Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) In connection with the preparation of the restated consolidated financial statements included in Note 3, Restatement of Previously Issued Consolidated Financial Statements, the Company also identified an error in the long-lived asset impairment analysis performed in the third quarter of 2022, which resulted in an understatement of impairment loss as discussed below. Impairment of Long-Lived Assets In August 2022, the Company revised its financial outlook, which the Company identified as an indicator of impairment for the Company’s Aarki asset group. In the third quarter of 2022, the Company recorded an impairment loss of $47.6 million on intangible assets related to the Aarki acquisition. The Company subsequently noted additional indicators of impairment during the fourth quarter of 2022, most notably sharp declines in the Company’s stock price and market capitalization near the end of 2022. During the assessment performed as of December 31, 2022, it was determined that there was an error in the Company’s identification of the Aarki asset group in the impairment analysis performed as of August 31, 2022. As a result, the impairment loss in the third quarter of 2022 was understated by $3.6 million in the consolidated statements of operations and comprehensive loss, and the related intangible assets as of September 30, 2022 were overstated in the consolidated balance sheets. This error is incremental to the errors discussed in Note 3 for the understatement of end-user liability, reserve for indirect tax liabilities, and other adjustments which also had impacts to the previously issued 2022, 2021 and 2020 quarterly consolidated financial statements. In connection therewith, the Company has made adjustments to its previously issued 2022, 2021 and 2020 quarterly financial information to correct these errors and other immaterial misstatements for such periods. The following tables for each of the quarters in the years ended December 31, 2022, 2021 and 2020 reflect the quarterly information as filed in the Company’s Quarterly Report on Form 10-Q for the periods ended September 30, 2022, 2021 and 2020, June 30, 2022, 2021 and 2020, and March 31, 2022, 2021 and 2020, as restated for these errors. Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss, Fiscal Year 2022 The following unaudited condensed consolidated statements of operations and comprehensive loss tables present the impacts of the restatement adjustments for the periods ended September 30, 2022, 2021 and 2020, June 30, 2022, 2021 and 2020, and March 31, 2022, 2021 and 2020 (in thousands, except for per share amounts). For the impacts of the restatement adjustments for the statements of operations and comprehensive loss for the year ended December 31, 2021 and 2020, refer to Note 3 - Restatement of Previously Issued Consolidated Financial Statements . The year ended December 31, 2022 was not subject to restatement and is presented in Part 1 of Item 8. Financial Statements. Three Months Ended September 30, 2022 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 60,255 $ (71) $ (856) $ — $ (112) $ 59,216 Costs and expenses: Cost of revenue 7,555 — — (245) 289 7,599 Research and development 8,354 — — — (417) 7,937 Sales and marketing 51,773 (84) — (2) (207) 51,480 General and administrative 20,280 — 152 (21) 525 20,936 Impairment of goodwill and long-lived assets 47,581 — — 3,649 — 51,230 Total costs and expenses 135,543 (84) 152 3,381 190 139,182 Loss from operations (75,288) 13 (1,008) (3,381) (302) (79,966) Interest expense, net (3,807) — — — — (3,807) Change in fair value of common stock warrant liabilities (80) — — — — (80) Other income, net 508 — — — — 508 Loss before income taxes (78,667) 13 (1,008) (3,381) (302) (83,345) Benefit for income taxes (120) — — — — (120) Net loss $ (78,547) $ 13 $ (1,008) $ (3,381) $ (302) $ (83,225) Net loss per share attributable to common stockholders: Basic $ (0.19) $ — $ — $ (0.01) $ — $ (0.20) Diluted $ (0.19) $ — $ — $ (0.01) $ — $ (0.20) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax 139 — — — — 139 Total other comprehensive loss $ 139 $ — $ — $ — $ — $ 139 Total comprehensive loss $ (78,408) $ 13 $ (1,008) $ (3,381) $ (302) $ (83,086) Three Months Ended June 30, 2022 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 73,335 $ (83) $ (1,470) $ — $ (25) $ 71,757 Costs and expenses: Cost of revenue 9,020 — — — (17) 9,003 Research and development 18,529 — — — (276) 18,253 Sales and marketing 73,185 1,053 — — (507) 73,731 General and administrative 26,712 — 184 — (15) 26,881 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 127,446 1,053 184 — (815) 127,868 Loss from operations (54,111) (1,136) (1,654) — 790 (56,111) Interest expense, net (7,596) — — — — (7,596) Change in fair value of common stock warrant liabilities 1,023 — — — — 1,023 Other expense, net (82) — — — — (82) Loss before income taxes (60,766) (1,136) (1,654) — 790 (62,766) Benefit for income taxes (155) — — — — (155) Net loss $ (60,611) $ (1,136) $ (1,654) $ — $ 790 $ (62,611) Net loss per share attributable to common stockholders: (1) Basic $ (0.15) $ — $ — $ — $ — $ (0.16) Diluted $ (0.15) $ — $ — $ — $ — $ (0.16) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax (577) — — — — (577) Total other comprehensive loss $ (577) $ — $ — $ — $ — $ (577) Total comprehensive loss $ (61,188) $ (1,136) $ (1,654) $ — $ 790 $ (63,188) (1) Due to differences in rounding to the nearest cent per basic or diluted share, totals may not equal the sum of the line items. Three Months Ended March 31, 2022 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 93,438 $ (52) $ (1,435) $ — $ (87) $ 91,864 Costs and expenses: Cost of revenue 9,265 — — — (65) 9,200 Research and development 18,653 — — — (3) 18,650 Sales and marketing 117,332 630 — — (617) 117,345 General and administrative 92,792 — (76) — 7 92,723 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 238,042 630 (76) — (678) 237,918 Loss from operations (144,604) (682) (1,359) — 591 (146,054) Interest expense, net (8,157) — — — — (8,157) Change in fair value of common stock warrant liabilities 4,462 — — — — 4,462 Other expense, net (27) — — — (1) (28) Loss before income taxes (148,326) (682) (1,359) — 590 (149,777) Benefit for income taxes (213) — — — — (213) Net loss $ (148,113) $ (682) $ (1,359) $ — $ 590 $ (149,564) Net loss per share attributable to common stockholders: Basic $ (0.37) $ — $ — $ — $ — $ (0.37) Diluted $ (0.37) $ — $ — $ — $ — $ (0.37) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax (2,046) — — — — (2,046) Total other comprehensive loss $ (2,046) $ — $ — $ — $ — $ (2,046) Total comprehensive loss $ (150,159) $ (682) $ (1,359) $ — $ 590 $ (151,610) Condensed Consolidated Statements of Operations and Comprehensive Loss, Fiscal Year 2021 Three Months Ended December 31, 2021 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 108,849 $ (41) $ (1,114) $ — $ 506 $ 108,200 Costs and expenses: Cost of revenue 8,422 — — — — 8,422 Research and development 15,433 — — — 311 15,744 Sales and marketing 155,080 531 — — (207) 155,404 General and administrative 33,934 — 192 — 122 34,248 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 212,869 531 192 — 226 213,818 Loss from operations (104,020) (572) (1,306) — 280 (105,618) Interest expense, net (1,086) — — — — (1,086) Change in fair value of common stock warrant liabilities 6,024 — — — — 6,024 Other expense, net (59) — — — — (59) Loss before income taxes (99,141) (572) (1,306) — 280 (100,739) Benefit for income taxes (170) — — — (144) (314) Net loss $ (98,971) $ (572) $ (1,306) $ — $ 424 $ (100,425) Net loss per share attributable to common stockholders: Basic $ (0.25) $ — $ — $ — $ — $ (0.25) Diluted $ (0.25) $ — $ — $ — $ — $ (0.25) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax (248) — — — — (248) Total other comprehensive loss $ (248) $ — $ — $ — $ — $ (248) Total comprehensive loss $ (99,219) $ (572) $ (1,306) $ — $ 424 $ (100,673) Three Months Ended September 30, 2021 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 102,072 $ (34) $ (1,008) $ — $ (506) $ 100,524 Costs and expenses: Cost of revenue 7,647 — — — 532 8,179 Research and development 13,162 — — — (96) 13,066 Sales and marketing 114,531 636 — — (339) 114,828 General and administrative 48,376 — 176 — (38) 48,514 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 183,716 636 176 — 59 184,587 Loss from operations (81,644) (670) (1,184) — (565) (84,063) Interest expense, net (87) — — — — (87) Change in fair value of common stock warrant liabilities 113,601 — — — — 113,601 Other expense, net (22) — — — — (22) Income before income taxes 31,848 (670) (1,184) — (565) 29,429 Benefit for income taxes (18,933) — — — — (18,933) Net income $ 50,781 $ (670) $ (1,184) $ — $ (565) $ 48,362 Net income (loss) loss per share attributable to common stockholders: Basic $ 0.13 $ — $ (0.01) $ — $ — $ 0.12 Diluted $ (0.16) $ — $ — $ — $ — $ (0.16) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax — — — — — — Total other comprehensive loss $ — $ — $ — $ — $ — $ — Total comprehensive loss $ 50,781 $ (670) $ (1,184) $ — $ (565) $ 48,362 Three Months Ended June 30, 2021 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 89,491 $ (38) $ (891) $ — $ — $ 88,562 Costs and expenses: Cost of revenue 4,386 — — — — 4,386 Research and development 10,140 — — — — 10,140 Sales and marketing 99,523 475 — — — 99,998 General and administrative 25,432 — 169 — — 25,601 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 139,481 475 169 — — 140,125 Loss from operations (49,990) (513) (1,060) — — (51,563) Interest expense, net (25) — — — — (25) Change in fair value of common stock warrant liabilities (29,595) — — — — (29,595) Other income, net 80 — — — — 80 Loss before income taxes (79,530) (513) (1,060) — — (81,103) Provision for income taxes 65 — — — — 65 Net loss $ (79,595) $ (513) $ (1,060) $ — $ — $ (81,168) Net loss per share attributable to common stockholders: Basic $ (0.21) $ — $ — $ — $ — $ (0.21) Diluted $ (0.21) $ — $ — $ — $ — $ (0.21) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax — — — — — — Total other comprehensive loss $ — $ — $ — $ — $ — $ — Total comprehensive loss $ (79,595) $ (513) $ (1,060) $ — $ — $ (81,168) Three Months Ended March 31, 2021 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 83,677 $ (25) $ (784) $ — $ — $ 82,868 Costs and expenses: Cost of revenue 4,256 — — — — 4,256 Research and development 7,282 — — — — 7,282 Sales and marketing 96,323 138 — — — 96,461 General and administrative 27,284 — 155 — — 27,439 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 135,145 138 155 — — 135,438 Loss from operations (51,468) (163) (939) — — (52,570) Interest expense, net (24) — — — — (24) Change in fair value of common stock warrant liabilities (2,108) — — — — (2,108) Other income, net 50 — — — — 50 Loss before income taxes (53,550) (163) (939) — — (54,652) Provision for income taxes 42 — — — — 42 Net loss $ (53,592) $ (163) $ (939) $ — $ — $ (54,694) Net loss per share attributable to common stockholders: Basic $ (0.15) $ — $ — $ — $ — $ (0.15) Diluted $ (0.16) $ — $ — $ — $ — $ (0.16) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax — — — — — — Total other comprehensive loss $ — $ — $ — $ — $ — $ — Total comprehensive loss $ (53,592) $ (163) $ (939) $ — $ — $ (54,694) Three Months Ended December 31, 2020 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 67,723 $ (25) $ (321) $ — $ — $ 67,377 Costs and expenses: Cost of revenue 3,475 — — — — 3,475 Research and development 9,972 — — — — 9,972 Sales and marketing 79,560 1,179 — — — 80,739 General and administrative 17,953 — 53 — — 18,006 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 110,960 1,179 53 — — 112,192 Loss from operations (43,237) (1,204) (374) — — (44,815) Interest expense, net (28) — — — — (28) Change in fair value of common stock warrant liabilities (23,049) — — — — (23,049) Other expense, net (651) — — — — (651) Loss before income taxes (66,965) (1,204) (374) — — (68,543) Provision for income taxes 15 — — — — 15 Net loss $ (66,980) $ (1,204) $ (374) $ — $ — $ (68,558) Net loss per share attributable to common stockholders: (1) Basic $ (0.22) $ — $ — $ — $ — $ (0.23) Diluted $ (0.22) $ — $ — $ — $ — $ (0.23) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax — — — — — — Total other comprehensive loss $ — $ — $ — $ — $ — $ — Total comprehensive loss $ (66,980) $ (1,204) $ (374) $ — $ — $ (68,558) (1) Due to differences in rounding to the nearest cent per basic or diluted share, totals may not equal the sum of the line items. Three Months Ended September 30, 2020 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 59,955 $ (19) $ (252) $ — $ — $ 59,684 Costs and expenses: Cost of revenue 3,102 — — — — 3,102 Research and development 4,369 — — — — 4,369 Sales and marketing 73,187 390 — — — 73,577 General and administrative 7,861 — 44 — — 7,905 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 88,519 390 44 — — 88,953 Loss from operations (28,564) (409) (296) — — (29,269) Interest expense, net (24) — — — — (24) Change in fair value of common stock warrant liabilities — — — — — — Other expense, net (14,216) — — — — (14,216) Loss before income taxes (42,804) (409) (296) — — (43,509) Provision for income taxes 47 — — — — 47 Net loss $ (42,851) $ (409) $ (296) $ — $ — $ (43,556) Net loss per share attributable to common stockholders: (1) Basic $ (0.14) $ — $ — $ — $ — $ (0.15) Diluted $ (0.14) $ — $ — $ — $ — $ (0.15) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax — — — — — — Total other comprehensive loss $ — $ — $ — $ — $ — $ — Total comprehensive loss $ (42,851) $ (409) $ (296) $ — $ — $ (43,556) (1) Due to differences in rounding to the nearest cent per basic or diluted share, totals may not equal the sum of the line items. Three Months Ended June 30, 2020 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 58,878 $ (24) $ (240) $ — $ — $ 58,614 Costs and expenses: Cost of revenue 2,937 — — — — 2,937 Research and development 4,518 — — — — 4,518 Sales and marketing 52,369 416 — — — 52,785 General and administrative 11,642 — 44 — — 11,686 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 71,466 416 44 — — 71,926 Loss from operations (12,588) (440) (284) — — (13,312) Interest expense, net (957) — — — — (957) Change in fair value of common stock warrant liabilities — — — — — — Other expense, net (6,584) — — — — (6,584) Loss before income taxes (20,129) (440) (284) — — (20,853) Provision for income taxes 28 — — — — 28 Net loss $ (20,157) $ (440) $ (284) $ — $ — $ (20,881) Net loss per share attributable to common stockholders: Basic $ (0.07) $ — $ — $ — $ — $ (0.07) Diluted $ (0.07) $ — $ — $ — $ — $ (0.07) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax — — — — — — Total other comprehensive loss $ — $ — $ — $ — $ — $ — Total comprehensive loss $ (20,157) $ (440) $ (284) $ — $ — $ (20,881) Three Months Ended March 31, 2020 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Revenue $ 43,559 $ (17) $ (170) $ — $ — $ 43,372 Costs and expenses: Cost of revenue 2,767 — — — — 2,767 Research and development 4,366 — — — — 4,366 Sales and marketing 46,825 343 — — — 47,168 General and administrative 4,833 — 32 — — 4,865 Impairment of goodwill and long-lived assets — — — — — — Total costs and expenses 58,791 343 32 — — 59,166 Loss from operations (15,232) (360) (202) — — (15,794) Interest expense, net (316) — — — — (316) Change in fair value of common stock warrant liabilities — — — — — — Other income, net 51 — — — — 51 Loss before income taxes (15,497) (360) (202) — — (16,059) Provision for income taxes 25 — — — — 25 Net loss $ (15,522) $ (360) $ (202) $ — $ — $ (16,084) Net loss per share attributable to common stockholders: Basic $ (0.06) $ — $ — $ — $ — $ (0.06) Diluted $ (0.06) $ — $ — $ — $ — $ (0.06) Other comprehensive loss: Change in unrealized loss on available-for-sale investments, net of tax — — — — — — Total other comprehensive loss $ — $ — $ — $ — $ — $ — Total comprehensive loss $ (15,522) $ (360) $ (202) $ — $ — $ (16,084) Condensed Consolidated Balance Sheets The following unaudited condensed consolidated balance sheet tables present the impacts of the restatement adjustments as of the periods ended September 30, 2022 and 2021, June 30, 2022 and 2021, and March 31, 2022 and 2021. For the impacts of the restatement adjustments for the consolidated balance sheets as of December 31, 2021 refer to Note 3, Restatement of Previously Issued Financial Statements. The period ended December 31, 2022 was not subject to restatement and is presented in Part 1 of Item 8. Financial Statements. As of September 30, 2022 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Accounts receivable, net $ 9,001 $ — $ — $ — $ (829) $ 8,172 Total current assets 492,446 — — — (829) 491,617 Property and equipment, net 7,247 — — (2,466) — 4,781 Operating lease right-of-use assets, net 13,366 — — (653) — 12,713 Intangible assets, net 20,289 — — (264) — 20,025 Goodwill 86,436 — — — (973) 85,463 Total assets 772,414 — — (3,383) (1,802) 767,229 Other current liabilities 45,890 9,972 10,254 — (2,394) 63,722 Total current liabilities 53,222 9,972 10,254 — (2,394) 71,054 Other long-term liabilities 1,687 — — — (144) 1,543 Total liabilities 340,113 9,972 10,254 — (2,538) 357,801 Additional paid-in capital 1,141,955 — — — (199) 1,141,756 Accumulated deficit (706,963) (9,972) (10,254) (3,383) 935 (729,637) Total stockholders’ equity 432,301 (9,972) (10,254) (3,383) 736 409,428 Total liabilities and stockholders’ equity $ 772,414 $ — $ — $ (3,383) $ (1,802) $ 767,229 As of June 30, 2022 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Accounts receivable, net $ 10,630 $ — $ — $ — $ (391) $ 10,239 Total current assets 502,512 — — — (391) 502,121 Goodwill 86,436 — — — (973) 85,463 Total assets 858,903 — — — (1,364) 857,539 Other current liabilities 54,838 9,985 9,246 — (2,023) 72,046 Total current liabilities 58,379 9,985 9,246 — (2,023) 75,587 Other long-term liabilities 1,180 — — — (144) 1,036 Total liabilities 354,016 9,985 9,246 — (2,167) 371,080 Additional paid-in capital 1,136,133 — — — (435) 1,135,698 Accumulated deficit (628,416) (9,985) (9,246) — 1,238 (646,409) Total stockholders’ equity 504,887 (9,985) (9,246) — 803 486,459 Total liabilities and stockholders’ equity $ 858,903 $ — $ — $ — $ (1,364) $ 857,539 As of March 31, 2022 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Accounts receivable, net $ 13,230 $ — $ — $ — $ (303) $ 12,927 Total current assets 519,321 — — — (303) 519,018 Goodwill 86,436 — — — (973) 85,463 Total assets 932,536 — — — (1,276) 931,260 Other current liabilities 57,607 8,849 7,591 — (1,533) 72,514 Total current liabilities 72,917 8,849 7,591 — (1,533) 87,824 Long-term debt, non-current 279,713 — — — — 279,713 Other long-term liabilities 13,238 — — — (144) 13,094 Total liabilities 380,898 8,849 7,591 — (1,677) 395,661 Additional paid-in capital 1,121,697 — — — (46) 1,121,651 Accumulated deficit (567,805) (8,849) (7,591) — 447 (583,798) Total stockholders’ equity 551,638 (8,849) (7,591) — 401 535,599 Total liabilities and stockholders’ equity $ 932,536 $ — $ — $ — $ (1,276) $ 931,260 Condensed Consolidated Balance Sheets, Fiscal year 2021 As of September 30, 2021 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Accounts receivable, net $ 12,725 $ — $ — $ — $ (2,039) $ 10,686 Total current assets 570,342 — — — (2,039) 568,303 Goodwill 87,230 — — — (973) 86,257 Total assets 811,132 — — — (3,012) 808,120 Accounts payable 10,047 — — — (1,137) 8,910 Other current liabilities 70,157 7,596 4,926 — (1,310) 81,369 Total current liabilities 80,204 7,596 4,926 — (2,447) 90,279 Total liabilities 106,796 7,596 4,926 — (2,447) 116,871 Accumulated deficit (320,721) (7,596) (4,926) — (565) (333,808) Total stockholders’ equity 704,336 (7,596) (4,926) — (565) 691,249 Total liabilities and stockholders’ equity $ 811,132 $ — $ — $ — $ (3,012) $ 808,120 As of June 30, 2021 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Other current liabilities $ 35,531 $ 6,926 $ 3,743 $ — $ — $ 46,200 Total current liabilities 124,934 6,926 3,743 — — 135,603 Total liabilities 185,646 6,926 3,743 — — 196,315 Accumulated deficit (371,502) (6,926) (3,743) — — (382,171) Total stockholders’ equity $ 534,812 $ (6,926) $ (3,743) $ — $ — $ 524,143 As of March 31, 2021 As Reported End-User Liability Indirect Taxes Impairment Other Adjustments As Restated Other current liabilities $ 29,860 $ 6,413 $ 2,682 $ — $ — $ 38,955 Total current liabilities 40,098 6,413 2,682 — — 49,193 Total liabilities 152,512 6,413 2,682 — — 161,607 Accumulated deficit (291,907) (6,413) (2,682) — — (301,002) Total stockholders’ equity $ 588,911 $ (6,413) $ (2,682) $ — $ — $ 579,816 |