Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly 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, $0.001 par value per share | |
Trading Symbol | AVDX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 206,601,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 343,660 | $ 406,974 |
Restricted funds held for customers | 1,220,459 | 1,578,656 |
Marketable securities | 99,888 | 44,645 |
Accounts receivable, net of allowances of $4,271 and $4,231, respectively | 48,877 | 46,689 |
Supplier advances receivable, net of allowances of $1,291 and $1,333 respectively | 9,967 | 9,744 |
Prepaid expenses and other current assets | 15,322 | 12,070 |
Total current assets | 1,738,173 | 2,098,778 |
Property and equipment, net | 100,114 | 100,985 |
Operating lease right-of-use assets | 1,585 | 1,628 |
Deferred customer origination costs, net | 27,216 | 27,663 |
Goodwill | 165,921 | 165,921 |
Intangible assets, net | 80,852 | 84,805 |
Other noncurrent assets and deposits | 4,642 | 3,957 |
Total assets | 2,118,503 | 2,483,737 |
Current liabilities | ||
Accounts payable | 15,433 | 16,777 |
Accrued expenses | 39,558 | 56,367 |
Payment service obligations | 1,220,459 | 1,578,656 |
Deferred revenue | 12,455 | 12,851 |
Current maturities of lease obligations under finance leases | 251 | 275 |
Current maturities of lease obligations under operating leases | 1,691 | 1,525 |
Current maturities of long-term debt | 6,425 | 6,425 |
Total current liabilities | 1,296,272 | 1,672,876 |
Long-term liabilities | ||
Deferred revenue, less current portion | 13,808 | 14,742 |
Obligations under finance leases, less current maturities | 62,595 | 62,464 |
Obligations under operating leases, less current maturities | 2,909 | 3,275 |
Long-term debt | 69,422 | 69,760 |
Other long-term liabilities | 3,934 | 4,175 |
Total liabilities | 1,448,940 | 1,827,292 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.001 par value; 50,000,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023 | ||
Common stock, $0.001 par value; 1,600,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 206,315,368 and 204,084,024 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 206 | 204 |
Additional paid-in capital | 1,692,526 | 1,678,401 |
Accumulated deficit | (1,023,169) | (1,022,160) |
Total stockholders' equity | 669,563 | 656,445 |
Total liabilities and stockholders' equity | $ 2,118,503 | $ 2,483,737 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 4,271 | $ 4,231 |
Receivable, allowance for credit loss, current | $ 1,291 | $ 1,333 |
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 | 206,315,368 | 204,084,024 |
Common stock, shares, outstanding | 206,315,368 | 204,084,024 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenues | $ 105,598 | $ 86,822 |
Cost of revenues (exclusive of depreciation and amortization expense) | 30,333 | 29,473 |
Operating expenses | ||
Sales and marketing | 19,741 | 20,135 |
Research and development | 25,904 | 23,122 |
General and administrative | 24,260 | 22,627 |
Impairment and write-off of intangible assets | 162 | |
Depreciation and amortization | 9,307 | 8,586 |
Total operating expenses | 79,374 | 74,470 |
Loss from operations | (4,109) | (17,121) |
Other income (expense) | ||
Interest income | 6,562 | 4,516 |
Interest expense | (3,337) | (3,315) |
Other income | 3,225 | 1,201 |
Loss before income taxes | (884) | (15,920) |
Income tax expense | 125 | 70 |
Net loss | $ (1,009) | $ (15,990) |
Net loss per share attributable to common stockholders, basic | $ 0 | $ (0.08) |
Net loss per share attributable to common stockholders, diluted | $ 0 | $ (0.08) |
Weighted average number of common shares used to compute net loss per share attributable to common stockholders, basic | 204,896,718 | 199,900,920 |
Weighted average number of common shares used to compute net loss per share attributable to common stockholders, diluted | 204,896,718 | 199,900,920 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning Balance, Shares at Dec. 31, 2022 | 199,433,998 | |||
Beginning Balance at Dec. 31, 2022 | $ 657,444 | $ 199 | $ 1,632,080 | $ (974,835) |
Exercise of stock options, Shares | 123,168 | |||
Exercise of stock options | 366 | 366 | ||
Issuance of common stock upon vesting of restricted stock units, shares | 1,471,826 | |||
Issuance of common stock upon vesting of restricted stock units | 1 | $ 2 | (1) | |
Stock-based compensation expense | 8,661 | 8,661 | ||
Stock-based compensation expense for Employee Stock Purchase Plan, or ESPP | 270 | 270 | ||
Net loss | (15,990) | (15,990) | ||
Ending Balance, Shares at Mar. 31, 2023 | 201,028,992 | |||
Ending Balance at Mar. 31, 2023 | $ 650,752 | $ 201 | 1,641,376 | (990,825) |
Beginning Balance, Shares at Dec. 31, 2023 | 204,084,024 | 204,084,024 | ||
Beginning Balance at Dec. 31, 2023 | $ 656,445 | $ 204 | 1,678,401 | (1,022,160) |
Exercise of stock options, Shares | 493,608 | 493,608 | ||
Exercise of stock options | $ 3,168 | 3,168 | ||
Issuance of common stock upon vesting of restricted stock units, shares | 1,737,736 | |||
Issuance of common stock upon vesting of restricted stock units | $ 2 | (2) | ||
Stock-based compensation expense | 10,766 | 10,766 | ||
Stock-based compensation expense for Employee Stock Purchase Plan, or ESPP | 193 | 193 | ||
Net loss | $ (1,009) | (1,009) | ||
Ending Balance, Shares at Mar. 31, 2024 | 206,315,368 | 206,315,368 | ||
Ending Balance at Mar. 31, 2024 | $ 669,563 | $ 206 | $ 1,692,526 | $ (1,023,169) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (1,009) | $ (15,990) |
Adjustments to reconcile net loss to net cash used by operating activities | ||
Depreciation and amortization expense | 9,307 | 8,586 |
Amortization of deferred financing costs | 106 | 110 |
Provision for credit losses | 687 | 550 |
Stock-based compensation | 10,959 | 8,931 |
Accrued interest | 433 | 503 |
Impairment and write-off on intangible assets | 162 | |
Accretion of investments held to maturity | (913) | (1,238) |
Deferred income taxes | 89 | 53 |
Changes in operating assets and liabilities | ||
Accounts receivable | (2,442) | (3,702) |
Prepaid expenses and other current assets | (3,252) | (2,556) |
Other noncurrent assets | (725) | 1,205 |
Deferred customer origination costs | 448 | 205 |
Accounts payable | (1,428) | (23) |
Deferred revenue | (1,330) | (261) |
Accrued expenses and other liabilities | (17,288) | (21,887) |
Operating lease liabilities | (156) | (115) |
Total adjustments | (5,343) | (9,639) |
Net cash used in operating activities | (6,352) | (25,629) |
Cash flows from investing activities | ||
Purchase of marketable securities held to maturity | (87,996) | (62,999) |
Proceeds from maturity of marketable securities held to maturity | 33,666 | 111,680 |
Purchases of equipment | (522) | (332) |
Purchases of intangible assets | (4,039) | (3,855) |
Supplier advances, net | (656) | (310) |
Net cash (used in) provided by investing activities | (59,547) | 44,184 |
Cash flows from financing activities | ||
Repayments of long-term debt | (406) | (406) |
Principal payments on finance leases | (77) | (165) |
Proceeds from issuance of common stock | 3,168 | 366 |
Debt issuance costs | (624) | |
Payment of acquisition-related liability | (100) | (100) |
Payment service obligations | (358,197) | (232,652) |
Net cash used in financing activities | (355,612) | (233,581) |
Net decrease in cash, cash equivalents, and restricted funds held for customers | (421,511) | (215,026) |
Cash, cash equivalents, and restricted funds held for customers | ||
Cash, cash equivalents, and restricted funds held for customers, beginning of year | 1,985,630 | 1,634,387 |
Cash, cash equivalents, and restricted funds held for customers, end of period | 1,564,119 | 1,419,361 |
Supplementary information of noncash investing and financing activities | ||
Property and equipment purchases in accounts payable and accrued expenses | 85 | 14 |
Right-of-use assets obtained in exchange for new operating lease obligations | 362 | |
Interest paid on notes payable | 1,330 | 1,255 |
Interest paid on finance leases | 1,468 | $ 1,448 |
Cash paid for income taxes | $ 7 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (1,009) | $ (15,990) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | (c) 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 Todd Cunningham , Chief People Officer, Senior Vice President Adopt March 1, 2024 X 50,000 December 31, 2024 Ryan Stahl , General Counsel and Secretary, Senior Vice President Adopt March 14, 2024 X 62,509 August 30, 2024 * Intended to satisfy the affirmative defense of Rule 10b5-1(c) ** Not intended to satisfy the affirmative defense of Rule 10b5-1(c) |
Todd Cunningham [Member] | |
Trading Arrangements, by Individual | |
Name | Todd Cunningham |
Title | Chief People Officer, Senior Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | March 1, 2024 |
Arrangement Duration | 306 days |
Aggregate Available | 50,000 |
Trd Arr Expiration Date | Dec. 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 | March 14, 2024 |
Arrangement Duration | 170 days |
Aggregate Available | 62,509 |
Trd Arr Expiration Date | Aug. 30, 2024 |
Formation and Business of the C
Formation and Business of the Company | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company 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. AvidXchange provides accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Consolidation and Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial position, results of operations, changes in stockholders’ equity, and cash flows for the periods presented. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any other future annual or interim period. The unaudited consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. All significant intercompany accounts and transactions have been eliminated. There are no items of comprehensive income. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2023 . 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 unaudited consolidated financial statements include, but are not limited to, the allowance for credit losses and returns, 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, and the recoverability of deferred income taxes. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. 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 34 % and 27 % of total revenue for the three months ended March 31, 2024 and 2023, respectively. Accounts receivable from this service provider represented 33 % and 38 % of accounts receivable, net as of March 31, 2024 and December 31, 2023, respectively . Revenue from a second provider represented 12 % and 21 % of total revenue for the three months ended March 31, 2024 and 2023, respectively. Accounts receivable from this second service provider represented 18 % and 12 % of accounts receivable, net as of March 31, 2024 and December 31, 2023, respectively. Future regulation or changes by the card brand payment networks could have a substantial impact on interchange rates and 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. The Company’s revenue from VCC transactions is also impacted by fees charged by service providers to process our VCC transactions. 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 in the fourth quarter of 2023. The Company recorded restructuring costs of $ 1,157 in the three months ended March 31, 2024, and $ 3,037 cumulatively, from one-time severance charges in connection with this plan. Restructuring costs are included in general and administrative expenses in the consolidated statements of operations. 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. Marketable Securities Marketable securities consist of short-term investments in short-term commercial paper, certificates of deposits and various U.S. government backed securities. 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. 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 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. 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 March 31, 2024 As of December 31, 2023 Outstanding Transaction Liabilities $ 1,212,994 $ 1,568,280 Other unregulated settlements 7,465 10,376 Total payment service obligations $ 1,220,459 $ 1,578,656 The Company historically transmitted buyer customer funds using a legacy model pursuant to which buyer customer funds were held in trust accounts that were 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 its 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 all trust-related and similar accounts was approximately $ 13,636 and $ 6,269 as of March 31, 2024 and December 31, 2023, 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. 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 cash bonus, expense is recognized in the period the cash bonus was earned. 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 unaudited 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, $ 2,470 and $ 1,866 were included in other noncurrent assets and $ 2,242 and $ 2,398 were included in noncurrent liabilities as of March 31, 2024 and December 31, 2023 , respectively, on the Company's unaudited consolidated balance sheets. Contingent Liabilities Contingent liabilities require significant judgment in estimating potential losses for legal claims. The Company reviews 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. New Accounting Pronouncements Recently Adopted Accounting Standards 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. The adoption of this guidance on January 1, 2024 did no t have an impact on the Company's consolidated financial statements . Accounting Pronouncements Issued but Not Yet Adopted 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers Disaggregation of Revenue The table below presents the Company’s revenues disaggregated by type of services performed. Three Months Ended March 31, 2024 2023 Software revenue $ 29,688 $ 26,968 Payment revenue 75,202 59,181 Services revenue 708 673 Total revenues $ 105,598 $ 86,822 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, the Company 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 March 31, 2024 As of December 31, 2023 Trade accounts receivable, net $ 17,738 $ 16,261 Payment processing receivable, net 31,139 30,428 Accounts receivable, net $ 48,877 $ 46,689 Contract liabilities $ 26,263 $ 27,593 Significant changes in the contract liabilities balance are as follows: Three Months Ended March 31, 2024 2023 Revenue recognized included in beginning of period balance $ ( 3,473 ) $ ( 3,224 ) Cash received, excluding amounts recognized as revenue during the period 2,143 2,963 The tables below present a summary of changes in the Company’s allowances for credit losses and returns for the three months ended March 31, 2024 and 2023: Accounts Receivable Allowance for Credit Losses Allowance for Returns Supplier Advances Receivable Allowance Allowance balance, December 31, 2023 $ 2,142 $ 2,089 $ 1,333 Amounts charged to contra revenue, cost of revenues and expenses 254 ( 200 ) 86 Amounts written off as uncollectable ( 14 ) - ( 475 ) Recoveries of amounts previously written off - - 347 Deduction released to revenue - - - Allowance balance, March 31, 2024 $ 2,382 $ 1,889 $ 1,291 Accounts Receivable Allowance for Credit Losses Allowance for Returns Supplier Advances Receivable Allowance Allowance balance, December 31, 2022 $ 1,539 $ 1,584 $ 1,872 Amounts charged to contra revenue, cost of revenues and expenses 200 200 - Amounts written off as uncollectable ( 87 ) - ( 648 ) Recoveries of amounts previously written off - - 351 Deduction released to revenue - ( 93 ) - Allowance balance, March 31, 2023 $ 1,652 $ 1,691 $ 1,575 Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to the remaining performance obligations 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 Topic 606, Revenue from Contracts with Customers (“Topic 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 of Topic 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 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 March 31, 2024 $ 15,032 $ 19,797 $ 34,829 As of December 31, 2023 15,031 20,403 35,434 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 in the Company's consolidated statements of operations. The amortization of contract acquisition costs associated with sales commissions that qualify for capitalization is recorded as sales and marketing expense 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: Three Months Ended March 31, 2024 2023 Capitalized sales commissions and implementation costs $ 2,653 $ 2,838 Amortization of deferred contract costs Costs to obtain contracts included in sales and marketing expense $ 1,551 $ 1,474 Costs to fulfill contracts included in cost of revenue $ 1,549 $ 1,569 |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 4. 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: Three Months Ended March 31, Anti-Dilutive Common Share Equivalents 2024 2023 Stock options 7,887,864 8,755,890 Restricted stock units 11,716,174 11,592,608 Employee stock purchase plan 157,676 168,769 Total anti-dilutive common share equivalents 19,761,714 20,517,267 Basic and diluted net loss per common share is calculated as follows: Three Months Ended March 31, 2024 2023 Numerator: Net loss $ ( 1,009 ) $ ( 15,990 ) Net loss attributable to common stockholders $ ( 1,009 ) $ ( 15,990 ) Denominator: Weighted-average common shares outstanding, basic and diluted 204,896,718 199,900,920 Net loss per common share, basic and diluted $ ( 0.00 ) $ ( 0.08 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The Company’s financial instruments consist of cash and cash equivalents, marketable securities, trade and supplier advances receivables, assets of the rabbi trust, AP, deferred compensation liabilities, and debt. The carrying amount of cash, trade and supplier advances receivables, and AP approximate fair value due to the short-term maturity. The estimated fair value of long-term debt is based on borrowing rates currently available to the Company for similar debt issues. The fair value approximates the carrying value of long-term debt. 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 markets 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. 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 March 31, 2024 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 174,254 $ - $ - $ 174,254 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 2,470 - 2,470 Total assets $ 174,254 $ 2,470 $ - $ 176,724 Other long-term liabilities Deferred compensation $ - $ 2,242 $ - 2,242 Total liabilities $ - $ 2,242 $ - $ 2,242 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 ________________ (1 ) Money market funds are classified as cash equivalents in the Company’s unaudited 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 | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 6. Marketable Securities Marketable securities consist of commercial paper, certificates of deposit, and U.S. Treasury and agency debt, and are classified as held-to-maturity. Investments held in marketable securities had contractual maturities of less than nine months as of March 31, 2024 . 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 March 31, 2024 and December 31, 2023 . The following presents information about the Company’s marketable securities: As of March 31, 2024 Sector Amortized Cost Allowance for credit losses Net Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value Financial $ 55,627 $ - $ 55,627 $ - $ ( 56 ) $ 55,571 Government 22,143 - 22,143 - ( 1 ) 22,142 Industrial 22,118 - 22,118 - ( 20 ) 22,098 Total $ 99,888 $ - $ 99,888 $ - $ ( 77 ) $ 99,811 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 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 5. 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: As of March 31, 2024 As of December 31, 2023 Aggregate fair value of investments with unrealized losses (1) 77,581 $ 33,578 Aggregate amount of unrealized losses ( 77 ) ( 14 ) _________________ (1) Investments have been in a continuous loss position for less than 12 months |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 7. Intangible Assets and Goodwill Intangible Assets The following table presents information about capitalized software development costs: Three Months Ended March 31, Capitalized software development costs 2024 2023 Capitalized $ 4,039 $ 3,855 Amortized 4,418 3,616 As of March 31, 2024 Weighted Average Gross Accumulated Useful Life Amount Amortization Net Amount Internally developed software 3 Years $ 105,348 $ ( 79,073 ) $ 26,275 Non-compete 4 Years 6,194 ( 3,942 ) 2,252 Customer relationships 9 Years 72,512 ( 39,672 ) 32,840 Technology 7 Years 45,791 ( 31,145 ) 14,646 Trade name 10 Years 7,748 ( 2,909 ) 4,839 Total intangible assets $ 237,593 $ ( 156,741 ) $ 80,852 As of 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 Total amortization expense associated with identifiable intangible assets was as follows : Three Months Ended March 31, 2024 2023 Total amortization expense associated with identifiable intangible assets $ 7,830 $ 7,239 Impairment and write-off of intangible assets Impairment and write-off expense related to internally developed software projects was as follows: Three Months Ended March 31, 2024 2023 Impairment and write-off of intangible assets $ 162 $ - Goodwill There were no changes in goodwill during the three months ended March 31, 2024 . |
Leases and Leasing Commitments
Leases and Leasing Commitments | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases and Leasing Commitments | 8. Leases and Leasing Commitments Supplemental cash flow information related to the Company’s operating and finance leases was as follows: Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases $ 77 $ 165 Operating cash flows for finance leases 1,468 1,448 Operating cash flows for operating leases 569 547 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities - - Operating lease liabilities - 362 The components of lease expense were as follows: Three Months Ended March 31, Lease expense 2024 2023 Finance lease expense: Amortization of right-of-use assets $ 588 $ 531 Interest on lease liabilities 1,652 1,641 Operating lease expense 414 432 Short-term lease expense - - Variable lease expense 74 53 Total lease expense $ 2,728 $ 2,657 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt as of March 31, 2024 and December 31, 2023: As of March 31, 2024 As of December 31, 2023 Term loan facility $ 62,969 $ 63,375 Promissory note payable for land acquisition 13,900 13,900 Total principal due 76,869 77,275 Current portion of term loan and promissory notes ( 6,425 ) ( 6,425 ) Unamortized portion of debt issuance costs ( 1,022 ) ( 1,090 ) Long-term debt $ 69,422 $ 69,760 On December 29, 2022 the Company, through its wholly-owned subsidiary, AvidXchange, Inc., entered into a credit agreement (as subsequently amended, 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 March 31, 2024. 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 pursuant to the 2022 Revolver; and • $ 65,000 pursuant to the 2022 Term Loan. 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. As March 31, 2024 , no letters of credit were outstanding. As of March 31, 2024, the aggregate amount available to borrow under the 2022 Credit Agreement was $ 30,000 . As of March 31, 2024, the effective interest rate of the 2022 Term Loan was 8.21 % . Proceeds from the 2022 Term Loan 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 Loan is December 29, 2027 . The Company may voluntarily pre-pay all or any part of the 2022 Revolver or 2022 Term Loan 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 Loan 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 March 31, 2024 . 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 2022 Credit Agreement, the Company's wholly-owned subsidiaries, AvidXchange, Inc. and AFV Commerce, Inc., are the only borrowers, and AvidXchange, Inc.'s parent holding company and certain subsidiaries of AvidXchange, Inc. and AFV Commerce, Inc. are co-guarantors. Revolving Credit Facility There was no balance outstanding under the 2022 Revolver as of March 31, 2024 or December 31, 2023 . 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 The Company has $ 566 and $ 604 in deferred financing costs included in other noncurrent assets and deposits, and $ 1,022 and $ 1,090 of deferred financing costs associated with its term loans recorded net of long-term debt as of March 31, 2024 and December 31, 2023, respectively. Amortization of deferred financing costs was $ 106 and $ 110 for the three months ended March 31, 2024 and 2023, respectively, which is presented in the consolidated statements of operations as interest expense. Land Promissory Notes The Company has two promissory notes executed in connection with the purchase of land parcels and improvements adjacent to its Charlotte, North Carolina headquarters campus. The aggregate outstanding principal amount was $ 13,900 as of March 31, 2024 and will be paid in two remaining equal annual payments of $ 4,800 and a final annual payment of $ 4,300 , plus accrued interest at 6.75 %. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity The holders of common stock are entitled to one vote for each share. Authorized Shares 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. Common Stock At March 31, 2024, the Company had reserved a total of 54,720,584 of its 1,600,000,000 shares of common stock for future issuance as follows: As of March 31, 2024 Outstanding stock options 7,887,864 Restricted stock units 11,716,174 Available for future issuance under stock award plans 27,000,366 Available for future issuance under employee stock purchase plan 8,116,180 Total common shares reserved for future issuance 54,720,584 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation Stock Plans The Company maintains its 2021 Long-Term Incentive Plan ("2021 Plan") under which it grants stock awards to its employees, directors and non-employee third parties. On January 1, 2024, the number of shares of common stock available to issue under the 2021 Plan automatically increased by 10,204,201 shares. As of March 31, 2024, the Company had 27,000,366 shares allocated to the 2021 Plan, but not yet issued or granted as an award. 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. On January 1, 2024, the number of shares of common stock reserved for issuance under the ESPP automatically increased by 2,040,840 . As of March 31, 2024 , the number of shares of common stock reserved for issuance under the ESPP was 8,116,180 . 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 three months ended March 31, 2024 was as follows: Stock Options Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance as of December 31, 2023 8,175,088 $ 8.64 7.22 $ 31,135 Granted 346,935 12.34 Exercised ( 493,608 ) 6.64 Cancelled ( 140,551 ) 9.29 Balance as of March 31, 2024 7,887,864 $ 8.92 7.19 $ 33,697 Vested and exercisable 4,882,281 $ 8.53 6.48 $ 22,848 As of March 31, 2024 , the total unamortized stock-based compensation expense related to the unvested stock options was $ 12,199 , which the Company expects to amortize over a weighted average period of 2.4 years. Restricted Stock Units RSUs have a vesting period generally of one to four years . Any unvested RSUs are forfeited upon termination of employment. The grant date value of RSUs is equal to the closing price of the Company’s stock on the date of grant, or, if not a trading day, the closing price of the previous trading day. 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 were also subject to a performance condition upon a predefined liquidity event such as an IPO or a change in control. The performance condition was satisfied upon completion of the Company's IPO. Prior to the IPO, RSUs were valued at the estimated value of a share of common stock at the date of grant. RSU activity for the three months ended March 31, 2024 was as follows: Restricted Stock Units Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance as of December 31, 2023 8,919,024 $ 8.98 Granted 4,821,233 12.35 Released ( 1,737,736 ) 9.04 Cancelled ( 286,347 ) 9.24 Balance as of March 31, 2024 11,716,174 $ 10.36 As of March 31, 2024 , the total unamortized stock-based compensation expense related to the unvested RSUs was $ 111,331 , which the Company will amortize over a weighted average period of 3.2 years. 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: Three Months Ended March 31, 2024 2023 Cost of revenues $ 1,197 $ 1,017 Sales and marketing 1,098 1,135 Research and development 3,658 2,219 General and administrative 4,813 4,290 Total $ 10,766 $ 8,661 Employee Stock Purchase Plan Stock-based compensation expense for the ESPP 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. Total ESPP expense recorded in the Company's consolidated statements of operations was as follows: Three Months Ended March 31, 2024 2023 ESPP expense $ 193 $ 270 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Cybersecurity Incident The Company completed its investigation of its April 2023 cybersecurity incident in the fourth quarter of 2023. The Company has tendered, and will continue tender in future periods, as applicable, claims for certain expenses incurred in connection with this event. The extent to which its insurance will cover such expenses remains uncertain. Insurance recoveries are recorded as a reduction of general and administrative expense. As of March 31, 2024 , the Company has no amounts recorded as receivable for insurance recoveries. In the three months ended March 31, 2024, the Company incurred professional and legal fees of $ 179 related to this cyber incident. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company’s effective tax rate for the three months ended March 31, 2024 and 2023 was ( 14.1 )% and ( 0.4 )% , respectively. The Company's effective tax rate was a result of estimated tax losses for the fiscal year to date offset by the increase in the valuation allowance in the net operating loss carryforwards. Tax expense includes current tax expense for estimated state income taxes and noncurrent federal and state taxes related to non-deductibility of goodwill in the future and other book to tax differences. For the three months ended March 31, 2024, the Company has utilized the discrete effective tax rate method, as allowed by ASC 740-270-30-18, Income Taxes—Interim Reporting , to calculate its interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. The Company believes that, at this time, the use of this discrete method is more appropriate than the annual effective tax rate method as its full-year forecasted pre-tax income, relative to its forecasted permanent differences, has the potential to distort its estimated annual effective tax rate. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Share Issuance On April 30, 2024, the Company issued 167,351 shares of common stock under its employee stock purchase plan at a purchase price of $ 7.29 per share representing a 15 % discount on the closing price of $ 8.58 on the date of grant for an aggregate of $ 1,220 . The purchase price is based on the lower of the fair market value of the Company’s common stock at the grant date or purchase date. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial position, results of operations, changes in stockholders’ equity, and cash flows for the periods presented. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any other future annual or interim period. The unaudited consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. All significant intercompany accounts and transactions have been eliminated. There are no items of comprehensive income. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2023 . |
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 unaudited consolidated financial statements include, but are not limited to, the allowance for credit losses and returns, 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, and the recoverability of deferred income taxes. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. |
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 34 % and 27 % of total revenue for the three months ended March 31, 2024 and 2023, respectively. Accounts receivable from this service provider represented 33 % and 38 % of accounts receivable, net as of March 31, 2024 and December 31, 2023, respectively . Revenue from a second provider represented 12 % and 21 % of total revenue for the three months ended March 31, 2024 and 2023, respectively. Accounts receivable from this second service provider represented 18 % and 12 % of accounts receivable, net as of March 31, 2024 and December 31, 2023, respectively. Future regulation or changes by the card brand payment networks could have a substantial impact on interchange rates and 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. The Company’s revenue from VCC transactions is also impacted by fees charged by service providers to process our VCC transactions. |
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 in the fourth quarter of 2023. The Company recorded restructuring costs of $ 1,157 in the three months ended March 31, 2024, and $ 3,037 cumulatively, from one-time severance charges in connection with this plan. Restructuring costs are included in general and administrative expenses in the consolidated statements of operations. |
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. |
Marketable Securities | Marketable Securities Marketable securities consist of short-term investments in short-term commercial paper, certificates of deposits and various U.S. government backed securities. 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. |
Accounts Receivable, Supplier Advances and Allowance for Credit Losses | 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 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. |
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 March 31, 2024 As of December 31, 2023 Outstanding Transaction Liabilities $ 1,212,994 $ 1,568,280 Other unregulated settlements 7,465 10,376 Total payment service obligations $ 1,220,459 $ 1,578,656 The Company historically transmitted buyer customer funds using a legacy model pursuant to which buyer customer funds were held in trust accounts that were 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 its 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 all trust-related and similar accounts was approximately $ 13,636 and $ 6,269 as of March 31, 2024 and December 31, 2023, 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. |
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 cash bonus, expense is recognized in the period the cash bonus was earned. |
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 unaudited 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, $ 2,470 and $ 1,866 were included in other noncurrent assets and $ 2,242 and $ 2,398 were included in noncurrent liabilities as of March 31, 2024 and December 31, 2023 , respectively, on the Company's unaudited consolidated balance sheets. |
Contingent Liabilities | Contingent Liabilities Contingent liabilities require significant judgment in estimating potential losses for legal claims. The Company reviews 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. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Standards 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. The adoption of this guidance on January 1, 2024 did no t have an impact on the Company's consolidated financial statements . Accounting Pronouncements Issued but Not Yet Adopted 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) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 As of December 31, 2023 Outstanding Transaction Liabilities $ 1,212,994 $ 1,568,280 Other unregulated settlements 7,465 10,376 Total payment service obligations $ 1,220,459 $ 1,578,656 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. Three Months Ended March 31, 2024 2023 Software revenue $ 29,688 $ 26,968 Payment revenue 75,202 59,181 Services revenue 708 673 Total revenues $ 105,598 $ 86,822 |
Information on Accounts Receivable and Contract Liabilities | The table below presents information on accounts receivable and contract liabilities. As of March 31, 2024 As of December 31, 2023 Trade accounts receivable, net $ 17,738 $ 16,261 Payment processing receivable, net 31,139 30,428 Accounts receivable, net $ 48,877 $ 46,689 Contract liabilities $ 26,263 $ 27,593 |
Significant Changes in Contract Liabilities Balance | Significant changes in the contract liabilities balance are as follows: Three Months Ended March 31, 2024 2023 Revenue recognized included in beginning of period balance $ ( 3,473 ) $ ( 3,224 ) Cash received, excluding amounts recognized as revenue during the period 2,143 2,963 |
Summary of Changes in Allowance for Credit Losses And Returns | The tables below present a summary of changes in the Company’s allowances for credit losses and returns for the three months ended March 31, 2024 and 2023: Accounts Receivable Allowance for Credit Losses Allowance for Returns Supplier Advances Receivable Allowance Allowance balance, December 31, 2023 $ 2,142 $ 2,089 $ 1,333 Amounts charged to contra revenue, cost of revenues and expenses 254 ( 200 ) 86 Amounts written off as uncollectable ( 14 ) - ( 475 ) Recoveries of amounts previously written off - - 347 Deduction released to revenue - - - Allowance balance, March 31, 2024 $ 2,382 $ 1,889 $ 1,291 Accounts Receivable Allowance for Credit Losses Allowance for Returns Supplier Advances Receivable Allowance Allowance balance, December 31, 2022 $ 1,539 $ 1,584 $ 1,872 Amounts charged to contra revenue, cost of revenues and expenses 200 200 - Amounts written off as uncollectable ( 87 ) - ( 648 ) Recoveries of amounts previously written off - - 351 Deduction released to revenue - ( 93 ) - Allowance balance, March 31, 2023 $ 1,652 $ 1,691 $ 1,575 |
Schedule of Remaining Performance Obligation | Remaining performance obligation consisted of the following: Current Noncurrent Total As of March 31, 2024 $ 15,032 $ 19,797 $ 34,829 As of December 31, 2023 15,031 20,403 35,434 |
Information about Deferred Contract Costs | The following tables present information about deferred contract costs: Three Months Ended March 31, 2024 2023 Capitalized sales commissions and implementation costs $ 2,653 $ 2,838 Amortization of deferred contract costs Costs to obtain contracts included in sales and marketing expense $ 1,551 $ 1,474 Costs to fulfill contracts included in cost of revenue $ 1,549 $ 1,569 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: Three Months Ended March 31, Anti-Dilutive Common Share Equivalents 2024 2023 Stock options 7,887,864 8,755,890 Restricted stock units 11,716,174 11,592,608 Employee stock purchase plan 157,676 168,769 Total anti-dilutive common share equivalents 19,761,714 20,517,267 |
Summary of Basic and Diluted Net Loss Per Common Share | Basic and diluted net loss per common share is calculated as follows: Three Months Ended March 31, 2024 2023 Numerator: Net loss $ ( 1,009 ) $ ( 15,990 ) Net loss attributable to common stockholders $ ( 1,009 ) $ ( 15,990 ) Denominator: Weighted-average common shares outstanding, basic and diluted 204,896,718 199,900,920 Net loss per common share, basic and diluted $ ( 0.00 ) $ ( 0.08 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 174,254 $ - $ - $ 174,254 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 2,470 - 2,470 Total assets $ 174,254 $ 2,470 $ - $ 176,724 Other long-term liabilities Deferred compensation $ - $ 2,242 $ - 2,242 Total liabilities $ - $ 2,242 $ - $ 2,242 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 ________________ (1 ) Money market funds are classified as cash equivalents in the Company’s unaudited 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) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Information about Marketable Securities | The following presents information about the Company’s marketable securities: As of March 31, 2024 Sector Amortized Cost Allowance for credit losses Net Amortized Cost Gross unrealized gains Gross unrealized losses Fair Value Financial $ 55,627 $ - $ 55,627 $ - $ ( 56 ) $ 55,571 Government 22,143 - 22,143 - ( 1 ) 22,142 Industrial 22,118 - 22,118 - ( 20 ) 22,098 Total $ 99,888 $ - $ 99,888 $ - $ ( 77 ) $ 99,811 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 |
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: As of March 31, 2024 As of December 31, 2023 Aggregate fair value of investments with unrealized losses (1) 77,581 $ 33,578 Aggregate amount of unrealized losses ( 77 ) ( 14 ) _________________ (1) Investments have been in a continuous loss position for less than 12 months |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Capitalized Software Development Costs | The following table presents information about capitalized software development costs: Three Months Ended March 31, Capitalized software development costs 2024 2023 Capitalized $ 4,039 $ 3,855 Amortized 4,418 3,616 |
Schedule of Intangible Assets | As of March 31, 2024 Weighted Average Gross Accumulated Useful Life Amount Amortization Net Amount Internally developed software 3 Years $ 105,348 $ ( 79,073 ) $ 26,275 Non-compete 4 Years 6,194 ( 3,942 ) 2,252 Customer relationships 9 Years 72,512 ( 39,672 ) 32,840 Technology 7 Years 45,791 ( 31,145 ) 14,646 Trade name 10 Years 7,748 ( 2,909 ) 4,839 Total intangible assets $ 237,593 $ ( 156,741 ) $ 80,852 As of 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 |
Total Amortization Expense Associated with Identifiable Intangible Assets | Total amortization expense associated with identifiable intangible assets was as follows : Three Months Ended March 31, 2024 2023 Total amortization expense associated with identifiable intangible assets $ 7,830 $ 7,239 Impairment and write-off of intangible assets Impairment and write-off expense related to internally developed software projects was as follows: Three Months Ended March 31, 2024 2023 Impairment and write-off of intangible assets $ 162 $ - |
Impairment and Write-off of Intangible Assets | Impairment and write-off expense related to internally developed software projects was as follows: Three Months Ended March 31, 2024 2023 Impairment and write-off of intangible assets $ 162 $ - |
Leases and Leasing Commitments
Leases and Leasing Commitments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases $ 77 $ 165 Operating cash flows for finance leases 1,468 1,448 Operating cash flows for operating leases 569 547 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities - - Operating lease liabilities - 362 |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Three Months Ended March 31, Lease expense 2024 2023 Finance lease expense: Amortization of right-of-use assets $ 588 $ 531 Interest on lease liabilities 1,652 1,641 Operating lease expense 414 432 Short-term lease expense - - Variable lease expense 74 53 Total lease expense $ 2,728 $ 2,657 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of March 31, 2024 and December 31, 2023: As of March 31, 2024 As of December 31, 2023 Term loan facility $ 62,969 $ 63,375 Promissory note payable for land acquisition 13,900 13,900 Total principal due 76,869 77,275 Current portion of term loan and promissory notes ( 6,425 ) ( 6,425 ) Unamortized portion of debt issuance costs ( 1,022 ) ( 1,090 ) Long-term debt $ 69,422 $ 69,760 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | At March 31, 2024, the Company had reserved a total of 54,720,584 of its 1,600,000,000 shares of common stock for future issuance as follows: As of March 31, 2024 Outstanding stock options 7,887,864 Restricted stock units 11,716,174 Available for future issuance under stock award plans 27,000,366 Available for future issuance under employee stock purchase plan 8,116,180 Total common shares reserved for future issuance 54,720,584 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | Stock option activity for the three months ended March 31, 2024 was as follows: Stock Options Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance as of December 31, 2023 8,175,088 $ 8.64 7.22 $ 31,135 Granted 346,935 12.34 Exercised ( 493,608 ) 6.64 Cancelled ( 140,551 ) 9.29 Balance as of March 31, 2024 7,887,864 $ 8.92 7.19 $ 33,697 Vested and exercisable 4,882,281 $ 8.53 6.48 $ 22,848 |
Summary of RSU Activity | RSU activity for the three months ended March 31, 2024 was as follows: Restricted Stock Units Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance as of December 31, 2023 8,919,024 $ 8.98 Granted 4,821,233 12.35 Released ( 1,737,736 ) 9.04 Cancelled ( 286,347 ) 9.24 Balance as of March 31, 2024 11,716,174 $ 10.36 |
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: Three Months Ended March 31, 2024 2023 Cost of revenues $ 1,197 $ 1,017 Sales and marketing 1,098 1,135 Research and development 3,658 2,219 General and administrative 4,813 4,290 Total $ 10,766 $ 8,661 |
Schedule of Employee Stock Purchase Plan Expense | Total ESPP expense recorded in the Company's consolidated statements of operations was as follows: Three Months Ended March 31, 2024 2023 ESPP expense $ 193 $ 270 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) Customer | Mar. 31, 2023 | Dec. 31, 2023 USD ($) | |
Schedule Of Accounting Policies [Line Items] | |||
Number of service providers accounted for more than 10% of revenue | Customer | 2 | ||
Restructuring charges | $ 1,157 | ||
One-time severance charges | 3,037 | ||
Customer funds held in trust accounts | 13,636 | $ 6,269 | |
Deferred compensation plan assets | 2,470 | 1,866 | |
Deferred compensation plan liabilities | 2,242 | 2,398 | |
Accumulated deficit | $ (1,023,169) | $ (1,022,160) | |
ASU No. 2023-01 | |||
Schedule Of Accounting Policies [Line Items] | |||
Change in accounting principle, ASU, Adoption date | Jan. 01, 2024 | ||
Change in accounting principle, ASU, adopted [true false] | true | ||
Change in accounting principle, ASU, Immaterial effect [true false] | true | ||
Total Revenues | Customer Concentration Risk | One Service Provider | |||
Schedule Of Accounting Policies [Line Items] | |||
Concentration risk percentage | 34% | 27% | |
Total Revenues | Customer Concentration Risk | Second Service Provider | |||
Schedule Of Accounting Policies [Line Items] | |||
Concentration risk percentage | 12% | 21% | |
Accounts Receivable | Customer Concentration Risk | One Service Provider | |||
Schedule Of Accounting Policies [Line Items] | |||
Concentration risk percentage | 33% | 38% | |
Accounts Receivable | Customer Concentration Risk | Second Service Provider | |||
Schedule Of Accounting Policies [Line Items] | |||
Concentration risk percentage | 18% | 12% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Payment Service Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Outstanding Transaction Liabilities | $ 1,212,994 | $ 1,568,280 |
Other unregulated settlements | 7,465 | 10,376 |
Total payment service obligations | $ 1,220,459 | $ 1,578,656 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenues Disaggregated by Type of Services Performed (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 105,598 | $ 86,822 |
Software | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 29,688 | 26,968 |
Payment | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 75,202 | 59,181 |
Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 708 | $ 673 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Information on Accounts Receivable and Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Trade accounts receivable, net | $ 17,738 | $ 16,261 |
Payment processing receivable, net | 31,139 | 30,428 |
Accounts receivable, net | 48,877 | 46,689 |
Contract liabilities | $ 26,263 | $ 27,593 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Significant Changes in Contract Liabilities Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized included in beginning of period balance | $ (3,473) | $ (3,224) |
Cash received, excluding amounts recognized as revenue during the period | $ 2,143 | $ 2,963 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Changes in Allowance for Credit Losses And Returns (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable Allowance for Credit Losses | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance balance, Beginning Balance | $ 2,142 | $ 1,539 |
Amounts charged to contra revenue, cost of revenues and expenses | 254 | 200 |
Amounts written off as uncollectable | (14) | (87) |
Allowance balance, Ending Balance | 2,382 | 1,652 |
Accounts Receivable Allowance For Returns | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance balance, Beginning Balance | 2,089 | 1,584 |
Amounts charged to contra revenue, cost of revenues and expenses | (200) | 200 |
Deduction released to revenue | (93) | |
Allowance balance, Ending Balance | 1,889 | 1,691 |
Supplier Advances Receivable Allowance | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance balance, Beginning Balance | 1,333 | 1,872 |
Amounts charged to contra revenue, cost of revenues and expenses | 86 | |
Amounts written off as uncollectable | (475) | (648) |
Recoveries of amounts previously written off | 347 | 351 |
Allowance balance, Ending Balance | $ 1,291 | $ 1,575 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Remaining Performance Obligation (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Current | $ 15,032 | $ 15,031 |
Noncurrent | 19,797 | 20,403 |
Total | $ 34,829 | $ 35,434 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Disaggregation of Revenue [Line Items] | |
Capitalized Contract Cost, Amortization Method | straight-line basis |
Contract acquisition and fulfillment costs, amortization period | 5 years |
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 |
Revenue from Contracts with C_9
Revenue from Contracts with Customers - Information about Deferred Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Capitalized Contract Cost [Line Items] | ||
Capitalized sales commissions and implementation costs | $ 2,653 | $ 2,838 |
Costs to Obtain Contracts | Sales and Marketing Expense | ||
Capitalized Contract Cost [Line Items] | ||
Amortization of deferred contract costs | 1,551 | 1,474 |
Costs to Fulfill Contracts | Cost of Revenues | ||
Capitalized Contract Cost [Line Items] | ||
Amortization of deferred contract costs | $ 1,549 | $ 1,569 |
Loss Per Common Share - Summary
Loss Per Common Share - Summary of Common Share Equivalent Securities Excluded from the Calculation Weighted Average Common (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 19,761,714 | 20,517,267 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 7,887,864 | 8,755,890 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 11,716,174 | 11,592,608 |
Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 157,676 | 168,769 |
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 | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (1,009) | $ (15,990) |
Net loss attributable to common stockholders | $ (1,009) | $ (15,990) |
Weighted-average common shares outstanding, basic | 204,896,718 | 199,900,920 |
Weighted-average common shares outstanding, diluted | 204,896,718 | 199,900,920 |
Net loss per common share, basic | $ 0 | $ (0.08) |
Net loss per common share, diluted | $ 0 | $ (0.08) |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 176,724 | $ 228,581 |
Total liabilities | 2,242 | 2,398 |
Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 2,242 | 2,398 |
Money Market Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 174,254 | 226,715 |
Rabbi trust-owned life insurance policies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2,470 | 1,866 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 174,254 | 226,715 |
Level 1 | Money Market Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 174,254 | 226,715 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2,470 | 1,866 |
Total liabilities | 2,242 | 2,398 |
Level 2 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 2,242 | 2,398 |
Level 2 | Rabbi trust-owned life insurance policies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 2,470 | $ 1,866 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Maximum | |
Marketable Securities [Line Items] | |
Marketable securities, contractual maturity period | 9 months |
Marketable Securities - Schedul
Marketable Securities - Schedule of Information about Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Marketable Securities, Amortized Cost | $ 99,888 | $ 44,645 |
Marketable Securities, Net Amortized Cost | 99,888 | 44,645 |
Marketable Securities, Gross unrealized losses | (77) | (14) |
Marketable Securities, Fair Value | 99,811 | 44,631 |
Financial | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 55,627 | 44,645 |
Marketable Securities, Net Amortized Cost | 55,627 | 44,645 |
Marketable Securities, Gross unrealized losses | (56) | (14) |
Marketable Securities, Fair Value | 55,571 | $ 44,631 |
Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 22,143 | |
Marketable Securities, Net Amortized Cost | 22,143 | |
Marketable Securities, Gross unrealized losses | (1) | |
Marketable Securities, Fair Value | 22,142 | |
Industrial | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 22,118 | |
Marketable Securities, Net Amortized Cost | 22,118 | |
Marketable Securities, Gross unrealized losses | (20) | |
Marketable Securities, Fair Value | $ 22,098 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position [Abstract] | ||
Aggregate fair value of investments with unrealized losses | $ 77,581 | $ 33,578 |
Aggregate amount of unrealized losses | $ (77) | $ (14) |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Summary of Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Capitalized Computer Software, Net [Roll Forward] | ||
Capitalized | $ 4,039 | $ 3,855 |
Amortized | $ 4,418 | $ 3,616 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in goodwill | $ 0 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 237,593 | $ 233,716 |
Accumulated Amortization | (156,741) | (148,911) |
Net Amount | $ 80,852 | $ 84,805 |
Internally Developed Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 3 years | 3 years |
Gross Amount | $ 105,348 | $ 101,471 |
Accumulated Amortization | (79,073) | (74,655) |
Net Amount | $ 26,275 | $ 26,816 |
Non-compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 4 years | 4 years |
Gross Amount | $ 6,194 | $ 6,194 |
Accumulated Amortization | (3,942) | (3,738) |
Net Amount | $ 2,252 | $ 2,456 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 9 years | 9 years |
Gross Amount | $ 72,512 | $ 72,512 |
Accumulated Amortization | (39,672) | (37,601) |
Net Amount | $ 32,840 | $ 34,911 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 7 years | 7 years |
Gross Amount | $ 45,791 | $ 45,791 |
Accumulated Amortization | (31,145) | (30,178) |
Net Amount | $ 14,646 | $ 15,613 |
Trade Name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 10 years | 10 years |
Gross Amount | $ 7,748 | $ 7,748 |
Accumulated Amortization | (2,909) | (2,739) |
Net Amount | $ 4,839 | $ 5,009 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Total Amortization Expense Associated with Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Total amortization expense associated with identifiable intangible assets | $ 7,830 | $ 7,239 |
Intangible Assets and Goodwil_6
Intangible Assets and Goodwill - Impairment and Wite-off of Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment and write-off of intangible assets | $ 162 |
Internally Developed Software | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment and write-off of intangible assets | $ 162 |
Leases and Leasing Commitment_2
Leases and Leasing Commitments - Schedule of Supplemental Cash Flow Information Related to Operating and Finance Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Financing cash flows for finance leases | $ 77 | $ 165 |
Operating cash flows for finance leases | 1,468 | 1,448 |
Operating cash flows for operating leases | $ 569 | 547 |
Right of use assets obtained in exchange for new lease obligations: | ||
Operating lease liabilities | $ 362 |
Leases and Leasing Commitment_3
Leases and Leasing Commitments - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease expense | ||
Amortization of right-of-use assets | $ 588 | $ 531 |
Interest on lease liabilities | 1,652 | 1,641 |
Operating lease expense | 414 | 432 |
Variable lease expense | 74 | 53 |
Total lease expense | $ 2,728 | $ 2,657 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total principal due | $ 76,869 | $ 77,275 |
Current portion of term loan and promissory notes | (6,425) | (6,425) |
Unamortized portion of debt issuance costs | (1,022) | (1,090) |
Long term debt | 69,422 | 69,760 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Total principal due | 62,969 | 63,375 |
Promissory Note Payable for Land Acquisition | ||
Debt Instrument [Line Items] | ||
Total principal due | $ 13,900 | $ 13,900 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) $ in Thousands | 3 Months Ended | ||||
Dec. 29, 2022 USD ($) | Oct. 01, 2019 | Mar. 31, 2024 USD ($) PromissoryNote | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||
Deferred financing costs | $ 1,022 | $ 1,090 | |||
Amortization of deferred financing costs | 106 | $ 110 | |||
2022 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 95,000 | 30,000 | |||
Debt Instrument, Term | 5 years | ||||
Term loan facility by an aggregate amount | $ 50,000 | ||||
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 March 31, 2024. | ||||
Minimum liquidity amount | $ 35,000 | ||||
Percentage of the total commitment amount | 35% | ||||
Minimum consolidated EBITDA | $ 10,000 | ||||
Debt instrument, covenant compliance | The Company was in compliance with its financial debt covenants as of March 31, 2024. | ||||
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% | ||||
2022 Revolver | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 30,000 | ||||
Debt Instrument, Term | 5 years | ||||
Letter of credit, Amount | $ 0 | ||||
Line of credit facility, outstanding amount | $ 0 | 0 | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.30% | ||||
2022 Term Loans | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 65,000 | ||||
Debt Instrument, Term | 5 years | ||||
Effective interest rate | 8.21% | ||||
Line of credit facility, maturity date | Dec. 29, 2027 | ||||
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% | ||||
Other Noncurrent Assets and Deposits | |||||
Debt Instrument [Line Items] | |||||
Deferred financing costs | $ 566 | $ 604 | |||
Promissory Note | |||||
Debt Instrument [Line Items] | |||||
Number of promissory notes executed | PromissoryNote | 2 | ||||
Debt instrument, principal amount | $ 13,900 | ||||
Debt instrument, periodic payment, principal | 4,800 | ||||
Debt instrument, periodic payment | $ 4,300 | ||||
Interest rate | 6.75% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 Vote $ / shares shares | Dec. 31, 2023 $ / shares shares | |
Stockholders' Equity Note [Abstract] | ||
Number of votes per share | Vote | 1 | |
Common stock, shares authorized | 1,600,000,000 | 1,600,000,000 |
Common stock, par or stated value per share | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock par value | $ / shares | $ 0.001 | $ 0.001 |
Common stock reserved for future issuance | 54,720,584 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) | Mar. 31, 2024 shares |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 54,720,584 |
Outstanding Stock Options | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 7,887,864 |
Restricted Stock Units | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 11,716,174 |
Available for Future Issuance under Stock Award Plans | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 27,000,366 |
Available for Future Issuance under Employee Stock Purchase Plan | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 8,116,180 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 01, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Accumulated deficit | $ (1,023,169) | $ (1,022,160) | |
Unamortized stock-based compensation expense | 12,199 | ||
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unamortized stock-based compensation expense | $ 111,331 | ||
Weighted average amortization period | 3 years 2 months 12 days | ||
Restricted Stock Units | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Restricted Stock Units | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average amortization period | 2 years 4 months 24 days | ||
Employee Stock Option | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Granting period | 5 years | ||
Employee Stock Option | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Granting period | 10 years | ||
ESPP | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Increase in number of shares authorized | 2,040,840 | 8,116,180 | |
2021 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares allocated to be granted or issued | 27,000,366 | ||
Increase in number of shares authorized | 10,204,201 | ||
2021 Plan | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 7 years | ||
Expiration period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of Stock Options Outstanding, Beginning balance | 8,175,088 | |
Number of Stock Options, Granted | 346,935 | |
Number of Stock Options, Exercised | (493,608) | |
Number of Stock Options, Cancelled | (140,551) | |
Number of Stock Options Outstanding, Ending balance | 7,887,864 | 8,175,088 |
Number of Stock Options, Vested and exercisable | 4,882,281 | |
Weighted Average Exercise Price, Beginning balance | $ 8.64 | |
Weighted Average Exercise Price, Granted | 12.34 | |
Weighted Average Exercise Price, Exercised | 6.64 | |
Weighted Average Exercise Price, Cancelled | 9.29 | |
Weighted Average Exercise Price, Ending balance | 8.92 | $ 8.64 |
Weighted Average Exercise Price, Vested and exercisable | $ 8.53 | |
Weighted Average Remaining Contractual Life | 7 years 2 months 8 days | 7 years 2 months 19 days |
Weighted Average Remaining Contractual Life, Vested and exercisable | 6 years 5 months 23 days | |
Aggregate Intrinsic Value | $ 33,697 | $ 31,135 |
Aggregate Intrinsic Value, Vested and exercisable | $ 22,848 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSUs Activity (Details) - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Stock, Beginning balance | shares | 8,919,024 |
Number of Restricted Stock, Granted | shares | 4,821,233 |
Number of Restricted Stock, Released | shares | (1,737,736) |
Number of Restricted Stock, Cancelled | shares | (286,347) |
Number of Restricted Stock Outstanding, Ending balance | shares | 11,716,174 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 8.98 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 12.35 |
Weighted Average Grant Date Fair Value, Released | $ / shares | 9.04 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 9.24 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 10.36 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 10,766 | $ 8,661 |
Cost of Revenues | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 1,197 | 1,017 |
Sales and Marketing | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 1,098 | 1,135 |
Research and Development | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 3,658 | 2,219 |
General and Administrative | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 4,813 | $ 4,290 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Employee Stock Purchase Plan Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 10,766 | $ 8,661 |
ESPP | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 193 | $ 270 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Cybersecurity Incident $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Commitments and Contingencies [Line Items] | |
Insurance Recoveries | $ 0 |
Cybersecurity expenses | $ 179 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (14.10%) | (0.40%) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Events - Common Stock - Employee Stock Purchase Plan $ / shares in Units, $ in Thousands | Apr. 30, 2024 USD ($) $ / shares shares |
Subsequent Event [Line Items] | |
Issuance of common stock under ESPP, Shares | shares | 167,351 |
Issuance of common stock under ESPP | $ | $ 1,220 |
Stock price per share | $ 7.29 |
Stock price per share | $ 8.58 |
Percentage discount on closing purchase price per share | 15% |