Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities

The following table represents the Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	As of March 31, 2020
	Level 1		Level 2			Level 3			Total
Assets:
Money market funds (1)	$	2,811	$	—		$	—		$	2,811
Total Assets:	$	2,811	$	—		$	—		$	2,811
Liabilities
Contingent purchase price (2)	$	—	$	—		$	(2,524	)	$	(2,524	)
Interest rate swap (3)		—	$	(1,787	)		—			(1,787	)
Total Liabilities:	$	—	$	(1,787	)	$	(2,524	)	$	(4,311	)

	As of December 31, 2019
	Level 1		Level 2			Level 3			Total
Assets:
Money market funds (1)	$	2,354	$	—		$	—		$	2,354
Total Assets:	$	2,354	$	—		$	—		$	2,354
Liabilities
Contingent purchase price (2)	$	—	$	—		$	(2,511	)	$	(2,511	)
Interest rate swap (3)		—	$	(144	)		—			(144	)
Total Liabilities:	$	—	$	(144	)	$	(2,511	)	$	(2,655	)

(1) Included in cash and cash equivalents on the Consolidated Balance Sheets.

(2) The acquisition of FeedbackNow on July 6, 2018 included a contingent consideration arrangement that required up to $4.2 million of consideration to be paid to the sellers based on the financial performance of FeedbackNow during the two-year period subsequent to the closing date. The fair value of the remaining contingent consideration to be paid to the sellers is $2.5 million at both March 31, 2020 and December 31, 2019, and is included in accrued expenses and other current liabilities in the Consolidated Balance Sheets.

(3) The Company has an interest rate swap contract that hedges the risk of variability from interest payments on its borrowings (see Note 4 – Debt and Note 7 – Derivatives and Hedging). The fair value of the interest rate swap is based on mark-to-market valuations prepared by a third-party broker. Those valuations are based on observable interest rates and other observable market data, which the Company considers Level 2 inputs.

Summary of Changes in the Fair Value of Level 3 Contingent Consideration

Changes in the fair value of Level 3 contingent consideration for the three months ended March 31, 2020 were as follows (in thousands):

	Contingent
	Consideration
Balance at December 31, 2019	$	(2,511	)
Fair value adjustment of contingent purchase price (1)		(11	)
Payment of contingent purchase price		—
Foreign exchange effect		(2	)
Balance at March 31, 2020	$	(2,524	)

(1) This amount was recognized as acquisition and integration costs within the Consolidated Statements of Operations. As of March 31, 2020, the remaining range of undiscounted amounts that could be payable under this arrangement is zero to $2.5 million. The significant unobservable inputs used in the Monte Carlo simulation to fair value the contingent consideration included projected contract bookings, a discount rate of 17.3%, and revenue volatility of 26.6%. Increases or decreases in the inputs would result in a higher or lower fair value measurement.