Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39952 | |
Entity Registrant Name | QUALTRICS INTERNATIONAL INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1754215 | |
Entity Address, Address Line One | 333 West River Park Drive | |
Entity Address, City or Town | Provo | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84604 | |
City Area Code | 385 | |
Local Phone Number | 203-4999 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | XM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001747748 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 89,866,224 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 423,170,610 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 586,536 | $ 203,891 | |
Accounts receivable, net of allowances | [1] | 258,838 | 296,148 |
Deferred contract acquisition costs, net | 45,108 | 43,429 | |
Prepaid expenses and other current assets | 46,572 | 48,130 | |
Total current assets | 937,054 | 591,598 | |
Property and equipment, net | 119,263 | 116,120 | |
Right-of-use assets from operating leases | 190,697 | 195,372 | |
Goodwill | 6,709 | 6,709 | |
Other intangible assets, net | 3,596 | 3,959 | |
Deferred contract acquisition costs, net of current portion | 115,381 | 115,837 | |
Deferred tax assets | 260 | 92 | |
Other assets | 16,582 | 9,368 | |
Total assets | 1,389,542 | 1,039,055 | |
Current liabilities: | |||
Operating lease liabilities, current | 12,677 | 7,125 | |
Accounts payable | [1] | 20,416 | 30,452 |
Accrued liabilities | 197,891 | 225,046 | |
Liability-classified, stock-based awards | 5,310 | 209,286 | |
Deferred revenue | 492,654 | 495,638 | |
Total current liabilities | 728,948 | 967,547 | |
Operating lease liabilities, non-current | 230,167 | 235,620 | |
Liability-classified, stock-based awards, net of current portion | 2,360 | 76,627 | |
Deferred revenue, net of current portion | 4,253 | 5,477 | |
Notes payable | [1] | 501,181 | 0 |
Deferred tax liabilities | 5,358 | 5,970 | |
Other liabilities | 16,661 | 16,716 | |
Total liabilities | 1,488,928 | 1,307,957 | |
Commitments and contingencies | |||
Equity (deficit) | |||
Preferred stock, par value $0.0001 per share; authorized 100,000,000 shares; no shares | [2] | 0 | 0 |
Additional paid in capital | 1,497,779 | 1,126,631 | |
Accumulated other comprehensive income | 1,405 | 3,191 | |
Accumulated deficit | (1,598,621) | (1,398,767) | |
Total deficit | (99,386) | (268,902) | |
Total liabilities and deficit | 1,389,542 | 1,039,055 | |
Class A Common Stock | |||
Equity (deficit) | |||
Common stock | [2] | 9 | 1 |
Class B Common Stock | |||
Equity (deficit) | |||
Common stock | [2] | $ 42 | $ 42 |
[1] | Includes amounts from related parties. See Note 14 for further details. | ||
[2] | See Note 1 “2020 Stock Split and Capital Reorganization” for further details. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 89,281,956 | 6,000,000 |
Common stock, shares outstanding (in shares) | 89,281,956 | 6,000,000 |
Class B Common Stock | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 423,170,610 | 423,170,610 |
Common stock, shares outstanding (in shares) | 423,170,610 | 423,170,610 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Total revenue | $ 238,643 | $ 176,064 |
Cost of revenue: | ||
Total cost of revenue | 61,781 | 47,924 |
Gross profit | 176,862 | 128,140 |
Operating expenses: | ||
Research and development | 62,806 | 35,489 |
Sales and marketing | 136,181 | 107,095 |
General and administrative | 174,449 | 22,487 |
Total operating expenses | 373,436 | 165,071 |
Operating loss | (196,574) | (36,931) |
Other non-operating income (expense), net | (1,740) | 485 |
Loss before income taxes | (198,314) | (36,446) |
Provision for income taxes | 1,540 | 8,389 |
Net loss | $ (199,854) | $ (44,835) |
Net loss per share attributable to common stockholder, basic (in USD per share) | $ (0.41) | $ (0.11) |
Net loss per share attributable to common stockholder, diluted (in USD per share) | $ (0.41) | $ (0.11) |
Weighted average Class A and Class B shares used in computing net loss per share attributable to common stockholder, basic (in shares) | 482,260,465 | 423,170,610 |
Weighted average Class A and Class B shares used in computing net loss per share attributable to common stockholder, diluted (in shares) | 482,260,465 | 423,170,610 |
Subscription | ||
Revenue: | ||
Total revenue | $ 186,896 | $ 128,265 |
Cost of revenue: | ||
Total cost of revenue | 20,370 | 13,716 |
Professional Services | ||
Revenue: | ||
Total revenue | 51,747 | 47,799 |
Cost of revenue: | ||
Total cost of revenue | $ 41,411 | $ 34,208 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations - (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock-based compensation expense, including cash settled | $ 202,999 | $ 12,502 |
Amortization of intangible assets | 364 | 364 |
Cost of revenue | ||
Amortization of intangible assets | 300 | 300 |
Cost of revenue | Subscription | ||
Stock-based compensation expense, including cash settled | 2,624 | 169 |
Amortization of intangible assets | 266 | 266 |
Cost of revenue | Professional Services | ||
Stock-based compensation expense, including cash settled | 4,430 | 89 |
Research and development | ||
Stock-based compensation expense, including cash settled | 21,332 | 1,964 |
Sales and marketing | ||
Stock-based compensation expense, including cash settled | 22,777 | 3,783 |
Amortization of intangible assets | 51 | 51 |
General and administrative | ||
Stock-based compensation expense, including cash settled | 151,836 | 6,497 |
Amortization of intangible assets | $ 47 | $ 47 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (199,854) | $ (44,835) |
Other comprehensive income (loss): | ||
Foreign currency translation gain (loss) | (1,786) | (1,996) |
Comprehensive loss | $ (201,640) | $ (46,831) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | |
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 423,170,610 | |||||
Beginning Balance at Dec. 31, 2019 | $ (540,520) | $ 0 | $ 42 | $ 586,631 | $ (928) | $ (1,126,265) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital contribution from SAP | 145,000 | 145,000 | |||||
Net loss | (44,835) | (44,835) | |||||
Foreign currency translation adjustment | (1,996) | (1,996) | |||||
Ending balance (in shares) at Mar. 31, 2020 | 0 | 423,170,610 | |||||
Ending Balance at Mar. 31, 2020 | (442,351) | $ 0 | $ 42 | 731,631 | (2,924) | (1,171,100) | |
Beginning balance (in shares) at Dec. 31, 2020 | 6,000,000 | 423,170,610 | |||||
Beginning Balance at Dec. 31, 2020 | (268,902) | $ 1 | $ 42 | 1,126,631 | 3,191 | (1,398,767) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 203,544 | 203,544 | |||||
Issuance of common stock upon settlement of restricted stock units (RSUs) (in shares) | 1,313,569 | ||||||
Modification of cash-settled stock-based compensation awards into equity-settled awards | 206,313 | 206,313 | |||||
Capital contribution from SAP | 115,000 | 115,000 | |||||
Sales of Class A Common Stock (in shares) | [1] | 81,968,387 | |||||
Sales of Class A Common Stock | [1] | 2,238,579 | $ 8 | 2,238,571 | |||
Dividend declared | (2,392,280) | (2,392,280) | |||||
Net loss | (199,854) | (199,854) | |||||
Foreign currency translation adjustment | (1,786) | (1,786) | |||||
Ending balance (in shares) at Mar. 31, 2021 | 89,281,956 | 423,170,610 | |||||
Ending Balance at Mar. 31, 2021 | $ (99,386) | $ 9 | $ 42 | $ 1,497,779 | $ 1,405 | $ (1,598,621) | |
[1] | See Note 10 “Sale of Class A Common Stock” for further details. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (199,854) | $ (44,835) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 7,572 | 6,028 |
Loss on disposal of property and equipment | 129 | 0 |
Reduction of right-of-use assets from operating leases | 5,704 | 3,981 |
Stock-based compensation expense, including cash settled | 202,999 | 12,502 |
Amortization of deferred contract acquisition costs | 11,213 | 6,747 |
Deferred income taxes | (554) | 160 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 37,072 | 48,817 |
Prepaid expenses and other current assets | (1,138) | (8,984) |
Deferred contract acquisitions costs | (13,519) | (30,384) |
Other assets | (7,415) | (3,082) |
Lease liabilities | (743) | (2,459) |
Accounts payable | (10,855) | (975) |
Accrued liabilities | (25,731) | (10,714) |
Deferred revenue | (4,208) | (14,568) |
Other liabilities | 1,240 | 4,278 |
Settlement of stock-based payments liabilities | (71,997) | (98,268) |
Net cash flows used in operating activities | (70,085) | (131,756) |
Cash flows from investing activities | ||
Cash paid for intangible assets | 0 | 0 |
Cash paid for business combinations, net of cash acquired | 0 | 0 |
Purchases of property and equipment | (11,149) | (9,073) |
Net cash flows used in investing activities | (11,149) | (9,073) |
Cash flows from financing activities | ||
Proceeds from capital contributions from SAP | 115,000 | 145,000 |
Proceeds from issuance of class A common stock, net of underwriting discounts and commissions | 2,244,322 | 0 |
Payment of costs related to initial public offering | (2,557) | 0 |
Repayment of promissory note | (1,892,280) | 0 |
Net cash flows provided by financing activities | 464,485 | 145,000 |
Effect of changes in exchange rates on cash and cash equivalents | (606) | 1,780 |
Net increase in cash and cash equivalents | 382,645 | 5,951 |
Cash and cash equivalents, beginning of period | 203,891 | 42,467 |
Cash and cash equivalents, end of period | 586,536 | 48,418 |
Supplemented cash flow disclosures | ||
Cash paid for income taxes | 2,151 | 1,723 |
Cash paid for operating leases, net of incentives received | 800 | 3,388 |
Modification of cash-settled stock-based compensation awards into equity-settled awards | 206,313 | 0 |
Non-cash investing and financing activities | ||
Capital expenditures incurred but not yet paid | 8 | 343 |
Right-of-use assets obtained in exchange for lease obligations | 0 | 6,827 |
Equity-based compensation capitalized as internal-use software | 480 | 0 |
Note payable issued for dividend declared | 500,000 | 0 |
Costs related to initial public offering incurred but not yet paid | $ 524 | $ 0 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business Qualtrics International Inc. (“Qualtrics” or “the Company”) was incorporated in the state of Delaware in September 2014. Qualtrics has built the first experience management platform (“XM Platform”) to manage customer, employee, product, and brand experiences. The Company sells subscriptions to its XM Platform and provides professional services primarily consisting of research services, implementation services, and engineering services. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated balance sheet as of March 31, 2021, and the condensed consolidated statements of operations, comprehensive loss, stockholders' equity (deficit), and cash flows for the three months ended March 31, 2021 and 2020 are unaudited. The unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments necessary to state fairly the Company's financial position as of March 31, 2021 and its results of operations and cash flows for the three months ended March 31, 2021 and 2020. The financial data and the other financial information disclosed in the notes to these condensed consolidated financial statements related to the three-month periods are also unaudited. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 or for any other future year or interim period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2020, included in the Company's Annual Report on Form 10-K. 2020 Stock Split and Capital Reorganization On December 21, 2020, the Company amended its restated certificate of incorporation to create new classes of preferred stock, Class A and Class B common stock. The Company’s previously outstanding shares of common stock issued on January 23, 2019, were converted into shares of Class B common stock. SAP holds all of the shares of the new Class B common stock. The ownership rights of Class A and Class B common stockholders are the same except with respect to voting, the election of directors, conversion, and certain actions that require the consent of holders of Class B and other protective provisions. The amended and restated certificate of incorporation effectuated a 4,231,706.1-for-one stock split of the new Class B common stock. The capitalization of the Company, including all share and per share data has been retroactively adjusted back to January, 23, 2019, the date of the SAP acquisition, to reflect the recapitalization. Use of Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the balance sheet date, as well as reported amounts of revenue and expenses during the reporting period. The Company’s most significant estimates and judgments involve revenue recognition with respect to the determination of the standalone selling prices for the Company’s services, deferred contract acquisition costs, the period of benefit generated from deferred contract acquisition costs, valuation of the Company’s equity and cash settled stock-based compensation, including the underlying deemed estimated fair value of the Company’s common stock prior to the IPO, valuation of deferred income tax assets, uncertain tax positions, contingencies, determining the incremental borrowing rate for the calculation of the present value of lease liabilities and litigation accruals. Actual results could differ from those estimates. Foreign Currency Transactions The assets and liabilities of the Company’s foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date and revenue and expense amounts are translated at the average exchange rate for the period. Foreign currency translation gains and losses are recorded in other comprehensive loss. Exchange rate differences resulting from translation adjustments are accounted for as a component of accumulated other comprehensive loss. Gains and losses, whether realized or unrealized, from foreign currency transactions (those transactions denominated in currencies other than the entities’ functional currency) are included in other income (expense), net. The Company recorded $0.7 million in net foreign currency transaction losses in the three months ended March 31, 2021, and $0.5 million in net foreign currency transaction gains in the three months ended March 31, 2020. Revenue Recognition The Company recognizes revenue from its service/product lines when control is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the services. Sales and other taxes collected from customers to be remitted to government authorities are excluded from revenue. The Company accounts for revenue contracts with customers by applying the requirements of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606 – Revenue from Contracts with Customers (Topic 606), which includes the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in a contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied Classes of Revenue The Company derives revenue from two service/product lines: Subscription Revenue The Company generates revenue primarily from sales of subscriptions to access its XM Platform, together with related support services to its customers. Arrangements with customers do not provide the customer with the right to take possession of the software operating the XM Platform at any time. Instead, customers are granted continuous access to the XM Platform over the contractual period. The Company’s subscription contracts generally have annual contractual terms while some have multi-year contractual terms. The Company generally bills annually in advance with net 30 payment terms. The Company’s agreements generally cannot be canceled with refund. Professional Services and Other Revenue Professional services and other revenue mainly includes two types of services: research services and professional services. Research services is a solution provided to existing subscription customers with arrangements, which are distinct from subscription revenue services. In addition, the Company provides professional services associated with new and expanding customers requesting implementation, integration services, and other ancillary services. These services are distinct from subscription revenue services. Recognition of Revenue Access to the Company’s XM Platform represents a series of distinct services as the Company continually provides access to and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. Accordingly, the fixed consideration related to subscription revenue is generally recognized on a straight-line basis over the contract term, beginning on the date that the service is made available to the customer. Revenue from professional services and other revenue related to research services is recognized upon completion because completion and delivery of the results is considered a separate performance obligation satisfied at a point in time. Revenue from professional services and other revenue related to customized software coding is recognized upon completion, because the customer consumes the intended benefit and assumes control upon final completion of the custom coding. Revenue from professional services and other revenue related to implementation and other ancillary services is recognized as the services are performed, because the customer consumes the benefit as the services are provided. Judgment is required to determine whether revenue is to be recognized at a point in time or over time. For performance obligations satisfied over time, we need to measure progress using the method that best reflects Qualtrics’ performance. All judgments and estimates mentioned above can significantly impact the timing and amount of revenue to be recognized. Contract Balances The Company bills in advance for annual contracts, and at times enters into non-cancelable multi-year deals. Non-cancelable multi-year deals typically include price escalations each year. The Company recognizes revenue on a straight-line basis over the non-cancelable term and accounts for the difference between straight-line revenue and annual invoice amounts as a contract asset. The current and noncurrent portion of contract assets included in prepaid and other current assets and other assets as of March 31, 2021 were $10.4 million and $9.1 million, respectively. The current and noncurrent portion of contract assets included in prepaid and other current assets and other assets as of December 31, 2020 were $9.6 million and $6.9 million, respectively. The Company records contract liabilities to deferred revenue when cash payments are received or due in advance of performance. Deferred revenue primarily relates to the advance consideration received from the customer prior to the related performance obligation being fulfilled. In certain circumstances we receive consideration from customers in advance of a specific service being identified. Total consideration received in advance of a specific service being identified totaled $34.5 million and $33.8 million as of March 31, 2021 and December 31, 2020, respectively and is included in deferred revenue. The following table shows the amount of revenue included in prior period deferred revenue for each of the Company’s revenue generating solutions: Three Months Ended March 31, in thousands 2021 2020 Subscription revenue: Revenue included in prior period deferred revenue $ 164,999 $ 122,946 Revenue generated from same period billings 21,897 5,319 Total subscription revenue $ 186,896 $ 128,265 Professional services and other revenue: Revenue included in prior period deferred revenue $ 28,526 $ 13,158 Revenue generated from same period billings 23,221 34,641 Total professional services and other revenue $ 51,747 $ 47,799 Remaining Performance Obligations Remaining performance obligations represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. Amounts of a customer contract’s transaction price that are allocated to the remaining performance obligations represent contracted revenue that has not yet been recognized. They include amounts recognized as contract liabilities and amounts that are contracted but not yet due. The future estimated revenue related to unsatisfied performance obligations as of March 31, 2021 was $1,196.2 million, of which approximately $677.0 million is expected to be recognized as revenue over the next twelve months. The future estimated revenue related to unsatisfied performance obligations as of December 31, 2020 was $1,144.4 million. This estimate is based on the Company’s best judgment, as it needs to consider estimates of possible future contract modifications. The amount of transaction price allocated to the remaining performance obligations, and changes in this amount over time, are impacted by, among others, currency fluctuations and the contract period of our cloud contracts remaining at the balance sheet date and thus by the timing of contract renewals. Disaggregation of Revenue The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s cloud platform: Three Months Ended March 31, in thousands 2021 2020 United States $ 170,549 $ 128,087 International 68,094 47,977 Total revenue $ 238,643 $ 176,064 No single country outside the United States accounted for 10% or more of revenue during the three months ended March 31, 2021 and 2020. Stock-Based Compensation, including cash settled On December 28, 2020, the Company initiated a voluntary exchange offer pursuant to which it offered its eligible employees, including its executive officers, the ability to exchange their existing unvested legacy liability-classified stock-based awards to be settled in cash (“Qualtrics Rights”) and SAP restricted stock units (“RSUs”) for awards with underlying shares of the Company’s Class A common stock. The terms of the voluntary exchange offer, including the exchange ratio, were designed to preserve the intrinsic value of the Qualtrics Rights and SAP RSUs that were tendered. Upon completion of the exchange offer on January 28, 2021, 5.4 million of Qualtrics Rights and 1.3 million SAP RSU awards were exchanged into 12.8 million Qualtrics RSU awards, representing 93% of the outstanding Qualtrics Rights and SAP RSU awards. Net loss per Share Attributable to Common Stockholders Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. As there are no potentially dilutive securities, diluted earnings per share attributable to common stockholders has not been presented. For purposes of calculating earnings per share, the Company uses the two-class method. Because both classes of common stock share the same rights in dividends, basic and diluted earnings per share was the same for both common stock classes. Accounts Receivable and Allowances Accounts receivable are recorded at the invoiced amount, net of allowances. Accounts receivable are typically due within 30 days from the date of invoice. Customer balances outstanding longer than the contractual payment te rms are considered past due. In the event of lack of payment due to a bankruptcy or other credit-related issues of a customer, the Company writes off the related accounts receivable with a charge to bad debt expense in the consolidated statements of comprehensive loss. Bad debt expense was not material in the three months ended March 31, 2021 and 2020. In the event of lack of payment from a customer for issues unrelated to credit risk, the Company cancels the customer’s subscription access or service and writes off the corresponding accounts receivable with reductions to revenue and deferred revenue. Write-offs to revenue and deferred revenue from cancellations are based upon the composition of revenue recognized and deferred revenue remaining at the time of cancellation. The Company’s allowances were $23.4 million and $30.2 million as of March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021, $1.3 million of net reductions were charged to revenue and $5.5 million of net reductions were charged to deferred revenue. During the three months ended March 31, 2020, $0.4 million of net reductions were charged to revenue and $2.1 million of net reductions were charged to deferred revenue. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, and accounts receivable. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. No customer accounted for more than 10% of accounts receivable at March 31, 2021 and December 31, 2020. No single customer accounted for 10% or more of total revenue during the three months ended March 31, 2021 and 2020. Deferred Contract Acquisition Costs, net Deferred contract acquisition costs, net is stated at gross deferred contract acquisition costs less accumulated amortization. Sales commissions and related payroll taxes for initial software-as-a-service (SaaS) subscription contracts earned by the Company’s sales force are considered to be incremental and recoverable costs of obtaining a contract with a customer. As a result, these amounts have been capitalized as deferred contract acquisition costs on the consolidated balance sheets. The Company deferred incremental costs of obtaining a contract of $13.5 million and $30.4 million during the three months ended March 31, 2021 and 2020, respectively. Sales commissions for renewal contracts are not considered commensurate with the commissions paid for the acquisition of an initial SaaS subscription contract, given the substantive difference in commission rates in proportion to their respective contract values. After the conclusion of the initial contract period, commissions paid on subsequent renewals are commensurate year after year. As such, the Company expenses renewal commissions as incurred. Deferred contract acquisition costs are amortized over an estimated period of benefit of five years. The period of benefit was estimated by considering factors such as estimated average customer life, the rate of technological change in the subscription service, and the impact of competition in its industry. As the Company’s average customer life significantly exceeded the rate of change in its technology, the Company concluded that the rate of change in the technology underlying the Company’s subscription service was the most significant factor in determining the period of benefit for which the asset relates. In evaluating the rate of change in the technology, the Company considered the competition in the industry, its commitment to continuous innovation, and the frequency of product, platform, and technology updates. The Company determined that the impact of competition in the industry is reflected in the period of benefit through the rate of technological change. Amortization of deferred contract acquisition costs were $11.2 million and $6.7 million for the three months ended March 31, 2021 and 2020, respectively. Amortization of deferred contract acquisition costs are included in sales and marketing expense in the accompanying consolidated statements of operations. There was no impairment loss in relation to the deferred costs for any period presented. Leases Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement based on the present value of the minimum lease payments over the lease term. The Company utilizes certain practical expedients and policy elections available under Topic 842. Leases with a one-year term or less are not recognized on the balance sheet. Internal-use Software The Company capitalizes certain development costs incurred in connection with its internal-use software. These capitalized costs are primarily related to the software platforms that are hosted by the Company and accessed by its customers on a subscription basis. Costs incurred in the preliminary stages of development are expensed as incurred as research and development costs. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as part of property and equipment. Maintenance and training costs are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life of 24 months. The Company recognized amortization expenses of $3.4 million and $3.0 million related to capitalized internal-use software for the three months ended March 31, 2021 and 2020, respectively, within cost of subscription revenue. Income Taxes Income taxes as presented in the condensed consolidated financial statements of Qualtrics attribute current and deferred income taxes of SAP to the Company’s standalone financial statements in a manner that is systematic, rational and consistent with the asset and liability method prescribed by FASB ASC Topic 740: Income Taxes (“ASC 740”). Accordingly, the Company’s income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the standalone financial statements of each member of the consolidated group as if the group members were a separate taxpayer and a standalone enterprise. As a result, actual transactions included in the consolidated financial statements of SAP may not be included in the separate condensed consolidated financial statements of the Company. Similarly, the tax treatment of certain items reflected in the condensed consolidated financial statements of the Company may not be reflected in the consolidated financial statements and tax returns of SAP. Therefore, such items as net operating losses, credit carry-forwards and valuation allowances may exist in the standalone financial statements that may or may not exist in SAP’s consolidated financial statements. As such, the income taxes of the Company as presented in these condensed consolidated financial statements may not be indicative of the income taxes that the Company will generate in the future. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction, and the carry-forward periods available for the utilization of deferred tax assets. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit, and effective settlement of audit issues. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and results of operations. Fair Value Measurement The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The update requires measurement and recognition of expected credit losses for financial assets held at amortized cost, including accounts receivable. ASU 2016-13 was amended in November 2018 by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, and again in April 2019 by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and in May 2019 by ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. ASU 2016-13, as amended, is effective for annual reporting periods of emerging growth companies beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the standard will be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings. The Company is currently evaluating the impact on its consolidated financial statements and cannot reasonably estimate the impact on its financial statements at this time. In December 2019, the FASB issued ASU 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes. The new standard intended to simplify the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for annual periods of emerging growth companies beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted. Adoption of the standard requires certain changes to primarily be made prospectively, with some changes to be made retrospectively. We are currently assessing the impact of this standard on our financial condition and results of operations. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Cash $ 176,513 $ 203,891 Money market mutual funds 410,023 — Total cash and cash equivalents $ 586,536 $ 203,891 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTSThe Company’s cash equivalents with regards to the money market mutual funds are classified within Level 1 of the fair value hierarchy. See Note 1, “Summary of Significant Accounting Policies” for additional details. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Internal-use software $ 26,606 $ 25,757 Server equipment 28,349 27,551 Leasehold improvements 72,817 28,377 Computer equipment 16,501 15,589 Buildings 13,651 13,625 Furniture and fixtures 2,281 2,217 Software 222 222 Construction in progress 4,274 47,920 Total property and equipment $ 164,701 $ 161,258 Accumulated depreciation and amortization (45,438) (45,138) Property and equipment, net $ 119,263 $ 116,120 The Company recognized depreciation and amortization expense related to its property and equipment as follows: Three Months Ended March 31, in thousands 2021 2020 Cost of revenue $ 5,106 $ 4,353 Research and development 650 421 Sales and marketing 1,211 733 General and administrative 241 157 Total depreciation and amortization expense $ 7,208 $ 5,664 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating leases for corporate offices under non-cancelable operating leases with various expiration dates. There are no finance leases. The leases have remaining terms of 1 to 13 years. Options to extend for up to 15 years have not been included because they are not reasonably certain. The components of lease expense were as follows: Three Months Ended March 31, in thousands 2021 2020 Operating lease cost $ 5,704 $ 5,908 Variable and short-term lease cost 3,121 1,682 Supplemental balance sheet information related to operating leases was as follows: As of March 31, As of in thousands 2021 2020 Operating lease right-of-use assets $ 190,697 $ 195,372 Operating lease liabilities, current 12,677 7,125 Operating lease liabilities, non-current 230,167 235,620 Total operating lease liabilities $ 242,844 $ 242,745 Other information related to leases was as follows: As of March 31, As of 2021 2020 Weighted average remaining lease term 11.6 years 11.8 years Weighted average discount rate 3.18 % 3.19 % As of March 31, 2021, the maturities of lease liabilities under non-cancelable operating leases, net of lease incentives, was as follows: As of March 31, in thousands 2021 Remainder of 2021 13,581 2022 23,495 2023 23,830 2024 24,016 2025 24,697 Thereafter 181,243 Total minimum lease payments $ 290,862 Less: imputed interest (48,018) Total $ 242,844 |
Other Intangible Assets, Net
Other Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, Net | OTHER INTANGIBLE ASSETS, NET Other intangible assets, net consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Patents $ 751 $ 751 Developed technology 3,070 3,070 Customer relationships 2,100 2,100 Developed content 400 400 Tradename 550 550 License agreements 1,500 1,500 Total intangible assets $ 8,371 $ 8,371 Accumulated amortization (4,775) (4,412) Other intangible assets, net $ 3,596 $ 3,959 The Company recognized amortization expense to cost of revenue of $0.3 million for each of the three months ended March 31, 2021 and 2020, respectively. An immaterial amount of amortization expense was recorded to sales and marketing and general and administrative for the three months ended March 31, 2021 and 2020. Estimated amortization expense for intangible assets for the next five years consists of the following: As of March 31, in thousands 2021 Remainder of 2021 1,091 2022 1,104 2023 398 2024 281 2025 274 Thereafter 448 Total $ 3,596 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Accrued wages, bonuses and commissions $ 46,858 $ 76,842 Accrued payroll taxes 2,968 2,753 Share deposit liability (1) 120,000 120,000 Other accrued expenses 24,835 22,037 Accrued income taxes 3,230 3,414 Total accrued liabilities $ 197,891 $ 225,046 (1) See Note 10 “Sale of Class A Common Stock” for further details. |
Promissory Notes
Promissory Notes | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Promissory Notes | PROMISSORY NOTES In January 2021, and in connection with the initial public offering, the Company declared a $2,392 million dividend in the form of two promissory notes payable from Qualtrics International Inc. to SAP AMERICA, INC. Promissory Note 1 was issued with a principal amount of $1,892 million and interest rate of 0.14% compounded semi annually. The principal balance and accrued interest was due and paid in full on February 1, 2021, the date of the closing of the initial public offering. Promissory Note 2 was issued with a principal amount of $500 million and interest rate of 1.35% compounded semi annually. The principal balance and accrued interest is due and payable in full on or before the earlier of (i) February 2031, the 10-year anniversary of the closing date of the initial public offering, and (ii) the date on which the aggregate net cash proceeds of primary public offerings of shares of the Company’s Class A common stock exceeds $500 million. The Company has the right to prepay this note in full or in part at any time at par and without prepayment penalties. At any time following August 1, 2021, the six-month anniversary of the closing date of the initial public offering, if the 30-day volume weighted average price per share of the Company’s Class A common stock exceeds $37.50, SAP has the right to cause the Company to effect one or more follow-on public offerings within 30 days following its receipt of such written notice from SAP; provided, however, that the Company shall have the ability to defer any such obligation to effect a follow-on public offering for up to 180 days if, in the good faith judgment of the independent members of the board of directors of the Company, effecting a follow-on public offering would be detrimental to the Company at such time. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases In March 2018, the Company entered into a lease commitment for additional office space that is currently being constructed in Dublin, Ireland. Upon delivery of the constructed office space, the Company will pay approximately $1.7 million per annum to lease the space. The Company expects the constructed office space to be delivered in the second half of 2021. The lease agreement is for 15 years, with a termination option at the election of the Company at the end of the 8th year. Legal Matters From time to time, the Company is a party to a variety of claims, lawsuits, and proceedings which arise in the ordinary course of business, including claims of alleged infringement of intellectual property rights. The Company records a liability when it believes that it is probable that a loss will be incurred, and the amount of loss or range of loss can be reasonably estimated. Given the unpredictable nature of legal proceedings, the Company bases its estimate on the information available at the time of the assessment. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. The Company is not presently a party to any litigation the outcome of which, it believes, if determined adversely to the Company, would individually or in the aggregate have a material adverse effect on the business, operating results, or financial condition. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Common Stock | COMMON STOCK Sale of Class A Common Stock In December 2020, the Company entered into a stock purchase agreement with Q II, an entity controlled by Ryan Smith, the Company’s founder and executive chair, pursuant to which Q II purchased 6,000,000 shares of Class A common stock at a price of $20.00 per share for an aggregate purchase price of $120 million. The shares are redeemable at the option of the Company for the 60-day period following June 30, 2021 unless the following conditions have been met: (i) the closing of the Company’s underwritten public offering shall have occurred prior to that date and (ii) Ryan Smith shall remain employed by the Company on that date or his employment shall have been terminated prior to that date by the Company without cause or by him with good reason. If such conditions do not occur, the Company will have 60 days following June 30, 2021 to repurchase the shares. Based on the terms of purchase agreement, the funds received from the Q II purchase are reported within accrued liabilities until the redemption options have expired. On December 23, 2020, Silver Lake Partners VI DE (AIV), L.P. (“Silver Lake”) agreed to purchase $550 million of shares of Class A common stock, comprising (a) 15,018,484 shares at $21.64 per share and (b) $225 million of shares at the initial public offering price of $30.00 per share, in a concurrent private placement transaction (the “Silver Lake investment”). On February 1, 2021, the Company closed its private placement transaction with Silver Lake. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION Stock-based compensation expense, including cash settled, for the three months ended March 31, 2021 and 2020 was recorded as follows: Three Months Ended March 31, in thousands 2021 2020 Cost of subscription revenue $ 2,624 $ 169 Cost of professional services and other revenue 4,430 89 Research and development 21,332 1,964 Sales and marketing 22,777 3,783 General and administrative 151,836 6,497 Total stock-based compensation expense, including cash settled $ 202,999 $ 12,502 Cash Awards Qualtrics Rights During the three months ended March 31, 2021, 1.7 million Qualtrics Rights vested and were settled for $69.5 million in cash. During the three months ended March 31, 2020, 2.2 million Qualtrics Rights vested and were settled for $93.0 million in cash. The unrecognized expense related to Qualtrics Rights was $1.2 million and $69 million as of March 31, 2021 and December 31, 2020, and will be recognized over a remaining vesting period of up to three years. As of March 31, 2021 and December 31, 2020, 0.1 million and 5.5 million outstanding Qualtrics Rights were valued based on the SAP share of €104.42 and €107.22, respectively, multiplied by the Equity Award Exchange Ratio translated into US$ and less than 0.1 million and 2.0 million, respectively, outstanding Qualtrics Rights were valued at $35.00. The weighted-average remaining contractual term of the Qualtrics Rights was 0.6 years and 1.5 years at March 31, 2021 and December 31, 2020, respectively. The weighted average SAP share price for the Qualtrics Rights settled in during the three months ended March 31, 2021 and 2020 was €104.71 and €112.93, respectively. Move SAP Plan (SAP RSU Plan) During the three months ended March 31, 2021, less than 0.1 million Move SAP RSUs vested and were settled for $2.5 million in cash. During the three months ended March 31, 2020, less than 0.1 million Move SAP RSUs vested and were settled for $5.3 million in cash. The unrecognized expense related to Move SAP RSUs was $8.8 million and $143.0 million as of March 31, 2021 and December 31, 2020, respectively, and will be recognized over a remaining vesting period of up to three years. Changes in Outstanding Awards Under the Company’s Cash-Settled Plans in thousands Qualtrics Rights SAP RSU Plan Outstanding as of December 31, 2020 7,518 1,427 Exchanged into Qualtrics Equity Awards (5,445) (1,304) Settled/exercised (1,688) (20) Forfeited (214) (15) Outstanding as of March 31, 2021 171 88 in thousands As of March 31, 2021 As of December 31, 2020 Qualtrics Rights - total carrying amount of liabilities $ 5,646 $ 241,485 SAP RSU Plan - Total carrying amount of liabilities 2,024 44,428 Equity Awards On January 28, 2021, the Company completed a voluntary exchange offer pursuant to which 5.4 million cash-settled Qualtrics Rights and 1.3 million cash-settled SAP RSU awards were exchanged and modified into 12.8 million equity-settled Qualtrics RSU awards, representing 93% of the outstanding Qualtrics Rights and SAP RSU awards. In January 2021, the board of directors authorized the issuance of new RSU awards representing approximately 61.4 million shares of our Class A common stock. These awards were granted to eligible employees and the executive officers of the Company on January 28, 2021. Approximately 44.2 million of the RSU awards are subject to time-based vesting, with 25% vesting on February 1, 2022 and ratably thereafter for twelve quarters, such that this portion of the RSUs will be fully vested on the fourth anniversary of their vesting commencement date. The remaining 17.2 million RSU awards vest in four equal annual installments based on the achievement of certain performance conditions, as established by our board of directors and measured annually, with vesting of 100% of each installment in the event that the performance targets are achieved and ratable downward adjustments in the event that the performance targets are partially achieved. On January 5, 2021, the board of directors approved a one-time optional salary adjustment program that provided eligible employees with the opportunity to reduce their annual cash base salary, effective as of February 1, 2021 and on an ongoing basis, in exchange for a one-time RSU grant valued at a multiple of the cash forgone as a result of an employee’s participation in the program. RSUs granted pursuant to this program totaled 2.5 million and vest quarterly over four years, with a vesting commencement date of February 1, 2021. The following table sets forth the outstanding Qualtrics RSUs and related activity for the three months ended March 31, 2021: Number of RSUs (in thousands) Weighted-Average Grant Date Fair Value Outstanding as of December 31, 2020 — $ — Exchanged from Qualtrics Rights and SAP RSU Awards 12,841 30.00 Granted 65,940 45.50 Vested (1,314) 30.00 Forfeited/Canceled (256) 39.19 Outstanding as of March 31, 2021 77,211 $ 43.21 As of March 31, 2021, there was $2,980 million of unrecognized stock-based compensation expense related to outstanding Qualtrics RSUs which is expected to be recognized over a weighted-average period of 3.4 years. Own SAP Plan (Own) Starting in July 2019 under Own, employees had the opportunity to purchase, on a monthly basis, SAP shares without any required holding period. The investment per each eligible employee is limited to a percentage of the respective employee’s monthly base salary. The Company matched the employee investment by 40% and added a subsidy equivalent of €20 per month for non-executives. The number of shares purchased under this plan was 17,440 and 40,299 during the three months ended March 31, 2021 and 2020, respectively. The Company recognized compensation expense associated with the match of $0.7 million and $1.5 million during the three months ended March 31, 2021 and 2020, respectively. In connection with the completion of the Company’s initial public offering, employees are no longer able to participate in Own. Qualtrics Employee Stock Purchase Plan (ESPP) In December 2020, the Company's board of directors approved the ESPP, which became effective in January 2021. The ESPP initially reserved and authorized the issuance of up to a total of 12,000,000 shares of Class A common stock to participating employees. The ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2022 and ending on (and including) January 1, 2030 by the lesser of 2% of the number of shares of our Class A common stock reserved for issuance under the ESPP, 1% of the outstanding number of shares of our Class B and Class A common stock on the immediately preceding December 31, or such lesser number of shares as determined by our compensation committee. The share reserve is subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization. The first offering under the ESPP began on February 1, 2021 and will end on August 1, 2021. Each employee who is a participant in the ESPP may purchase shares by authorizing contributions at a minimum of 1% up to a maximum of 20% of his or her compensation for each pay period. Accumulated contributions will be used to purchase shares on the last business day of the purchase period at a price equal to 85% of the fair market value of the shares on the first business day of the offering period (our initial public offering price) or the last business day of the offering period, whichever is lower, provided that no more than a number of shares of Class A common stock determined by dividing $15,000 by the fair market value of the shares on the first business day of the offering period (or a lesser number as established by the plan administrator in advance of the purchase period) may be purchased by any one employee during each purchase period. Under applicable tax rules, an employee may purchase no more than $25,000 worth of shares of Class A common stock, valued at the start of the offering period, under the ESPP for each calendar year in which a purchase right is outstanding. The Company recognized compensation expense associated with the ESPP of $2.9 million during the three months ended March 31, 2021. Sale of Class A Common Stock As discussed in Note 10, regarding the sale of Class A common stock to Q II, the 6,000,000 shares have certain vesting conditions including the completion of the Company’s IPO and the continued employment of Ryan Smith through June 30, 2021. Based on the terms of purchase agreement, the sale of Class A common stock to Q II is accounted for as an early exercise of a stock option award. The IPO is considered a performance condition that upon occurring in January 2021 results in a cumulative catch-up of recognizing expense of the fair value of the option for the pro-rata portion of the vesting period that had occurred and the remaining expense will be recorded over the remaining vesting period. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table sets forth the calculation of basic net loss per share attributable to common stockholders during the periods presented. in thousands (except share amount) Three Months Ended March 31, 2021 2020 Numerator: Net loss attributable to common shareholders $ (199,854) $ (44,835) Denominator: Weighted-average shares outstanding for basic loss per share 482,260,465 423,170,610 Basic loss per share $ (0.41) $ (0.11) Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table discloses securities that could potentially dilute basic net loss per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for all periods presented: As of March 31, 2021 As of December 31, 2020 Qualtrics restricted stock units 77,211,031 — Qualtrics employee stock purchase program 130,510 — |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company has an effective tax rate of (0.8)% and (23.0)% for the three months ended March 31, 2021 and 2020, respectively. The Company has incurred U.S. operating losses and has minimal profits in its foreign jurisdictions. The Company has evaluated all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and has determined that it is more likely than not that its net deferred tax assets will not be realized in the United States. Due to uncertainties surrounding the realization of the deferred tax assets, the Company maintains a full valuation allowance against its net US deferred tax assets. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted by the United States on March 27, 2020, and the Consolidated Appropriations Act, 2021 (the “Appropriations Act”) was enacted on December 27, 2020. Neither the CARES Act nor the Appropriations Act have a material impact on the Company’s provision for income taxes for the three months ended March 31, 2021 and 2020, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Since the SAP acquisition in 2019, SAP and its affiliates are related parties to the Company. The Company has entered into certain arrangements for services and products with SAP and its affiliates. The consolidated statements of operations and comprehensive income statements include all revenue and costs directly attributable and/or allocable to the Company, including costs for facilities, functions, and services used by Qualtrics. The condensed consolidated statement of operations also includes expenses of SAP directly charged to Qualtrics for certain functions provided by SAP, including, but not limited to, sales organization costs, insurance, employee benefits, human resources and usage of data centers. The Company directly charges SAP for certain functions provided to SAP, including sales support. These charges were determined based on actual expenses incurred on Qualtrics’ or SAP’s behalf or by usage. During the three months ended March 31, 2021 and 2020, the Company received revenue of $5.2 million and $1.8 million, respectively, from SAP and its affiliates in exchange for services and products. Total costs charged from SAP and its affiliates to the Company were $11.9 million and $4.7 million during the three months ended March 31, 2021 and 2020, respectively. Total costs charged from the Company to SAP and its affiliates were $4.1 million and $3.3 million during the three months ended March 31, 2021 and 2020, respectively. The outstanding receivable (payable) balance with SAP and its affiliates as of March 31, 2021 and December 31, 2020 was $14.7 million and $(13.4) million, respectively. In January 2021, and in connection with the initial public offering, the Company declared a $2,392 million dividend in the form of two promissory notes payable from Qualtrics International Inc. to SAP AMERICA, INC. Promissory Note 1 was issued with a principal amount of $1,892 million and paid in full on February 1, 2021. Promissory Note 2 was issued with a principal amount of $500 million and interest rate of 1.35% compounded semi annually. See Note 8 “Promissory Notes” for further details. Certain Board members of the Company and certain Supervisory Board and Executive Board members of SAP SE currently hold, or held within the last year, positions of significant responsibility with other entities. We have relationships with certain of these entities in the ordinary course of business. During the three months ended March 31, 2021, and 2020, revenue and charges from these related parties were immaterial. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated balance sheet as of March 31, 2021, and the condensed consolidated statements of operations, comprehensive loss, stockholders' equity (deficit), and cash flows for the three months ended March 31, 2021 and 2020 are unaudited. The unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments necessary to state fairly the Company's financial position as of March 31, 2021 and its results of operations and cash flows for the three months ended March 31, 2021 and 2020. The financial data and the other financial information disclosed in the notes to these condensed consolidated financial statements related to the three-month periods are also unaudited. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 or for any other future year or interim period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2020, included in the Company's Annual Report on Form 10-K. |
Basis of Accounting | The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make certain estimates and assumptions. |
Use of Estimates | These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the balance sheet date, as well as reported amounts of revenue and expenses during the reporting period. The Company’s most significant estimates and judgments involve revenue recognition with respect to the determination of the standalone selling prices for the Company’s services, deferred contract acquisition costs, the period of benefit generated from deferred contract acquisition costs, valuation of the Company’s equity and cash settled stock-based compensation, including the underlying deemed estimated fair value of the Company’s common stock prior to the IPO, valuation of deferred income tax assets, uncertain tax positions, contingencies, determining the incremental borrowing rate for the calculation of the present value of lease liabilities and litigation accruals. Actual results could differ from those estimates. |
Foreign Currency Transactions | The assets and liabilities of the Company’s foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date and revenue and expense amounts are translated at the average exchange rate for the period. Foreign currency translation gains and losses are recorded in other comprehensive loss. Exchange rate differences resulting from translation adjustments are accounted for as a component of accumulated other comprehensive loss.Gains and losses, whether realized or unrealized, from foreign currency transactions (those transactions denominated in currencies other than the entities’ functional currency) are included in other income (expense), net. |
Revenue | The Company recognizes revenue from its service/product lines when control is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the services. Sales and other taxes collected from customers to be remitted to government authorities are excluded from revenue. The Company accounts for revenue contracts with customers by applying the requirements of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606 – Revenue from Contracts with Customers (Topic 606), which includes the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in a contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied Classes of Revenue The Company derives revenue from two service/product lines: Subscription Revenue The Company generates revenue primarily from sales of subscriptions to access its XM Platform, together with related support services to its customers. Arrangements with customers do not provide the customer with the right to take possession of the software operating the XM Platform at any time. Instead, customers are granted continuous access to the XM Platform over the contractual period. The Company’s subscription contracts generally have annual contractual terms while some have multi-year contractual terms. The Company generally bills annually in advance with net 30 payment terms. The Company’s agreements generally cannot be canceled with refund. Professional Services and Other Revenue Professional services and other revenue mainly includes two types of services: research services and professional services. Research services is a solution provided to existing subscription customers with arrangements, which are distinct from subscription revenue services. In addition, the Company provides professional services associated with new and expanding customers requesting implementation, integration services, and other ancillary services. These services are distinct from subscription revenue services. Recognition of Revenue Access to the Company’s XM Platform represents a series of distinct services as the Company continually provides access to and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. Accordingly, the fixed consideration related to subscription revenue is generally recognized on a straight-line basis over the contract term, beginning on the date that the service is made available to the customer. Revenue from professional services and other revenue related to research services is recognized upon completion because completion and delivery of the results is considered a separate performance obligation satisfied at a point in time. Revenue from professional services and other revenue related to customized software coding is recognized upon completion, because the customer consumes the intended benefit and assumes control upon final completion of the custom coding. Revenue from professional services and other revenue related to implementation and other ancillary services is recognized as the services are performed, because the customer consumes the benefit as the services are provided. Judgment is required to determine whether revenue is to be recognized at a point in time or over time. For performance obligations satisfied over time, we need to measure progress using the method that best reflects Qualtrics’ performance. All judgments and estimates mentioned above can significantly impact the timing and amount of revenue to be recognized. Contract Balances |
Net Loss Per Share Attributable to Common Stockholders | Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. As there are no potentially dilutive securities, diluted earnings per share attributable to common stockholders has not been presented. For purposes of calculating earnings per share, the Company uses the two-class method. Because both classes of common stock share the same rights in dividends, basic and diluted earnings per share was the same for both common stock classes. |
Accounts Receivable and Allowances | Accounts receivable are recorded at the invoiced amount, net of allowances. Accounts receivable are typically due within 30 days from the date of invoice. Customer balances outstanding longer than the contractual payment te rms are considered past due. In the event of lack of payment due to a bankruptcy or other credit-related issues of a customer, the Company writes off the related accounts receivable with a charge to bad debt expense in the consolidated statements of comprehensive loss. Bad debt expense was not material in the three months ended March 31, 2021 and 2020. In the event of lack of payment from a customer for issues unrelated to credit risk, the Company cancels the customer’s subscription access or service and writes off the corresponding accounts receivable with reductions to revenue and deferred revenue. Write-offs to revenue and deferred revenue from cancellations are based upon the composition of revenue recognized and deferred revenue remaining at the time of cancellation. |
Concentration of Credit Risk | Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, and accounts receivable. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. |
Deferred Contract Acquisition Costs, net | Deferred contract acquisition costs, net is stated at gross deferred contract acquisition costs less accumulated amortization. Sales commissions and related payroll taxes for initial software-as-a-service (SaaS) subscription contracts earned by the Company’s sales force are considered to be incremental and recoverable costs of obtaining a contract with a customer. As a result, these amounts have been capitalized as deferred contract acquisition costs on the consolidated balance sheets. |
Leases | Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement based on the present value of the minimum lease payments over the lease term. The Company utilizes certain practical expedients and policy elections available under Topic 842. Leases with a one-year term or less are not recognized on the balance sheet. |
Internal-use Software | The Company capitalizes certain development costs incurred in connection with its internal-use software. These capitalized costs are primarily related to the software platforms that are hosted by the Company and accessed by its customers on a subscription basis. Costs incurred in the preliminary stages of development are expensed as incurred as research and development costs. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as part of property and equipment. Maintenance and training costs are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life of 24 months. |
Income Taxes | Income taxes as presented in the condensed consolidated financial statements of Qualtrics attribute current and deferred income taxes of SAP to the Company’s standalone financial statements in a manner that is systematic, rational and consistent with the asset and liability method prescribed by FASB ASC Topic 740: Income Taxes (“ASC 740”). Accordingly, the Company’s income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the standalone financial statements of each member of the consolidated group as if the group members were a separate taxpayer and a standalone enterprise. As a result, actual transactions included in the consolidated financial statements of SAP may not be included in the separate condensed consolidated financial statements of the Company. Similarly, the tax treatment of certain items reflected in the condensed consolidated financial statements of the Company may not be reflected in the consolidated financial statements and tax returns of SAP. Therefore, such items as net operating losses, credit carry-forwards and valuation allowances may exist in the standalone financial statements that may or may not exist in SAP’s consolidated financial statements. As such, the income taxes of the Company as presented in these condensed consolidated financial statements may not be indicative of the income taxes that the Company will generate in the future. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction, and the carry-forward periods available for the utilization of deferred tax assets. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit, and effective settlement of audit issues. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and results of operations. |
Fair Value Measurement | The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. |
Recently Issued Accounting Pronouncements Not Yet Adopted | In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The update requires measurement and recognition of expected credit losses for financial assets held at amortized cost, including accounts receivable. ASU 2016-13 was amended in November 2018 by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, and again in April 2019 by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and in May 2019 by ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. ASU 2016-13, as amended, is effective for annual reporting periods of emerging growth companies beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the standard will be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings. The Company is currently evaluating the impact on its consolidated financial statements and cannot reasonably estimate the impact on its financial statements at this time. In December 2019, the FASB issued ASU 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes. The new standard intended to simplify the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for annual periods of emerging growth companies beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted. Adoption of the standard requires certain changes to primarily be made prospectively, with some changes to be made retrospectively. We are currently assessing the impact of this standard on our financial condition and results of operations. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Revenue Included In Prior Period Deferred Revenue | The following table shows the amount of revenue included in prior period deferred revenue for each of the Company’s revenue generating solutions: Three Months Ended March 31, in thousands 2021 2020 Subscription revenue: Revenue included in prior period deferred revenue $ 164,999 $ 122,946 Revenue generated from same period billings 21,897 5,319 Total subscription revenue $ 186,896 $ 128,265 Professional services and other revenue: Revenue included in prior period deferred revenue $ 28,526 $ 13,158 Revenue generated from same period billings 23,221 34,641 Total professional services and other revenue $ 51,747 $ 47,799 |
Revenue from External Customers by Geographic Areas | The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s cloud platform: Three Months Ended March 31, in thousands 2021 2020 United States $ 170,549 $ 128,087 International 68,094 47,977 Total revenue $ 238,643 $ 176,064 |
Property, Plant and Equipment | Property and equipment, net consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Internal-use software $ 26,606 $ 25,757 Server equipment 28,349 27,551 Leasehold improvements 72,817 28,377 Computer equipment 16,501 15,589 Buildings 13,651 13,625 Furniture and fixtures 2,281 2,217 Software 222 222 Construction in progress 4,274 47,920 Total property and equipment $ 164,701 $ 161,258 Accumulated depreciation and amortization (45,438) (45,138) Property and equipment, net $ 119,263 $ 116,120 The Company recognized depreciation and amortization expense related to its property and equipment as follows: Three Months Ended March 31, in thousands 2021 2020 Cost of revenue $ 5,106 $ 4,353 Research and development 650 421 Sales and marketing 1,211 733 General and administrative 241 157 Total depreciation and amortization expense $ 7,208 $ 5,664 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Cash $ 176,513 $ 203,891 Money market mutual funds 410,023 — Total cash and cash equivalents $ 586,536 $ 203,891 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, net consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Internal-use software $ 26,606 $ 25,757 Server equipment 28,349 27,551 Leasehold improvements 72,817 28,377 Computer equipment 16,501 15,589 Buildings 13,651 13,625 Furniture and fixtures 2,281 2,217 Software 222 222 Construction in progress 4,274 47,920 Total property and equipment $ 164,701 $ 161,258 Accumulated depreciation and amortization (45,438) (45,138) Property and equipment, net $ 119,263 $ 116,120 The Company recognized depreciation and amortization expense related to its property and equipment as follows: Three Months Ended March 31, in thousands 2021 2020 Cost of revenue $ 5,106 $ 4,353 Research and development 650 421 Sales and marketing 1,211 733 General and administrative 241 157 Total depreciation and amortization expense $ 7,208 $ 5,664 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense were as follows: Three Months Ended March 31, in thousands 2021 2020 Operating lease cost $ 5,704 $ 5,908 Variable and short-term lease cost 3,121 1,682 |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to operating leases was as follows: As of March 31, As of in thousands 2021 2020 Operating lease right-of-use assets $ 190,697 $ 195,372 Operating lease liabilities, current 12,677 7,125 Operating lease liabilities, non-current 230,167 235,620 Total operating lease liabilities $ 242,844 $ 242,745 Other information related to leases was as follows: As of March 31, As of 2021 2020 Weighted average remaining lease term 11.6 years 11.8 years Weighted average discount rate 3.18 % 3.19 % |
Lessee, Operating Lease, Liability, Maturity | As of March 31, 2021, the maturities of lease liabilities under non-cancelable operating leases, net of lease incentives, was as follows: As of March 31, in thousands 2021 Remainder of 2021 13,581 2022 23,495 2023 23,830 2024 24,016 2025 24,697 Thereafter 181,243 Total minimum lease payments $ 290,862 Less: imputed interest (48,018) Total $ 242,844 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Other intangible assets, net consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Patents $ 751 $ 751 Developed technology 3,070 3,070 Customer relationships 2,100 2,100 Developed content 400 400 Tradename 550 550 License agreements 1,500 1,500 Total intangible assets $ 8,371 $ 8,371 Accumulated amortization (4,775) (4,412) Other intangible assets, net $ 3,596 $ 3,959 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for intangible assets for the next five years consists of the following: As of March 31, in thousands 2021 Remainder of 2021 1,091 2022 1,104 2023 398 2024 281 2025 274 Thereafter 448 Total $ 3,596 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: As of March 31, As of December 31, in thousands 2021 2020 Accrued wages, bonuses and commissions $ 46,858 $ 76,842 Accrued payroll taxes 2,968 2,753 Share deposit liability (1) 120,000 120,000 Other accrued expenses 24,835 22,037 Accrued income taxes 3,230 3,414 Total accrued liabilities $ 197,891 $ 225,046 (1) See Note 10 “Sale of Class A Common Stock” for further details. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense, including cash settled, for the three months ended March 31, 2021 and 2020 was recorded as follows: Three Months Ended March 31, in thousands 2021 2020 Cost of subscription revenue $ 2,624 $ 169 Cost of professional services and other revenue 4,430 89 Research and development 21,332 1,964 Sales and marketing 22,777 3,783 General and administrative 151,836 6,497 Total stock-based compensation expense, including cash settled $ 202,999 $ 12,502 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Changes in Outstanding Awards Under the Company’s Cash-Settled Plans in thousands Qualtrics Rights SAP RSU Plan Outstanding as of December 31, 2020 7,518 1,427 Exchanged into Qualtrics Equity Awards (5,445) (1,304) Settled/exercised (1,688) (20) Forfeited (214) (15) Outstanding as of March 31, 2021 171 88 in thousands As of March 31, 2021 As of December 31, 2020 Qualtrics Rights - total carrying amount of liabilities $ 5,646 $ 241,485 SAP RSU Plan - Total carrying amount of liabilities 2,024 44,428 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table sets forth the outstanding Qualtrics RSUs and related activity for the three months ended March 31, 2021: Number of RSUs (in thousands) Weighted-Average Grant Date Fair Value Outstanding as of December 31, 2020 — $ — Exchanged from Qualtrics Rights and SAP RSU Awards 12,841 30.00 Granted 65,940 45.50 Vested (1,314) 30.00 Forfeited/Canceled (256) 39.19 Outstanding as of March 31, 2021 77,211 $ 43.21 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of basic net loss per share attributable to common stockholders during the periods presented. in thousands (except share amount) Three Months Ended March 31, 2021 2020 Numerator: Net loss attributable to common shareholders $ (199,854) $ (44,835) Denominator: Weighted-average shares outstanding for basic loss per share 482,260,465 423,170,610 Basic loss per share $ (0.41) $ (0.11) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table discloses securities that could potentially dilute basic net loss per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for all periods presented: As of March 31, 2021 As of December 31, 2020 Qualtrics restricted stock units 77,211,031 — Qualtrics employee stock purchase program 130,510 — |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Capital Reorganization (Details) | Dec. 21, 2020 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Conversion ratio | 4,231,706.1 |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Foreign Currency Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Foreign currency transaction losses | $ 0.7 | $ (0.5) |
Summary of Business and Signi_6
Summary of Business and Significant Accounting Policies - Professional Services and Other Revenue (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Contract assets, current | $ 10.4 | $ 9.6 |
Contract asset, noncurrent | 9.1 | 6.9 |
Deferred revenue | $ 34.5 | $ 33.8 |
Summary of Business and Signi_7
Summary of Business and Significant Accounting Policies - Revenue Included in Prior Period Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenue included in prior period deferred revenue | $ 164,999 | $ 122,946 |
Revenue generated from same period billings | 21,897 | 5,319 |
Revenue | 186,896 | 128,265 |
Professional Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue included in prior period deferred revenue | 28,526 | 13,158 |
Revenue generated from same period billings | 23,221 | 34,641 |
Revenue | $ 51,747 | $ 47,799 |
Summary of Business and Signi_8
Summary of Business and Significant Accounting Policies - Remaining Performance Obligation (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 1,196.2 | $ 1,144.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 677 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Summary of Business and Signi_9
Summary of Business and Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 238,643 | $ 176,064 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 170,549 | 128,087 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 68,094 | $ 47,977 |
Summary of Business and Sign_10
Summary of Business and Significant Accounting Policies - Share-Based Compensation, including cash settled (Details) | Jan. 28, 2021shares | Mar. 31, 2021shares |
Qualtrics Rights and SAP RSU Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of outstanding stock | 0.93 | |
Qualtrics Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exchanged into Qualtrics Equity Awards (in shares) | 5,400,000 | 5,445,000 |
SAP RSU Plan | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exchanged into Qualtrics Equity Awards (in shares) | 1,300,000 | 1,304,000 |
Qualtrics RSU Plan | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exchanged from Qualtrics Rights and SAP RSU Awards (in shares) | 12,800,000 | 12,841,000 |
Summary of Business and Sign_11
Summary of Business and Significant Accounting Policies - Accounts Receivable and Allowances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowances | $ 23.4 | $ 30.2 | |
Deferred Revenue | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowances increase (decrease) | 5.5 | $ 2.1 | |
Revenue | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowances increase (decrease) | $ 1.3 | $ 0.4 |
Summary of Business and Sign_12
Summary of Business and Significant Accounting Policies - Deferred Contract Acquisition Costs, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Deferred contract acquisitions costs | $ 13,500 | $ 30,400 |
Amortization period of deferred contract acquisition costs (in years) | 5 years | |
Amortization of deferred contract acquisition costs | $ 11,213 | $ 6,747 |
Summary of Business and Sign_13
Summary of Business and Significant Accounting Policies - Internal-use Software (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 3.4 | $ 3 |
Internal-use software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 24 months |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 176,513 | $ 203,891 |
Money market mutual funds | 410,023 | 0 |
Total cash and cash equivalents | $ 586,536 | $ 203,891 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 164,701 | $ 161,258 |
Accumulated depreciation and amortization | (45,438) | (45,138) |
Property and equipment, net | 119,263 | 116,120 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 26,606 | 25,757 |
Server equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 28,349 | 27,551 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 72,817 | 28,377 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 16,501 | 15,589 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,651 | 13,625 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,281 | 2,217 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 222 | 222 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,274 | $ 47,920 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ 7,208 | $ 5,664 |
Cost of revenue | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | 5,106 | 4,353 |
Research and development | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | 650 | 421 |
Sales and marketing | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | 1,211 | 733 |
General and administrative | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ 241 | $ 157 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2021 |
Lessee, Lease, Description [Line Items] | |
Option to extend, term (in years) | 15 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 13 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 5,704 | $ 5,908 |
Variable and short-term lease cost | $ 3,121 | $ 1,682 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Right-of-use assets from operating leases | $ 190,697 | $ 195,372 |
Operating lease liabilities, current | 12,677 | 7,125 |
Operating lease liabilities, non-current | 230,167 | 235,620 |
Total operating lease liabilities | $ 242,844 | $ 242,745 |
Leases - Other Information (Det
Leases - Other Information (Details) | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 11 years 7 months 6 days | 11 years 9 months 18 days |
Weighted average discount rate | 3.18% | 3.19% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2021 | $ 13,581 | |
2022 | 23,495 | |
2023 | 23,830 | |
2024 | 24,016 | |
2025 | 24,697 | |
Thereafter | 181,243 | |
Total minimum lease payments | 290,862 | |
Less: imputed interest | (48,018) | |
Total operating lease liabilities | $ 242,844 | $ 242,745 |
Other Intangible Assets, Net -
Other Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 8,371 | $ 8,371 |
Accumulated amortization | (4,775) | (4,412) |
Total | 3,596 | 3,959 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 751 | 751 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 3,070 | 3,070 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 2,100 | 2,100 |
Developed content | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 400 | 400 |
Tradename | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 550 | 550 |
License agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 1,500 | $ 1,500 |
Other Intangible Assets, Net _2
Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 364 | $ 364 |
Other Intangible Assets, Net _3
Other Intangible Assets, Net - Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2021 | $ 1,091 | |
2022 | 1,104 | |
2023 | 398 | |
2024 | 281 | |
2025 | 274 | |
Thereafter | 448 | |
Total | $ 3,596 | $ 3,959 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued wages, bonuses and commissions | $ 46,858 | $ 76,842 |
Accrued payroll taxes | 2,968 | 2,753 |
Share deposit liability | 120,000 | 120,000 |
Other accrued expenses | 24,835 | 22,037 |
Accrued income taxes | 3,230 | 3,414 |
Total accrued liabilities | $ 197,891 | $ 225,046 |
Promissory Notes (Details)
Promissory Notes (Details) - Loans Payable $ / shares in Units, $ in Millions | Feb. 01, 2020USD ($) | Mar. 31, 2021USD ($) | Feb. 01, 2021USD ($)$ / shares | Jan. 31, 2021USD ($)segment |
Promissory Note Due to SAP | ||||
Debt Instrument [Line Items] | ||||
Note payable issued for dividend declared | $ 2,392 | |||
Number of promissory notes issued | segment | 2 | |||
Principal amount | $ 500 | |||
Accrued interest | $ 1.2 | |||
Promissory Note 1 Due to SAP | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,892 | |||
Interest rate | 0.14% | |||
Promissory Note 2 Due to SAP | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 500 | |||
Interest rate | 1.35% | |||
Debt instrument term (in years) | 10 years | |||
Proceeds from issuance of debt | $ 500 | |||
Period following initial public offering (in months) | 6 months | |||
Volume period (in days) | 30 days | |||
Volume-weighted average price per share (in USD per share) | $ / shares | $ 37.50 | |||
Call date period (in days) | 30 days | |||
Deferral period (in days) | 180 days |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | Mar. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Annual lease liability | $ 1.7 |
Term of contract (in years) | 15 years |
Common Stock (Details)
Common Stock (Details) - Class A Common Stock - USD ($) $ / shares in Units, $ in Millions | Dec. 23, 2020 | Feb. 01, 2020 | Dec. 31, 2020 | Feb. 01, 2021 |
Private Placement | Q II | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 6,000,000 | |||
Common stock, par value (in USD per share) | $ 20 | |||
Common stock, shares issued | $ 120 | |||
Redemption period (in days) | 60 days | |||
Private Placement | Silver Lake Partners | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued | $ 550 | |||
Private Placement | Silver Lake Partners | $21.64 | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 15,018,484 | |||
Common stock, par value (in USD per share) | $ 21.64 | |||
Private Placement | Silver Lake Partners | $30 | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in USD per share) | $ 30 | |||
Common stock, shares issued | $ 225 | |||
IPO | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 59,449,903 | |||
Common stock, par value (in USD per share) | $ 30 | |||
Common stock, shares issued | $ 1,688 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense, including cash settled | $ 202,999 | $ 12,502 |
Cost of revenue | Subscription | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense, including cash settled | 2,624 | 169 |
Cost of revenue | Professional Services | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense, including cash settled | 4,430 | 89 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense, including cash settled | 21,332 | 1,964 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense, including cash settled | 22,777 | 3,783 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense, including cash settled | $ 151,836 | $ 6,497 |
Stock-based Compensation - Cash
Stock-based Compensation - Cash Awards (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)$ / shares€ / sharesshares | Mar. 31, 2020USD ($)shares | Mar. 31, 2020€ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2021€ / shares | Dec. 31, 2020€ / shares | |
Qualtrics Rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vested shares (in shares) | 1,688,000 | 2,200,000 | |||||
Cash used to settle awards | $ | $ 69.5 | $ 93 | |||||
Unrecognized stock-based compensation expense | $ | $ 1.2 | $ 1.2 | $ 69 | ||||
Period for recognition (in years) | 3 years | ||||||
Shares outstanding (in shares) | 171,000 | 171,000 | 7,518,000 | ||||
Shares outstanding, weighted average remaining contractual term (in years) | 7 months 6 days | 1 year 6 months | |||||
Shares outstanding, weighted average exercise price (in Euros per share) | € / shares | $ 104.71 | € 112.93 | |||||
Qualtrics Rights | Prior To 2018 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares outstanding (in shares) | 100,000 | 100,000 | 5,500,000 | ||||
Shares outstanding, weighted average exercise price (in Euros per share) | € / shares | € 104.42 | € 107.22 | |||||
Qualtrics Rights | 2018 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares outstanding (in shares) | 100,000 | 100,000 | 2,000,000 | ||||
Shares outstanding, weighted average exercise price (in Euros per share) | $ / shares | $ 35 | $ 35 | $ 35 | ||||
Restricted Stock Units | SAP RSU Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cash used to settle awards | $ | $ 2.5 | $ 5.3 | |||||
Unrecognized stock-based compensation expense | $ | $ 8.8 | $ 8.8 | $ 143 | ||||
Period for recognition (in years) | 3 years | ||||||
Vested (in shares) | 100,000 | 100,000 |
Stock-based Compensation - Chan
Stock-based Compensation - Changes in Outstanding Awards Under The Company's Cash-Settled Plan (Details) - USD ($) $ in Millions | Jan. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Qualtrics Rights | ||||
Qualtrics Rights | ||||
Outstanding, beginning balance (in shares) | 7,518,000 | |||
Exchanged into Qualtrics Equity Awards (in shares) | (5,400,000) | (5,445,000) | ||
Settled/exercised (in shares) | (1,688,000) | (2,200,000) | ||
Forfeited (in shares) | (214,000) | |||
Outstanding, ending balance (in shares) | 171,000 | |||
SAP RSU Plan | ||||
Carrying amount of liabilities | $ 5,646 | $ 241,485 | ||
SAP RSU Plan | ||||
SAP RSU Plan | ||||
Carrying amount of liabilities | $ 2,024 | $ 44,428 | ||
SAP RSU Plan | Restricted Stock Units | ||||
SAP RSU Plan | ||||
Outstanding, beginning balance (in shares) | 1,427,000 | |||
Exchanged into Qualtrics Equity Awards (in shares) | (1,300,000) | (1,304,000) | ||
Settled/exercised (in shares) | (20,000) | |||
Forfeited (in shares) | (15,000) | |||
Outstanding, ending balance (in shares) | 88,000 |
Stock-based Compensation - Equi
Stock-based Compensation - Equity Awards (Details) $ in Thousands | Jan. 28, 2021installmentshares | Jan. 05, 2021shares | Jan. 31, 2021USD ($)shares | Jul. 31, 2019EUR (€) | Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($)shares | Dec. 31, 2020USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense, including cash settled | $ | $ 202,999 | $ 12,502 | |||||
Qualtrics Rights and SAP RSU Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of outstanding stock | 0.93 | ||||||
Qualtrics Rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exchanged into Qualtrics Equity Awards (in shares) | 5,400,000 | 5,445,000 | |||||
Unrecognized stock-based compensation expense | $ | $ 1,200 | $ 69,000 | |||||
Period for recognition (in years) | 3 years | ||||||
Restricted Stock Units | SAP RSU Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exchanged into Qualtrics Equity Awards (in shares) | 1,300,000 | 1,304,000 | |||||
Unrecognized stock-based compensation expense | $ | $ 8,800 | $ 143,000 | |||||
Period for recognition (in years) | 3 years | ||||||
Restricted Stock Units | Qualtrics RSU Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exchanged from Qualtrics Rights and SAP RSU Awards (in shares) | 12,800,000 | 12,841,000 | |||||
Shares authorized (in shares) | 61,400,000 | ||||||
RSU awards (in shares) | 77,211,000 | 0 | |||||
Unrecognized stock-based compensation expense | $ | $ 2,980,000 | ||||||
Period for recognition (in years) | 3 years 4 months 24 days | ||||||
Restricted Stock Units | Qualtrics RSU Plan | Time based vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSU awards (in shares) | 44,200,000 | ||||||
Award vesting rights percentage | 25.00% | ||||||
Award vesting period (in years) | 3 years | ||||||
Restricted Stock Units | Qualtrics RSU Plan | Performance vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSU awards (in shares) | 17,200,000 | ||||||
Award vesting rights percentage | 100.00% | ||||||
Number of installments per year | installment | 4 | ||||||
Restricted Stock Units | Salary Adjustment Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 2,500,000 | ||||||
Award vesting period (in years) | 4 years | ||||||
Employee Stock | Own SAP Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employer matching contribution percentage | 0.40 | ||||||
Subsidy equivalent per month (in Euros) | € | € 20 | ||||||
Shares purchased under plan (in shares) | 17,440 | 40,299 | |||||
Stock-based compensation expense, including cash settled | $ | $ 700 | $ 1,500 | |||||
Employee Stock | Qualtrics Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Minimum contribution percentage (per period) | 1.00% | ||||||
Maximum contribution percentage (per period) | 20.00% | ||||||
Purchase price of common stock, percent of market price | 85.00% | ||||||
Maximum value of shares per employee | $ | $ 15 | ||||||
Maximum contribution | $ | $ 25 | ||||||
Stock-based compensation expense, including cash settled | $ | $ 2,900 | ||||||
Employee Stock | Qualtrics Employee Stock Purchase Plan | Class A and B Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual increase in available shares (in shares) | 0.01 | ||||||
Employee Stock | Qualtrics Employee Stock Purchase Plan | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized (in shares) | 12,000,000 | ||||||
Shares reserved for future issuance (in shares) | 12,000,000 | ||||||
Annual increase in available shares (in shares) | 0.02 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units and Related Activity (Details) - Restricted Stock Units - Qualtrics RSU Plan - $ / shares | Jan. 28, 2021 | Mar. 31, 2021 |
Number of Shares | ||
Outstanding, beginning balance (in shares) | 0 | |
Exchanged from Qualtrics Rights and SAP RSU Awards (in shares) | 12,800,000 | 12,841,000 |
Granted (in shares) | 65,940,000 | |
Vested (in shares) | (1,314,000) | |
Forfeited/ Canceled (in shares) | (256,000) | |
Outstanding, ending balance (in shares) | 77,211,000 | |
Weighted-Average Grant Date Fair Value | ||
Outstanding, beginning balance (in USD per share) | $ 0 | |
Exchanged from Qualtrics Rights and SAP RSU Awards (in USD per share) | 30 | |
Granted (in USD per share) | 45.50 | |
Vested (in USD per share) | 30 | |
Forfeited/Canceled (in USD per share) | 39.19 | |
Outstanding, ending balance (in USD per share) | $ 43.21 |
Stock-based Compensation - Sale
Stock-based Compensation - Sale of Class A Common Stock (Details) | 1 Months Ended |
Dec. 31, 2020shares | |
Q II | Class A Common Stock | Private Placement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock, shares issued (in shares) | 6,000,000 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Calculation of Basic Net Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net loss attributable to common shareholders | $ (199,854) | $ (44,835) |
Denominator: | ||
Weighted average Class A and Class B shares used in computing net loss per share attributable to common stockholder, basic (in shares) | 482,260,465 | 423,170,610 |
Basic loss per share (in USD per share) | $ (0.41) | $ (0.11) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Weighted-average Impact of Potentially Dilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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) | 77,211,031 | 0 |
Employee Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 130,510 | 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | (0.80%) | (23.00%) |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Feb. 01, 2021USD ($) | Jan. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Promissory Note Due to SAP | Loans Payable | |||||
Related Party Transaction [Line Items] | |||||
Note payable issued for dividend declared | $ 2,392 | ||||
Number of promissory notes issued | segment | 2 | ||||
Principal amount | $ 500 | ||||
Promissory Note 1 Due to SAP | Loans Payable | |||||
Related Party Transaction [Line Items] | |||||
Principal amount | $ 1,892 | ||||
Interest rate | 0.14% | ||||
Promissory Note 2 Due to SAP | Loans Payable | |||||
Related Party Transaction [Line Items] | |||||
Principal amount | $ 500 | ||||
Interest rate | 1.35% | ||||
Principal Owner | SAP SE | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 5.2 | $ 1.8 | |||
Related party costs | 11.9 | 4.7 | |||
Amounts due from (to) related parties | 14.7 | $ (13.4) | |||
Principal Owner | SAP SE | Costs incurred on behalf of related party | |||||
Related Party Transaction [Line Items] | |||||
Amounts of transaction | 4.1 | $ 3.3 | |||
Executive Officer | Utah Jazz | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, selling, general, and administrative expenses | $ 1.1 |