24) Diluted $ 0.03 $ (0.20) $ (0.07) $ (0.24) The following table represents the number of share equivalents outstanding during the period that were excluded from the calculation of diluted net income/(loss) per share attributable to common stockholders because including them would have had an anti-dilutive effect. Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Stock options to purchase common stock 2,118 4,380 4,827 4,280 Restricted stock units 138 2,178 1,942 1,817 Performance stock units — 1,131 957 1,153 Total 2,256 7,689 7,726 7,250 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Legal Matters The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. Management evaluates each claim and provides for potential loss when the claim is probable to be paid and reasonably estimable. While adverse decisions in certain of these litigation matters, claims and administrative proceedings could have a material effect on a particular period’s results of operations, subject to the uncertainties inherent in estimating future costs for contingent liabilities, |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent eventsThe Company performed its subsequent event procedures through August 3, 2023, the date these unaudited condensed consolidated financial statements were issued. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net income/(loss) | $ 2,627 | $ (7,970) | $ (13,186) | $ (2,667) | $ (5,343) | $ (15,853) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Stan Klimoff [Member] | |
Trading Arrangements, by Individual | |
Name | Stan Klimoff |
Title | Chief Strategy Officer |
Adoption Date | September 7, 2022 |
Rule 10b5-1 Arrangement Terminated | true |
Arrangement Duration | 358 days |
Stan Klimoff Trading Arrangement, Tranche One [Member] | Stan Klimoff [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 144,000 |
Stan Klimoff Trading Arrangement, Tranche Two [Member] | Stan Klimoff [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 72,084 |
Nature of operations and summ_2
Nature of operations and summary of significant accounting policies (Policies) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||
Nature of operations | Grid Dynamics Holdings, Inc. (the “Company”) provides enterprise-level digital transformation in the areas of technology consulting, agile custom software development, and data analytics to Fortune 1000 companies. The Company’s headquarters and principal place of business is in San Ramon, California. | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2022 included in the Company’s annual report on Form 10-K that the Company filed with the SEC on February 28, 2023. | |
Principles of consolidation | Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries that are directly or indirectly owned or controlled. Intercompany transactions and balances have been eliminated upon consolidation. | |
Principles of consolidation, variable interest entities | The Company provides services to its customers utilizing its own personnel as well as personnel from subcontractors. One of the subcontractors exclusively supports and performs services on behalf of the Company and its customers. The Company had no ownership in this subcontractor (“Affiliate”) as of June 30, 2023. The Company is required to apply accounting standards which address how a business enterprise should evaluate whether it has a controlling financial interest in a variable interest entity (“VIE”) through means other than voting rights and accordingly should determine whether or not to consolidate the entity. The Company has determined that it is required to consolidate the Affiliate because the Company has the power to direct the VIE’s most significant activities and is the primary beneficiary of the Affiliate. The assets and liabilities of the Affiliate primarily consist of inter-company balances and transactions all of which have been eliminated in consolidation. | |
Use of estimates | Use of estimates The preparation of the unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and such differences could be material. Significant estimates include determination of fair value, useful lives and recoverability of intangible assets and goodwill, stock-based compensation, contingent consideration payable, determination of provision for income taxes, deferred tax assets and liabilities and uncertain tax positions. | |
Recently adopted accounting pronouncements and recently issued accounting pronouncements | Recently adopted accounting pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (the “FASB”), in the form of Accounting Standards Updates (“ASUs”), to the FASB’s ASC. The Company will adopt according these changes according to the various timetables the FASB specifies. Measurement of Credit Losses on Financial Instruments — In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments that was subsequently amended by ASU 2019-4, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, ASU 2019-5, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief, and clarified with the release of ASU 2020-2 Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842). These ASUs replace the current incurred loss impairment methodology with a methodology that reflects expected credit losses measured at amortized cost and certain other instruments, including loans, held-to-maturity debt securities, net investments in leases, and off-balance sheet credit exposures. The Company adopted Topic 326, effective January 1, 2023, using a modified-retrospective approach. Adoption of Topic 326 did not have any impact on its condensed consolidated financial statements. Recently issued accounting pronouncements |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of business acquisition, assets acquired and liabilities assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed: NextSphere Mutual Mobile (in thousands) Current assets $ 9,708 $ 4,982 Property, plant and equipment 192 132 Intangible assets 9,906 3,749 Goodwill 9,119 9,556 Other noncurrent assets 511 102 Total assets acquired $ 29,436 $ 18,521 Accounts payable, accrued expenses and other liabilities (1,990) (1,576) Deferred taxes (2,235) (875) Total liabilities assumed $ (4,225) $ (2,451) Purchase price allocation $ 25,211 $ 16,070 |
Schedule of business acquisition, finite-lived intangibles | The estimated fair value, useful lives and amortization methods of identifiable intangible assets as of the date of acquisition updated for any changes as of June 30, 2023 are as follows: NextSphere Mutual Mobile Fair Value Useful Life Fair Value Useful Life (in thousands, except in years) Customer relationships $ 8,415 10 years $ 3,453 8 years Acquired software 995 2.5 years — — Trade name 496 2 years 152 4 years Non-compete agreements — — 144 2 years Total identified intangible assets $ 9,906 $ 3,749 |
Schedule of business acquisition, pro forma information | These unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor are they necessarily an indication of future operating results. Three Months Ended Six Months Ended (in thousands) Revenue $ 82,515 $ 157,555 Net loss $ (12,559) $ (13,904) Diluted loss per share $ (0.19) $ (0.21) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Reconciliation of Level 3 Acquisition-Related Contingent Consideration Payable | A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration payable using significant unobservable inputs for the six months ended June 30, 2023 are as follows: Amount Contingent consideration payable as of December 31, 2022 $ 3,288 Acquisition date fair value of contingent consideration payable - NextSphere 932 Change in fair value of contingent consideration payable included in Other income/(expense) - Mutual Mobile (2,554) Contingent consideration payable as of June 30, 2023 $ 1,666 |
Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis | The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) June 30, 2023 Financial Assets: Cash equivalents: Money market funds $ 197,211 $ 197,211 $ 197,211 $ — $ — December 31, 2022 Financial Assets: Cash equivalents: Money market funds $ 205,787 $ 205,787 $ 205,787 $ — $ — |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid and Other Current Assets | The prepaid expenses and other current assets were as follows: As of June 30, December 31, (in thousands) Prepaid expenses $ 4,854 $ 3,323 Value added, goods and service taxes receivable 2,019 1,384 Guarantee deposits placed 2,004 2,295 Other prepaid and current assets 312 1,152 Total prepaid expenses and other current assets $ 9,189 $ 8,154 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment, net consisted of the following: Estimated As of June 30, December 31, (in years) (in thousands) Computers and equipment 2-5 $ 12,798 $ 11,679 Furniture and fixtures 3-10 1,706 1,614 Leasehold improvements 2-8 1,258 646 Software 3-5 1,196 1,053 Machinery and automobiles 4-6 559 349 $ 17,517 $ 15,341 Less: Accumulated depreciation and amortization (10,688) (8,614) $ 6,829 $ 6,727 Capitalized software development costs 2-3 $ 5,831 $ 6,210 Less: Accumulated amortization (2,636) (4,722) $ 3,195 $ 1,488 Property and equipment, net $ 10,024 $ 8,215 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible assets | Intangible assets, net consisted of the following: Estimated As of June 30, December 31, (in years) (in thousands) Customer relationships 8-12 $ 27,839 $ 19,424 Tradenames 2-10 5,324 4,828 Acquired software 2.5 995 — Non-compete agreements 2 584 584 $ 34,742 $ 24,836 Less: Accumulated amortization (6,101) (4,461) Intangible assets, net $ 28,641 $ 20,375 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the carrying value of the Company’s existing intangible assets as of June 30, 2023, the estimated amortization expense for the future years is as follows: Years ending December 31, (in thousands) Amount 2023 (excluding six months ended June 30, 2023) 2,080 2024 4,048 2025 3,640 2026 3,168 2027 3,130 Thereafter 12,575 Total $ 28,641 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | The components of accrued expenses and other current liabilities were as follows: As of June 30, December 31, 2022 (in thousands) Accrued rebates $ 1,964 $ 473 Value added tax payable 1,846 1,345 Contingent consideration payable 1,666 3,288 Accrued expenses 1,621 829 Customer deposits 789 754 Other liabilities 1,081 1,836 Total accrued expenses and other current liabilities $ 8,967 $ 8,525 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table shows the disaggregation of the Company’s revenues by major customer location. Revenues are attributed to geographic regions based upon billed client location. Substantially all of the revenue in our North America region relates to operations in the United States. Three Months Ended Six Months Ended 2023 2022 2023 2022 Customer Location (in thousands) North America $ 61,944 $ 63,658 $ 125,893 $ 121,267 Europe 15,251 13,596 31,145 27,331 Other 147 81 384 147 Total Revenues $ 77,342 $ 77,335 $ 157,422 $ 148,745 The following table shows the disaggregation of the Company’s revenues by main vertical markets: Three Months Ended Six Months Ended 2023 2022 2023 2022 Vertical (in thousands) Retail $ 26,032 $ 25,452 $ 51,428 $ 48,759 Technology, Media and Telecom 24,096 23,391 50,907 44,835 CPG/Manufacturing (1) 10,872 16,090 23,518 31,069 Finance 6,748 5,049 13,263 9,576 Other 9,594 7,353 18,306 14,506 Total Revenues $ 77,342 $ 77,335 $ 157,422 $ 148,745 __________________________ (1) CPG stands for Consumer Packaged Goods The following table shows the disaggregation of the Company’s revenues by contract types: Three Months Ended Six Months Ended 2023 2022 2023 2022 Contract Type (in thousands) Time-and-material $ 69,143 $ 71,002 $ 139,669 $ 136,208 Fixed-fee 7,731 6,333 17,285 12,537 Other revenues 468 — 468 — Total Revenues $ 77,342 $ 77,335 $ 157,422 $ 148,745 |
Schedules of Concentration of Risk, by Risk Factor | The following table shows the amount of revenue derived from each customer exceeding 10% of the Company’s revenue: Three Months Ended Six Months Ended 2023 2022 2023 2022 Customer 1 14.0 % 11.9 % 13.9 % 11.6 % Customer 2 n/a 11.1 % n/a 10.7 % The following table shows number of customers exceeding 10% of the Company’s billed and unbilled receivable balances: As of June 30, December 31, Accounts receivable 1 2 Unbilled receivable 2 2 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost and Supplemental Lease Information | Operating lease expense is recorded on a straight-line basis over the lease term. During the three and six months ended June 30, 2023 and June 30, 2022 lease costs were as follows: Three months ended Six Months Ended 2023 2022 2023 2022 (in thousands) Operating lease cost $ 939 $ 858 $ 1,720 $ 1,552 Variable lease cost 68 (96) 262 (72) Short-term lease cost 98 28 196 267 Total lease cost $ 1,105 $ 790 $ 2,178 $ 1,747 Supplemental information related to operating lease transactions is as follows: Three months ended Six Months Ended 2023 2022 2023 2022 (in thousands) Lease liability payments $ 913 $ 752 $ 1,640 $ 1,618 Lease assets obtained in exchange for liabilities $ 3,614 $ 1,514 $ 4,636 $ 1,514 Non-cash net change in lease assets due to lease modifications $ 26 $ (858) $ 26 $ (886) Non-cash net change in lease liability due to lease modifications $ (26) $ 858 $ (26) $ 886 Weighted average remaining lease term and discount rate as of June 30, 2023 is as follows: As of June 30, December 31, Weighted average remaining lease term, in years 3.6 2.8 Weighted average discount rate 6.4 % 4.7 % |
Schedule of Operating Lease Maturities | As of June 30, 2023, operating lease liabilities will mature as follows: Years ending December 31, (in thousands) Lease Payments 2023 (excluding six months ended June 30, 2023) $ 2,121 2024 4,060 2025 3,092 2026 2,219 2027 1,844 2028 89 Total lease payments 13,425 Less: imputed interest (1,589) Total $ 11,836 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation | Employee stock-based compensation cost recognized in the consolidated statements of loss and comprehensive loss was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Cost of revenue $ 520 $ 272 $ 980 $ 521 Engineering, research, and development 1,020 1,638 2,673 2,502 Sales and marketing 823 1,207 1,878 1,878 General and administrative 4,790 13,270 14,879 20,147 Total stock-based compensation $ 7,153 $ 16,387 $ 20,410 $ 25,048 |
Schedule of option activity | Stock option activity under the Company’s 2018 Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term Options outstanding as of December 31, 2022 1,598,811 $ 3.54 $ 12,279 6.0 Options exercised (32,795) $ 3.54 Options outstanding as of June 30, 2023 1,566,016 $ 3.54 $ 8,942 5.6 Options vested and exercisable as of June 30, 2023 1,519,130 $ 3.54 $ 8,674 5.5 Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term Options outstanding as of December 31, 2022 3,003,611 $ 13.22 $ 3,883 8.3 Options granted 597,000 $ 11.68 Options exercised (2,123) $ 8.20 Options forfeited (164,708) $ 15.51 Options expired (14,639) $ 20.71 Options outstanding as of June 30, 2023 3,419,141 $ 12.82 $ 1,337 7.8 Options vested and exercisable as of June 30, 2023 1,415,499 $ 10.90 $ 1,069 6.6 |
Schedule of restricted stock unit activity | The following table summarizes activity of the Company’s RSUs for the six months ended June 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Unvested awards as of December 31, 2022 2,245,968 $ 11.99 Awards granted 143,000 $ 11.64 Awards vested and released (989,969) $ 12.40 Awards forfeited (101,883) $ 11.22 Unvested awards as of June 30, 2023 1,297,116 $ 11.69 |
Schedule of performance share activity | The following table summarizes activity of the Company's PSUs for the six months ended June 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Unvested awards as of December 31, 2022 1,328,482 $ 39.41 Awards granted 523,938 $ 11.97 Awards vested and released (1,328,482) $ 39.41 Awards forfeited (32,375) $ 11.97 Unvested awards as of June 30, 2023 491,563 $ 11.97 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted EPS of common stock as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands, except per share data) Numerator for basic and diluted loss per share Net income/(loss) 2,627 (13,186) (5,343) (15,853) Denominator: Weighted-average shares outstanding – basic 75,145 67,136 74,804 67,028 Net effect of dilutive stock options and restricted stock units 1,705 — — — Weighted-average shares outstanding – diluted 76,850 67,136 74,804 67,028 Net income/(loss) per share Basic $ 0.03 $ (0.20) $ (0.07) $ (0.24) Diluted $ 0.03 $ (0.20) $ (0.07) $ (0.24) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table represents the number of share equivalents outstanding during the period that were excluded from the calculation of diluted net income/(loss) per share attributable to common stockholders because including them would have had an anti-dilutive effect. Three Months Ended Six Months Ended 2023 2022 2023 2022 (in thousands) Stock options to purchase common stock 2,118 4,380 4,827 4,280 Restricted stock units 138 2,178 1,942 1,817 Performance stock units — 1,131 957 1,153 Total 2,256 7,689 7,726 7,250 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 6 Months Ended | |||
Apr. 18, 2023 USD ($) | Dec. 23, 2022 USD ($) employee | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||
Contingent consideration | $ 932 | $ 0 | ||
Estimated future operating results period | 1 year | |||
NextSphere | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 100% | |||
Consideration transferred | $ 25,200 | |||
Payments to acquire business | 24,300 | |||
Contingent consideration | 900 | |||
Maximum contingent consideration | $ 2,000 | |||
Estimated future operating results period | 12 months | |||
Mutual Mobile | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 100% | |||
Number of employees acquired | employee | 180 | |||
Consideration transferred | $ 16,100 | |||
Payments to acquire business | 12,800 | |||
Contingent consideration | 3,300 | |||
Maximum contingent consideration | $ 5,000 | |||
Estimated future operating results period | 12 months |
Acquisitions - Assets acquired
Acquisitions - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Apr. 18, 2023 | Dec. 31, 2022 | Dec. 23, 2022 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 54,633 | $ 45,514 | ||
NextSphere | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 9,708 | |||
Property, plant and equipment | 192 | |||
Intangible assets | 9,906 | 9,906 | ||
Goodwill | 9,119 | |||
Other noncurrent assets | 511 | |||
Total assets acquired | 29,436 | |||
Accounts payable, accrued expenses and other liabilities | (1,990) | |||
Deferred taxes | (2,235) | |||
Total liabilities assumed | (4,225) | |||
Purchase price allocation | 25,211 | |||
Cash and cash equivalents | $ 6,400 | |||
Mutual Mobile | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 4,982 | |||
Property, plant and equipment | 132 | |||
Intangible assets | $ 3,749 | 3,749 | ||
Goodwill | 9,556 | |||
Other noncurrent assets | 102 | |||
Total assets acquired | 18,521 | |||
Accounts payable, accrued expenses and other liabilities | (1,576) | |||
Deferred taxes | (875) | |||
Total liabilities assumed | (2,451) | |||
Purchase price allocation | 16,070 | |||
Cash and cash equivalents | $ 3,500 |
Acquisitions - Intangible asset
Acquisitions - Intangible assets acquired (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Apr. 18, 2023 | Dec. 23, 2022 |
Acquired software | |||
Business Acquisition [Line Items] | |||
Useful Life | 2 years 6 months | ||
Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Useful Life | 2 years | ||
NextSphere | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 9,906 | $ 9,906 | |
NextSphere | Customer relationships | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 8,415 | ||
Useful Life | 10 years | ||
NextSphere | Acquired software | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 995 | ||
Useful Life | 2 years 6 months | ||
NextSphere | Trade name | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 496 | ||
Useful Life | 2 years | ||
NextSphere | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 0 | ||
Mutual Mobile | |||
Business Acquisition [Line Items] | |||
Fair Value | 3,749 | $ 3,749 | |
Mutual Mobile | Customer relationships | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 3,453 | ||
Useful Life | 8 years | ||
Mutual Mobile | Acquired software | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 0 | ||
Mutual Mobile | Trade name | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 152 | ||
Useful Life | 4 years | ||
Mutual Mobile | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 144 | ||
Useful Life | 2 years |
Acquisitions - Pro forma inform
Acquisitions - Pro forma information (Details) - Mutual Mobile and NextSphere - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||
Revenue | $ 82,515 | $ 157,555 |
Net loss | $ (12,559) | $ (13,904) |
Diluted loss per share (in usd per share) | $ (0.19) | $ (0.21) |
Fair Value - Fair Value Of Cont
Fair Value - Fair Value Of Contingent Consideration Payable (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Fair Value, Liabilities Reconciliation [Roll Forward] | |
Contingent consideration payable, beginning balance | $ 3,288 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income/(expenses), net |
Contingent consideration payable, ending balance | $ 1,666 |
NextSphere | |
Fair Value, Liabilities Reconciliation [Roll Forward] | |
Acquisition date fair value of contingent consideration payable | 932 |
Mutual Mobile | |
Fair Value, Liabilities Reconciliation [Roll Forward] | |
Change in fair value of contingent consideration payable included in Other income/(expense) | $ (2,554) |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities without readily determinable fair value, amount | $ 1 | $ 1 |
NextSphere | Measurement Input, Discount Rate | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration, measurement input | 0.155 | |
Mutual Mobile | Measurement Input, Discount Rate | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration, measurement input | 0.103 |
Fair Value -Financial Assets an
Fair Value -Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Nonrecurring - Money Market Funds - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 197,211 | $ 205,787 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 197,211 | 205,787 |
Level 1 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 197,211 | 205,787 |
Level 2 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 4,854 | $ 3,323 |
Value added, goods and service taxes receivable | 2,019 | 1,384 |
Guarantee deposits placed | 2,004 | 2,295 |
Other prepaid and current assets | 312 | 1,152 |
Total prepaid expenses and other current assets | $ 9,189 | $ 8,154 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 10,024 | $ 8,215 |
Property, Plant and Equipment, Excluding Capitalized Software Costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,517 | 15,341 |
Less: Accumulated depreciation and amortization | (10,688) | (8,614) |
Property and equipment, net | 6,829 | 6,727 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 12,798 | 11,679 |
Computers and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 2 years | |
Computers and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,706 | 1,614 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,258 | 646 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 2 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 8 years | |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,196 | 1,053 |
Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Machinery and automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 559 | 349 |
Machinery and automobiles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 4 years | |
Machinery and automobiles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 6 years | |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,831 | 6,210 |
Less: Accumulated depreciation and amortization | (2,636) | (4,722) |
Property and equipment, net | $ 3,195 | $ 1,488 |
Capitalized software development costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 2 years | |
Capitalized software development costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years |
Intangible assets, net - Summar
Intangible assets, net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 34,742 | $ 24,836 |
Less: Accumulated amortization | (6,101) | (4,461) |
Intangible assets, net | 28,641 | 20,375 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 27,839 | 19,424 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 8 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 12 years | |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 5,324 | 4,828 |
Tradenames | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 2 years | |
Tradenames | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 10 years | |
Acquired software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 2 years 6 months | |
Intangible assets, gross | $ 995 | 0 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 2 years | |
Intangible assets, gross | $ 584 | $ 584 |
Intangible assets, net - Future
Intangible assets, net - Future Amortization Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 (excluding six months ended June 30, 2023) | $ 2,080 | |
2024 | 4,048 | |
2025 | 3,640 | |
2026 | 3,168 | |
2027 | 3,130 | |
Thereafter | 12,575 | |
Intangible assets, net | $ 28,641 | $ 20,375 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Contingent consideration payable | $ 1,666 | $ 3,288 |
Accrued rebates | 1,964 | 473 |
Value added tax payable | 1,846 | 1,345 |
Accrued expenses | 1,621 | 829 |
Customer deposits | 789 | 754 |
Other liabilities | 1,081 | 1,836 |
Total accrued expenses and other current liabilities | $ 8,967 | $ 8,525 |
Accrued expenses and other cu_4
Accrued expenses and other current liabilities - Related Parties (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Payable | $ 0.6 | $ 0.6 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | Mar. 15, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Oct. 31, 2017 |
Line of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 0.5 | |||
Debt outstanding | $ 0 | $ 0 | ||
Base Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1% | |||
Base Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
SOFR Or Adjusted EURIBOR Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2% | |||
SOFR Or Adjusted EURIBOR Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.50% | |||
Daily Simple SOFR, SONIA, Or SARON Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2% | |||
Daily Simple SOFR, SONIA, Or SARON Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.50% | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 30 | |||
Contingent maximum borrowing capacity | 50 | |||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 10 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 segment | Dec. 31, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |||
Number of reportable segments | segment | 1 | 1 | |
Contract liabilities | $ | $ 0.4 | $ 1.1 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 77,342 | $ 77,335 | $ 157,422 | $ 148,745 |
Time-and-material | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 69,143 | 71,002 | 139,669 | 136,208 |
Fixed-fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 7,731 | 6,333 | 17,285 | 12,537 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 468 | 0 | 468 | 0 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 26,032 | 25,452 | 51,428 | 48,759 |
Technology, Media and Telecom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 24,096 | 23,391 | 50,907 | 44,835 |
CPG/Manufacturing(1) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 10,872 | 16,090 | 23,518 | 31,069 |
Finance | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 6,748 | 5,049 | 13,263 | 9,576 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 9,594 | 7,353 | 18,306 | 14,506 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 61,944 | 63,658 | 125,893 | 121,267 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 15,251 | 13,596 | 31,145 | 27,331 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 147 | $ 81 | $ 384 | $ 147 |
Revenue - Concentration Risk (D
Revenue - Concentration Risk (Details) - Customer Concentration Risk - customer | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Sales | Customer 1 | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk percentage | 14% | 11.90% | 13.90% | 11.60% | |
Sales | Customer 2 | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk percentage | 11.10% | 10.70% | |||
Accounts receivable | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of major customers | 1 | 1 | 2 | ||
Unbilled receivable | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of major customers | 2 | 2 | 2 |
Revenue - Related Parties (Deta
Revenue - Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Revenues | $ 77,342 | $ 77,335 | $ 157,422 | $ 148,745 | |
Accounts receivable | 48,804 | 48,804 | $ 48,358 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenues | 2,300 | $ 1,400 | 4,000 | $ 2,600 | |
Accounts receivable | $ 1,200 | $ 1,200 | $ 900 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining term | 4 months 24 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining term | 4 years 9 months 18 days |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 939 | $ 858 | $ 1,720 | $ 1,552 |
Variable lease cost | 68 | (96) | 262 | (72) |
Short-term lease cost | 98 | 28 | 196 | 267 |
Total lease cost | $ 1,105 | $ 790 | $ 2,178 | $ 1,747 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Lease liability payments | $ 913 | $ 752 | $ 1,640 | $ 1,618 |
Lease assets obtained in exchange for liabilities | 3,614 | 1,514 | 4,636 | 1,514 |
Non-cash net change in lease assets due to lease modifications | 26 | (858) | 26 | (886) |
Non-cash net change in lease liability due to lease modifications | $ (26) | $ 858 | $ (26) | $ 886 |
Weighted average remaining lease term, in years | 3 years 7 months 6 days | 2 years 9 months 18 days | 3 years 7 months 6 days | 2 years 9 months 18 days |
Weighted average discount rate | 6.40% | 4.70% | 6.40% | 4.70% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 (excluding six months ended June 30, 2023) | $ 2,121 |
2024 | 4,060 |
2025 | 3,092 |
2026 | 2,219 |
2027 | 1,844 |
2028 | 89 |
Total lease payments | 13,425 |
Less: imputed interest | (1,589) |
Total | $ 11,836 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 1,715 | $ 1,711 | $ 5,375 | $ 3,881 |
Effective tax rate, percentage | 39.50% | (14.90%) | (32.40%) |
Stock-based compensation - Sche
Stock-based compensation - Schedule of employee stock-based compensation recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 7,153 | $ 16,387 | $ 20,410 | $ 25,048 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 520 | 272 | 980 | 521 |
Engineering, research, and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 1,020 | 1,638 | 2,673 | 2,502 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 823 | 1,207 | 1,878 | 1,878 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 4,790 | $ 13,270 | $ 14,879 | $ 20,147 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for recognition | 1 year | ||
Shares withheld (in shares) | 0.5 | ||
Tax withholding obligation | $ 5,300 | ||
Unrecognized compensation expense, excluding options | $ 12,900 | ||
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for recognition | 8 months 12 days | ||
Shares withheld (in shares) | 0.7 | ||
Tax withholding obligation | $ 8,100 | ||
Unrecognized compensation expense, excluding options | $ 6,100 | ||
Performance factor percentage | 158% | 256% | |
2018 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, options | $ 10 | ||
2018 Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for recognition | 2 months 12 days | ||
2020 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, options | $ 11,500 | ||
Remaining shares available for grant (in shares) | 7.3 | ||
2020 Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for recognition | 2 years 9 months 18 days |
Stock-based compensation - Sc_2
Stock-based compensation - Schedule of option activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Weighted Average Exercise Price | ||
Options expired (in dollars per share) | $ / shares | $ 20.71 | |
Performance stock units | ||
Number of Options | ||
Options exercised (in shares) | shares | (14,639) | |
2018 Plan | ||
Number of Options | ||
Options outstanding, beginning balance (in shares) | shares | 1,598,811 | |
Options exercised (in shares) | shares | (32,795) | |
Options outstanding, ending balance (in shares) | shares | 1,566,016 | 1,598,811 |
Options vested and exercisable (in shares) | shares | 1,519,130 | |
Weighted Average Exercise Price | ||
Options outstanding, beginning balance (in dollars per share) | $ / shares | $ 3.54 | |
Options exercised (in dollars per share) | $ / shares | 3.54 | |
Option outstanding, ending balance (in dollars per share) | $ / shares | 3.54 | $ 3.54 |
Options vested and exercisable (in dollars per share) | $ / shares | $ 3.54 | |
Aggregate Intrinsic Value and Weighted Average Contractual Term (in years) | ||
Options outstanding, aggregate intrinsic value | $ | $ 8,942 | $ 12,279 |
Options vested and exercisable, aggregate intrinsic value | $ | $ 8,674 | |
Options outstanding, weighted average contractual term (in years) | 5 years 7 months 6 days | 6 years |
Options vested and exercisable, weighted average contractual term (in years) | 5 years 6 months | |
2020 Plan | ||
Number of Options | ||
Options outstanding, beginning balance (in shares) | shares | 3,003,611 | |
Options granted (in shares) | shares | 597,000 | |
Options exercised (in shares) | shares | (2,123) | |
Options forfeited (in shares) | shares | (164,708) | |
Options outstanding, ending balance (in shares) | shares | 3,419,141 | 3,003,611 |
Options vested and exercisable (in shares) | shares | 1,415,499 | |
Weighted Average Exercise Price | ||
Options outstanding, beginning balance (in dollars per share) | $ / shares | $ 13.22 | |
Options granted (in dollars per share) | $ / shares | 11.68 | |
Options exercised (in dollars per share) | $ / shares | 8.20 | |
Options forfeited (in dollars per share) | $ / shares | 15.51 | |
Option outstanding, ending balance (in dollars per share) | $ / shares | 12.82 | $ 13.22 |
Options vested and exercisable (in dollars per share) | $ / shares | $ 10.90 | |
Aggregate Intrinsic Value and Weighted Average Contractual Term (in years) | ||
Options outstanding, aggregate intrinsic value | $ | $ 1,337 | $ 3,883 |
Options vested and exercisable, aggregate intrinsic value | $ | $ 1,069 | |
Options outstanding, weighted average contractual term (in years) | 7 years 9 months 18 days | 8 years 3 months 18 days |
Options vested and exercisable, weighted average contractual term (in years) | 6 years 7 months 6 days |
Stock-based compensation - Sc_3
Stock-based compensation - Schedule of restricted stock unit and performance stock unit activity (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Restricted stock units | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 2,245,968 |
Granted (in shares) | shares | 143,000 |
Vested and released (in shares) | shares | (989,969) |
Forfeited (in shares) | shares | (101,883) |
Outstanding, ending balance (in shares) | shares | 1,297,116 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 11.99 |
Granted (in dollars per share) | $ / shares | 11.64 |
Vested and released (in dollars per share) | $ / shares | 12.40 |
Forfeited (in dollars per share) | $ / shares | 11.22 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 11.69 |
Performance stock units | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 1,328,482 |
Granted (in shares) | shares | 523,938 |
Vested and released (in shares) | shares | (1,328,482) |
Forfeited (in shares) | shares | (32,375) |
Outstanding, ending balance (in shares) | shares | 491,563 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 39.41 |
Granted (in dollars per share) | $ / shares | 11.97 |
Vested and released (in dollars per share) | $ / shares | 39.41 |
Forfeited (in dollars per share) | $ / shares | 11.97 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 11.97 |
Earnings per share - Schedule o
Earnings per share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator for basic and diluted loss per share | ||||||
Net income/(loss) | $ 2,627 | $ (7,970) | $ (13,186) | $ (2,667) | $ (5,343) | $ (15,853) |
Weighted average number of shares outstanding - basic (in shares) | 75,145 | 67,136 | 74,804 | 67,028 | ||
Net effect of dilutive stock options and restricted stock units | 1,705 | 0 | 0 | 0 | ||
Weighted average number of shares outstanding - diluted (in shares) | 76,850 | 67,136 | 74,804 | 67,028 | ||
Net income/(loss) per share | ||||||
Basic (in dollars per share) | $ 0.03 | $ (0.20) | $ (0.07) | $ (0.24) | ||
Diluted (in dollars per share) | $ 0.03 | $ (0.20) | $ (0.07) | $ (0.24) |
Earnings per share - Schedule_2
Earnings per share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,256 | 7,689 | 7,726 | 7,250 |
Stock options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,118 | 4,380 | 4,827 | 4,280 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 138 | 2,178 | 1,942 | 1,817 |
Performance stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 1,131 | 957 | 1,153 |