Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 26, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Registrant Name | AvidXchange Holdings, Inc. | ||
Entity Central Index Key | 0001858257 | ||
Entity File Number | 001-40898 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 86-3391192 | ||
Entity Address, Address Line One | 1210 AvidXchange Lane | ||
Entity Address, City or Town | Charlotte | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28206 | ||
City Area Code | 800 | ||
Local Phone Number | 560-9305 | ||
Security 12b Title | Common Stock, $0.001 par value per share | ||
Trading Symbol | AVDX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,649,451,048 | ||
Entity Common Stock, Shares Outstanding | 204,324,279 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain information required by Part III is omitted from this Annual Report on Form 10-K and incorporated by reference to our definitive proxy statement for our 2024 annual meeting of stockholders (“2024 Proxy Statement”), to be filed pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, or the Exchange Act. If our 2024 Proxy Statement is not filed within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, the omitted information will be included in an amendment to this Annual Report on Form 10-K filed not later than the end of such 120-day period. | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Charlotte, North Carolina, United States |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 406,974 | $ 350,563 |
Restricted funds held for customers | 1,578,656 | 1,283,824 |
Marketable securities | 44,645 | 110,986 |
Accounts receivable, net of allowances of $4,231 and $3,123, respectively | 46,689 | 39,668 |
Supplier advances receivable, net of allowances of $1,333 and $1,872, respectively | 9,744 | 10,016 |
Prepaid expenses and other current assets | 12,070 | 12,561 |
Total current assets | 2,098,778 | 1,807,618 |
Property and equipment, net | 100,985 | 103,892 |
Operating lease right-of-use assets | 1,628 | 2,343 |
Deferred customer origination costs, net | 27,663 | 28,284 |
Goodwill | 165,921 | 165,921 |
Intangible assets, net | 84,805 | 98,749 |
Other noncurrent assets and deposits | 3,957 | 5,189 |
Total assets | 2,483,737 | 2,211,996 |
Current liabilities | ||
Accounts payable | 16,777 | 13,453 |
Accrued expenses | 56,367 | 73,535 |
Payment service obligations | 1,578,656 | 1,283,824 |
Deferred revenue | 12,851 | 12,063 |
Current maturities of lease obligations under finance leases | 275 | 477 |
Current maturities of lease obligations under operating leases | 1,525 | 1,380 |
Current maturities of long-term debt | 6,425 | 6,425 |
Total current liabilities | 1,672,876 | 1,391,157 |
Long-term liabilities | ||
Deferred revenue, less current | 14,742 | 17,487 |
Contingent consideration, less current portion | 70 | |
Obligations under finance leases, less current maturities | 62,464 | 61,974 |
Obligations under operating leases, less current maturities | 3,275 | 4,657 |
Long-term debt | 69,760 | 75,912 |
Other long-term liabilities | 4,175 | 3,295 |
Total liabilities | 1,827,292 | 1,554,552 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Preferred stock, $0.001 par value; 50,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and 2022 | ||
Common stock, $0.001 par value; 1,600,000,000 shares authorized as of December 31, 2023 and 2022; 204,084,024 and 199,433,998 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 204 | 199 |
Additional paid-in capital | 1,678,401 | 1,632,080 |
Accumulated deficit | (1,022,160) | (974,835) |
Total stockholders' equity | 656,445 | 657,444 |
Total liabilities and stockholders' equity | $ 2,483,737 | $ 2,211,996 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 4,231 | $ 3,123 |
Receivable, allowance for credit loss, current | $ 1,333 | $ 1,872 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par or stated value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,600,000,000 | 1,600,000,000 |
Common stock, shares, issued | 204,084,024 | 199,433,998 |
Common stock, shares, outstanding | 204,084,024 | 199,433,998 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 380,720 | $ 316,350 | $ 248,409 |
Cost of revenues (exclusive of depreciation and amortization expense) | 121,307 | 117,864 | 100,090 |
Operating expenses | |||
Sales and marketing | 77,523 | 77,733 | 63,939 |
Research and development | 97,555 | 83,905 | 65,147 |
General and administrative | 101,924 | 91,384 | 95,817 |
Impairment and write-off of intangible assets | 1,412 | ||
Depreciation and amortization | 35,912 | 32,842 | 30,738 |
Total operating expenses | 312,914 | 285,864 | 257,053 |
Loss from operations | (53,501) | (87,378) | (108,734) |
Other income (expense) | |||
Interest income | 20,890 | 7,164 | 661 |
Interest expense | (13,519) | (20,749) | (20,108) |
Change in fair value of derivative instrument | (26,128) | ||
Charge for amending financing advisory engagement letter - related party | (50,000) | ||
Other income (expenses) | 7,371 | (13,585) | (95,575) |
Loss before income taxes | (46,130) | (100,963) | (204,309) |
Income tax expense (benefit) | 1,195 | 321 | (4,660) |
Net loss | (47,325) | (101,284) | (199,649) |
Deemed dividend on preferred stock | (9,500) | ||
Accretion of convertible preferred stock | (15,141) | ||
Net loss attributable to common stockholders | $ (47,325) | $ (101,284) | $ (224,290) |
Net loss per share attributable to common stockholders, basic | $ (0.23) | $ (0.51) | $ (2.64) |
Net loss per share attributable to common stockholders, diluted | $ (0.23) | $ (0.51) | $ (2.64) |
Weighted average number of common shares used to compute net loss per share attributable to common stockholders, basic | 201,887,669 | 198,045,805 | 85,061,417 |
Weighted average number of common shares used to compute net loss per share attributable to common stockholders, diluted | 201,887,669 | 198,045,805 | 85,061,417 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect Period Of Adoption Adjustment | Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect Period Of Adoption Adjustment | Accumulated Deficit | Accumulated Deficit Cumulative Effect Period Of Adoption Adjustment |
Convertible Preferred Stock Beginning Balance, Shares at Dec. 31, 2020 | 30,081,996 | |||||||
Convertible Preferred Stock Beginning Balance at Dec. 31, 2020 | $ 832,625 | |||||||
Beginning Balance, Shares at Dec. 31, 2020 | 50,054,880 | |||||||
Beginning Balance at Dec. 31, 2020 | $ (511,107) | $ 50 | $ 161,116 | $ (672,273) | ||||
Exercise of stock options, Shares | 960,765 | |||||||
Exercise of stock options | 2,820 | $ 1 | 2,819 | |||||
Common stock issued for acquisition, Shares | 2,529,944 | |||||||
Common stock issued for acquisition | 31,000 | $ 3 | 30,997 | |||||
Common stock issued as contingent consideration, Shares | 40,804 | |||||||
Common stock issued as contingent consideration | 500 | 500 | ||||||
Fair value of call option at acquisition | (4,118) | (4,118) | ||||||
Stock-based compensation | 21,428 | 21,428 | ||||||
Issuance of common stock upon initial public offering, net of underwriting discounts, commissions and other offering costs, including exercise of overallotment option, shares | 26,944,928 | |||||||
Issuance of common stock upon initial public offering, net of underwriting discounts, commissions and other offering costs, including exercise of overallotment option | 627,981 | $ 27 | 627,954 | |||||
Issuance of common stock in connection with amended agreement - related party, Shares | 4,080,636 | |||||||
Issuance of common stock in connection with amended agreement - related party | 50,000 | $ 4 | 49,996 | |||||
Shares issued upon net settlement of warrants, Shares | 740,190 | |||||||
Shares issued upon net settlement of warrants | $ 1 | (1) | ||||||
Repurchase of common stock through call option, Shares | (1,310,777) | |||||||
Repurchase of common stock through call option | $ (1) | 1 | ||||||
Options issued in connection with bonus program | 49 | 49 | ||||||
Convertible Preferred Stock, Redemption of senior convertible preferred stock, Shares | (2,722,166) | |||||||
Convertible Preferred Stock, Redemption of senior convertible preferred stock | $ (159,500) | |||||||
Premium paid on redemption of senior convertible preferred stock | (9,500) | (9,500) | ||||||
Accretion of convertible preferred stock | 15,141 | $ 15,141 | ||||||
Accretion of convertible preferred stock | (15,141) | (15,141) | ||||||
Convertible Preferred Stock, Conversion of convertible preferred stock to common stock upon initial public offering, Shares | (27,359,830) | |||||||
Convertible Preferred Stock, Conversion of convertible preferred stock to common stock upon initial public offering | $ (688,266) | |||||||
Conversion of convertible preferred stock to common stock upon initial public offering, Shares | 111,142,439 | |||||||
Conversion of convertible preferred stock to common stock upon initial public offering | 688,266 | $ 111 | 688,155 | |||||
Conversion of convertible common stock liability to common stock upon initial public offering, Shares | 1,455,306 | |||||||
Conversion of convertible common stock liability to common stock upon initial public offering | 36,383 | $ 1 | 36,382 | |||||
Value of donated common stock, Shares | 165,729 | |||||||
Value of donated common stock | 4,143 | 4,143 | ||||||
Net loss | (199,649) | (199,649) | ||||||
Ending Balance, Shares at Dec. 31, 2021 | 196,804,844 | |||||||
Ending Balance at Dec. 31, 2021 | 723,055 | $ 197 | 1,594,780 | (871,922) | ||||
Ending Balance (ASU No. 2016-13) at Dec. 31, 2021 | $ (1,000) | $ (1,000) | ||||||
Ending Balance (ASU No. 2016-09) at Dec. 31, 2021 | $ 629 | $ (629) | ||||||
Exercise of stock options, Shares | 411,564 | |||||||
Exercise of stock options | 1,448 | 1,448 | ||||||
Issuance of common stock upon vesting of restricted stock units, net of shares surrendered for taxes, shares | 1,808,288 | |||||||
Issuance of common stock upon vesting of restricted stock units, net of shares surrendered for taxes | $ 2 | (2) | ||||||
Issuance of common stock for settlement of contingent consideration | $ 344 | 344 | ||||||
Issuance of common stock for settlement of contingent consideration, Shares | 20,564 | 20,564 | ||||||
Issuance of common stock under Employee Stock Purchase Plan, or ESPP, shares | 223,009 | |||||||
Issuance of common stock under Employee Stock Purchase Plan, or ESPP | $ 1,570 | 1,570 | ||||||
Stock-based compensation | 31,011 | 31,011 | ||||||
Stock-based compensation expense for ESPP | 827 | 827 | ||||||
Value of donated common stock, Shares | 165,729 | |||||||
Value of donated common stock | 1,473 | 1,473 | ||||||
Net loss | $ (101,284) | (101,284) | ||||||
Ending Balance, Shares at Dec. 31, 2022 | 199,433,998 | 199,433,998 | ||||||
Ending Balance at Dec. 31, 2022 | $ 657,444 | $ 199 | 1,632,080 | (974,835) | ||||
Exercise of stock options, Shares | 350,081 | 350,081 | ||||||
Exercise of stock options | $ 1,570 | 1,570 | ||||||
Issuance of common stock upon vesting of restricted stock units, shares | 3,768,068 | |||||||
Issuance of common stock upon vesting of restricted stock units | $ 4 | (4) | ||||||
Issuance of common stock under Employee Stock Purchase Plan, or ESPP, shares | 366,148 | |||||||
Issuance of common stock under Employee Stock Purchase Plan, or ESPP | 2,233 | $ 1 | 2,232 | |||||
Stock-based compensation | 40,024 | 40,024 | ||||||
Stock-based compensation expense for ESPP | 832 | 832 | ||||||
Value of donated common stock, Shares | 165,729 | |||||||
Value of donated common stock | 1,667 | 1,667 | ||||||
Net loss | $ (47,325) | (47,325) | ||||||
Ending Balance, Shares at Dec. 31, 2023 | 204,084,024 | 204,084,024 | ||||||
Ending Balance at Dec. 31, 2023 | $ 656,445 | $ 204 | $ 1,678,401 | $ (1,022,160) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net loss | $ (47,325) | $ (101,284) | $ (199,649) |
Adjustments to reconcile net loss to net cash used by operating activities | |||
Depreciation and amortization expense | 35,912 | 32,842 | 30,738 |
Amortization of deferred financing costs | 431 | 1,357 | 1,357 |
Provision for doubtful accounts | 2,957 | 4,989 | 2,147 |
Stock-based compensation | 40,856 | 31,838 | 21,428 |
Fair value adjustment of contingent consideration | (122) | ||
Accrued interest | 728 | 815 | 881 |
Impairment and write-off on intangible and right-of-use assets | 2,777 | 1,412 | |
Loss on fixed asset disposal | 36 | 36 | |
Accretion of investments held to maturity | (5,326) | (2,108) | |
Debt extinguishment loss | 1,579 | ||
Value of donated common stock | 1,667 | 1,473 | 4,143 |
Noncash expense on contract modification - related party | 50,000 | ||
Fair value adjustment to derivative instrument | 26,128 | ||
Deferred income taxes | 721 | 216 | (4,728) |
Changes in operating assets and liabilities | |||
Accounts receivable | (8,289) | (10,289) | (4,713) |
Prepaid expenses and other current assets | 491 | (2,324) | (1,759) |
Other noncurrent assets | 1,605 | (707) | (2,367) |
Deferred customer origination costs | 621 | (8) | (4,152) |
Accounts payable | 2,862 | (3,385) | (12,377) |
Deferred revenue | (1,956) | (330) | 21,910 |
Accrued expenses and other liabilities | (16,981) | 14,036 | 1,560 |
Operating lease liabilities | (523) | (224) | (540) |
Total adjustments | 55,776 | 72,583 | 130,982 |
Net cash provided by (used in) operating activities | 8,451 | (28,701) | (68,667) |
Cash flows from investing activities | |||
Purchase of marketable securities held to maturity | (273,995) | (385,022) | |
Proceeds from maturity of marketable securities held to maturity | 345,661 | 276,144 | |
Purchases of equipment | (2,254) | (3,149) | (1,395) |
Purchases of real estate | (767) | (14,050) | |
Purchases of intangible assets | (16,050) | (24,655) | (16,931) |
Proceeds from sales of property and equipment | 5 | ||
Acquisition of business, net of cash acquired | (46,089) | ||
Contingent consideration and deferred obligation payments near acquisition date | (1,292) | ||
Supplier advances, net | (1,416) | (2,899) | (4,355) |
Net cash provided by (used in) investing activities | 51,946 | (140,348) | (84,107) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs, including exercise of overallotment option | 627,981 | ||
Proceeds from the issuance of long-term debt | 67,367 | 3,471 | |
Repayments of long-term debt | (1,625) | (106,390) | |
Principal payments on land promissory note | (4,800) | (4,800) | (1,000) |
Principal payments on finance leases | (521) | (844) | (1,139) |
Proceeds from issuance of common stock | 1,570 | 1,448 | 2,820 |
Proceeds from issuance of shares under ESPP | 2,233 | 1,570 | |
Convertible preferred stock redeemed | (169,000) | ||
Debt issuance costs | (743) | (1,212) | |
Payment of acquisition-related liability | (100) | (344) | |
Payment service obligations | 294,832 | 41,478 | 1,104,726 |
Net cash (used in) provided by financing activities | 290,846 | (1,727) | 1,567,859 |
Net increase (decrease) in cash, cash equivalents, and restricted funds held for customers | 351,243 | (170,776) | 1,415,085 |
Cash, cash equivalents, and restricted funds held for customers | |||
Cash, cash equivalents, and restricted funds held for customers, beginning of year | 1,634,387 | 1,805,163 | 390,078 |
Cash, cash equivalents, and restricted funds held for customers, end of year | 1,985,630 | 1,634,387 | 1,805,163 |
Supplementary information of noncash investing and financing activities | |||
Right-of-use assets obtained in exchange for new finance lease obligations | 81 | 712 | 174 |
Right-of-use assets obtained in exchange for new operating lease obligations | 362 | 2,831 | 877 |
Purchase of real estate in exchange for promissory note | 21,500 | ||
Common stock issued on conversion of convertible preferred stock and convertible common stock liability | 724,649 | ||
Common stock issued in business combination | 31,000 | ||
Common stock issued as contingent consideration | 344 | 500 | |
Initial fair value of contingent consideration and deferred payment obligation at acquisition date | 2,672 | ||
Property and equipment purchases in accounts payable and accrued expenses | 675 | 400 | 768 |
Options issued in connection with bonus compensation | 49 | ||
Interest paid on notes payable | 6,510 | 12,880 | 10,486 |
Interest paid on finance leases | 5,857 | 5,774 | 7,384 |
Cash paid for income taxes | $ 304 | $ 125 | $ 63 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (47,325) | $ (101,284) | $ (199,649) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | (b) Trading Plans of Directors and Executive Officers Trading Agreement Action Date Rule 10b5-1* Non-Rule 10b5-1** Total Shares to be Sold Expiration Date Michael Praeger , Chief Executive Officer and Chairman of the Board Adopt December 11, 2023 X 160,907 October 31, 2024 Angelic Gibson , Chief Information Officer, Senior Vice President Adopt December 13, 2023 X 45,000 September 30, 2024 Daniel Drees , President Adopt December 15, 2023 X 37,738 October 31, 2024 Ryan Stahl , General Counsel and Secretary, Senior Vice President Adopt December 15, 2023 X 113,864 (1) May 31, 2024 Joel Wilhite , Chief Financial Officer, Senior Vice President Adopt December 14, 2023 X 97,559 May 17, 2024 * Intended to satisfy the affirmative defense of Rule 10b5-1(c) ** Not intended to satisfy the affirmative defense of Rule 10b5-1(c) (1) The total shares to be sold cannot be specifically determined at the date of this filing as the planned sale amount includes, in part, a designated percentage of the net number of shares after a portion of the shares have been sold to cover withholding taxes from RSU vesting. The amount listed includes, among other determinable amounts, the maximum number of shares available to be sold to cover taxes multiplied by the designated percentages set forth in the officer’s 10b5-1 trading plan. |
Michael Praeger [Member] | |
Trading Arrangements, by Individual | |
Name | Michael Praeger |
Title | Chief Executive Officer and Chairman of the Board |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | December 11, 2023 |
Arrangement Duration | 325 days |
Aggregate Available | 160,907 |
Trd Arr Expiration Date | Oct. 31, 2024 |
Angelic Gibson [Member] | |
Trading Arrangements, by Individual | |
Name | Angelic Gibson |
Title | Chief Information Officer, Senior Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | December 13, 2023 |
Arrangement Duration | 293 days |
Aggregate Available | 45,000 |
Trd Arr Expiration Date | Sep. 30, 2024 |
Daniel Drees [Member] | |
Trading Arrangements, by Individual | |
Name | Daniel Drees |
Title | President |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | December 15, 2023 |
Arrangement Duration | 322 days |
Aggregate Available | 37,738 |
Trd Arr Expiration Date | Oct. 31, 2024 |
Ryan Stahl [Member] | |
Trading Arrangements, by Individual | |
Name | Ryan Stahl |
Title | General Counsel and Secretary, Senior Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | December 15, 2023 |
Arrangement Duration | 169 days |
Aggregate Available | 113,864 |
Trd Arr Expiration Date | May 31, 2024 |
Joel Wilhite [Member] | |
Trading Arrangements, by Individual | |
Name | Joel Wilhite |
Title | Chief Financial Officer, Senior Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | December 14, 2023 |
Arrangement Duration | 155 days |
Aggregate Available | 97,559 |
Trd Arr Expiration Date | May 17, 2024 |
Formation and Business of the C
Formation and Business of the Company | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company Formation AvidXchange, Inc. was incorporated in the state of Delaware in 2000. In July 2021, the Company consummated a reorganization by interposing a holding company between AvidXchange, Inc. and its stockholders. After the reorganization, all of the stockholders of AvidXchange, Inc. became stockholders of AvidXchange Holdings, Inc. and AvidXchange, Inc. became a wholly owned subsidiary of AvidXchange Holdings, Inc. To accomplish the reorganization, the Company formed AvidXchange Holdings, Inc., which was incorporated in Delaware on January 27, 2021, and AvidXchange Merger Sub, Inc. (“Merger Sub”) as a wholly owned subsidiary of AvidXchange Holdings, Inc. The Company merged AvidXchange, Inc. with and into Merger Sub, with AvidXchange, Inc. as the surviving entity, by issuing identical shares of stock of AvidXchange Holdings, Inc. to the stockholders of AvidXchange, Inc. in exchange for their equity interest in AvidXchange, Inc. The merger was considered a transaction between entities under common control. Upon the effective date of the reorganization, July 9, 2021, AvidXchange Holdings, Inc. recognized the assets and liabilities of AvidXchange, Inc. at their carrying values within its financial statements. AvidXchange Holdings, Inc. and its wholly owned subsidiaries are collectively referred to as “AvidXchange” or “the Company” in the accompanying consolidated financial statements after the reorganization. Business AvidXchange provides accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. The Company’s cloud-based, software and payment platform digitizes and automates the AP workflow for middle market businesses (AvidXchange’s “buyer” customers), and their service providers and vendors (AvidXchange’s “supplier” customers). The Company provides solutions and services throughout North America spanning multiple industries including real estate, community association management, construction, financial services (including banks and credit unions), healthcare facilities, social services, education, media, and hospitality. AvidXchange’s software solutions are delivered primarily through a software-as-a-service (“SaaS”) platform that connects buyer customers using the Company’s AP automation products with a network of their vendors, including supplier customers that have enrolled in AvidXchange’s electronic payments network (the “AvidPay Network”). This platform provides a multitude of solutions including electronic invoice capture, intelligent workflow routing, and automated payments, which can provide AvidXchange’s buyer and supplier customers with reduced costs, improved productivity, and reduction of paper from the traditional AP and payment processes. The Company markets its solutions to buyers through both a direct salesforce and indirectly through strategic channel partnerships with banks and financial institutions as well as software and technology business partners. AvidXchange attracts buyer customers to the AvidPay Network through establishing a simple, easy-to-use network that helps integrate various buyers through a standard invoice and pay network. Supplier customers are selected to join the AvidPay Network by their buyer clients. AvidXchange has completed strategic acquisitions that have expanded the customer relationships available to subscribe to its payment services solutions and gain access to new markets. The operating activities of the legal entities acquired are fully interdependent and integrated with the AvidXchange operations. The Company views its operations and manages its business as one segment and one reporting unit. In July 2021, AvidXchange acquired the equity interests of FastPay, a leading provider of payments automation solutions for the media industry. See Note 4 for information regarding business combinations. In January 2022, AvidXchange purchased a customer list and a non-compete agreement from PayClearly, a company in the media payments business. See Note 9 for information regarding intangible assets. Stock Split and Initial Public Offering On September 30, 2021, the Company effected a four -for-one forward stock split of all then-outstanding common stock, without any change in the par value per share, and a corresponding adjustment to the respective conversion prices for outstanding preferred stock and not shares of preferred stock outstanding. The Company has retroactively adjusted all share and per share amounts to reflect the stock split. On October 15, 2021, the Company closed its initial public offering ("IPO") and its convertible preferred stock, convertible common stock, and warrants converted into shares of common stock. See Note 9 for information regarding these transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Consolidation and Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect the consolidated operations of the Company. All intercompany accounts and transactions have been eliminated in consolidation. There are no items of comprehensive income. Presentation of Convertible Preferred Stock The Company’s convertible preferred stock was classified as mezzanine equity separate from all other stockholders’ equity accounts that are classified as permanent equity (e.g., common stock and accumulated deficit). The purpose of this classification was to convey that such securities may not be permanently part of equity and could result in a demand for cash or other assets of the entity in the future based on passage of time or upon the occurrence of certain events outside of the Company’s control. The Company’s convertible preferred stock was initially recorded at its original issuance price, net of issuance costs. The Company accreted the carrying amount of the convertible preferred stock using the interest method until January 2021 when it became probable that the instrument would not become redeemable, except for senior preferred stock which the Company continued to accrete until the IPO. These increases were recorded as charges against retained earnings, if any. In the absence of retained earnings, the amounts are recorded against the available balance of additional paid-in capital that has been generated from cash transactions until reduced to zero and any additional amounts are charged to accumulated deficit. Changes in the redemption value or the redemption date are considered to be changes in accounting estimates. In conjunction with the closing of its IPO on October 15, 2021, the convertible preferred stock was converted into shares of common stock. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates reflected in these consolidated financial statements include, but are not limited to, the allowance for credit losses, useful lives assigned to fixed and intangible assets, capitalization of internal-use software, deferral of customer origination costs, the fair value of intangible assets acquired in a business combination, the fair value of goodwill, the recoverability of deferred income taxes, the fair value of common stock prior to the IPO, and the fair value of the convertible common stock liability (or the “derivative instrument.”) The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. Segments The Company operates and manages its business as one reportable segment, which is the same as the operating segment as defined under FASB Accounting Standards Codification ("ASC") Topic 280, Segment Reporting . The Company’s Chief Executive Officer, who is the chief operating decision maker, reviews financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. All tangible assets are held in the United States and all revenue is generated in the United States. Refer to “Concentrations” below and Note 3 Revenue from Contracts with Customers for additional entity-wide disclosures. Restructuring costs During the fourth quarter of 2023, the Company initiated a restructuring plan to generate cost savings and improve effectiveness of the organization which resulted in a reduction in the Company’s U.S. workforce. The plan was implemented and substantially completed in the fourth quarter of 2023 and is expected to be fully completed in the first quarter of 2024. The Company recorded restructuring costs of $ 1,880 in the fourth quarter of 2023 from one-time severance charges. On September 21, 2022, the Company initiated a restructuring plan to generate cost savings and improve effectiveness of the organization which resulted in a reduction in the Company’s U.S. workforce. The plan was implemented and completed in the second half of 2022. The Company recorded restructuring costs of $ 1,526 in the second half of 2022 from one-time severance charges. Restructuring costs are included in general and administrative expenses in the consolidated statements of operations. Business Combinations Identifiable assets acquired, and the liabilities assumed, resulting from a business combination are recorded at their estimated fair values on the date of the acquisition. Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired, including the amount assigned to identifiable intangible assets. When a business combination involves contingent consideration, the Company recognizes a liability equal to the estimated fair value of the contingent consideration obligation at the date of the acquisition. Subsequent changes in the estimated fair value of the contingent consideration are recognized in earnings in the period of the change. Shares of common stock issued as part of the purchase consideration are valued as of the date of the business combination. Revenue Recognition Refer to Note 3 Revenue from Contracts with Customers for information related to the Company’s revenue recognition. Concentrations Significant Services A substantial portion of the Company’s revenue is derived from interchange fees earned on payment transactions processed as virtual commercial cards (“VCC”). The Company utilizes service providers to process these transactions. Revenue from one service provider represented 30 % and 29 % of total revenue for the years ended December 31, 2023 and 2022, respectively. The revenue from this service provider was less than 10% of total revenue for the year ended December 31, 2021. Accounts receivable from this service provider represented 38 % and 29 % of accounts receivable, net as of December 31, 2023 and 2022, respectively. Revenue from a second provider represented 15 % , 24 % , and 47 % of total revenue for the years ended December 31, 2023, 2022 and 2021 , respectively. Accounts receivable from this second service provider represented 12 % and 28 % of accounts receivable, net as of December 31, 2023 and 2022, respectively . Future regulation or changes by the card brand payment networks could have a substantial impact on the Company’s revenue from VCC transactions. If interchange rates decline, whether due to actions by the card brand payment networks, merchant/suppliers availing themselves of lower rates, or future regulation, the Company’s total operating revenues, operating results, prospects for future growth and overall business could be materially affected. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase that are not recorded as marketable securities to be cash equivalents. The carrying values of cash and cash equivalents approximate their fair values due to the short-term nature of these instruments. Cash in the Company’s bank accounts may exceed federally insured limits. Restricted Funds Held for Customers and Payment Service Obligations Restricted funds held for customers and the corresponding liability of payment service obligations represent funds that are collected from customers for payments to their suppliers. The Company determines the balances of restricted funds held for customers, and the corresponding payment services obligations, by reconciling cash held by financial institutions and the corresponding payments in transit at the end of each period. The balance of these obligations may fluctuate from period to period depending on the timing of the period end and the timing of when outstanding payments clear with financial institutions. The Company is registered as a money services business with the Financial Crimes Enforcement Network. Payment service obligations are comprised of outstanding daily transaction liabilities per state regulatory average daily transaction liability report requirements and other unregulated settlements with payees, which do not constitute a regulatory liability event under reporting requirements. As of December 31, 2023 2022 Outstanding Transaction Liabilities $ 1,568,280 $ 1,242,155 Other unregulated settlements 10,376 41,669 Total payment service obligations $ 1,578,656 $ 1,283,824 The Company historically transmitted buyer customer funds using a legacy model, pursuant to which buyer customer funds are held in trust accounts that are maintained and operated by a trustee pending distribution to suppliers in accordance with instructions provided through the Company's platform. The Company is not the trustee or beneficiary of the trusts which hold these buyer deposits; accordingly, the Company does not record these assets and offsetting liabilities on its consolidated balance sheets. The Company has largely phased out this model, although certain banks that resell our products and services continue to leverage a similar structure. The Company contractually earns interest on funds held for certain buyers. The amount of Company and bank customer funds held in trust-related accounts was approximately $ 6,269 and $ 135,058 as of December 31, 2023 and 2022, respectively. The Company has transitioned most payment transmission activity to the money transmitter license model and obtained a money transmitter license in all states which require licensure. This model enables AvidXchange to provide commercial payment services to businesses through its “for the benefit of customer” bank accounts, also known as FBO, that are restricted for such purposes. The restricted funds held for customers are restricted for the purpose of satisfying the customer’s supplier obligations and are not available for general business use by the Company. The Company maintains these funds in liquid cash accounts and contractually earns interest on these funds held for customers. These funds are recognized as a restricted cash asset and a corresponding liability is recorded for payments due to their suppliers on the Company’s consolidated balance sheets. Restricted funds held for customers are included in the cash and cash equivalents on the consolidated statements of cash flows. Marketable Securities Marketable securities consist of short-term investments in corporate bonds, commercial paper, certificates of deposit, and U.S. Treasury and agency bonds. To reflect its intention, the Company classifies its marketable securities as held-to-maturity at the time of purchase. As a result, the marketable securities are recorded at amortized cost and any gains or losses realized upon maturity are reported in other income (expense) in the consolidated statements of operations. The marketable securities are subject to the expected credit loss model prescribed under Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments . The Company utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for held-to-maturity securities at the time of purchase. The Company measures the expected credit loss on its held-to-maturity portfolio on a collective basis by major security type. The expected credit losses are adjusted each period for changes in expected lifetime credit losses based upon historical default and recovery rates of bonds rated with the same rating as its portfolio and assessment of the expected impact from current economic conditions on its investments. Accounts Receivable, Supplier Advances and Allowance for Credit Losses Accounts receivable represent amounts due from the Company’s VCC service providers for interchange fees earned and from buyer customers who have been invoiced for the use of the Company’s software offerings, but for whom payments have not been received. Accounts receivable from VCC service providers are presented net of an allowance for returns for transactions subsequently canceled that do not ultimately settle through the payment network. Accounts receivable from buyer customers are presented net of allowances for credit losses and returns. The Company estimates expected credit losses related to accounts receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined individually or collectively depending on whether the accounts receivable balances share similar risk characteristics. The allowance for returns for VCC transactions subsequently canceled are assessed at each period end and recognized as a reduction of revenue. The allowances for buyer customer’s credit losses and returns are assessed at each period end and are recognized as bad debt expense within general and administrative expenses in the consolidated statements of operations and as a reduction of revenue, respectively. A buyer customer receivable is written off against the allowance when it is determined that all collection efforts have been exhausted and the potential for recovery is considered remote. Historically, losses related to customer nonpayment have been immaterial and most of the accounts receivable balances have been current. Supplier advances receivable represent amounts that have been advanced as part of the AvidXchange’s Payment Accelerator product (formerly known as Invoice Accelerator) but have not been collected. Advances are collected from the buyer customer once the buyer initiates the transfer of funds for the invoice that was previously advanced. If the buyer does not transfer the funds as expected, the Company is exposed to losses. The Company’s experience with such delinquencies by buyer customers has been immaterial. Supplier advances receivable are stated net of expected credit losses. The Company estimates expected credit losses related to supplier advances receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined individually or collectively depending on whether the accounts receivable balances share similar risk characteristics. The allowance for credit losses for supplier advances is assessed at period end and the measurement of the allowance is included as a component of cost of revenues in the Company’s consolidated statements of operations. Supplier advances receivable balances are charged against the allowance when the Company determines it is probable the receivable will not be recovered after collection efforts and legal actions have been exhausted. The Company classifies the fees charged to supplier customers as cash flows from operating activities with the remaining accelerated advancements and recoupments classified as cash flows from investing activities on a net basis within the consolidated statements of cash flows. Property and Equipment Property and equipment are recorded at cost at the date of acquisition plus the cost of additions and improvements that increase the useful lives of assets. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which range from three to seven years , except for buildings which have estimated useful lives of up to 35 years . Assets recorded under leasehold improvements are amortized over the shorter of their useful lives or related lease terms. Repairs and maintenance expenditures are expensed as incurred. The cost and related accumulated depreciation and amortization of assets sold or disposed are removed from the accounts and the resulting gain or loss is reflected in operating expenses. The carrying value of all long-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, in accordance with FASB ASC Topic 360, Property, Plant, and Equipment . Assets under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The amortization period is based on whether ownership transfers at the end of the lease, including the presence of a bargain purchase option. If ownership transfers or the Company has the option for a bargain purchase, the asset is depreciated over its useful life. If neither of the above criteria are present, the asset is depreciated over the life of the lease. Amortization of assets recorded as finance leases is included in the line item depreciation and amortization in the Company’s consolidated statements of operations. Leases The Company accounts for leases under FASB ASC Topic 842, Leases , and elected the following accounting policies and practical expedients related to this standard: • The options to not reassess prior conclusions related to the identification, classification, and accounting for initial direct costs for leases that commenced prior to January 1, 2020; • Short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and liabilities for leases with a term of 12 months or less, and; • The option to combine non-lease components with their related lease components for all classes of underlying assets. The Company determines if an arrangement is a lease and the classification of the lease at inception. Due to the nature of AvidXchange’s operations, the Company has two main classes of underlying leased assets – i) information technology (“IT”) equipment and ii) corporate office space. IT equipment leases are classified as finance leases, whereas corporate office leases can be either operating or finance leases. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, net and current and noncurrent maturities of finance lease obligations on the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. ROU lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred, or tenant incentives received. The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the ROU asset and lease liability when it is reasonably certain that the Company will exercise the option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company, such as construction of significant leasehold improvements that are expected to have economic value when the option becomes exercisable. In the calculation of the present value of the future minimum lease payments, AvidXchange uses either the implicit rate in the lease or the Company’s incremental borrowing rate. Practice has shown that an implicit rate is only determinable in the finance leases of IT equipment where the current price is readily available. For all office leases, the Company determines the net present value of future minimum lease payments using its incremental borrowing rate at the commencement date of the lease. AvidXchange’s incremental borrowing rate is estimated based on the Company’s credit rating, the yield curve for the respective lease terms, and the prevailing market rates for collateralized debt in a similar economic environment. The same process is followed for any new leases at their commencement dates or modifications to existing leases that require remeasurement. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. Amortization expense of the ROU asset for finance leases is recognized on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. The Company evaluates ROU assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to abandon a leased facility prior to the end of the non-cancellable lease term or to sublease it for cash flows that do not fully cover the costs of the associated lease. The impairment evaluation is performed at the lowest level of identifiable cash flows and if it indicates that the carrying amount of the ROU assets may not be recoverable, any potential impairment is measured based upon the fair value of the related ROU asset or asset group. Intangible Assets and Goodwill The Company capitalizes costs related to the development of its software services and certain projects for internal use in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other . These capitalized costs are primarily related to the integrated invoice processing and payment solutions and services hosted by the Company and accessed by its customers on a subscription and transaction basis. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, 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 Intangible assets, net. Maintenance and training costs are expensed as incurred. Internally developed software is amortized on a straight-line basis over its estimated useful life, generally three years . Other identifiable intangible assets consist of acquired customer lists, technology and trade names, which were recorded at their fair values at the time of acquisition. Amortization is computed using the straight-line method over the estimated useful lives of the assets. The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes, but is not limited to, significant adverse changes in business climate, market conditions, or other events that indicate an asset’s carrying amount may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, then the carrying amount of such assets is reduced to fair value. The Company evaluates goodwill for impairment as of October 31 of each year or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The Company is comprised of a single reporting unit. The Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the Company is less than the carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of the Company is less than the carrying amount, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company also has the option to bypass the qualitative assessment and perform the quantitative assessment. Stock-Based Compensation Compensation cost for stock-based awards issued to employees and outside directors, including stock options and restricted stock units (“RSUs”), is measured at fair value on the date of grant. The fair value of stock options is estimated using a Black-Scholes option-pricing model, while the fair value of RSUs is determined using the fair value of the Company’s underlying common stock. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award. Stock-based compensation expense for RSUs with performance conditions is recognized over the requisite service period on an accelerated-basis as long as the performance condition in the form of a specified liquidity event is probable to occur. In the case of equity issued in lieu of a cash bonus, expense is recognized in the period the cash bonus was earned. Common Stock Repurchases The Company is incorporated in the State of Delaware. Under the laws of that state, shares of its own common stock that are acquired by the Company, if any, constitute authorized but unissued shares. The cost of the acquisition by the Company of shares of its own stock in excess of the aggregate par value of the shares first reduces additional paid-in-capital, to the extent available, with any residual cost applied as an increase to accumulated deficit. N et Loss per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock. Net loss per share attributable to common stockholders is calculated using the two-class method, which is an earnings allocation formula that determines net loss per share for the holders of the Company’s common shares and participating securities, if any. Net loss attributable to common stockholders and participating preferred shares are allocated to each share on an as-converted basis as if all of the earnings for the period had been distributed. If the participating securities do not include a contractual obligation to share in losses of the Company, then they are not included in the calculation of net loss per share in the periods in which a net loss is recorded. Diluted net loss per share is computed using the more dilutive of (a) the two-class method or (b) the if-converted method. The Company allocates earnings first to preferred stockholders based on dividend rights and then to common and preferred stockholders based on ownership interests. The weighted average number of common shares included in the computation of diluted net loss gives effect to all potentially dilutive common equivalent shares, including outstanding stock options and convertible preferred stock. Common stock equivalent shares are excluded from the computation of diluted net loss per share if their effect is antidilutive. In periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is generally the same as basic net loss per share attributable t o common stockholders since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Advertising Costs Advertising and marketing costs are included in operating expenses and are expensed as incurred. The Company incurred advertising and marketing costs of approximately $ 8,606 , $ 8,310 and $ 5,964 for the years ended December 31, 2023, 2022 and 2021 , respectively. Research and Development The Company expenses research and development costs as incurred. Research and development expenses consist primarily of engineering and product development, including employee compensation and the costs of outside contractors. Income Taxes Deferred income taxes are provided for temporary differences between the basis of the Company’s assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities represent future tax return consequences for those differences which will either be deductible or taxable when the assets or liabilities are recovered or settled. Deferred tax assets and liabilities, along with any related valuation allowance, are classified as noncurrent on the Company's consolidated balance sheets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates both the positive and negative evidence that is relevant in assessing whether it will realize the deferred tax assets. A valuation allowance is recorded when it is more-likely-than-not that some of the deferred tax assets will not be realized. The Company recognizes all material tax positions, including uncertain tax positions, when it is more-likely-than-not that the position will be sustained based on its technical merits and if challenged by the relevant tax authorities. All tax years since 2020 are open for potential examination by taxing authorities as of December 31, 2023 . However, tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward. The tax authorities may make adjustments up to the amount of the net operating loss or credit carryforward. The Company’s policy is to record interest and penalties related to uncertain tax positions in income tax expense. Retirement Plan The Company has a 401(k) defined contribution plan. Under the plan, each employee meeting the minimum age requirement and with at least one month of service is eligible to participate. Benefits vest immediately. The Company matching contribution is 100 percent of the first 3 percent and 50 percent of the next 2 percent of compensation that a participant contributes to the plan. The Company made contributions of $ 5,025 , $ 4,817 and $ 3,855 to the plan, net of forfeitures, for eligible and participating employees for the years ended December 31, 2023, 2022 and 2021 , respectively. Contributions are subject to certain IRS limitations. Nonqualified Deferred Compensation Plan The Company adopted a nonqualified, deferred compensation plan effective October 1, 2015, which is an unfunded plan created for the benefit of a select group of management or highly compensated employees. The purpose of the plan is to attract and retain key employees by providing them with an opportunity to defer receipt of a portion of their compensation. It is exempt from the participation, vesting, funding, and fiduciary requirements set forth in Title I of the Employee Retirement Income Security Act of 1974, as amended. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the nonqualified deferred compensation plan, as directed by each participant. The Company has established a ‘rabbi trust’ that serves as an investment to shadow the deferred compensation plan liability. The assets of the rabbi trust primarily consist of trust-owned life insurance policies which are recorded at cash surrender value and are included in other noncurrent assets. The change in cash surrender value of the life insurance policies in the rabbi trust is recorded in other income (expense) on the Company's consolidated statements of operations. The assets of the rabbi trust are general assets of the Company and as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. The related deferred |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers The Company determines revenue recognition through the following steps: • Identify the contract with a customer; • Identify the performance obligations in the contract; • Determine the transaction price; • Allocate the transaction price to performance obligations in the contract; and • Recognize revenue when or as the Company satisfies a performance obligation. Revenue Sources The Company’s revenues are derived from multiple sources. The following is a description of principal revenue generating activities. Software Revenue Software revenue is tailored specifically to the Company’s buyer customers and include AvidInvoice, AvidPay, AvidUtility, AvidBill, Create-a-Check, Avid for NetSuite, Strongroom Payables Lockbox, ASCEND and TimberScan. These various offerings address the specific needs of buyers and together they comprise the Company’s suite of cloud-based solutions designed to manage invoices and automate the AP function. Revenues are derived from mostly long-term contracts with middle-market customers. The vast majority of the revenues are comprised of 1) fees calculated based on number of invoice and payment transactions processed, 2) recurring maintenance or subscription fees, or 3) some combination thereof. Fees for the Company’s services are typically billed and paid on a monthly basis. The Company’s core performance obligation is to stand ready to provide holistic AP management services and process as many invoices and/or payments as the buyer customer requests on a daily basis over the contact term. The unspecified quantity of the service meets the criteria for variable consideration, where the variability is resolved daily as the services are performed. Accordingly, the promise to stand ready is accounted for as a single-series performance obligation and revenue is recognized based on the services performed each day. Included in software revenue is software maintenance and subscription fee revenue, which is recognized ratably ov er the term of the applicable service period, generally 12 months for Create-a-Check, Avid for NetSuite and TimberScan customers, and generally 60 months for ASCEND customers. In addition, each contract contains the promise of providing implementation services for an upfront fee. In determining whether the implementation services are distinct from the hosting services, the Company considered various factors, including the level of customization, complexity of integration, the interdependency and interrelationships between the implementation services and the hosting services and the ability (or inability) of the customer’s personnel or other service providers to perform the services. The Company concluded that the implementation services are not distinct and therefore fees for implementation services are combined with the main promise of the contract and recognized ratably over the non-cancellable term of the contract. Software offerings are also sold to end customers through reseller partners. The Company evaluated whether it is the principal or the agent in these arrangements. The reseller partners directly contract with the end customers and are ultimately responsible for the fulfillment of the services. The Company may have some discretion in determining the fee charged to the end customer, but always in conjunction with the reseller partner. Therefore, in most reseller partner arrangements, the Company acts as an agent and performs the services as directed by and on behalf of the reseller partner and recognizes revenue on a net basis in the amount to which it expects to be entitled, excluding the revenue share earned by the reseller partner. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Payment Revenue Payment revenue includes (i) interchange fees earned on payment transactions processed as VCC, (ii) fees from supplier product offerings, and (iii) interest on funds held for buyers pending disbursement. With respect to interchange fees, the Company evaluated whether it is the principal or the agent in the arrangement and determined that interchange fees are not received in return or exchange for services that the Company controls or acts as the principal, and the Company does not play any role or have control over how the interchange basis points are established. Therefore, the Company acts as an agent and records interchange fees net of i) fees charged by the VCC processor and ii) rebates provided to AvidXchange’s buyer customers, reseller partners and supplier customers as an incentive to increase the volume of VCC transactions. The rebates to buyer customers are for cash consideration, which includes cash payments or credits that may be applied against trade accounts owed by the customer to the Company. The rebates to supplier customers are also for cash consideration in the form of reimbursement of processing fees related to the acceptance of payments via a VCC. The Company recognizes monthly net interchange fees based on the transactional volume issued by the VCC processor and submitted to the suppliers, less a reserve for transactions subsequently canceled. Product offerings which address the needs of AvidXchange’s fast-growing network of suppliers currently include AvidPay Direct (“APD”) and Payment Accelerator. The APD service eliminates paper checks and provides suppliers with the opportunity to receive electronic payments with enhanced remittance data. The Payment Accelerator service expands the opportunity to manage cash flows and receive payments even faster by allowing suppliers to advance payment on qualifying invoices. Revenues are generated on a per transaction basis for each payment that is advanced and/or processed using APD. The per transaction fee includes both a fixed and a variable component based on the spend per payment. There are currently no other monthly, annual, or start up fees associated with the supplier contract. Given that the underlying fees are based on unknown services to be performed over the contract term, the total consideration is determined to be variable. The variable consideration is usage-based and therefore, it specifically relates to the Company’s efforts to satisfy its obligation to the supplier. The variability is satisfied each time a service is provided to the supplier and the variable fees are recognized at the time of service. Payment revenue also includes interest income received from buyer customer deposits held during the payment clearing process. Such funds are deposited in Company owned accounts, or to a lesser extent, trust accounts that are maintained and operated by a trustee. Services Revenue Services revenue is derived from the sale of professional services that are distinct and are recognized at the point in time the benefit transfers to the customer. Disaggregation of Revenue The table below presents the Company’s revenues disaggregated by type of services performed. Year ended December 31, 2023 2022 2021 Software revenue $ 112,184 $ 99,541 $ 87,885 Payment revenue 265,112 213,842 157,930 Services revenue 3,424 2,967 2,594 Total revenues $ 380,720 $ 316,350 $ 248,409 Payment revenue includes $ 40,603 , $ 10,992 , and $ 3,553 of interest income for the years ended December 31, 2023, 2022 and 2021, respectively, which do not represent revenues recognized in the scope of FASB ASC Topic 606, Revenue from contracts with customers, or ASC 606. Contract Assets and Liabilities The Company’s rights to payments are not conditional on any factors other than the passage of time, and as such, AvidXchange does not have any contract assets. Contract liabilities consist primarily of advance cash receipts for services (deferred revenue) and are recognized as revenue when the services are provided. The table below presents information on accounts receivable and contract liabilities. As of December 31, 2023 2022 Trade accounts receivable, net $ 16,261 $ 14,152 Payment processing receivable, net 30,428 25,516 Accounts receivable, net $ 46,689 $ 39,668 Contract liabilities $ 27,593 $ 29,550 Significant changes in the contract liabilities balance are as follows: Year Ended December 31, 2023 2022 Revenue recognized included in beginning of period balance $ ( 9,729 ) $ ( 7,849 ) Cash received, excluding amounts recognized as revenue during the period 7,772 7,519 The table below presents a summary of changes in the Company’s allowance for credit losses: Accounts Receivable Allowance for Credit Allowance for Supplier Advances Receivable Allowance Allowance for credit losses, December 31, 2020 $ 278 $ 1,491 $ 1,099 Amounts charged to contra revenue, cost of revenues and expenses 379 350 1,400 Amounts written off as uncollectable ( 215 ) - ( 1,757 ) Recoveries of amounts previously written off - - 363 Allowance for credit losses, December 31, 2021 442 1,841 1,105 Adjustment to allowance on adoption of ASU 2016-13 400 - 600 Amounts charged to contra revenue, cost of revenues and expenses 837 93 2,550 Amounts written off as uncollectable ( 140 ) - ( 3,524 ) Recoveries of amounts previously written off - - 1,141 Deduction released to revenue - ( 350 ) - Allowance for credit losses, December 31, 2022 1,539 1,584 1,872 Amounts charged to contra revenue, cost of revenues and expenses 1,308 598 538 Amounts written off as uncollectable ( 705 ) - ( 2,237 ) Recoveries of amounts previously written off - - 1,160 Deduction released to revenue - ( 93 ) - Allowance for credit losses, December 31, 2023 $ 2,142 $ 2,089 $ 1,333 Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to the remaining performance obligation represents contracted revenue that has not yet been recognized. These revenues are subject to future economic risks including customer cancellations, bankruptcies, regulatory changes and other market factors. The Company applies the practical expedient in ASC 606, paragraph 606-10-50-14(b) and does not disclose information about remaining performance obligations related to transaction and processing services that qualify for recognition in accordance with paragraph 606-10-55-18 ASC 606. These contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the buyer or supplier request. These contracts also contain fixed fees and non-refundable upfront fees; however, these amounts are not considered material to total consolidated revenue. The Company’s remaining performance obligation consists of contracts with financial institutions who are using the ASCEND solution. These contracts generally have a duration of two to five years and contain fixed maintenance fees that are considered fixed price guarantees. Remaining performance obligation consisted of the following: Current Noncurrent Total As of December 31, 2023 $ 15,031 $ 20,403 $ 35,434 As of December 31, 2022 15,143 22,546 37,689 Contract Costs The Company incurs incremental costs to obtain a contract, as well as costs to fulfill a contract with buyer customers that are expected to be recovered. These costs consist primarily of sales commissions incurred if a contract is obtained, and customer implementation related costs. The Company utilizes a portfolio approach when estimating the amortization of contract acquisition and fulfillment costs. These costs are amortized on a straight-line basis over the expected benefit period of generally five years , which was determined by taking into consideration customer attrition rates, estimated terms of customer relationships, useful lives of technology, industry peers, and other factors. The amortization of contract fulfillment costs associated with implementation activities are recorded as cost of revenues while the amortization of contract acquisition costs associated with sales commissions that qualify for capitalization is recorded as sales and marketing expense, both in the Company’s consolidated statements of operations. Costs to obtain or fulfill a contract are classified as deferred customer origination costs in the Company’s consolidated balance sheets. The following tables present information about deferred contract costs: Year Ended December 31, 2023 2022 2021 Capitalized sales commissions and implementation costs $ 11,748 $ 11,906 $ 14,656 Amortization of deferred contract costs Costs to obtain contracts included in sales and marketing expense $ 6,101 $ 5,658 $ 4,987 Costs to fulfill contracts included in cost of revenue 6,268 6,240 5,517 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combination | 4. Business Combination FastPay On July 8, 2021, the Company entered into a stock purchase agreement for all of the equity interests of FastPay, a leading provider of payments automation solutions for the media industry. This acquisition expanded the Company’s portfolio of automated payments technologies and services to middle market companies across the media landscape in the United States. The Company paid consideration of approximately $ 77,089 which consisted of $ 46,089 in cash and 1,239,973 shares of common stock of the Company with an aggregate value of $ 31,000 based on the Company's IPO price of its common stock of $ 25 . Additional amounts may be earned upon achievement of future performance goals measured on annual performance for 2021, 2022 and 2023. The aggregate amount of potential additional payments is $ 9,000 , evenly split between cash and common stock. The Company recorded additional consideration of $ 1,880 related to contingent consideration in liabilities on its consolidated balance sheets. Additionally, the Company included identified deferred payment obligations of $ 792 in consideration paid. On July 24, 2021, the Company paid contingent consideration with an aggregate value of $ 1,000 consisting of $ 500 in cash and 19,998 shares of common stock with a value of $ 500 based on the Company's IPO price of its common stock of $ 25 . The number of shares of common stock initially issued, including contingent consideration, was adjusted in accordance with terms of the purchase agreement based on the change in the value of the Company's common stock in connection with its IPO. The Company determined that the variability in the number of shares issued in the transaction represents a call option. The value of the call option was determined to be $ 4,118 and reduces the consideration allocated to the fair value of the business and was recorded as reduction to additional paid-in capital of $ 4,118 at the date of the acquisition. During the year ended December 31, 2022, the Company s ettled a liability for contingent consideration for 2021 performance in the amount of $ 688 with a cash payment of $ 344 and the issuance of 20,564 shares of common stock. No payments were earned related to the 2022 and 2023 performance targets. As of December 31, 2023, there were no potential additional payments to be earned. In allocating the preliminary purchase price, the Company recorded the following assets acquired and liabilities assumed based on their estimated fair values at the date of the acquisition: Consideration transferred Closing cash consideration, net of cash acquired $ 46,089 Common stock consideration 31,000 Contingent consideration 1,880 Deferred payment obligation 792 Call option ( 4,118 ) Fair value of total consideration transferred $ 75,643 Recognized amounts of identifiable assets acquired and liabilities assumed Current assets $ 2,115 Property and equipment 118 Operating lease right-of-use assets 561 Other noncurrent assets and deposits 90 Intangible assets Customer relationships 18,000 Acquired technology 14,000 Trade name 2,500 Non-compete agreements 2,100 Goodwill 60,225 Total identifiable assets acquired 99,709 Accounts payable 3,241 Accrued expenses 15,457 Lease liabilities 561 Deferred tax liability 4,807 Total liabilities assumed 24,066 Purchase price paid, net of cash acquired $ 75,643 The calculation of fair value for the acquired assets and liabilities was prepared using primarily Level 3 inputs under FASB ASC Topic 820, Fair Value Measurements and Disclosures . The Company determined the fair value of the identifiable intangible assets acquired with the assistance of third-party valuation consultants. The determination of fair value utilized the relief-from-royalty method for the acquired technology and the trade name. The multi-period excess earnings method was utilized to determine the fair value of the customer relationships. The amount recorded for acquired technology represents the estimated fair value of FastPay's payment technology. The amount recorded for customer relationships represents the fair values of the underlying relationship with FastPay's customers. The amount recorded for trade name represents the fair value of the brand recognition of FastPay. The weighted average useful life of acquired intangibles is 12 years . The goodwill balance is primarily attributable to the assembled workforce and expanded market opportunities within the market verticals in which FastPay operates. The goodwill balance is not deductible for tax purposes. From the date of the acquisition through December 31, 2021, the Company recorded measurement-period adjustments which are included in the table above. These adjustments increased the consideration paid by $ 126 for adjustments to the preliminary working capital balances and recognized a deferred tax liability of $ 4,807 , resulting in a corresponding increase in goodwill. During the years ended December 31, 2023 and 2022, the Company did not make any adjustments to the purchase price allocation for FastPay. |
Loss Per Common Share
Loss Per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 5. Loss Per Common Share Diluted loss per common share is the same as basic loss per common share for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company’s net loss. The following common share equivalent securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the periods presented: Year Ended December 31, Anti-Dilutive Common Share Equivalents 2023 2022 2021 Stock options 8,175,088 7,131,150 5,301,146 Restricted stock units 8,919,024 7,877,598 3,476,841 Employee stock purchase plan 72,927 68,030 - Total anti-dilutive common share equivalents 17,167,039 15,076,778 8,777,987 Basic and diluted net loss per common share is calculated as follows: Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ ( 47,325 ) $ ( 101,284 ) $ ( 199,649 ) Deemed dividend on preferred stock - - ( 9,500 ) Accretion of convertible preferred stock - - ( 15,141 ) Net loss attributable to common stockholders $ ( 47,325 ) $ ( 101,284 ) $ ( 224,290 ) Denominator: Weighted-average common shares outstanding, basic and diluted 201,887,669 198,045,805 85,061,417 Net loss per common share, basic and diluted $ ( 0.23 ) $ ( 0.51 ) $ ( 2.64 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgment. The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above categories, as of the periods presented. As of December 31, 2023 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 226,715 $ - $ - $ 226,715 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 1,866 - 1,866 Total assets $ 226,715 $ 1,866 $ - $ 228,581 Other long-term liabilities Deferred compensation $ - $ 2,398 $ - 2,398 Total liabilities $ - $ 2,398 $ - $ 2,398 As of December 31, 2022 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 147,149 $ - $ - $ 147,149 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 1,611 - 1,611 Total assets $ 147,149 $ 1,611 $ - $ 148,760 Other long-term liabilities Deferred compensation $ - $ 1,803 $ - 1,803 Total liabilities $ - $ 1,803 $ - $ 1,803 (1) Money market funds are classified as cash equivalents in the Company’s consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value. (2) Fair value of insurance policies represents their cash surrender value based on the underlying investments in the account which is determined based on quoted prices for identical or similar financial instruments in active markets. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 7. Marketable Securities Marketable securities consist of corporate bonds, commercial paper, certificates of deposit, and U.S. Treasury and agency bonds, and are classified as held-to-maturity. Investments held in marketable securities had contractual maturities of less than one year as of December 31, 2023. As the Company invests in short-term and high credit quality marketable securities, the Company expects to receive fixed par value without any loss of principle at the maturity of each security. Therefore, an allowance for expected credit losses is not recognized as of December 31, 2023 and 2022. The following presents information about the Company’s marketable securities: As of December 31, 2023 Sector Amortized Cost Allowance for credit losses Net Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value Financial $ 44,645 $ - $ 44,645 $ - $ ( 14 ) $ 44,631 Total $ 44,645 $ - $ 44,645 $ - $ ( 14 ) $ 44,631 As of December 31, 2022 Sector Amortized Cost Allowance for credit losses Net Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value Financial $ 80,831 $ - $ 80,831 $ 8 $ ( 32 ) $ 80,807 Government 15,071 - 15,071 5 - 15,076 Industrial 15,084 - 15,084 - ( 3 ) 15,081 Total $ 110,986 $ - $ 110,986 $ 13 $ ( 35 ) $ 110,964 The fair value of marketable securities in the Government major security type is classified as a Level 1 in the Company’s fair value hierarchy described in Note 6. The fair values of the remaining major security types are classified as Level 2. The following table presents information about the Company’s investments that were in an unrealized loss position and for which an other-than-temporary impairment has not been recognized in earnings: Year Ended December 31, As of December 31, 2023 As of December 31, 2022 Aggregate fair value of investments with unrealized losses (1) $ 33,578 $ 59,595 Aggregate amount of unrealized losses ( 14 ) ( 35 ) (1) Investments have been in a continuous loss position for less than 12 months |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 8. Property and Equipment Property and equipment and their general useful lives as of December 31, 2023 and 2022 consists of the following: December 31, Useful Life 2023 2022 Land Indefinite $ 37,364 $ 37,364 Office equipment 5 Years 2,799 2,125 Computer equipment 5 Years 19,473 18,401 Computer software 3 Years 4,070 3,254 Furniture 7 Years 7,388 7,388 Headquarters facilities 25 - 35 Years 67,384 67,384 Leasehold improvements Shorter of lease term or useful life 7,076 7,060 Total property and equipment 145,554 142,976 Less: Accumulated depreciation and amortization ( 44,569 ) ( 39,084 ) Total property and equipment, net of accumulated depreciation and amortization $ 100,985 $ 103,892 Depreciation and amortization expense charged against property and equipment was $ 5,917 , $ 6,081 , and $ 6,633 for the three years ended December 31, 2023, 2022, and 2021, respectively. Depreciation and amortization expense associated with finance leases was $ 1,976 , $ 2,469 , and $ 3,352 fo r the three years ended December 31, 2023, 2022, and 2021, respectively. Impairment Loss and Write-off As described in Note 10, the Company recognized accelerated depreciation of $ 77 on leasehold improvements in connection with the abandonment of an operating ROU asset during the year ended December 31, 2022. This loss is reported in general and administrative expense in the consolidated statements of operations. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 9. Intangible Assets and Goodwill Intangible Assets The following table presents information about capitalized software development costs: Year Ended December 31, Capitalized software development costs 2023 2022 2021 Capitalized $ 16,054 $ 17,890 $ 16,931 Amortized $ 15,500 $ 12,186 $ 11,249 On January 14, 2022, the Company entered into an asset purchase agreement for a customer list and a non-compete agreement from PayClearly, a U.S.-based company. This acquisition increases the number of the Company's customers in the media payments business. The Company paid cash consideration of $ 7,000 to purchase the assets and incurred transaction costs of $ 165 which were recorded as cost of the acquired assets. Consideration includes aggregate payments of $ 400 to be paid in four annual payments of $ 100 for the next four years. Total consideration of $ 7,165 was allocated based on relative fair value of the acquired assets resulting in $ 3,071 allocated to the customer list and $ 4,094 allocated to the non-compete agreement. The costs of the acquired assets will be amortized over the useful lives of the customer list and non-compete agreement which were estimated to be five years . December 31, 2023 Weighted Average Gross Accumulated Useful Life Amount Amortization Net Amount Internally developed software 3 Years 101,471 ( 74,655 ) 26,816 Non-compete 4 Years 6,194 ( 3,738 ) 2,456 Customer relationships 9 Years 72,512 ( 37,601 ) 34,911 Technology 7 Years 45,791 ( 30,178 ) 15,613 Trade name 10 Years 7,748 ( 2,739 ) 5,009 Total intangible assets $ 233,716 $ ( 148,911 ) $ 84,805 December 31, 2022 Weighted Average Gross Accumulated Useful Life Amount Amortization Net Amount Internally developed software 3 Years 85,923 ( 59,661 ) 26,262 Non-compete 4 Years 6,194 ( 2,079 ) 4,115 Customer relationships 9 Years 72,512 ( 29,327 ) 43,185 Technology 7 Years 45,791 ( 26,314 ) 19,477 Trade name 10 Years 7,748 ( 2,038 ) 5,710 Total intangible assets $ 218,168 $ ( 119,419 ) $ 98,749 Total amortization expense associated with identifiable intangible assets was as follows : Year Ended December 31, 2023 2022 2021 Total amortization expense associated with identifiable intangible assets $ 29,995 $ 26,761 $ 24,105 The estimated future amortization is expected as follows: 2024 $ 27,908 2025 20,126 2026 12,877 2027 4,317 2028 4,046 Thereafter 15,531 $ 84,805 Goodwill The following table sets forth the changes in the carrying amount of the Company’s goodwill: Goodwill Balance at January 1, 2022 $ 165,921 Acquisitions - Balance at December 31, 2022 165,921 Acquisitions - Balance at December 31, 2023 $ 165,921 Impairment and write-off of intangible assets Impairment and write-off expense related to internally developed software projects was as follows: Year Ended December 31, 2023 2022 2021 Impairment and write-off of intangible assets $ - $ - $ 1,412 |
Leases and Leasing Commitments
Leases and Leasing Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases and Leasing Commitments | 10. Leases and Leasing Commitments The Company's leases and lease commitments consist primarily of operating leases for office space and financing leases for IT equipment and an office building on its Charlotte, North Carolina headquarters campus. During the year ended December 31, 2023, the Company recorded $ 362 for an additional ROU asset and related operating lease liability for leased space to relocate one of its offices in January 2023. During the year ended December 31, 2022, the Company recorded $ 2,831 for an additional ROU asset and related operating lease liability for leased space adjacent to its headquarters campus that commenced in January 2022. Supplemental cash flow information related to the Company’s operating and finance leases was as follows: Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases $ 521 $ 844 $ 1,139 Operating cash flows for finance leases 5,857 5,774 7,384 Operating cash flows for operating leases 2,231 2,011 1,781 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 81 712 174 Operating lease liabilities 362 2,831 877 The components of lease expense were as follows: Year Ended December 31, Lease cost 2023 2022 2021 Finance lease cost Amortization of right-of-use assets $ 1,976 $ 2,469 $ 3,352 Interest on lease liabilities 6,584 6,535 8,272 Operating lease expense 1,709 1,786 1,241 Short-term lease cost - 658 332 Variable lease cost 260 186 286 Sublease income - - ( 145 ) Total lease cost $ 10,529 $ 11,634 $ 13,338 Gross finance lease ROU assets reported in the consolidated balance sheets are as follows: As of December 31, 2023 2022 Included in property and equipment, net $ 74,634 $ 74,986 Other information related to leases for the year ended December 31, 2023 was as follows: Year Ended December 31, Weighted average remaining lease term 2023 2022 2021 Corporate offices operating leases 4 years 5 years 4 years Corporate offices finance leases 28 years 29 years 30 years IT equipment finance leases 1 years 2 years 1 year Weighted average discount rate Corporate offices operating leases 11.2 % 11.4 % 10.6 % Corporate offices finance leases 10.5 % 10.5 % 10.6 % IT equipment finance leases 8.0 % 7.4 % 6.5 % The maturities of lease liabilities under non-cancelable operating and finance leases were as follows: As of December 31, 2023 Operating Leases Financing Leases 2024 $ 1,995 $ 6,216 2025 1,613 6,139 2026 811 6,174 2027 658 6,264 2028 606 6,376 Thereafter 309 190,977 Total minimum lease payments 5,992 222,146 Less: Imputed interest ( 1,192 ) ( 159,407 ) Net lease obligation $ 4,800 $ 62,739 Impairment Losses and Write-offs During the year ended December 31, 2022, the Company recognized impairment losses and write-offs of $ 2,700 in connection with two ROU assets in general and administrative expense in its consolidated statements of operations. The Company assessed the recoverability of leased space adjacent to its headquarters campus and concluded that as the space could not be subleased, it had no further economic benefit to the Company and was deemed to be abandoned. In addition, the Company vacated part of its leased office space in Sandy, Utah and listed it for sublease. As a result, a portion of the carrying value of the lease was determined not to be recoverable and an impairment loss and write-off was recognized in general and administrative expense in the consolidated statements of operations. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 11. Long-Term Debt Long-term debt as of December 31, 2023 and 2022: As of December 31, 2023 2022 Term loan facility $ 63,375 $ 65,000 Promissory note payable for land acquisitions 13,900 18,700 Total principal due 77,275 83,700 Current portion of term loan and promissory notes ( 6,425 ) ( 6,425 ) Unamortized portion of debt issuance costs ( 1,090 ) ( 1,363 ) Long-term debt $ 69,760 $ 75,912 On December 29, 2022 the Company, through its wholly-owned subsidiary, AvidXchange, Inc., entered into a credit agreement (the "2022 Credit Agreement") with KeyBank National Association ("KeyBank") to replace in its entirety its previous senior secured credit facility. The outstanding balances of the previous senior secured credit facility were repaid with the Company's cash balances and the proceeds from borrowing under the 2022 Credit Agreement. The 2022 Credit Agreement has a term of five years and consists of a 5-year revolving credit facility (the "2022 Revolver") and a five-year term loan facility (the "2022 Term Loan"). Under the 2022 Credit Agreement and subject to specific conditions, the Company may request, and the lenders have the right, but not the obligation, to increase the 2022 Revolver or add an additional term loan facility by an aggregate amount (for all such increases) not to exceed $ 50,000 as of December 31, 2023. In January 2023, the Company increased the credit available on its 2022 Revolver by $ 20,000 to an aggregate borrowing capacity of $ 30,000 , thereby increasing the aggregate borrowing capacity of the 2022 Credit Agreement to $ 95,000 . This increase in borrowing capacity reduced the amount by which the Company may request future increases of the 2022 Revolver or 2022 Term Loan from $ 70,000 to $ 50,000 . The 2022 Credit Agreement has a term of five years and makes available to the Company facilities in an aggregate amount of $ 95,000 and consists of: • $ 30,000 5-year revolving credit facility (the "2022 Revolver"); and • $ 65,000 5-year term loan facility (the "2022 Term Loans"). Letters of credit may be issued by KeyBank pursuant to the 2022 Credit Agreement and the availability under the 2022 Revolver will be reduced by any outstanding letters of credit. Effective July 1, 2023, the Company's landlord canceled the standby letter of credit as it was no longer required. As December 31, 2023 , no letters of credit were outstanding. As of December 31, 2023, the aggregate amount available to borrow under the 2022 Credit Agreement was $ 30,000 and the effective interest rate of the 2022 Term Loans was 8.25 % . Proceeds from the 2022 Term Loans and corporate cash were used to pay in full all outstanding debt and expenses under the previous senior secured credit facility, and the 2022 Revolver may be used to fund working capital and for general corporate purposes. The maturity date for the 2022 Revolver and 2022 Term Loans is December 29, 2027 . The Company may voluntarily pre-pay all or any part of the 2022 Revolver or 2022 Term Loans without premium or penalty, subject to concurrent payments of accrued and unpaid interest and any applicable breakage costs. Interest on the loans under the 2022 Credit Agreement is equal to the daily simple secured overnight financing rate ("SOFR"), term SOFR or a base rate, plus an applicable margin. The applicable margin is between 2.5 % and 3.0 % for daily simple SOFR and term SOFR loans (plus a SOFR adjustment between 0.1 % and 0.25 %), and between 1.5 % and 2.0 % for base rate loans. The applicable margin fluctuates based on the ratio of debt under the 2022 Credit Agreement to the Company’s consolidated software revenue. The Company may elect one-, three- or six-month interest periods in connection with term SOFR. The base rate is equal to the higher of KeyBank’s prime rate, the federal funds effective rate plus 0.5 %, or one-month term SOFR plus 1.0 %. For purposes of the 2022 Credit Agreement, daily simple SOFR, term SOFR and the base rate will never be less than 0.5 %. The principal amount of the 2022 Term Loans amortizes at a rate of 2.5 % per year for the first two years and 5 % per year for the last three years, payable in equal quarterly installments. Additional principal payments are due in certain circumstances, and subject to certain limitations, including upon a sale of assets or upon receipt of proceeds of casualty insurance or condemnation. The 2022 Credit Agreement contains certain customary representations and warranties and affirmative and negative covenants. The affirmative covenants require the Company to provide the lenders with certain financial statements, budgets, compliance certificates and other documents and reports and to comply with certain laws. The negative covenants restrict the Company’s ability to incur additional indebtedness, create additional liens on its assets, make certain investments, dispose of its assets or engage in a merger or other similar transaction or engage in transactions with affiliates, which are subject, in each case, to the various exceptions and conditions described in the 2022 Credit Agreement. The negative covenants further restrict the Company’s ability to make certain restricted payments, including the payment of dividends in certain limited circumstances. The 2022 Credit Agreement also contains three financial covenants, measured on a consolidated basis. First, there must be liquidity (which is defined as availability under the 2022 Revolver, plus unrestricted cash) that is more than the greater of (1) $ 35,000 , and (2) 35 % of the Total Commitment Amount (as defined in the 2022 Credit Agreement). Second, as of the end of each quarter, total revenue on a trailing four-quarter basis must be greater than the requirements set forth in the 2022 Credit Agreement. Third, for each period of four consecutive quarters ending on December 31, 2024, and at the end of each fiscal quarter thereafter, Consolidated EBITDA (as defined in the 2022 Credit Agreement) must not be less than $ 10,000 . The Company was in compliance with its financial debt covenants as of December 31, 2023 . The 2022 Credit Agreement also includes certain customary events of default. If an event of default occurs and is continuing, the lenders are entitled to take various actions, including the acceleration of the maturity of all loans and to take all actions permitted to be taken by a secured creditor with respect to the collateral for the 2022 Credit Agreement and under applicable law. The obligations under the 2022 Credit Agreement are secured by: • substantially all of the tangible and intangible assets of the Company and its material subsidiaries, except for client funds, client funds accounts (as such terms are defined in the 2022 Credit Agreement) and existing real estate, and • the capital stock of the Company’s material subsidiaries. Under the previous senior secured credit facility, the certain wholly-owned subsidiaries of the Company were co-borrowers, with the Company's parent holding company as the guarantor. By contrast, under the 2022 Credit Agreement, the Company's wholly-owned subsidiary, AvidXchange, Inc., is the only borrower, and AvidXchange's parent holding company and certain subsidiaries of AvidXchange, Inc. are co-guarantors. Revolving Credit Facility There was no balance outstanding under the 2022 Revolver as of December 31, 2023 or December 31, 2022 . The Company is required to pay on a quarterly basis a commitment fee of 0.3 % per annum with respect to the amount of the 2022 Revolver. Deferred Financing Costs In connection with the extinguishment of the previous senior secured credit facility , the remaining balance of $ 1,579 of deferred financing costs associated with the 2019 Term Loans were written off and included as general and administrative expense in the year ended December 31, 2022. The Company recorded $ 1,363 of deferred financing costs in connection with closing the 2022 Credit Agreement. This amount will be amortized over the five year term of the agreement. The Company has $ 604 and $ 385 in deferred financing costs included in other noncurrent assets and deposits, and $ 1,090 and $ 1,363 of deferred financing costs associated with its term loans recorded net of long-term debt as of December 31, 2023 and 2022, respectively. Amortization of deferred financing costs was $ 431 , $ 1,357 , and $ 1,357 for the years ended December 31, 2023, 2022, and 2021, respectively, which is presented in the consolidated statements of operations as interest expense. Land Promissory Note On November 15, 2018, the Company signed a promissory note in connection with the purchase of two land parcels adjacent to its Charlotte, North Carolina headquarters campus. The principal amount of $ 5,000 will be repaid in $ 1,000 installments, plus accrued interest at a rate of 6.75 %, due on each anniversary date, with final payment due on November 15, 2023 . The note is collateralized by the land parcels and any future building to be situated on, or improvements to, the land. In December 2021, in connection with the purchase of land and improvements, the promissory note was modified to extend its term to November 15, 2025 and reduce the annual payment to $ 500 . In December 2021, the Company executed a promissory note in connection with the purchase of land and improvements adjacent to its Charlotte, North Carolina headquarters campus. The principal amount of $ 21,500 will be repaid in four annual installments of $ 4,300 , plus accrued interest at a rate of 6.75 %, starting on December 1, 2022 with the final payment of $ 4,300 , plus accrued interest due on May 15, 2026 . The note is collateralized by the land and improvements on the land. Aggregate Future Maturities Aggregate future maturities of long-term debt for the next five years and thereafter (including current portion) as of December 31, 2023 are as follows: 2024 $ 6,425 2025 8,050 2026 7,550 2027 55,250 2028 - Thereafter - Total $ 77,275 |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Preferred Stock | 12. Preferred Stock Upon the closing of the IPO on October 15, 2021, all shares of outstanding convertible preferred stock automatically converted into 111,142,439 shares of the Company's common stock. Additionally, all shares of senior preferred stock were converted into redeemable preferred stock and convertible common stock. The resulting redeemable preferred stock was redeemed for $ 169,000 . The resulting convertible common stock was converted into 1,455,306 shares of the Company's common stock. As of December 31, 2023 and 2022, no shares of preferred stock were outstanding. |
Stockholders' Equity and Conver
Stockholders' Equity and Convertible Common Stock Liability | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Convertible Common Stock Liability | 13. Stockholders’ Equity and Convertible Common Stock Liability Authorized Shares On October 15, 2021, the Company filed its restated certificate of incorporation with the Secretary of State of the State of Delaware and its amended and restated bylaws became effective immediately following the closing of the Company’s IPO. Under the restated certificate of incorporation, the Company is authorized to issue 1,600,000,000 shares of common stock, $ 0.001 par value per share, and 50,000,000 shares of preferred stock, $ 0.001 par value per share. The Company presented its common stock within stockholders’ equity and its convertible common stock separately as a liability, until its conversion upon the Company's IPO on October 15, 2021. Common Stock As of December 31, 2023, the Company had reserved a total of 44,745,518 of its 1,600,000,000 shares of common stock for future issuance as follows: As of December 31, 2023 Outstanding stock options 8,175,088 Restricted stock units 8,919,024 Available for future issuance under stock award plans 21,576,067 Available for future issuance under employee stock purchase plan 6,075,339 Total common shares reserved for future issuance 44,745,518 Initial Public Offering On October 15, 2021, the Company closed its IPO in which it sold 26,400,000 shares of common stock at a public offering price of $ 25.00 per share. The Company received net proceeds of $ 620,400 after deducting underwriters' discounts and commissions of $ 39,000 and incurred additional costs in connection with the offering of $ 11,825 , of which $ 5,225 were direct and incremental and accounted for as a reduction of the proceeds. On November 15, 2021, the underwriters notified the Company of the partial exercise of the overallotment option. Upon closing on November 18, 2021, the Company issued 544,928 shares of common stock at the offering price of $ 25.00 per share and received net proceeds of $ 12,806 after deducting underwriters' discounts and commissions of $ 817 . Exercise of Warrants Upon the closing of the IPO, all outstanding warrants converted into shares of common stock in a cashless exchange. Accordingly, the 797,652 outstanding warrants converted into 740,190 shares of common stock. FastPay Consideration Adjustment Upon the closing of its IPO on October 15, 2021, the Company adjusted the number of shares of common stock paid to the sellers in the FastPay business combination in accordance with the stock purchase agreement to 1,239,973 shares of common stock and 19,998 shares of common stock related to contingent consideration that was paid in July 2021. This resulted in the return and cancellation of 1,310,777 shares of common stock to the Company, including 20,806 shares of common stock related to the contingent consideration. Convertible Common Stock Liability Upon the closing of the IPO on October 15, 2021, the Company's convertible common stock liability was settled when all shares of senior preferred stock were converted into redeemable preferred stock and convertible common stock and the convertible common stock was converted into 1,455,306 shares of the Company's common stock. T he convertible common shares were entitled to dividends pari passu with common stockholders on an “if-converted” basis. Shares could be redeemed for cash or converted into common stock. Cash redemption was at the option of the stockholders, on or after six years from the date of purchase, or upon the occurrence of a significant event, such as the sale of the Company or an IPO. The Company could have redeemed the shares for cash upon the occurrence of a significant transaction. Convertible common stock was convertible into common stock at the election of the holder for the 15-year period ending on October 1, 2034. The cash proceeds received upon redemption, or the number of common shares received upon conversion, was based upon a formula whereby the holder of the instrument will receive value commensurate with the increase, if any, in value of the Company’s common stock from the date of redemption or conversion over a contractually determined base price per common share of $ 11.94 . Until its conversion, the convertible common stock was accounted for as a derivative liability and was recorded at its fair market value within other long-term liabilities on the balance sheet. The Company estimated the fair value of the liability using the Black-Scholes option-pricing model and any change in fair value is recognized as a gain or loss in the statement of operations. The following table sets forth a summary of the changes in the fair value of the derivative liability, which is the Company’s only Level 3 financial instrument. Prior to conversion, no shares of convertible common stock were outstanding, as such shares were only issued upon conversion of the senior preferred stock. Year Ended December 31, 2023 2022 2021 Fair value, beginning of period $ - $ - $ 10,254 Change in fair value - - 26,128 Redeemed - - ( 36,382 ) Fair value, end of period $ - $ - $ - Charitable Contribution On June 24, 2021, the Company’s board of directors approved the reservation of 1,657,296 shares of our common stock (representing approximately 1 % of its issued and outstanding common stock and common stock equivalents as of June 24, 2021) for future issuance to fund its philanthropic endeavors, including issuance to a philanthropic partner in connection with the establishment of a donor-advised fund, over a ten-year period. On October 1, 2021, the Company executed an agreement (the “Pledge Agreement”) with a philanthropic partner pursuant to which the Company intends to provide annual ongoing grants of 10 % of the pledged shares for a period of ten years , subject in each case to the approval of the Company's board of directors. On October 15, 2021, the Company transferred the first installment of 165,729 shares of common stock which resulted in the recognition of $ 4,143 expense that was recorded in general and administrative expense in the fourth quarter of 2021. On October 28, 2022, the Company’s board of directors approved the issuance of 165,729 shares of common stock in connection with the Pledge Agreement. The issuance of these shares of common stock resulted in the recognition of $ 1,473 of expense that was recorded in general and administrative expense in the fourth quarter of 2022. On November 13, 2023, the Company’s board of directors approved the issuance of 165,729 shares of common stock in connection with the Pledge Agreement. The issuance of these shares of common stock resulted in the recognition of $ 1,667 of expense that was recorded in general and administrative expense in the fourth quarter of 2023. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 14. Stock-Based Compensation Stock Plans Upon the closing its IPO on October 15, 2021, the Company's 2021 Long-Term Incentive Plan ("2021 Plan") became effective. Initially, the 2021 Plan increased the number of shares of common stock available for the Company to issue by 18,023,020 shares and incorporated the outstanding awards under its prior plans. No new awards will be granted under the Company's prior plans. Initially, the maximum number of shares of common stock that may be issued under the 2021 Plan will not exceed 26,013,196 shares of common stock, which includes the new shares provided by the 2021 Plan and any shares of common stock subject to outstanding options or other awards under its prior plans. Beginning on January 1, 2022 and continuing through January 1, 2031, the number of shares of common stock that will be reserved for issuance under the 2021 Plan will automatically increase on January 1 of each year. The increase will be the lesser of (i) 5 % of the total number of shares of our common stock outstanding on December 31 of the immediately preceding year or (ii) 18,023,020 shares, provided that before the date of any such increase, the Company's board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). The maximum number of shares of common stock that may be issued on the exercise of incentive stock options under the 2021 Plan is 26,013,196 shares. On January 1, 2023, the number of shares of common stock available to issue under the 2021 Plan increased by 9,971,700 . As of December 31, 2023, the Company had 21,576,067 shares of common stock allocated to the 2021 Plan but not issued or subject to outstanding awards. The Company also maintains its 2021 Employee Stock Purchase Plan ("ESPP"), under which eligible employees may purchase the Company’s common stock through accumulated payroll deductions. Options to purchase shares are granted twice a year on or about November 1 and May 1 and are exercisable on or about the succeeding April 30 and October 31, respectively, of each year. Shares are purchased at prices equal to 85 % of the fair market value of the Company’s common stock at the lower of the grant date or purchase date. No participant may purchase more than $ 25 worth of the Company’s common stock in a year. The ESPP's initial purchase period began in January 2022. Initially, the number of shares of common stock reserved for issuance pursuant to the ESPP was 2,703,452 when it became effective upon the consummation of the Company’s initial public offering. The number of shares of the Company's common stock reserved for issuance under the ESPP automatically increases on January 1 of each year for a period of up to ten years, beginning on January 1, 2022 and continuing through January 1, 2031, by the lesser of (i) 1 % of the total number of shares of our common stock outstanding on December 31 of the immediately preceding year or (ii) 2,703,452 shares, provided that before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). Shares issuable pursuant to the ESPP may be authorized, but unissued, or reacquired shares of our common stock. On January 1, 2023, the number of shares of common stock reserved for issuance under the ESPP increased by 1,994,340 . As of December 31, 2023, the number of shares of common stock reserved for issuance under the ESPP was 6,075,339 . Stock Options Stock options granted under the Company's current and prior equity incentive plans have various vesting periods ranging from fully-vested on the date of grant to vesting over a period of three or four years . The term for each incentive stock option under these plans is ten years from the grant date, or five years for a grant to a ten percent owner optionee, in each case assuming continued employment. The fair value of options granted is estimated on the date of grant using the Black-Scholes option pricing model. Stock option activity for the year ended December 31, 2023 was as follows: Stock Options Weighted Average Number of Stock Weighted Average Remaining Aggregate Options Outstanding Exercise Price Contractual Life Intrinsic Value Balance as of December 31, 2022 7,131,150 $ 8.37 7.61 $ 16,849 Granted 1,748,480 9.00 Exercised ( 350,081 ) 4.48 Cancelled ( 319,451 ) 9.23 Expired ( 35,010 ) 7.11 Balance as of December 31, 2023 8,175,088 $ 8.64 7.22 $ 31,135 Vested and exercisable 4,618,922 $ 8.16 6.30 $ 19,846 Vested and expected to vest 8,175,088 $ 8.64 7.22 $ 31,135 As of December 31, 2023, the total unamortized stock-based compensation expense related to the unvested stock options was $ 12,462 , which the Company expects to amortize over a weighted average period of 2.3 years. The weighted-average grant date fair value of options granted during the years ended December 31, 2023, 2022, and 2021 was $ 4.55 , $ 3.01 , and $ 5.32 per share, respectively and the fair value of shares vested during the years ended December 31, 2023, 2022, and 2021 was $ 6,989 , $ 6,371 , and $ 2,598 , respectively. The total cash received from exercises of share options during the years ended December 31, 2023, 2022, and 2021 was $ 1,580 , $ 1,448 , and $ 2,820 , respectively. The Company provides a full valuation allowance against its net deferred tax asset and therefore did not recognize a tax benefit for stock option exercises in either of the years presented. The total intrinsic value of options exercised during the years ended December 31, 2023, 2022, and 2021 was $ 1,874 , $ 2,074 , and $ 9,547 , respectively. The intrinsic value was calculated as the difference between the estimated fair value of the Company’s common stock at exercise and the exercise price of the in-the-money options. The fair value of stock-based awards granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions: 2023 2022 2021 Estimated dividend yield 0 % 0 % 0 % Expected volatility 45.70 % - 59.32 % 46.06 % - 59.60 % 43.59 % - 45.24 % Risk-free interest rate 4.42 % - 5.31 % 2.15 % - 4.04 % 0.62 % - 1.13 % Expected term in years 4.28 3.95 5.98 Due to limited historical data, the Company estimates stock price volatility based on the actual historical volatility of comparable publicly traded companies over the expected life of the option. The expected life represents the average time that options that vest are expected to be outstanding. Prior to the IPO, expected life of the award was calculated on the mid-point between the vesting date and the contractual term, which is in accordance with the simplified method. The expected life of options granted after the IPO was determined based on historical data. The expected life for share-based compensation granted to nonemployees is the contractual life. The risk-free rate is based on the U.S. Treasury yield curve during the expected life of the option. The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero . Restricted Stock Units RSUs have a vesting period generally of one , two and four years . Any unvested RSUs are forfeited upon termination of employment. RSUs are valued based on the trading price of the Company's common stock at the date of grant. RSUs granted prior to the Company's IPO are valued at the estimated value of a share of common stock at the date of grant. RSUs granted prior to the Company's IPO have a term of seven years , or three years for time vested RSUs after termination of employment and are also subject to a performance condition upon a predefined liquidity event such as an IPO or a change in control. Because the probability of performance condition occurring could not be estimated, no compensation expense was recognized related to the RSUs prior to the Company's IPO on October 15, 2021. RSU activity for the year ended December 31, 2023 was as follows: Restricted Stock Units Number of Restricted Weighted Average Stock Outstanding Grant Date Fair Value Balance as of December 31, 2022 7,877,598 $ 9.07 Granted 5,845,087 9.00 Released ( 3,768,068 ) 9.21 Cancelled ( 1,035,593 ) 8.66 Balance as of December 31, 2023 8,919,024 $ 8.98 As of December 31, 2023, the total unamortized stock-based compensation expense related to the unvested RSUs was $ 63,114 , which the Company will amortize over a weighted average period of 2.7 years. Stock-Based Compensation Expense Stock options and RSUs Stock-based compensation expense from stock options and RSUs, reduced for actual forfeitures, was included in the following line items in the accompanying consolidated statement of operations: Year Ended December 31, 2023 2022 2021 Cost of revenues $ 4,530 $ 3,963 $ 2,775 Sales and marketing 4,806 4,623 4,105 Research and development 10,892 8,580 4,675 General and administrative 19,796 13,845 9,873 Total $ 40,024 $ 31,011 $ 21,428 Employee Stock Purchase Plan Stock-based compensation expense from the ESPP was $ 832 and $ 827 for the years ended December 31, 2023 and 2022, respectively . ESPP expense is based on the estimated fair value of the option to purchase shares at a discount and uses grant date inputs including the purchase discount, expected contributions and stock price. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Letters of Credit Effective July 1, 2023, the Company's landlord cancelled the standby letter of credit as it was no longer required. As of December 31, 2023 , no letters of credit were outstanding. Resolution of Loss Contingency During the year ended December 31, 2023 the Company paid approximately $ 1,400 related to a commercial dispute. The amount recorded is net of recoveries. The amount was recorded in general and administrative expenses in the consolidated statements of operations in the year ended December 31, 2023. There were no additional amounts accrued at the year ended December 31, 2023. Cybersecurity Incident In early April 2023, the Company detected a cybersecurity incident as part of its routine security monitoring protocols. In response to the incident, the Company launched an investigation with the support of leading cybersecurity experts, reached out to law enforcement, accelerated planned security enhancements, and has taken and will continue to take actions to implement additional safeguards. The investigation determined that the incident primarily affected systems that were used for back-office activities. Data was exfiltrated from these systems and posted on the dark web. The data consisted of confidential information from the Company's files, including personally identifiable information, primarily information of Company employees, former employees, and their dependents, and the bank account information of some customers. The Company cooperated with inquiries about the incident from three state consumer and financial service regulators, provided notices to impacted customers and individuals, and complied with regulatory requirements of various states that address notice and credit monitoring. The Company delivered all required notices during the fourth quarter of 2023 and considers the investigation complete. Expenses Incurred and Future Costs During the year ended December 31, 2023, the Company incurred costs of $ 5,433 in response to the incident, including professional services and legal fees, before insurance recoveries. While a loss from these matters is possible, the Company is unable at this time to reasonably estimate the possible loss or range of loss. Therefore, no liability for losses has been recorded related to the incident as of December 31, 2023. Insurance Coverage The Company maintains cyber insurance coverage and has tendered, and will tender in future periods, claims for certain expenses incurred in connection with this event. The extent to which its insurance will cover such expenses remains uncertain. As of December 31, 2023, the Company recorded recoveries in the amount of $ 1,735 . This amount was recorded as a reduction of general and administrative expense in the year ended December 31, 2023. As a result of the Company’s cybersecurity incident in 2023, the Company’s cyber insurance premiums increased significantly following renewal, and the number of insurers that submitted proposals for consideration during the Company’s renewal process was very limited. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. Related Party Transactions On February 19, 2021, the Company amended and restated its engagement letter with Financial Technology Partners LP and affiliates (“FT Partners”), an investment banking firm whose owner was a member of the Company’s board of directors up until the time of the amendment. The amended and restated engagement letter limits the events for which FT Partners will receive fees in the future, reduces the fees paid to FT Partners for future transactions, and eliminates the exclusivity arrangement with FT Partners. Additionally, the controlling stockholder of FT Partners left the Company’s board upon the effective date of the amended engagement letter. In connection with this amendment, the Company paid FT Partners $ 50,000 , which was recognized in other income (expense) within the consolidated statements of operations. Concurrently, FT Partners subscribed to purchase 4,080,636 shares of common stock of the Company at their then-current fair value, and the Company and FT Partners agreed that the retention of the payment by the Company satisfied the amounts due under the subscription. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes The table below sets forth the components of income tax (benefit) expense: Year Ended December 31, 2023 2022 2021 Current provision Federal $ - $ - $ - State 473 105 68 473 105 68 Deferred provision Federal 177 177 ( 4,015 ) State 545 39 ( 713 ) 722 216 ( 4,728 ) Provision for (benefit from) income taxes $ 1,195 $ 321 $ ( 4,660 ) Reconciliation between the effect of applying the federal statutory rate of 21 % pre-tax loss and the effective income tax rate used to calculate the Company’s income tax provision is as follows: Year Ended December 31, 2023 2022 2021 Pre-tax book loss $ ( 9,687 ) $ ( 21,202 ) $ ( 42,905 ) State taxes (net of federal benefit) ( 1,249 ) ( 4,559 ) ( 7,603 ) Convertible preferred stock mark-to-market adjustment - - 5,487 Section 162(m) limitations 1,528 463 14 Change in valuation allowance 8,996 22,360 33,548 Change in deferreds 1,178 2,883 4,326 Other 429 376 2,473 Provision for (benefit from) income taxes $ 1,195 $ 321 $ ( 4,660 ) The significant components of the Company’s deferred tax assets and liabilities were as follows: As of December 31, 2023 2022 Assets Accrued expenses $ 4,680 $ 5,148 Net operating loss carryforwards 93,351 96,146 Research and development costs 41,686 21,807 Stock-based compensation 4,027 4,290 Deferred revenue 6,887 7,354 Interest limitation 1,896 9,099 Agreement with VCC vendor 1,367 3,323 Lease liability 16,751 16,836 Contract amendment 11,154 11,835 Property and equipment 3,083 2,355 Other 4,748 5,025 Total gross deferred tax assets 189,630 183,218 Less: Valuation allowance ( 165,851 ) ( 156,422 ) Net deferred tax assets 23,779 26,796 Liabilities Intangible assets ( 5,789 ) ( 6,436 ) Method change adjustments ( 337 ) ( 470 ) ASC 606 set-up and commission costs ( 6,921 ) ( 7,209 ) Right-of-use assets ( 12,014 ) ( 13,242 ) Total gross deferred tax liabilities ( 25,061 ) ( 27,357 ) Net deferred income tax liabilities $ ( 1,282 ) $ ( 561 ) The Company has federal net operating loss carryforwards totaling approximately $ 374,961 and $ 390,410 as of December 31, 2023 and 2022 , respectively. The federal net operating loss carryforwards started to expire in 2020 and will expire at various dates in the future. The Company has state net operating loss carryforwards totaling approximately $ 390,865 and $ 384,309 as of December 31, 2023 and 2022 , respectively. The state net operating loss carryforwards started to expire in 2020 and will expire at various dates in the future. Management evaluated whether it is more likely than not they would realize the benefit of the deferred tax assets. Based on the weight of available positive and negative evidence, Management concluded a valuation allowance was necessary to offset deferred tax assets, as presented above. The valuation allowance increased by approximately $ 9,429 in the year ended December 31, 2023. The following table presents a summary of the changes in the valuation allowance: Year Ended December 31, Deferred tax valuation allowance 2023 2022 Beginning of period $ 156,422 $ 134,062 Additions 9,573 24,874 Deductions ( 144 ) ( 2,514 ) End of period $ 165,851 $ 156,422 As required by ASC 740, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company’s policy is to recognize interest and penalties accrued on uncertain tax positions as part of income tax expense. As of December 31, 2023 , the Company had no gross unrecognized tax benefits. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows for the periods presented: Year Ended December 31, Unrecognized Tax Benefits 2023 2022 2021 Beginning of period $ 449 $ - $ - Additions based on tax positions related to the current year - 104 - Additions for tax positions in prior years - 345 - Reductions for tax positions of prior years ( 449 ) - - Reductions for tax positions due to lapse of statute - - - Settlements - - - End of period $ - $ 449 $ - |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events Stock Plans On January 1, 2024, the Company increased the number of shares of common stock reserved for issuance under the 2021 Plan and ESPP by 10,204,201 and 2,040,840 shares of common stock, respectively. Credit Agreement On February 5, 2024, the Company amended its 2022 Credit Agreement. The amendment alters definitions and adds terms within the agreement to provide greater flexibility for the Company to pursue corporate treasury initiatives and to enter new service lines by adding exclusions to certain restrictive terms. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect the consolidated operations of the Company. All intercompany accounts and transactions have been eliminated in consolidation. There are no items of comprehensive income. |
Presentation Of Convertible Preferred Stock | Presentation of Convertible Preferred Stock The Company’s convertible preferred stock was classified as mezzanine equity separate from all other stockholders’ equity accounts that are classified as permanent equity (e.g., common stock and accumulated deficit). The purpose of this classification was to convey that such securities may not be permanently part of equity and could result in a demand for cash or other assets of the entity in the future based on passage of time or upon the occurrence of certain events outside of the Company’s control. The Company’s convertible preferred stock was initially recorded at its original issuance price, net of issuance costs. The Company accreted the carrying amount of the convertible preferred stock using the interest method until January 2021 when it became probable that the instrument would not become redeemable, except for senior preferred stock which the Company continued to accrete until the IPO. These increases were recorded as charges against retained earnings, if any. In the absence of retained earnings, the amounts are recorded against the available balance of additional paid-in capital that has been generated from cash transactions until reduced to zero and any additional amounts are charged to accumulated deficit. Changes in the redemption value or the redemption date are considered to be changes in accounting estimates. In conjunction with the closing of its IPO on October 15, 2021, the convertible preferred stock was converted into shares of common stock. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates reflected in these consolidated financial statements include, but are not limited to, the allowance for credit losses, useful lives assigned to fixed and intangible assets, capitalization of internal-use software, deferral of customer origination costs, the fair value of intangible assets acquired in a business combination, the fair value of goodwill, the recoverability of deferred income taxes, the fair value of common stock prior to the IPO, and the fair value of the convertible common stock liability (or the “derivative instrument.”) The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. |
Segments | Segments The Company operates and manages its business as one reportable segment, which is the same as the operating segment as defined under FASB Accounting Standards Codification ("ASC") Topic 280, Segment Reporting . The Company’s Chief Executive Officer, who is the chief operating decision maker, reviews financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. All tangible assets are held in the United States and all revenue is generated in the United States. Refer to “Concentrations” below and Note 3 Revenue from Contracts with Customers for additional entity-wide disclosures. |
Restructuring costs | Restructuring costs During the fourth quarter of 2023, the Company initiated a restructuring plan to generate cost savings and improve effectiveness of the organization which resulted in a reduction in the Company’s U.S. workforce. The plan was implemented and substantially completed in the fourth quarter of 2023 and is expected to be fully completed in the first quarter of 2024. The Company recorded restructuring costs of $ 1,880 in the fourth quarter of 2023 from one-time severance charges. On September 21, 2022, the Company initiated a restructuring plan to generate cost savings and improve effectiveness of the organization which resulted in a reduction in the Company’s U.S. workforce. The plan was implemented and completed in the second half of 2022. The Company recorded restructuring costs of $ 1,526 in the second half of 2022 from one-time severance charges. Restructuring costs are included in general and administrative expenses in the consolidated statements of operations. |
Business Combinations | Business Combinations Identifiable assets acquired, and the liabilities assumed, resulting from a business combination are recorded at their estimated fair values on the date of the acquisition. Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired, including the amount assigned to identifiable intangible assets. When a business combination involves contingent consideration, the Company recognizes a liability equal to the estimated fair value of the contingent consideration obligation at the date of the acquisition. Subsequent changes in the estimated fair value of the contingent consideration are recognized in earnings in the period of the change. Shares of common stock issued as part of the purchase consideration are valued as of the date of the business combination. |
Revenue Recognition | Revenue Recognition Refer to Note 3 Revenue from Contracts with Customers for information related to the Company’s revenue recognition. |
Concentrations | Concentrations Significant Services A substantial portion of the Company’s revenue is derived from interchange fees earned on payment transactions processed as virtual commercial cards (“VCC”). The Company utilizes service providers to process these transactions. Revenue from one service provider represented 30 % and 29 % of total revenue for the years ended December 31, 2023 and 2022, respectively. The revenue from this service provider was less than 10% of total revenue for the year ended December 31, 2021. Accounts receivable from this service provider represented 38 % and 29 % of accounts receivable, net as of December 31, 2023 and 2022, respectively. Revenue from a second provider represented 15 % , 24 % , and 47 % of total revenue for the years ended December 31, 2023, 2022 and 2021 , respectively. Accounts receivable from this second service provider represented 12 % and 28 % of accounts receivable, net as of December 31, 2023 and 2022, respectively . Future regulation or changes by the card brand payment networks could have a substantial impact on the Company’s revenue from VCC transactions. If interchange rates decline, whether due to actions by the card brand payment networks, merchant/suppliers availing themselves of lower rates, or future regulation, the Company’s total operating revenues, operating results, prospects for future growth and overall business could be materially affected. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase that are not recorded as marketable securities to be cash equivalents. The carrying values of cash and cash equivalents approximate their fair values due to the short-term nature of these instruments. Cash in the Company’s bank accounts may exceed federally insured limits. |
Restricted Funds Held for Customers and Payment Service Obligations | Restricted Funds Held for Customers and Payment Service Obligations Restricted funds held for customers and the corresponding liability of payment service obligations represent funds that are collected from customers for payments to their suppliers. The Company determines the balances of restricted funds held for customers, and the corresponding payment services obligations, by reconciling cash held by financial institutions and the corresponding payments in transit at the end of each period. The balance of these obligations may fluctuate from period to period depending on the timing of the period end and the timing of when outstanding payments clear with financial institutions. The Company is registered as a money services business with the Financial Crimes Enforcement Network. Payment service obligations are comprised of outstanding daily transaction liabilities per state regulatory average daily transaction liability report requirements and other unregulated settlements with payees, which do not constitute a regulatory liability event under reporting requirements. As of December 31, 2023 2022 Outstanding Transaction Liabilities $ 1,568,280 $ 1,242,155 Other unregulated settlements 10,376 41,669 Total payment service obligations $ 1,578,656 $ 1,283,824 The Company historically transmitted buyer customer funds using a legacy model, pursuant to which buyer customer funds are held in trust accounts that are maintained and operated by a trustee pending distribution to suppliers in accordance with instructions provided through the Company's platform. The Company is not the trustee or beneficiary of the trusts which hold these buyer deposits; accordingly, the Company does not record these assets and offsetting liabilities on its consolidated balance sheets. The Company has largely phased out this model, although certain banks that resell our products and services continue to leverage a similar structure. The Company contractually earns interest on funds held for certain buyers. The amount of Company and bank customer funds held in trust-related accounts was approximately $ 6,269 and $ 135,058 as of December 31, 2023 and 2022, respectively. The Company has transitioned most payment transmission activity to the money transmitter license model and obtained a money transmitter license in all states which require licensure. This model enables AvidXchange to provide commercial payment services to businesses through its “for the benefit of customer” bank accounts, also known as FBO, that are restricted for such purposes. The restricted funds held for customers are restricted for the purpose of satisfying the customer’s supplier obligations and are not available for general business use by the Company. The Company maintains these funds in liquid cash accounts and contractually earns interest on these funds held for customers. These funds are recognized as a restricted cash asset and a corresponding liability is recorded for payments due to their suppliers on the Company’s consolidated balance sheets. Restricted funds held for customers are included in the cash and cash equivalents on the consolidated statements of cash flows. |
Marketable Securities | Marketable Securities Marketable securities consist of short-term investments in corporate bonds, commercial paper, certificates of deposit, and U.S. Treasury and agency bonds. To reflect its intention, the Company classifies its marketable securities as held-to-maturity at the time of purchase. As a result, the marketable securities are recorded at amortized cost and any gains or losses realized upon maturity are reported in other income (expense) in the consolidated statements of operations. The marketable securities are subject to the expected credit loss model prescribed under Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments . The Company utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for held-to-maturity securities at the time of purchase. The Company measures the expected credit loss on its held-to-maturity portfolio on a collective basis by major security type. The expected credit losses are adjusted each period for changes in expected lifetime credit losses based upon historical default and recovery rates of bonds rated with the same rating as its portfolio and assessment of the expected impact from current economic conditions on its investments. |
Accounts Receivable, Supplier Advances and Allowance for Doubtful Accounts | Accounts Receivable, Supplier Advances and Allowance for Credit Losses Accounts receivable represent amounts due from the Company’s VCC service providers for interchange fees earned and from buyer customers who have been invoiced for the use of the Company’s software offerings, but for whom payments have not been received. Accounts receivable from VCC service providers are presented net of an allowance for returns for transactions subsequently canceled that do not ultimately settle through the payment network. Accounts receivable from buyer customers are presented net of allowances for credit losses and returns. The Company estimates expected credit losses related to accounts receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined individually or collectively depending on whether the accounts receivable balances share similar risk characteristics. The allowance for returns for VCC transactions subsequently canceled are assessed at each period end and recognized as a reduction of revenue. The allowances for buyer customer’s credit losses and returns are assessed at each period end and are recognized as bad debt expense within general and administrative expenses in the consolidated statements of operations and as a reduction of revenue, respectively. A buyer customer receivable is written off against the allowance when it is determined that all collection efforts have been exhausted and the potential for recovery is considered remote. Historically, losses related to customer nonpayment have been immaterial and most of the accounts receivable balances have been current. Supplier advances receivable represent amounts that have been advanced as part of the AvidXchange’s Payment Accelerator product (formerly known as Invoice Accelerator) but have not been collected. Advances are collected from the buyer customer once the buyer initiates the transfer of funds for the invoice that was previously advanced. If the buyer does not transfer the funds as expected, the Company is exposed to losses. The Company’s experience with such delinquencies by buyer customers has been immaterial. Supplier advances receivable are stated net of expected credit losses. The Company estimates expected credit losses related to supplier advances receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined individually or collectively depending on whether the accounts receivable balances share similar risk characteristics. The allowance for credit losses for supplier advances is assessed at period end and the measurement of the allowance is included as a component of cost of revenues in the Company’s consolidated statements of operations. Supplier advances receivable balances are charged against the allowance when the Company determines it is probable the receivable will not be recovered after collection efforts and legal actions have been exhausted. The Company classifies the fees charged to supplier customers as cash flows from operating activities with the remaining accelerated advancements and recoupments classified as cash flows from investing activities on a net basis within the consolidated statements of cash flows. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost at the date of acquisition plus the cost of additions and improvements that increase the useful lives of assets. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which range from three to seven years , except for buildings which have estimated useful lives of up to 35 years . Assets recorded under leasehold improvements are amortized over the shorter of their useful lives or related lease terms. Repairs and maintenance expenditures are expensed as incurred. The cost and related accumulated depreciation and amortization of assets sold or disposed are removed from the accounts and the resulting gain or loss is reflected in operating expenses. The carrying value of all long-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, in accordance with FASB ASC Topic 360, Property, Plant, and Equipment . Assets under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The amortization period is based on whether ownership transfers at the end of the lease, including the presence of a bargain purchase option. If ownership transfers or the Company has the option for a bargain purchase, the asset is depreciated over its useful life. If neither of the above criteria are present, the asset is depreciated over the life of the lease. Amortization of assets recorded as finance leases is included in the line item depreciation and amortization in the Company’s consolidated statements of operations. |
Leases | Leases The Company accounts for leases under FASB ASC Topic 842, Leases , and elected the following accounting policies and practical expedients related to this standard: • The options to not reassess prior conclusions related to the identification, classification, and accounting for initial direct costs for leases that commenced prior to January 1, 2020; • Short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and liabilities for leases with a term of 12 months or less, and; • The option to combine non-lease components with their related lease components for all classes of underlying assets. The Company determines if an arrangement is a lease and the classification of the lease at inception. Due to the nature of AvidXchange’s operations, the Company has two main classes of underlying leased assets – i) information technology (“IT”) equipment and ii) corporate office space. IT equipment leases are classified as finance leases, whereas corporate office leases can be either operating or finance leases. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, net and current and noncurrent maturities of finance lease obligations on the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. ROU lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred, or tenant incentives received. The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the ROU asset and lease liability when it is reasonably certain that the Company will exercise the option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company, such as construction of significant leasehold improvements that are expected to have economic value when the option becomes exercisable. In the calculation of the present value of the future minimum lease payments, AvidXchange uses either the implicit rate in the lease or the Company’s incremental borrowing rate. Practice has shown that an implicit rate is only determinable in the finance leases of IT equipment where the current price is readily available. For all office leases, the Company determines the net present value of future minimum lease payments using its incremental borrowing rate at the commencement date of the lease. AvidXchange’s incremental borrowing rate is estimated based on the Company’s credit rating, the yield curve for the respective lease terms, and the prevailing market rates for collateralized debt in a similar economic environment. The same process is followed for any new leases at their commencement dates or modifications to existing leases that require remeasurement. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. Amortization expense of the ROU asset for finance leases is recognized on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. The Company evaluates ROU assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to abandon a leased facility prior to the end of the non-cancellable lease term or to sublease it for cash flows that do not fully cover the costs of the associated lease. The impairment evaluation is performed at the lowest level of identifiable cash flows and if it indicates that the carrying amount of the ROU assets may not be recoverable, any potential impairment is measured based upon the fair value of the related ROU asset or asset group. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The Company capitalizes costs related to the development of its software services and certain projects for internal use in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other . These capitalized costs are primarily related to the integrated invoice processing and payment solutions and services hosted by the Company and accessed by its customers on a subscription and transaction basis. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, 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 Intangible assets, net. Maintenance and training costs are expensed as incurred. Internally developed software is amortized on a straight-line basis over its estimated useful life, generally three years . Other identifiable intangible assets consist of acquired customer lists, technology and trade names, which were recorded at their fair values at the time of acquisition. Amortization is computed using the straight-line method over the estimated useful lives of the assets. The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes, but is not limited to, significant adverse changes in business climate, market conditions, or other events that indicate an asset’s carrying amount may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, then the carrying amount of such assets is reduced to fair value. The Company evaluates goodwill for impairment as of October 31 of each year or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The Company is comprised of a single reporting unit. The Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the Company is less than the carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of the Company is less than the carrying amount, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company also has the option to bypass the qualitative assessment and perform the quantitative assessment. |
Stock-Based Compensation | Stock-Based Compensation Compensation cost for stock-based awards issued to employees and outside directors, including stock options and restricted stock units (“RSUs”), is measured at fair value on the date of grant. The fair value of stock options is estimated using a Black-Scholes option-pricing model, while the fair value of RSUs is determined using the fair value of the Company’s underlying common stock. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award. Stock-based compensation expense for RSUs with performance conditions is recognized over the requisite service period on an accelerated-basis as long as the performance condition in the form of a specified liquidity event is probable to occur. In the case of equity issued in lieu of a cash bonus, expense is recognized in the period the cash bonus was earned. |
Common Stock Repurchases | Common Stock Repurchases The Company is incorporated in the State of Delaware. Under the laws of that state, shares of its own common stock that are acquired by the Company, if any, constitute authorized but unissued shares. The cost of the acquisition by the Company of shares of its own stock in excess of the aggregate par value of the shares first reduces additional paid-in-capital, to the extent available, with any residual cost applied as an increase to accumulated deficit. |
Net Loss per Share | N et Loss per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock. Net loss per share attributable to common stockholders is calculated using the two-class method, which is an earnings allocation formula that determines net loss per share for the holders of the Company’s common shares and participating securities, if any. Net loss attributable to common stockholders and participating preferred shares are allocated to each share on an as-converted basis as if all of the earnings for the period had been distributed. If the participating securities do not include a contractual obligation to share in losses of the Company, then they are not included in the calculation of net loss per share in the periods in which a net loss is recorded. Diluted net loss per share is computed using the more dilutive of (a) the two-class method or (b) the if-converted method. The Company allocates earnings first to preferred stockholders based on dividend rights and then to common and preferred stockholders based on ownership interests. The weighted average number of common shares included in the computation of diluted net loss gives effect to all potentially dilutive common equivalent shares, including outstanding stock options and convertible preferred stock. Common stock equivalent shares are excluded from the computation of diluted net loss per share if their effect is antidilutive. In periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is generally the same as basic net loss per share attributable t o common stockholders since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. |
Advertising Costs | Advertising Costs Advertising and marketing costs are included in operating expenses and are expensed as incurred. The Company incurred advertising and marketing costs of approximately $ 8,606 , $ 8,310 and $ 5,964 for the years ended December 31, 2023, 2022 and 2021 , respectively. |
Research and Development | Research and Development The Company expenses research and development costs as incurred. Research and development expenses consist primarily of engineering and product development, including employee compensation and the costs of outside contractors. |
Income Taxes | Income Taxes Deferred income taxes are provided for temporary differences between the basis of the Company’s assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities represent future tax return consequences for those differences which will either be deductible or taxable when the assets or liabilities are recovered or settled. Deferred tax assets and liabilities, along with any related valuation allowance, are classified as noncurrent on the Company's consolidated balance sheets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates both the positive and negative evidence that is relevant in assessing whether it will realize the deferred tax assets. A valuation allowance is recorded when it is more-likely-than-not that some of the deferred tax assets will not be realized. The Company recognizes all material tax positions, including uncertain tax positions, when it is more-likely-than-not that the position will be sustained based on its technical merits and if challenged by the relevant tax authorities. All tax years since 2020 are open for potential examination by taxing authorities as of December 31, 2023 . However, tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward. The tax authorities may make adjustments up to the amount of the net operating loss or credit carryforward. The Company’s policy is to record interest and penalties related to uncertain tax positions in income tax expense. |
Retirement Plan | Retirement Plan The Company has a 401(k) defined contribution plan. Under the plan, each employee meeting the minimum age requirement and with at least one month of service is eligible to participate. Benefits vest immediately. The Company matching contribution is 100 percent of the first 3 percent and 50 percent of the next 2 percent of compensation that a participant contributes to the plan. The Company made contributions of $ 5,025 , $ 4,817 and $ 3,855 to the plan, net of forfeitures, for eligible and participating employees for the years ended December 31, 2023, 2022 and 2021 , respectively. Contributions are subject to certain IRS limitations. |
Nonqualified Deferred Compensation Plan | Nonqualified Deferred Compensation Plan The Company adopted a nonqualified, deferred compensation plan effective October 1, 2015, which is an unfunded plan created for the benefit of a select group of management or highly compensated employees. The purpose of the plan is to attract and retain key employees by providing them with an opportunity to defer receipt of a portion of their compensation. It is exempt from the participation, vesting, funding, and fiduciary requirements set forth in Title I of the Employee Retirement Income Security Act of 1974, as amended. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the nonqualified deferred compensation plan, as directed by each participant. The Company has established a ‘rabbi trust’ that serves as an investment to shadow the deferred compensation plan liability. The assets of the rabbi trust primarily consist of trust-owned life insurance policies which are recorded at cash surrender value and are included in other noncurrent assets. The change in cash surrender value of the life insurance policies in the rabbi trust is recorded in other income (expense) on the Company's consolidated statements of operations. The assets of the rabbi trust are general assets of the Company and as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. The related deferred compensation liabilities are included in other long-term liabilities. The Company has recorded these assets and liabilities at their fair value. In association with this plan, $ 1,866 and $ 1,611 were included in other noncurrent assets and $ 2,398 and $ 1,803 were included in noncurrent liabilities as of December 31, 2023 and 2022 , respectively, on the Company's consolidated balance sheets. |
Contingent Liabilities | Contingent Liabilities Contingent liabilities require significant judgment in estimating potential losses for legal claims. We review significant new claims and litigation for the probability of an adverse outcome. Estimates are recorded as liabilities when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable. Disclosure is required when there is a reasonable possibility that the ultimate loss will materially exceed the recorded provision. Contingent liabilities are often resolved over long periods of time. Estimating probable losses requires analysis of multiple forecasts that often depend on judgments about potential actions by third parties such as regulators, and the estimated loss can change materially as individual claims develop. |
Fair Value Measurements | Fair Value Measurements The Company’s financial instruments consist of cash and cash equivalents, marketable securities, trade receivables, assets of the rabbi trust, AP, deferred compensation liabilities, debt, and, prior to the Company's IPO, the liability related to the convertible common stock conversion feature. The carrying amount of cash, trade receivables, and AP approximate fair value due to the short-term maturity. The carrying value of long-term debt approximates its estimated fair value which is based on estimated borrowing rates currently available to the Company for similar debt issues. Marketable securities are classified as held-to-maturity and carried at amortized cost. In accordance with applicable accounting standards, the Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1 Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2 Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active market and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 Unobservable inputs that reflect the reporting entity’s own assumptions. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. When more than one level of input is used to determine the fair value, the financial instrument is classified as Level 1, 2 or 3 according to the lowest level input that has a significant impact on the fair value measurement. The Company performs a review of the fair value hierarchy classification on an annual basis. Changes in the observability of valuation inputs may result in a reclassification of certain financial assets or financial liabilities within the fair value hierarchy. The convertible common stock liability, which was converted on October 15, 2021 in connection with the Company's IPO, was stated at fair value and was considered a Level 3 input because the fair value measurement was based, in part, on significant inputs not observed in the market. The Company determined the fair value of the convertible common stock liability based on the Black-Scholes option-pricing model which utilizes the value of shares sold in the Company’s latest preferred stock financing and allocates the estimated equity value of the Company to each class of the Company’s outstanding securities using an option-pricing back-solve model, then a Monte Carlo simulation technique to estimate fair value of the convertible common stock liability. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Standards In June 2016, the FASB ASU 2016-13, Financial Instruments, Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the guidance on the impairment of financial instruments by requiring measurement and recognition of expected credit losses for most financial assets, including trade receivables, and other instruments that are not measured at fair value through net income (the “CECL” framework). ASU 2016-13 was effective for public business entities for fiscal years beginning after December 15, 2019. Under the Company's prior status as an emerging growth company, the Company had delayed the adoption of ASU 2016-13. However, the Company lost its status as an emerging growth company on December 31, 2022, and ASU 2016-13 became effective for the Company as of January 1, 2022 . On adoption , the Company recorded approximately $ 1,000 cumulative effect adjustment to accumulated deficit in connection with expected credit losses on its accounts receivable and supplier advances receivable. The adoption had an insignificant impact on the 2022 information presented in the Company’s 2022 quarterly reports on Form 10-Q. On January 1, 2022, the Company elected to recognize forfeitures as they occur as permitted under the guidance in ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting . Among other things, this ASU permits entities to make an accounting policy election to either estimate forfeitures on share-based payment awards, as previously required, or to recognize forfeitures as they occur. This election resulted in a $ 629 cumulative effect adjustment to the Company's accumulated deficit as of January 1, 2022. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This standard requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. The Company adopted this standard on January 1, 2023 , and will apply its provisions prospectively to business combinations occurring on or after this date. The adoption of this guidance did no t have an impact on the Company's consolidated financial statements. Accounting Pronouncements Issued but Not Yet Adopted In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. The amendments in this update that apply to public business entities clarify the accounting for leasehold improvements associated with common control leases. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company does not expect the adoption of this update to have a material effect on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective for calendar year-end public business entities in the 2025 annual period and in 2026 for interim periods, with early adoption permitted. The Company is assessing the impact of this guidance on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Payment Service Obligations | Payment service obligations are comprised of outstanding daily transaction liabilities per state regulatory average daily transaction liability report requirements and other unregulated settlements with payees, which do not constitute a regulatory liability event under reporting requirements. As of December 31, 2023 2022 Outstanding Transaction Liabilities $ 1,568,280 $ 1,242,155 Other unregulated settlements 10,376 41,669 Total payment service obligations $ 1,578,656 $ 1,283,824 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Type of Services Performed | The table below presents the Company’s revenues disaggregated by type of services performed. Year ended December 31, 2023 2022 2021 Software revenue $ 112,184 $ 99,541 $ 87,885 Payment revenue 265,112 213,842 157,930 Services revenue 3,424 2,967 2,594 Total revenues $ 380,720 $ 316,350 $ 248,409 |
Information on Accounts Receivable and Contract Liabilities | The table below presents information on accounts receivable and contract liabilities. As of December 31, 2023 2022 Trade accounts receivable, net $ 16,261 $ 14,152 Payment processing receivable, net 30,428 25,516 Accounts receivable, net $ 46,689 $ 39,668 Contract liabilities $ 27,593 $ 29,550 |
Significant Changes in Contract Liabilities Balance | Significant changes in the contract liabilities balance are as follows: Year Ended December 31, 2023 2022 Revenue recognized included in beginning of period balance $ ( 9,729 ) $ ( 7,849 ) Cash received, excluding amounts recognized as revenue during the period 7,772 7,519 |
Summary of Changes in Allowance for Credit Losses | The table below presents a summary of changes in the Company’s allowance for credit losses: Accounts Receivable Allowance for Credit Allowance for Supplier Advances Receivable Allowance Allowance for credit losses, December 31, 2020 $ 278 $ 1,491 $ 1,099 Amounts charged to contra revenue, cost of revenues and expenses 379 350 1,400 Amounts written off as uncollectable ( 215 ) - ( 1,757 ) Recoveries of amounts previously written off - - 363 Allowance for credit losses, December 31, 2021 442 1,841 1,105 Adjustment to allowance on adoption of ASU 2016-13 400 - 600 Amounts charged to contra revenue, cost of revenues and expenses 837 93 2,550 Amounts written off as uncollectable ( 140 ) - ( 3,524 ) Recoveries of amounts previously written off - - 1,141 Deduction released to revenue - ( 350 ) - Allowance for credit losses, December 31, 2022 1,539 1,584 1,872 Amounts charged to contra revenue, cost of revenues and expenses 1,308 598 538 Amounts written off as uncollectable ( 705 ) - ( 2,237 ) Recoveries of amounts previously written off - - 1,160 Deduction released to revenue - ( 93 ) - Allowance for credit losses, December 31, 2023 $ 2,142 $ 2,089 $ 1,333 |
Schedule of Remaining Performance Obligation | Remaining performance obligation consisted of the following: Current Noncurrent Total As of December 31, 2023 $ 15,031 $ 20,403 $ 35,434 As of December 31, 2022 15,143 22,546 37,689 |
Information about Deferred Contract Costs | The following tables present information about deferred contract costs: Year Ended December 31, 2023 2022 2021 Capitalized sales commissions and implementation costs $ 11,748 $ 11,906 $ 14,656 Amortization of deferred contract costs Costs to obtain contracts included in sales and marketing expense $ 6,101 $ 5,658 $ 4,987 Costs to fulfill contracts included in cost of revenue 6,268 6,240 5,517 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FastPay | |
Business Acquisition [Line Items] | |
Summary of Preliminary Purchase Price Allocated to Assets Acquired and Liabilities Assumed Based on their Estimated Fair Values | In allocating the preliminary purchase price, the Company recorded the following assets acquired and liabilities assumed based on their estimated fair values at the date of the acquisition: Consideration transferred Closing cash consideration, net of cash acquired $ 46,089 Common stock consideration 31,000 Contingent consideration 1,880 Deferred payment obligation 792 Call option ( 4,118 ) Fair value of total consideration transferred $ 75,643 Recognized amounts of identifiable assets acquired and liabilities assumed Current assets $ 2,115 Property and equipment 118 Operating lease right-of-use assets 561 Other noncurrent assets and deposits 90 Intangible assets Customer relationships 18,000 Acquired technology 14,000 Trade name 2,500 Non-compete agreements 2,100 Goodwill 60,225 Total identifiable assets acquired 99,709 Accounts payable 3,241 Accrued expenses 15,457 Lease liabilities 561 Deferred tax liability 4,807 Total liabilities assumed 24,066 Purchase price paid, net of cash acquired $ 75,643 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Common Share Equivalent Securities Excluded from the Calculation Weighted Average Common Shares Outstanding | The following common share equivalent securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the periods presented: Year Ended December 31, Anti-Dilutive Common Share Equivalents 2023 2022 2021 Stock options 8,175,088 7,131,150 5,301,146 Restricted stock units 8,919,024 7,877,598 3,476,841 Employee stock purchase plan 72,927 68,030 - Total anti-dilutive common share equivalents 17,167,039 15,076,778 8,777,987 |
Summary of Basic and Diluted Net Loss Per Common Share | Basic and diluted net loss per common share is calculated as follows: Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ ( 47,325 ) $ ( 101,284 ) $ ( 199,649 ) Deemed dividend on preferred stock - - ( 9,500 ) Accretion of convertible preferred stock - - ( 15,141 ) Net loss attributable to common stockholders $ ( 47,325 ) $ ( 101,284 ) $ ( 224,290 ) Denominator: Weighted-average common shares outstanding, basic and diluted 201,887,669 198,045,805 85,061,417 Net loss per common share, basic and diluted $ ( 0.23 ) $ ( 0.51 ) $ ( 2.64 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above categories, as of the periods presented. As of December 31, 2023 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 226,715 $ - $ - $ 226,715 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 1,866 - 1,866 Total assets $ 226,715 $ 1,866 $ - $ 228,581 Other long-term liabilities Deferred compensation $ - $ 2,398 $ - 2,398 Total liabilities $ - $ 2,398 $ - $ 2,398 As of December 31, 2022 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 147,149 $ - $ - $ 147,149 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 1,611 - 1,611 Total assets $ 147,149 $ 1,611 $ - $ 148,760 Other long-term liabilities Deferred compensation $ - $ 1,803 $ - 1,803 Total liabilities $ - $ 1,803 $ - $ 1,803 (1) Money market funds are classified as cash equivalents in the Company’s consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value. (2) Fair value of insurance policies represents their cash surrender value based on the underlying investments in the account which is determined based on quoted prices for identical or similar financial instruments in active markets. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Information about Marketable Securities | The following presents information about the Company’s marketable securities: As of December 31, 2023 Sector Amortized Cost Allowance for credit losses Net Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value Financial $ 44,645 $ - $ 44,645 $ - $ ( 14 ) $ 44,631 Total $ 44,645 $ - $ 44,645 $ - $ ( 14 ) $ 44,631 As of December 31, 2022 Sector Amortized Cost Allowance for credit losses Net Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value Financial $ 80,831 $ - $ 80,831 $ 8 $ ( 32 ) $ 80,807 Government 15,071 - 15,071 5 - 15,076 Industrial 15,084 - 15,084 - ( 3 ) 15,081 Total $ 110,986 $ - $ 110,986 $ 13 $ ( 35 ) $ 110,964 |
Schedule of Investments in Unrealized Loss Position and for which an Other-than-Temporary Impairment has not been Recognized in Earnings | The following table presents information about the Company’s investments that were in an unrealized loss position and for which an other-than-temporary impairment has not been recognized in earnings: Year Ended December 31, As of December 31, 2023 As of December 31, 2022 Aggregate fair value of investments with unrealized losses (1) $ 33,578 $ 59,595 Aggregate amount of unrealized losses ( 14 ) ( 35 ) (1) Investments have been in a continuous loss position for less than 12 months |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment and their general useful lives as of December 31, 2023 and 2022 consists of the following: December 31, Useful Life 2023 2022 Land Indefinite $ 37,364 $ 37,364 Office equipment 5 Years 2,799 2,125 Computer equipment 5 Years 19,473 18,401 Computer software 3 Years 4,070 3,254 Furniture 7 Years 7,388 7,388 Headquarters facilities 25 - 35 Years 67,384 67,384 Leasehold improvements Shorter of lease term or useful life 7,076 7,060 Total property and equipment 145,554 142,976 Less: Accumulated depreciation and amortization ( 44,569 ) ( 39,084 ) Total property and equipment, net of accumulated depreciation and amortization $ 100,985 $ 103,892 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Capitalized Software Development Costs | The following table presents information about capitalized software development costs: Year Ended December 31, Capitalized software development costs 2023 2022 2021 Capitalized $ 16,054 $ 17,890 $ 16,931 Amortized $ 15,500 $ 12,186 $ 11,249 |
Schedule of Intangible Assets | December 31, 2023 Weighted Average Gross Accumulated Useful Life Amount Amortization Net Amount Internally developed software 3 Years 101,471 ( 74,655 ) 26,816 Non-compete 4 Years 6,194 ( 3,738 ) 2,456 Customer relationships 9 Years 72,512 ( 37,601 ) 34,911 Technology 7 Years 45,791 ( 30,178 ) 15,613 Trade name 10 Years 7,748 ( 2,739 ) 5,009 Total intangible assets $ 233,716 $ ( 148,911 ) $ 84,805 December 31, 2022 Weighted Average Gross Accumulated Useful Life Amount Amortization Net Amount Internally developed software 3 Years 85,923 ( 59,661 ) 26,262 Non-compete 4 Years 6,194 ( 2,079 ) 4,115 Customer relationships 9 Years 72,512 ( 29,327 ) 43,185 Technology 7 Years 45,791 ( 26,314 ) 19,477 Trade name 10 Years 7,748 ( 2,038 ) 5,710 Total intangible assets $ 218,168 $ ( 119,419 ) $ 98,749 |
Total Amortization Expense Associated with Identifiable Intangible Assets | Total amortization expense associated with identifiable intangible assets was as follows : Year Ended December 31, 2023 2022 2021 Total amortization expense associated with identifiable intangible assets $ 29,995 $ 26,761 $ 24,105 |
Changes in Carrying Amount of Goodwill | The following table sets forth the changes in the carrying amount of the Company’s goodwill: Goodwill Balance at January 1, 2022 $ 165,921 Acquisitions - Balance at December 31, 2022 165,921 Acquisitions - Balance at December 31, 2023 $ 165,921 |
Impairment and Write-off of Intangible Assets | Impairment and write-off expense related to internally developed software projects was as follows: Year Ended December 31, 2023 2022 2021 Impairment and write-off of intangible assets $ - $ - $ 1,412 |
Estimated Future Amortization | The estimated future amortization is expected as follows: 2024 $ 27,908 2025 20,126 2026 12,877 2027 4,317 2028 4,046 Thereafter 15,531 $ 84,805 |
Leases and Leasing Commitments
Leases and Leasing Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Operating and Finance Leases | Supplemental cash flow information related to the Company’s operating and finance leases was as follows: Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases $ 521 $ 844 $ 1,139 Operating cash flows for finance leases 5,857 5,774 7,384 Operating cash flows for operating leases 2,231 2,011 1,781 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 81 712 174 Operating lease liabilities 362 2,831 877 |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, Lease cost 2023 2022 2021 Finance lease cost Amortization of right-of-use assets $ 1,976 $ 2,469 $ 3,352 Interest on lease liabilities 6,584 6,535 8,272 Operating lease expense 1,709 1,786 1,241 Short-term lease cost - 658 332 Variable lease cost 260 186 286 Sublease income - - ( 145 ) Total lease cost $ 10,529 $ 11,634 $ 13,338 |
Schedule of Gross Finance Lease ROU Assets | Gross finance lease ROU assets reported in the consolidated balance sheets are as follows: As of December 31, 2023 2022 Included in property and equipment, net $ 74,634 $ 74,986 |
Summary of Other Information Related to Leases | Other information related to leases for the year ended December 31, 2023 was as follows: Year Ended December 31, Weighted average remaining lease term 2023 2022 2021 Corporate offices operating leases 4 years 5 years 4 years Corporate offices finance leases 28 years 29 years 30 years IT equipment finance leases 1 years 2 years 1 year Weighted average discount rate Corporate offices operating leases 11.2 % 11.4 % 10.6 % Corporate offices finance leases 10.5 % 10.5 % 10.6 % IT equipment finance leases 8.0 % 7.4 % 6.5 % |
Schedule of Maturities of Lease Liabilities Under Non-cancelable Operating and Finance Leases | The maturities of lease liabilities under non-cancelable operating and finance leases were as follows: As of December 31, 2023 Operating Leases Financing Leases 2024 $ 1,995 $ 6,216 2025 1,613 6,139 2026 811 6,174 2027 658 6,264 2028 606 6,376 Thereafter 309 190,977 Total minimum lease payments 5,992 222,146 Less: Imputed interest ( 1,192 ) ( 159,407 ) Net lease obligation $ 4,800 $ 62,739 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of December 31, 2023 and 2022: As of December 31, 2023 2022 Term loan facility $ 63,375 $ 65,000 Promissory note payable for land acquisitions 13,900 18,700 Total principal due 77,275 83,700 Current portion of term loan and promissory notes ( 6,425 ) ( 6,425 ) Unamortized portion of debt issuance costs ( 1,090 ) ( 1,363 ) Long-term debt $ 69,760 $ 75,912 |
Schedule of Aggregate Future Maturities of Long-Term Debt | Aggregate future maturities of long-term debt for the next five years and thereafter (including current portion) as of December 31, 2023 are as follows: 2024 $ 6,425 2025 8,050 2026 7,550 2027 55,250 2028 - Thereafter - Total $ 77,275 |
Stockholders' Equity and Conv_2
Stockholders' Equity and Convertible Common Stock Liability (Table) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | As of December 31, 2023, the Company had reserved a total of 44,745,518 of its 1,600,000,000 shares of common stock for future issuance as follows: As of December 31, 2023 Outstanding stock options 8,175,088 Restricted stock units 8,919,024 Available for future issuance under stock award plans 21,576,067 Available for future issuance under employee stock purchase plan 6,075,339 Total common shares reserved for future issuance 44,745,518 |
Changes in Fair Value of Derivative Liability | The following table sets forth a summary of the changes in the fair value of the derivative liability, which is the Company’s only Level 3 financial instrument. Prior to conversion, no shares of convertible common stock were outstanding, as such shares were only issued upon conversion of the senior preferred stock. Year Ended December 31, 2023 2022 2021 Fair value, beginning of period $ - $ - $ 10,254 Change in fair value - - 26,128 Redeemed - - ( 36,382 ) Fair value, end of period $ - $ - $ - |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | Stock option activity for the year ended December 31, 2023 was as follows: Stock Options Weighted Average Number of Stock Weighted Average Remaining Aggregate Options Outstanding Exercise Price Contractual Life Intrinsic Value Balance as of December 31, 2022 7,131,150 $ 8.37 7.61 $ 16,849 Granted 1,748,480 9.00 Exercised ( 350,081 ) 4.48 Cancelled ( 319,451 ) 9.23 Expired ( 35,010 ) 7.11 Balance as of December 31, 2023 8,175,088 $ 8.64 7.22 $ 31,135 Vested and exercisable 4,618,922 $ 8.16 6.30 $ 19,846 Vested and expected to vest 8,175,088 $ 8.64 7.22 $ 31,135 |
Schedule of Stock-Based Awards Granted is Estimated Date of Grant Using the Black-Scholes Option-Pricing | The fair value of stock-based awards granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions: 2023 2022 2021 Estimated dividend yield 0 % 0 % 0 % Expected volatility 45.70 % - 59.32 % 46.06 % - 59.60 % 43.59 % - 45.24 % Risk-free interest rate 4.42 % - 5.31 % 2.15 % - 4.04 % 0.62 % - 1.13 % Expected term in years 4.28 3.95 5.98 |
Summary of RSU Activity | RSU activity for the year ended December 31, 2023 was as follows: Restricted Stock Units Number of Restricted Weighted Average Stock Outstanding Grant Date Fair Value Balance as of December 31, 2022 7,877,598 $ 9.07 Granted 5,845,087 9.00 Released ( 3,768,068 ) 9.21 Cancelled ( 1,035,593 ) 8.66 Balance as of December 31, 2023 8,919,024 $ 8.98 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense from stock options and RSUs, reduced for actual forfeitures, was included in the following line items in the accompanying consolidated statement of operations: Year Ended December 31, 2023 2022 2021 Cost of revenues $ 4,530 $ 3,963 $ 2,775 Sales and marketing 4,806 4,623 4,105 Research and development 10,892 8,580 4,675 General and administrative 19,796 13,845 9,873 Total $ 40,024 $ 31,011 $ 21,428 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Benefit) Expense | The table below sets forth the components of income tax (benefit) expense: Year Ended December 31, 2023 2022 2021 Current provision Federal $ - $ - $ - State 473 105 68 473 105 68 Deferred provision Federal 177 177 ( 4,015 ) State 545 39 ( 713 ) 722 216 ( 4,728 ) Provision for (benefit from) income taxes $ 1,195 $ 321 $ ( 4,660 ) |
Summary of Reconciliation Between Federal Statutory Rate and Effective Income Tax Rate Used to Calculate Income Tax Provision | Reconciliation between the effect of applying the federal statutory rate of 21 % pre-tax loss and the effective income tax rate used to calculate the Company’s income tax provision is as follows: Year Ended December 31, 2023 2022 2021 Pre-tax book loss $ ( 9,687 ) $ ( 21,202 ) $ ( 42,905 ) State taxes (net of federal benefit) ( 1,249 ) ( 4,559 ) ( 7,603 ) Convertible preferred stock mark-to-market adjustment - - 5,487 Section 162(m) limitations 1,528 463 14 Change in valuation allowance 8,996 22,360 33,548 Change in deferreds 1,178 2,883 4,326 Other 429 376 2,473 Provision for (benefit from) income taxes $ 1,195 $ 321 $ ( 4,660 ) |
Summary of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows: As of December 31, 2023 2022 Assets Accrued expenses $ 4,680 $ 5,148 Net operating loss carryforwards 93,351 96,146 Research and development costs 41,686 21,807 Stock-based compensation 4,027 4,290 Deferred revenue 6,887 7,354 Interest limitation 1,896 9,099 Agreement with VCC vendor 1,367 3,323 Lease liability 16,751 16,836 Contract amendment 11,154 11,835 Property and equipment 3,083 2,355 Other 4,748 5,025 Total gross deferred tax assets 189,630 183,218 Less: Valuation allowance ( 165,851 ) ( 156,422 ) Net deferred tax assets 23,779 26,796 Liabilities Intangible assets ( 5,789 ) ( 6,436 ) Method change adjustments ( 337 ) ( 470 ) ASC 606 set-up and commission costs ( 6,921 ) ( 7,209 ) Right-of-use assets ( 12,014 ) ( 13,242 ) Total gross deferred tax liabilities ( 25,061 ) ( 27,357 ) Net deferred income tax liabilities $ ( 1,282 ) $ ( 561 ) |
Summary of Changes in Valuation Allowance | The following table presents a summary of the changes in the valuation allowance: Year Ended December 31, Deferred tax valuation allowance 2023 2022 Beginning of period $ 156,422 $ 134,062 Additions 9,573 24,874 Deductions ( 144 ) ( 2,514 ) End of period $ 165,851 $ 156,422 |
Summary of Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows for the periods presented: Year Ended December 31, Unrecognized Tax Benefits 2023 2022 2021 Beginning of period $ 449 $ - $ - Additions based on tax positions related to the current year - 104 - Additions for tax positions in prior years - 345 - Reductions for tax positions of prior years ( 449 ) - - Reductions for tax positions due to lapse of statute - - - Settlements - - - End of period $ - $ 449 $ - |
Formation and Business of the_2
Formation and Business of the Company - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 Segment Unit | Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Preferred stock converted into shares of common stock | 4 | |
Number of reportable segments | Segment | 1 | |
Number of reporting units | Unit | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2023 | Jan. 01, 2022 USD ($) | |
Schedule Of Accounting Policies [Line Items] | |||||||
Number of reportable segments | Segment | 1 | ||||||
Customer funds held in trust accounts | $ 6,269 | $ 135,058 | $ 6,269 | $ 135,058 | |||
Restructuring charges | 1,880 | 1,526 | |||||
Advertising and marketing costs | 8,606 | 8,310 | $ 5,964 | ||||
Defined contribution plan, employer contribution amount net of forfeitures | 5,025 | 4,817 | $ 3,855 | ||||
Deferred compensation plan assets | 1,866 | 1,611 | 1,866 | 1,611 | |||
Deferred compensation plan liabilities | 2,398 | 1,803 | 2,398 | 1,803 | |||
Accumulated deficit | $ (1,022,160) | $ (974,835) | $ (1,022,160) | $ (974,835) | |||
ASU No. 2016-13 | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Change in accounting principle, ASU, adopted [true false] | true | ||||||
Change in accounting principle, ASU, Adoption date | Jan. 01, 2022 | ||||||
ASU No. 2016-13 | Cumulative Effect Adjustment | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Accumulated deficit | $ (1,000) | ||||||
ASU No. 2016-09 | Cumulative Effect Adjustment | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Accumulated deficit | $ 629 | ||||||
ASU No. 2021-08 | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Change in accounting principle, ASU, adopted [true false] | true | ||||||
Change in accounting principle, ASU, Adoption date | Jan. 01, 2023 | ||||||
Change in accounting principle, ASU, Immaterial effect [true false] | true | true | |||||
Matching Contribution for First 3 Percent of Compensation | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Defined contribution plan, employer matching contribution, percent of match | 100% | ||||||
Matching Contribution for Next 2 Percent of Compensation | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Defined contribution plan, employer matching contribution, percent of match | 50% | ||||||
Internally Developed Software | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Estimated useful life | 3 years | 3 years | 3 years | 3 years | |||
Minimum | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Property and equipment estimated useful lives | 3 years | 3 years | |||||
Maximum | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Property and equipment estimated useful lives | 7 years | 7 years | |||||
Maximum | Buildings | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Property and equipment estimated useful lives | 35 years | 35 years | |||||
Total Revenues | Customer Concentration Risk | One Service Provider | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 30% | 29% | |||||
Total Revenues | Customer Concentration Risk | Two Service Providers | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 15% | 24% | 47% | ||||
Accounts Receivable | Customer Concentration Risk | One Service Provider | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 38% | 29% | |||||
Accounts Receivable | Customer Concentration Risk | Two Service Providers | |||||||
Schedule Of Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 12% | 28% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Payment Service Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Outstanding Transaction Liabilities | $ 1,568,280 | $ 1,242,155 |
Other unregulated settlements | 10,376 | 41,669 |
Total payment service obligations | $ 1,578,656 | $ 1,283,824 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Capitalized Contract Cost, Amortization Method | straight-line basis | ||
Contract acquisition and fulfillment costs, amortization period | 5 years | ||
Payment | |||
Disaggregation of Revenue [Line Items] | |||
Interest from float off of restricted cash | $ 40,603 | $ 10,992 | $ 3,553 |
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Revenue remaining performance obligation contractual term | 5 years | ||
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Revenue remaining performance obligation contractual term | 2 years | ||
Create-a-Check, Avid for NetSuite and TimberScan Customers | |||
Disaggregation of Revenue [Line Items] | |||
Software revenue service period | 12 months | ||
ASCEND Customers | |||
Disaggregation of Revenue [Line Items] | |||
Software revenue service period | 60 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Revenues Disaggregated by Type of Services Performed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenues | $ 380,720 | $ 316,350 | $ 248,409 |
Software | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 112,184 | 99,541 | 87,885 |
Payment | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 265,112 | 213,842 | 157,930 |
Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | $ 3,424 | $ 2,967 | $ 2,594 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Information on Accounts Receivable and Contract Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Trade accounts receivable, net | $ 16,261 | $ 14,152 |
Payment processing receivable, net | 30,428 | 25,516 |
Accounts receivable, net | 46,689 | 39,668 |
Contract liabilities | $ 27,593 | $ 29,550 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Significant Changes in Contract Liabilities Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized included in beginning of period balance | $ (9,729) | $ (7,849) |
Cash received, excluding amounts recognized as revenue during the period | $ 7,772 | $ 7,519 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable Allowance for Credit Losses | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Allowance balance, Beginning Balance | $ 1,539 | $ 442 | $ 278 |
Adjustment to allowance on adoption of ASU 2016-13 | 400 | ||
Amounts charged to contra revenue, cost of revenues and expenses | 1,308 | 837 | 379 |
Amounts written off as uncollectable | (705) | (140) | (215) |
Allowance balance, Ending Balance | 2,142 | 1,539 | 442 |
Accounts Receivable Allowance For Returns | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Allowance balance, Beginning Balance | 1,584 | 1,841 | 1,491 |
Amounts charged to contra revenue, cost of revenues and expenses | 598 | 93 | 350 |
Deduction released to revenue | (93) | (350) | |
Allowance balance, Ending Balance | 2,089 | 1,584 | 1,841 |
Supplier Advances Receivable Allowance | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Allowance balance, Beginning Balance | 1,872 | 1,105 | 1,099 |
Adjustment to allowance on adoption of ASU 2016-13 | 600 | ||
Amounts charged to contra revenue, cost of revenues and expenses | 538 | 2,550 | 1,400 |
Amounts written off as uncollectable | (2,237) | (3,524) | (1,757) |
Recoveries of amounts previously written off | 1,160 | 1,141 | 363 |
Allowance balance, Ending Balance | $ 1,333 | $ 1,872 | $ 1,105 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Schedule of Remaining Performance Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Current | $ 15,031 | $ 15,143 |
Noncurrent | 20,403 | 22,546 |
Total | $ 35,434 | $ 37,689 |
Revenue from Contracts with C_9
Revenue from Contracts with Customers - Information about Deferred Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Contract Cost [Line Items] | |||
Capitalized sales commissions and implementation costs | $ 11,748 | $ 11,906 | $ 14,656 |
Costs to Obtain Contracts | Sales and Marketing Expense | |||
Capitalized Contract Cost [Line Items] | |||
Amortization of deferred contract costs | 6,101 | 5,658 | 4,987 |
Costs to Fulfill Contracts | Cost of Revenues | |||
Capitalized Contract Cost [Line Items] | |||
Amortization of deferred contract costs | $ 6,268 | $ 6,240 | $ 5,517 |
Business Combination - Addition
Business Combination - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jul. 24, 2021 | Jul. 08, 2021 | Jul. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 15, 2021 | |
Business Acquisition [Line Items] | |||||||
Business combination, potential additional payments | $ 0 | ||||||
Contingent consideration | $ 70,000 | ||||||
Contingent consideration liability amount settled | 688,000 | ||||||
Cash payment | $ 344,000 | ||||||
Issuance of common stock for settlement of contingent consideration, Shares | 20,564 | ||||||
Payments earned related to performance targets | $ 0 | $ 0 | |||||
IPO | |||||||
Business Acquisition [Line Items] | |||||||
Public offering price | $ 25 | ||||||
Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Issuance of common stock for settlement of contingent consideration, Shares | 20,564 | ||||||
FastPay | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, consideration paid | $ 77,089,000 | ||||||
Business combination, cash payment | 46,089,000 | ||||||
Business combination, value of shares issued | 31,000,000 | ||||||
Business combination, potential additional payments | 9,000,000 | ||||||
Contingent consideration | 1,880,000 | ||||||
Deferred payment obligations | 792,000 | ||||||
Business combination, contingent consideration payment | $ 1,000,000 | ||||||
Business combination, contingent consideration, cash payment | 500,000 | ||||||
Business combination, contingent consideration, value of shares issued | $ 500,000 | ||||||
Common stock shares issued in call option transaction, value | 4,118,000 | ||||||
Reduction to additional paid-in capital | 4,118,000 | ||||||
Preliminary working capital | $ 126,000 | ||||||
Deferred tax liability | $ 4,807,000 | $ 4,807,000 | |||||
FastPay | Acquired Technology | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles assets, weighted average useful life | 12 years | ||||||
FastPay | IPO | |||||||
Business Acquisition [Line Items] | |||||||
Public offering price | $ 25 | ||||||
FastPay | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, shares issued | 1,239,973 | 1,239,973 | |||||
Business combination, contingent consideration, shares issued | 19,998 | 19,998 |
Business Combination - Summary
Business Combination - Summary of Preliminary Purchase Price Allocated to Assets Acquired and Liabilities Assumed Based on their Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 08, 2021 |
Consideration transferred | ||||
Contingent consideration | $ 70 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | $ 165,921 | $ 165,921 | $ 165,921 | |
FastPay | ||||
Consideration transferred | ||||
Closing cash consideration, net of cash acquired | $ 46,089 | |||
Common stock consideration | 31,000 | |||
Contingent consideration | 1,880 | |||
Deferred payment obligation | 792 | |||
Call option | (4,118) | |||
Fair value of total consideration transferred | 75,643 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Current assets | 2,115 | |||
Property and equipment | 118 | |||
Operating lease right-of-use assets | 561 | |||
Other noncurrent assets and deposits | 90 | |||
Goodwill | 60,225 | |||
Total identifiable assets acquired | 99,709 | |||
Accounts payable | 3,241 | |||
Accrued expenses | 15,457 | |||
Lease liabilities | 561 | |||
Deferred tax liability | $ 4,807 | 4,807 | ||
Total liabilities assumed | 24,066 | |||
Purchase price paid, net of cash acquired | 75,643 | |||
FastPay | Customer Relationships | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Intangible assets | 18,000 | |||
FastPay | Acquired Technology | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Intangible assets | 14,000 | |||
FastPay | Trade Name | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Intangible assets | 2,500 | |||
FastPay | Non-compete Agreements | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Intangible assets | $ 2,100 |
Loss Per Common Share - Summary
Loss Per Common Share - Summary of Common Share Equivalent Securities Excluded from the Calculation Weighted Average Common (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents | 17,167,039 | 15,076,778 | 8,777,987 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents | 8,175,088 | 7,131,150 | 5,301,146 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents | 8,919,024 | 7,877,598 | 3,476,841 |
Employee Stock Purchase Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents | 72,927 | 68,030 |
Loss Per Common Share - Summa_2
Loss Per Common Share - Summary of Basic and Diluted Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (47,325) | $ (101,284) | $ (199,649) |
Deemed dividend on preferred stock | (9,500) | ||
Accretion of convertible preferred stock | (15,141) | ||
Net loss attributable to common stockholders | $ (47,325) | $ (101,284) | $ (224,290) |
Weighted-average common shares outstanding, basic | 201,887,669 | 198,045,805 | 85,061,417 |
Weighted-average common shares outstanding, diluted | 201,887,669 | 198,045,805 | 85,061,417 |
Net loss per common share, basic | $ (0.23) | $ (0.51) | $ (2.64) |
Net loss per common share, diluted | $ (0.23) | $ (0.51) | $ (2.64) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 228,581 | $ 148,760 |
Total liabilities | 2,398 | 1,803 |
Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 2,398 | 1,803 |
Money Market Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 226,715 | 147,149 |
Rabbi trust-owned life insurance policies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,866 | 1,611 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 226,715 | 147,149 |
Level 1 | Money Market Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 226,715 | 147,149 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,866 | 1,611 |
Total liabilities | 2,398 | 1,803 |
Level 2 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 2,398 | 1,803 |
Level 2 | Rabbi trust-owned life insurance policies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 1,866 | $ 1,611 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Maximum | |
Marketable Securities [Line Items] | |
Marketable securities, contractual maturity period | 1 year |
Marketable Securities - Schedul
Marketable Securities - Schedule of Information about Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Marketable Securities, Amortized Cost | $ 44,645 | $ 110,986 |
Marketable Securities, Net Amortized Cost | 44,645 | 110,986 |
Marketable Securities, Gross unrealized gains | 13 | |
Marketable Securities, Gross unrealized losses | (14) | (35) |
Marketable Securities, Fair Value | 44,631 | 110,964 |
Financial | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 44,645 | 80,831 |
Marketable Securities, Net Amortized Cost | 44,645 | 80,831 |
Marketable Securities, Gross unrealized gains | 8 | |
Marketable Securities, Gross unrealized losses | (14) | (32) |
Marketable Securities, Fair Value | $ 44,631 | 80,807 |
Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 15,071 | |
Marketable Securities, Net Amortized Cost | 15,071 | |
Marketable Securities, Gross unrealized gains | 5 | |
Marketable Securities, Fair Value | 15,076 | |
Industrial | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 15,084 | |
Marketable Securities, Net Amortized Cost | 15,084 | |
Marketable Securities, Gross unrealized losses | (3) | |
Marketable Securities, Fair Value | $ 15,081 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Investments in Unrealized Loss Position and for which an Other-than-Temporary Impairment has not been Recognized in Earnings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position [Abstract] | ||
Aggregate fair value of investments with unrealized losses | $ 33,578 | $ 59,595 |
Aggregate amount of unrealized losses | $ (14) | $ (35) |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 145,554 | $ 142,976 |
Less: Accumulated depreciation and amortization | (44,569) | (39,084) |
Total property and equipment, net of accumulated depreciation and amortization | $ 100,985 | 103,892 |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 3 years | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 7 years | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life | |
Property and equipment, gross | $ 37,364 | 37,364 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 5 years | |
Property and equipment, gross | $ 2,799 | 2,125 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 5 years | |
Property and equipment, gross | $ 19,473 | 18,401 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 3 years | |
Property and equipment, gross | $ 4,070 | 3,254 |
Furniture | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 7 years | |
Property and equipment, gross | $ 7,388 | 7,388 |
Headquarters Facilities | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 67,384 | 67,384 |
Headquarters Facilities | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 25 years | |
Headquarters Facilities | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 35 years | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember | |
Property and equipment, gross | $ 7,076 | $ 7,060 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $ 35,912 | $ 32,842 | $ 30,738 |
Accelerated depreciation on leasehold improvements | 77 | ||
Property and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | 5,917 | 6,081 | 6,633 |
Finance Leases | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $ 1,976 | $ 2,469 | $ 3,352 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Summary of Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Capitalized Computer Software, Net [Roll Forward] | |||
Capitalized | $ 16,054 | $ 17,890 | $ 16,931 |
Amortized | $ 15,500 | $ 12,186 | $ 11,249 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Details) $ in Thousands | Jan. 14, 2022 USD ($) AnnualPayment | Dec. 31, 2023 | Dec. 31, 2022 |
Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of acquired assets | 4 years | 4 years | |
PayClearly | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cash consideration paid | $ 7,000 | ||
Transaction costs incurred | 165 | ||
Business combination, aggregate payments for consideration | $ 400 | ||
Business combination, number of annual payments | AnnualPayment | 4 | ||
Consideration paid for each annual period | $ 100 | ||
Business combination, consideration paid | 7,165 | ||
PayClearly | Customer Lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Business combination, consideration paid | 3,071 | ||
PayClearly | Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Business combination, consideration paid | $ 4,094 | ||
PayClearly | Customer List and Non-compete Agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of acquired assets | 5 years |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 233,716 | $ 218,168 |
Accumulated Amortization | (148,911) | (119,419) |
Net Amount | $ 84,805 | $ 98,749 |
Internally Developed Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 3 years | 3 years |
Gross Amount | $ 101,471 | $ 85,923 |
Accumulated Amortization | (74,655) | (59,661) |
Net Amount | $ 26,816 | $ 26,262 |
Non-compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 4 years | 4 years |
Gross Amount | $ 6,194 | $ 6,194 |
Accumulated Amortization | (3,738) | (2,079) |
Net Amount | $ 2,456 | $ 4,115 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 9 years | 9 years |
Gross Amount | $ 72,512 | $ 72,512 |
Accumulated Amortization | (37,601) | (29,327) |
Net Amount | $ 34,911 | $ 43,185 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 7 years | 7 years |
Gross Amount | $ 45,791 | $ 45,791 |
Accumulated Amortization | (30,178) | (26,314) |
Net Amount | $ 15,613 | $ 19,477 |
Trade Name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 10 years | 10 years |
Gross Amount | $ 7,748 | $ 7,748 |
Accumulated Amortization | (2,739) | (2,038) |
Net Amount | $ 5,009 | $ 5,710 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Total Amortization Expense Associated with Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Total amortization expense associated with identifiable intangible assets | $ 29,995 | $ 26,761 | $ 24,105 |
Intangible Assets and Goodwil_6
Intangible Assets and Goodwill - Estimated Future Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 27,908 | |
2025 | 20,126 | |
2026 | 12,877 | |
2027 | 4,317 | |
2028 | 4,046 | |
Thereafter | 15,531 | |
Net Amount | $ 84,805 | $ 98,749 |
Intangible Assets and Goodwil_7
Intangible Assets and Goodwill - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill [Roll Forward] | ||
Beginning balance | $ 165,921 | $ 165,921 |
Ending balance | $ 165,921 | $ 165,921 |
Intangible Assets and Goodwil_8
Intangible Assets and Goodwill - Impairment and Write-off of Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment and write-off of intangible assets | $ 1,412 |
Internally Developed Software | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment and write-off of intangible assets | $ 1,412 |
Leases and Leasing Commitment_2
Leases and Leasing Commitments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets obtained in exchange for new operating lease obligations | $ 362 | $ 2,831 | $ 877 |
General and Administrative | |||
Lessee, Lease, Description [Line Items] | |||
Impairment losses and write-offs on leasehold improvements | $ 2,700 |
Leases and Leasing Commitment_3
Leases and Leasing Commitments - Schedule of Supplemental Cash Flow Information Related to Operating and Finance Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Financing cash flows for finance leases | $ 521 | $ 844 | $ 1,139 |
Operating cash flows for finance leases | 5,857 | 5,774 | 7,384 |
Operating cash flows for operating leases | 2,231 | 2,011 | 1,781 |
Right of use assets obtained in exchange for new lease obligations: | |||
Finance lease liabilities | 81 | 712 | 174 |
Operating lease liabilities | $ 362 | $ 2,831 | $ 877 |
Leases and Leasing Commitment_4
Leases and Leasing Commitments - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease cost | |||
Amortization of right-of-use assets | $ 1,976 | $ 2,469 | $ 3,352 |
Interest on lease liabilities | 6,584 | 6,535 | 8,272 |
Operating lease expense | 1,709 | 1,786 | 1,241 |
Short-term lease cost | 658 | 332 | |
Variable lease cost | 260 | 186 | 286 |
Sublease income | (145) | ||
Total lease cost | $ 10,529 | $ 11,634 | $ 13,338 |
Leases and Leasing Commitment_5
Leases and Leasing Commitments - Schedule of Gross Finance Lease ROU Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Finance lease ROU assets | $ 74,634 | $ 74,986 |
Finance lease, right-of-use asset, statement of financial position [extensible enumeration] | Property and equipment, net | Property and equipment, net |
Leases and Leasing Commitment_6
Leases and Leasing Commitments - Summary of Other Information Related to Leases (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average remaining lease term | |||
Corporate offices operating leases | 4 years | 5 years | 4 years |
Weighted average discount rate | |||
Corporate offices operating leases | 11.20% | 11.40% | 10.60% |
Corporate Offices | |||
Weighted average remaining lease term | |||
Finance leases | 28 years | 29 years | 30 years |
Weighted average discount rate | |||
Finance leases | 10.50% | 10.50% | 10.60% |
IT Equipment | |||
Weighted average remaining lease term | |||
Finance leases | 1 year | 2 years | 1 year |
Weighted average discount rate | |||
Finance leases | 8% | 7.40% | 6.50% |
Leases and Leasing Commitment_7
Leases and Leasing Commitments - Schedule of Maturities of Lease Liabilities Under Non-cancelable Operating and Finance Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 1,995 |
2025 | 1,613 |
2026 | 811 |
2027 | 658 |
2028 | 606 |
Thereafter | 309 |
Total minimum lease payments | 5,992 |
Less: Imputed interest | (1,192) |
Net lease obligation | 4,800 |
Financing Leases | |
2024 | 6,216 |
2025 | 6,139 |
2026 | 6,174 |
2027 | 6,264 |
2028 | 6,376 |
Thereafter | 190,977 |
Total minimum lease payments | 222,146 |
Less: Imputed interest | (159,407) |
Net lease obligation | $ 62,739 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total principal due | $ 77,275 | $ 83,700 |
Current portion of term loan and promissory notes | (6,425) | (6,425) |
Unamortized portion of debt issuance costs | (1,090) | (1,363) |
Long term debt | 69,760 | 75,912 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Total principal due | 63,375 | 65,000 |
Promissory Note Payable for Land Acquisition | ||
Debt Instrument [Line Items] | ||
Total principal due | $ 13,900 | $ 18,700 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 29, 2022 USD ($) | Oct. 01, 2019 | Nov. 15, 2018 USD ($) LandParcels | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Letter of credit, Amount | $ 0 | |||||||
Deferred financing costs | $ 1,363,000 | 1,090,000 | $ 1,363,000 | |||||
Amortization of deferred financing costs | 431,000 | $ 1,357,000 | $ 1,357,000 | |||||
2022 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 95,000,000 | $ 30,000,000 | $ 95,000,000 | |||||
Covenant description | The 2022 Credit Agreement also contains three financial covenants, measured on a consolidated basis. First, there must be liquidity (which is defined as availability under the 2022 Revolver, plus unrestricted cash) that is more than the greater of (1) $35,000, and (2) 35% of the Total Commitment Amount (as defined in the 2022 Credit Agreement). Second, as of the end of each quarter, total revenue on a trailing four-quarter basis must be greater than the requirements set forth in the 2022 Credit Agreement. Third, for each period of four consecutive quarters ending on December 31, 2024, and at the end of each fiscal quarter thereafter, Consolidated EBITDA (as defined in the 2022 Credit Agreement) must not be less than $10,000. The Company was in compliance with its financial debt covenants as of December 31, 2023. | |||||||
Minimum liquidity amount | $ 35,000,000 | |||||||
Percentage of the total commitment amount | 35% | |||||||
Minimum consolidated EBITDA | $ 10,000,000 | |||||||
Debt instrument, covenant compliance | The Company was in compliance with its financial debt covenants as of December 31, 2023. | |||||||
Term loan facility by an aggregate amount | $ 50,000,000 | |||||||
Deferred financing costs | $ 1,363,000 | |||||||
Debt instrument, Term | 5 years | 5 years | ||||||
2022 Credit Agreement | Daily Simple SOFR and Term SOFR Loans | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||
2022 Credit Agreement | Daily Simple SOFR and Term SOFR Loans | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 3% | |||||||
2022 Credit Agreement | SOFR | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1% | |||||||
Debt instrument, term SOFR plus | one-month | |||||||
2022 Credit Agreement | SOFR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 0.10% | |||||||
2022 Credit Agreement | SOFR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 0.25% | |||||||
2022 Credit Agreement | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||
2022 Credit Agreement | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||
2022 Credit Agreement | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2% | |||||||
2022 Credit Agreement | Daily Simple SOFR, Term SOFR and Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||
2019 Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Deferred financing costs | 1,579,000 | |||||||
2022 Revolver or 2022 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, minimum increment amount | 70,000,000 | 50,000,000 | ||||||
2022 Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | 30,000,000 | ||||||
Credit available | $ 20,000,000 | |||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.30% | |||||||
Letter of credit, Amount | $ 0 | |||||||
Line of credit facility, maturity date | Dec. 29, 2027 | |||||||
Line of credit facility, outstanding amount | $ 0 | 0 | ||||||
Debt instrument, Term | 5 years | |||||||
2022 Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 65,000,000 | |||||||
Amortization rate of the principal amount for the first two years | 2.50% | |||||||
Amortization rate of the principal amount for the last three years | 5% | |||||||
Line of credit facility, maturity date | Dec. 29, 2027 | |||||||
Debt instrument, Term | 5 years | |||||||
Effective interest rate | 8.25% | |||||||
Other Noncurrent Assets and Deposits | ||||||||
Debt Instrument [Line Items] | ||||||||
Deferred financing costs | $ 604,000 | $ 385,000 | ||||||
Promissory Note | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.75% | 6.75% | 6.75% | |||||
Number of land parcels purchased | LandParcels | 2 | |||||||
Debt instrument, principal amount | $ 5,000,000 | $ 21,500,000 | $ 21,500,000 | |||||
Debt instrument, periodic payment, principal | $ 1,000,000 | $ 4,300,000 | ||||||
Debt instrument, maturity date | Nov. 15, 2023 | May 15, 2026 | ||||||
Debt instrument, starting date on maturity | Dec. 01, 2022 | |||||||
Debt instrument, periodic payment | $ 4,300,000 | |||||||
Debt instrument, annual principal payment | $ 500,000 | $ 500,000 | ||||||
Promissory note extended term date | Nov. 15, 2025 |
Long-Term Debt - Schedule of Ag
Long-Term Debt - Schedule of Aggregate Future Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 6,425 |
2025 | 8,050 |
2026 | 7,550 |
2027 | 55,250 |
Total | $ 77,275 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - USD ($) $ in Thousands | Oct. 15, 2021 | Dec. 31, 2023 | Dec. 31, 2022 |
Temporary Equity [Line Items] | |||
Number of common shares issuable for convertible preferred stock conversion | 111,142,439 | ||
Preferred stock, redemption amount | $ 169,000 | ||
Number of shares issued for convertible common stock | 1,455,306 | ||
Preferred stock, shares outstanding | 0 | 0 |
Stockholders' Equity and Conv_3
Stockholders' Equity and Convertible Common Stock Liability - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Nov. 13, 2023 | Oct. 28, 2022 | Nov. 18, 2021 | Oct. 15, 2021 | Oct. 01, 2021 | Jul. 24, 2021 | Jul. 08, 2021 | Jun. 24, 2021 | Jul. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||||||||||||||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Common stock, shares authorized | 1,600,000,000 | 1,600,000,000 | 1,600,000,000 | 1,600,000,000 | 1,600,000,000 | |||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||
Preferred stock par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Net proceeds from issuance of common stock | $ 1,570 | $ 1,448 | $ 2,820 | |||||||||||||
Warrants outstanding | 797,652 | |||||||||||||||
Common stock, shares, outstanding | 204,084,024 | 199,433,998 | 204,084,024 | 199,433,998 | ||||||||||||
Number of shares issued for convertible common stock | 1,455,306 | |||||||||||||||
Common stock reserved for future issuance | 44,745,518 | 44,745,518 | ||||||||||||||
Stock based compensation expense | $ 40,024 | $ 31,011 | 21,428 | |||||||||||||
General and Administrative | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Stock based compensation expense | $ 19,796 | $ 13,845 | $ 9,873 | |||||||||||||
IPO | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of shares sold | 26,400,000 | |||||||||||||||
Net proceeds from issuance of common stock | $ 620,400 | |||||||||||||||
Public offering price | $ 25 | |||||||||||||||
Stock offering costs | $ 39,000 | |||||||||||||||
Additional stock offering costs | 11,825 | |||||||||||||||
Stock offering costs, direct and incremental | $ 5,225 | |||||||||||||||
Overallotment Option | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of shares sold | 544,928 | |||||||||||||||
Net proceeds from issuance of common stock | $ 12,806 | |||||||||||||||
Public offering price | $ 25 | |||||||||||||||
Stock offering costs | $ 817 | |||||||||||||||
Donor Advised Fund | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Percentage of issued and outstanding shares reserved | 1% | |||||||||||||||
Philanthropic Partner | Donor Advised Fund | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock reserved for future issuance | 1,657,296 | |||||||||||||||
Vesting period | 10 years | 10 years | ||||||||||||||
Percentage of annual ongoing grants of pledged shares | 10% | |||||||||||||||
Philanthropic Partner | Donor Advised Fund | First Anniversary | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Shares issuances of common stock | 165,729 | 165,729 | 165,729 | |||||||||||||
Philanthropic Partner | Donor Advised Fund | First Anniversary | General and Administrative | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Stock based compensation expense | $ 1,667 | $ 1,473 | $ 4,143 | |||||||||||||
FastPay | IPO | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Public offering price | $ 25 | |||||||||||||||
Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Warrants converted into number of common stock shares | 740,190 | |||||||||||||||
Common stock, shares, outstanding | 204,084,024 | 199,433,998 | 196,804,844 | 204,084,024 | 199,433,998 | 196,804,844 | 50,054,880 | |||||||||
Common stock shares issued upon conversion of convertible securities | 1,455,306 | 111,142,439 | ||||||||||||||
Common Stock | FastPay | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Business combination, shares issued | 1,239,973 | 1,239,973 | ||||||||||||||
Business combination, contingent consideration, shares issued | 19,998 | 19,998 | ||||||||||||||
Business combination return and cancellation of previously issued shares | 1,310,777 | |||||||||||||||
Business combination return and cancellation of contingent consideration shares | 20,806 | |||||||||||||||
Convertible Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock, shares, outstanding | 0 | |||||||||||||||
Convertible common stock liability period | 15 years | |||||||||||||||
Conversion base price per common share | $ 11.94 |
Stockholders' Equity and Conv_4
Stockholders' Equity and Convertible Common Stock Liability - Schedule of Common Stock Reserved for Future Issuance (Details) | Dec. 31, 2023 shares |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 44,745,518 |
Employee Stock Option | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 8,175,088 |
Restricted Stock Units | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 8,919,024 |
Available for Future Issuance under Stock Award Plans | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 21,576,067 |
Available for Future Issuance under Employee Stock Purchase Plan | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 6,075,339 |
Stockholders' Equity and Conv_5
Stockholders' Equity and Convertible Common Stock Liability - Changes in Fair Value of Derivative Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |
Fair value, beginning of period | $ 10,254 |
Change in fair value | 26,128 |
Redeemed | $ (36,382) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Jan. 01, 2022 | Oct. 15, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
New awards granted under prior plans | 0 | ||||
Common stock reserved for future issuance | 44,745,518 | ||||
Stock based compensation expense | $ 40,024,000 | $ 31,011,000 | $ 21,428,000 | ||
Unamortized stock-based compensation expense | $ 12,462,000 | ||||
Weighted-average grant date fair value of options granted | $ 4.55 | $ 3.01 | $ 5.32 | ||
Share-based compensation arrangement fair value of shares vested | $ 6,989,000 | $ 6,371,000 | $ 2,598,000 | ||
Total cash received from exercises of share options | 1,580,000 | 1,448,000 | 2,820,000 | ||
Total intrinsic value of options exercised | $ 1,874,000 | $ 2,074,000 | $ 9,547,000 | ||
Expected dividend yield | 0% | 0% | 0% | ||
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 8,919,024 | ||||
Vesting period | 1 year | ||||
Unamortized stock-based compensation expense | $ 63,114,000 | ||||
Weighted average amortization period | 2 years 8 months 12 days | ||||
Restricted Stock Units | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Restricted Stock Units | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 8,175,088 | ||||
Weighted average amortization period | 2 years 3 months 18 days | ||||
Stock Options | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Granting period | 5 years | ||||
Stock Options | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Granting period | 10 years | ||||
2021 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized | 26,013,196 | 26,013,196 | |||
Percentage of common stock outstanding | 5% | ||||
Increase in number of shares authorized | 9,971,700 | 18,023,020 | |||
Number of shares allocated but not issued or outstanding awards | 21,576,067 | ||||
2021 Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Increase in number of shares authorized | 18,023,020 | ||||
2021 Plan | Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 7 years | ||||
Stock based compensation expense | $ 0 | ||||
Expiration period | 3 years | ||||
2021 ESPP | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Purchase price expressed as percentage of fair value of common stock | 85% | ||||
Minimum participant purchase common stock value | $ 25,000 | ||||
ESPP | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 2,703,452 | ||||
Percentage of common stock outstanding | 1% | ||||
Increase in number of shares authorized | 1,994,340 | 6,075,339 | |||
Stock based compensation expense | $ 832,000 | $ 827,000 | |||
ESPP | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Increase in number of shares authorized | 2,703,452 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of Stock Options Outstanding, Beginning balance | 7,131,150 | |
Number of Stock Options, Granted | 1,748,480 | |
Number of Stock Options, Exercised | (350,081) | |
Number of Stock Options, Cancelled | (319,451) | |
Number of Stock Options, Expired | (35,010) | |
Number of Stock Options Outstanding, Ending balance | 8,175,088 | 7,131,150 |
Number of Stock Options, Vested and exercisable | 4,618,922 | |
Number of Stock Options, Vested and expected to vest | 8,175,088 | |
Weighted Average Exercise Price, Beginning balance | $ 8.37 | |
Weighted Average Exercise Price, Granted | 9 | |
Weighted Average Exercise Price, Exercised | 4.48 | |
Weighted Average Exercise Price, Cancelled | 9.23 | |
Weighted Average Exercise Price, Expired | 7.11 | |
Weighted Average Exercise Price, Ending balance | 8.64 | $ 8.37 |
Weighted Average Exercise Price, Vested and exercisable | 8.16 | |
Weighted Average Exercise Price, Vested and expected to vest | $ 8.64 | |
Weighted Average Remaining Contractual Life | 7 years 2 months 19 days | 7 years 7 months 9 days |
Weighted Average Remaining Contractual Life, Vested and exercisable | 6 years 3 months 18 days | |
Weighted Average Remaining Contractual Life, Vested and expected to vest | 7 years 2 months 19 days | |
Aggregate Intrinsic Value | $ 31,135 | $ 16,849 |
Aggregate Intrinsic Value, Vested and exercisable | 19,846 | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 31,135 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Awards Granted is Estimated Date of Grant Using the Black-Scholes Option-Pricing (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected dividend yield | 0% | 0% | 0% |
Expected volatility, minimum | 45.70% | 46.06% | 43.59% |
Expected volatility, maximum | 59.32% | 59.60% | 45.24% |
Risk-free interest rate, minimum | 4.42% | 2.15% | 0.62% |
Risk-free interest rate, maximum | 5.31% | 4.04% | 1.13% |
Expected term in years | 4 years 3 months 10 days | 3 years 11 months 12 days | 5 years 11 months 23 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSUs Activity (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Stock, Beginning balance | shares | 7,877,598 |
Number of Restricted Stock, Granted | shares | 5,845,087 |
Number of Restricted Stock, Released | shares | (3,768,068) |
Number of Restricted Stock, Cancelled | shares | (1,035,593) |
Number of Restricted Stock Outstanding, Ending balance | shares | 8,919,024 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 9.07 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 9 |
Weighted Average Grant Date Fair Value, Released | $ / shares | 9.21 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 8.66 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 8.98 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 40,024 | $ 31,011 | $ 21,428 |
Cost of Revenues | |||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 4,530 | 3,963 | 2,775 |
Sales and Marketing | |||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 4,806 | 4,623 | 4,105 |
Research and Development | |||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 10,892 | 8,580 | 4,675 |
General and Administrative | |||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 19,796 | $ 13,845 | $ 9,873 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments and Contingencies [Line Items] | |
Letters of credit outstanding | $ 0 |
Loss contingency additional accrual amount | 0 |
Loss contingency accrual related to commercial dispute | $ 1,400,000 |
Cybersecurity Incident | |
Commitments and Contingencies [Line Items] | |
Loss contingency, period of occurrence description | In early April 2023, the Company detected a cybersecurity incident as part of its routine security monitoring protocols. |
Cybersecurity expenses | $ 5,433,000 |
Loss contingency, liability recorded | 0 |
Reduction of general and administrative expense | $ 1,735,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - FT Partners $ in Thousands | Feb. 19, 2021 USD ($) shares |
Related Party Transaction [Line Items] | |
Payment made to related parties | $ | $ 50,000 |
Subscribed to purchase shares of common stock | shares | 4,080,636 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision | |||
State | $ 473 | $ 105 | $ 68 |
Current provision | 473 | 105 | 68 |
Deferred provision | |||
Federal | 177 | 177 | (4,015) |
State | 545 | 39 | (713) |
Deferred provision | 722 | 216 | (4,728) |
Provision for (benefit from) income taxes | $ 1,195 | $ 321 | $ (4,660) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Federal statutory rate applicable to pre-tax loss | 21% | |
Increase in valuation allowance | $ 9,429,000 | |
Uncertain income tax positions | 0 | $ 449,000 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 374,961,000 | 390,410,000 |
Net operating loss carryforwards expiration period | expire in 2020 and will expire at various dates in the future. | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 390,865,000 | $ 384,309,000 |
Net operating loss carryforwards expiration period | expire in 2020 and will expire at various dates in the future. |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation Between Federal Statutory Rate and Effective Income Tax Rate Used to Calculate Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Pre-tax book loss | $ (9,687) | $ (21,202) | $ (42,905) |
State taxes (net of federal benefit) | (1,249) | (4,559) | (7,603) |
Convertible preferred stock mark-to-market adjustment | 5,487 | ||
Section 162(m) limitations | 1,528 | 463 | 14 |
Change in valuation allowance | 8,996 | 22,360 | 33,548 |
Change in deferreds | 1,178 | 2,883 | 4,326 |
Other | 429 | 376 | 2,473 |
Provision for (benefit from) income taxes | $ 1,195 | $ 321 | $ (4,660) |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Accrued expenses | $ 4,680 | $ 5,148 | |
Net operating loss carryforwards | 93,351 | 96,146 | |
Research and development costs | 41,686 | 21,807 | |
Stock-based compensation | 4,027 | 4,290 | |
Deferred revenue | 6,887 | 7,354 | |
Interest limitation | 1,896 | 9,099 | |
Agreement with VCC vendor | 1,367 | 3,323 | |
Lease liability | 16,751 | 16,836 | |
Contract amendment | 11,154 | 11,835 | |
Property and equipment | 3,083 | 2,355 | |
Other | 4,748 | 5,025 | |
Total gross deferred tax assets | 189,630 | 183,218 | |
Less: Valuation allowance | (165,851) | (156,422) | $ (134,062) |
Net deferred tax assets | 23,779 | 26,796 | |
Liabilities | |||
Intangible assets | (5,789) | (6,436) | |
Method change adjustments | (337) | (470) | |
ASC 606 set-up and commission costs | (6,921) | (7,209) | |
Right-of-use assets | (12,014) | (13,242) | |
Total gross deferred tax liabilities | (25,061) | (27,357) | |
Net deferred income tax liabilities | $ (1,282) | $ (561) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Beginning of period | $ 156,422 | $ 134,062 |
Additions | 9,573 | 24,874 |
Deductions | (144) | (2,514) |
End of period | $ 165,851 | $ 156,422 |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Beginning of period | $ 449,000 | |
Additions based on tax positions related to the current year | $ 104,000 | |
Additions for tax positions in prior years | 345,000 | |
Reductions for tax positions of prior years | (449,000) | |
End of period | $ 0 | $ 449,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - shares | Jan. 01, 2024 | Dec. 31, 2023 | Oct. 15, 2021 |
Subsequent Event [Line Items] | |||
Common stock reserved for future issuance | 44,745,518 | ||
ESPP | |||
Subsequent Event [Line Items] | |||
Common stock reserved for future issuance | 2,703,452 | ||
Subsequent Event | ESPP | |||
Subsequent Event [Line Items] | |||
Common stock reserved for future issuance | 2,040,840 | ||
Subsequent Event | 2021 Plan | |||
Subsequent Event [Line Items] | |||
Common stock reserved for future issuance | 10,204,201 |