(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices, including zip code) | |||||||||||
Registrant's telephone number, including area code: | |||||||||||
( |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Class | Outstanding as of April 30, 2024 | |||||||
Common Stock, $0.00001 par value |
Page No. | ||||||||
Part I. | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
TOTAL CURRENT ASSETS | |||||||||||
Property and equipment, net | |||||||||||
Right-of-use lease asset | |||||||||||
Internal use software development costs, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets, non-current | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Lease liabilities, current | |||||||||||
Debt, current | |||||||||||
Other current liabilities | |||||||||||
TOTAL CURRENT LIABILITIES | |||||||||||
Debt, non-current, net of debt discount and debt issuance costs | |||||||||||
Lease liabilities, non-current | |||||||||||
Deferred tax liability, net | |||||||||||
Other liabilities, non-current | |||||||||||
TOTAL LIABILITIES | |||||||||||
Commitments and contingencies (Note 12) | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
TOTAL STOCKHOLDERS' EQUITY | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Revenue | $ | $ | |||||||||
Expenses: | |||||||||||
Cost of revenue | |||||||||||
Sales and marketing | |||||||||||
Technology and development | |||||||||||
General and administrative | |||||||||||
Merger, acquisition, and restructuring costs | |||||||||||
Total expenses | |||||||||||
Loss from operations | ( | ( | |||||||||
Other (income) expense: | |||||||||||
Interest expense, net | |||||||||||
Foreign exchange (gain) loss, net | ( | ||||||||||
(Gain) loss on extinguishment of debt | ( | ||||||||||
Other income | ( | ( | |||||||||
Total other (income) expense, net | ( | ||||||||||
Loss before income taxes | ( | ( | |||||||||
Benefit for income taxes | ( | ( | |||||||||
Net loss | $ | ( | $ | ( | |||||||
Net loss per share: | |||||||||||
Basic and diluted | $ | ( | $ | ( | |||||||
Weighted average shares used to compute net loss per share: | |||||||||||
Basic and diluted | |||||||||||
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | ( | ||||||||||
Other comprehensive income (loss) | ( | ||||||||||
Comprehensive loss | $ | ( | $ | ( |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock related to RSU vesting | — | — | — | — | — | ||||||||||||||||||||||||||||||
Shares withheld related to net share settlement | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of common stock related to RSU vesting | — | — | — | — | — | ||||||||||||||||||||||||||||||
Shares withheld related to net share settlement | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
(Gain) loss on extinguishment of debt | ( | ||||||||||
Gain on disposal of property and equipment | ( | ( | |||||||||
Provision for doubtful accounts | |||||||||||
Amortization of debt discount and issuance costs | |||||||||||
Non-cash lease expense | ( | ||||||||||
Deferred income taxes | ( | ( | |||||||||
Unrealized foreign currency gain, net | ( | ( | |||||||||
Other items, net | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Other liabilities | |||||||||||
Net cash used in operating activities | ( | ( | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Capitalized internal use software development costs | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Proceeds from issuance of 2024 Term Loan B Facility, net of debt discount | |||||||||||
Repayment of 2021 Term Loan B Facility | ( | ||||||||||
Payment for debt issuance costs | ( | ||||||||||
Repayment of debt | ( | ||||||||||
Repurchase of Convertible Senior Notes | ( | ||||||||||
Proceeds from exercise of stock options | |||||||||||
Repayment of financing lease | ( | ||||||||||
Taxes paid related to net share settlement | ( | ( | |||||||||
Payment of indemnification claims holdback | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ||||||||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ( | |||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period | |||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | $ | $ |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO CONSOLIDATED BALANCE SHEETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash included in prepaid expenses and other current assets | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | |||||||||||
Cash paid for income taxes | $ | $ | |||||||||
Cash paid for interest | $ | $ | |||||||||
Capitalized assets financed by accounts payable and accrued expenses and other liabilities | $ | $ | |||||||||
Capitalized stock-based compensation | $ | $ | |||||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | $ | |||||||||
Years | |||||
Computer equipment and network hardware | |||||
Furniture, fixtures, and office equipment | |||||
Leasehold improvements | Shorter of useful life or life of lease |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands, except per share data) | |||||||||||
Basic and Diluted Loss Per Share: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Weighted-average common shares outstanding used to compute net loss per share | |||||||||||
Basic and diluted loss per share | $ | ( | $ | ( | |||||||
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Unvested restricted stock units | |||||||||||
Options to purchase common stock | |||||||||||
Unvested performance stock units | |||||||||||
ESPP shares | |||||||||||
Convertible Senior Notes | |||||||||||
Total shares excluded from net loss per share |
Three Months Ended | |||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Net basis | $ | % | $ | % | |||||||||||||||||||
Gross basis | |||||||||||||||||||||||
Total | $ | % | $ | % |
Three Months Ended | |||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Channel: | |||||||||||||||||||||||
CTV | $ | % | $ | % | |||||||||||||||||||
Mobile | |||||||||||||||||||||||
Desktop | |||||||||||||||||||||||
Total | $ | % | $ | % |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands) | |||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Allowance for doubtful accounts, beginning balance | $ | $ | |||||||||
Write-offs | ( | ( | |||||||||
Increase in provision for expected credit losses | |||||||||||
Allowance for doubtful accounts, ending balance | $ | $ |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Accounts payable—seller | $ | $ | |||||||||
Accounts payable—trade | |||||||||||
Accrued employee-related payables | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Computer equipment and network hardware | $ | $ | |||||||||
Furniture, fixtures, and office equipment | |||||||||||
Leasehold improvements | |||||||||||
Purchased software | |||||||||||
Gross property and equipment | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Net property and equipment | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(in thousands) | |||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Amortizable intangible assets: | |||||||||||
Developed technology | $ | $ | |||||||||
Customer relationships | |||||||||||
In-process research and development | |||||||||||
Trademarks | |||||||||||
Non-compete agreements | |||||||||||
Total identifiable intangible assets, gross | |||||||||||
Accumulated amortization—intangible assets: | |||||||||||
Developed technology | ( | ( | |||||||||
Customer relationships | ( | ( | |||||||||
In-process research and development | ( | ( | |||||||||
Trademarks | ( | ( | |||||||||
Non-compete agreements | ( | ||||||||||
Total accumulated amortization—intangible assets | ( | ( | |||||||||
Total identifiable intangible assets, net | $ | $ |
Fiscal Year | Amount | ||||
(in thousands) | |||||
Remaining 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
Total | $ |
Three Months Ended | ||||||||
March 31, 2023 | ||||||||
(in thousands) | ||||||||
Personnel related (severance and one-time termination benefit costs) | $ | |||||||
Loss contracts (facilities related) | ||||||||
Exit costs | ||||||||
Impairment of property and equipment, net | ||||||||
Non-cash stock-based compensation (double-trigger acceleration and severance) | ||||||||
Total merger, acquisition, and restructuring costs | $ |
Shares Under Option | Weighted- Average Exercise Price | Weighted- Average Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Outstanding at December 31, 2023 | $ | ||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||
Expired | ( | $ | |||||||||||||||||||||
Outstanding at March 31, 2024 | $ | $ | |||||||||||||||||||||
Exercisable at March 31, 2024 | $ | $ |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Expected term (in years) | |||||||||||
Risk-free interest rate | % | % | |||||||||
Expected volatility | % | % | |||||||||
Dividend yield | % | % |
Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||
(in thousands) | |||||||||||
Restricted stock units outstanding at December 31, 2023 | $ | ||||||||||
Granted | $ | ||||||||||
Canceled | ( | $ | |||||||||
Vested and released | ( | $ | |||||||||
Restricted stock units outstanding and unvested at March 31, 2024 | $ | ||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||
(in thousands) | |||||||||||
Outstanding at December 31, 2023 | $ | ||||||||||
Granted | $ | ||||||||||
Outstanding at March 31, 2024 | $ |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Performance period (in years) | |||||||||||
Risk-free interest rate | % | % | |||||||||
Expected volatility of Magnite | % | % | |||||||||
Expected volatility of selected peer companies | % | % | |||||||||
Expected correlation coefficients of Magnite | |||||||||||
Expected correlation coefficients of selected peer companies | |||||||||||
Dividend yield | % | % |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue | $ | $ | |||||||||
Sales and marketing | |||||||||||
Technology and development | |||||||||||
General and administrative | |||||||||||
Merger, acquisition, and restructuring costs | |||||||||||
Total stock-based compensation expense | $ | $ |
Fiscal Year | |||||
Remaining 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total lease payments (undiscounted) | |||||
Less: imputed interest | ( | ||||
Lease liabilities—total (discounted) | $ |
Fiscal Year | |||||
Remaining 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Total | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Convertible Senior Notes | $ | $ | |||||||||
Less: Unamortized debt issuance cost | ( | ( | |||||||||
Net carrying value of Convertible Senior Notes | |||||||||||
Term Loan B Facility* | |||||||||||
Less: Unamortized discount and debt issuance cost | ( | ( | |||||||||
Net carrying value of Term Loan B Facility* | |||||||||||
Balance Sheet Presentation: | |||||||||||
Debt, current | |||||||||||
Debt, non-current, net of debt discount and debt issuance costs | $ | ||||||||||
Total debt | $ | $ | |||||||||
* Term Loan B Facility as of March 31, 2024 and December 31, 2023 reflect the balances under the 2024 Term Loan B Facility and the 2021 Term Loan B Facility, respectively. |
Fiscal Year | |||||
Remaining 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Contractual interest expense | $ | $ | |||||||||
Amortization of debt issuance costs | |||||||||||
Total interest expense | $ | $ | |||||||||
Effective interest rate | % | % |
Fiscal Year | Debt Issuance Costs | ||||
Remaining 2024 | $ | ||||
2025 | |||||
2026 | |||||
Total | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Term Loan B Facility* | $ | $ | |||||||||
Unamortized debt discounts | ( | ( | |||||||||
Unamortized debt issuance costs | ( | ( | |||||||||
Debt, net of debt discount and debt issuance costs | $ | $ | |||||||||
* Term Loan B Facility as of March 31, 2024 and December 31, 2023 reflect the balances under the 2024 Term Loan B Facility and the 2021 Term Loan B Facility, respectively. |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Contractual interest expense | $ | $ | |||||||||
Amortization of debt discount | |||||||||||
Amortization of debt issuance costs | |||||||||||
Total interest expense | $ | $ | |||||||||
Effective interest rate | % | % |
Fiscal Year | Debt Discount | Debt Issuance Costs | |||||||||
Remaining 2024 | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
Thereafter | |||||||||||
Total | $ | $ |
Three Months Ended | Change % | ||||||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Revenue | $ | 149,319 | $ | 130,150 | 15 | % | |||||||||||
Expenses (1)(2): | |||||||||||||||||
Cost of revenue | 65,902 | 124,828 | (47) | % | |||||||||||||
Sales and marketing | 43,689 | 53,049 | (18) | % | |||||||||||||
Technology and development | 26,891 | 24,215 | 11 | % | |||||||||||||
General and administrative | 26,665 | 21,088 | 26 | % | |||||||||||||
Merger, acquisition, and restructuring costs | — | 7,465 | (100) | % | |||||||||||||
Total expenses | 163,147 | 230,645 | (29) | % | |||||||||||||
Loss from operations | (13,828) | (100,495) | (86) | % | |||||||||||||
Other (income) expense, net | 11,738 | (1,454) | NM | ||||||||||||||
Loss before income taxes | (25,566) | (99,041) | (74) | % | |||||||||||||
Benefit for income taxes | (7,809) | (309) | NM | ||||||||||||||
Net loss | $ | (17,757) | $ | (98,732) | (82) | % |
NM - Not meaningful | |||||||||||
(1) Stock-based compensation expense included in our expenses was as follows: | |||||||||||
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue | $ | 500 | $ | 468 | |||||||
Sales and marketing | 8,236 | 7,405 | |||||||||
Technology and development | 5,416 | 5,446 | |||||||||
General and administrative | 6,679 | 5,825 | |||||||||
Merger, acquisition, and restructuring costs | — | 143 | |||||||||
Total stock-based compensation expense | $ | 20,831 | $ | 19,287 |
(2) Depreciation and amortization expense included in our expenses was as follows: | |||||||||||
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue | $ | 10,716 | $ | 80,391 | |||||||
Sales and marketing | 2,610 | 15,044 | |||||||||
Technology and development | 147 | 205 | |||||||||
General and administrative | 94 | 155 | |||||||||
Total depreciation and amortization expense | $ | 13,567 | $ | 95,795 |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Revenue | 100 | % | 100 | % | |||||||
Cost of revenue | 44 | 96 | |||||||||
Sales and marketing | 29 | 41 | |||||||||
Technology and development | 18 | 19 | |||||||||
General and administrative | 18 | 16 | |||||||||
Merger, acquisition, and restructuring costs | — | 6 | |||||||||
Total expenses | 109 | 177 | |||||||||
Loss from operations | (9) | (77) | |||||||||
Other (income) expense, net | 8 | (1) | |||||||||
Loss before income taxes | (17) | (76) | |||||||||
Benefit for income taxes | (5) | — | |||||||||
Net loss | (12) | % | (76) | % | |||||||
Note: Percentages may not sum due to rounding. |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Interest expense, net | $ | 7,958 | $ | 8,175 | |||||||
Foreign exchange (gain) loss, net | (2,315) | 233 | |||||||||
(Gain) loss on extinguishment of debt | 7,387 | (8,549) | |||||||||
Other income | (1,292) | (1,313) | |||||||||
Total other (income) expense, net | $ | 11,738 | $ | (1,454) |
Three Months Ended | |||||||||||||||||
March 31, 2024 | March 31, 2023 | Change Favorable/ (Unfavorable) | |||||||||||||||
(in thousands) | |||||||||||||||||
Financial Measures and non-GAAP Financial Measures: | |||||||||||||||||
Revenue | $ | 149,319 | $ | 130,150 | 15% | ||||||||||||
Gross profit | $ | 83,417 | $ | 5,322 | NM | ||||||||||||
Contribution ex-TAC | $ | 130,553 | $ | 116,049 | 12% | ||||||||||||
Net loss | $ | (17,757) | $ | (98,732) | 82% | ||||||||||||
Adjusted EBITDA | $ | 25,026 | $ | 23,338 | 7% |
Three Months Ended | |||||||||||||||||
March 31, 2024 | March 31, 2023 | Change % | |||||||||||||||
(in thousands) | |||||||||||||||||
Revenue | $ | 149,319 | $ | 130,150 | 15 | % | |||||||||||
Less: Cost of revenue | 65,902 | 124,828 | (47) | % | |||||||||||||
Gross profit | 83,417 | 5,322 | NM | ||||||||||||||
Add back: Cost of revenue, excluding TAC | 47,136 | 110,727 | (57) | % | |||||||||||||
Contribution ex-TAC | $ | 130,553 | $ | 116,049 | 12 | % |
Contribution ex-TAC | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2024 | March 31, 2023 | Change % | |||||||||||||||
(in thousands) | |||||||||||||||||
Channel: | |||||||||||||||||
CTV | $ | 54,894 | $ | 46,412 | 18 | % | |||||||||||
Mobile | 53,299 | 46,897 | 14 | % | |||||||||||||
Desktop | 22,360 | 22,740 | (2) | % | |||||||||||||
Total | $ | 130,553 | $ | 116,049 | 12 | % |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Net loss | $ | (17,757) | $ | (98,732) | |||||||
Add back (deduct): | |||||||||||
Depreciation and amortization expense, excluding amortization of acquired intangible assets | 5,978 | 9,366 | |||||||||
Amortization of acquired intangibles | 7,589 | 86,429 | |||||||||
Stock-based compensation expense | 20,831 | 19,287 | |||||||||
Merger, acquisition, and restructuring costs, excluding stock-based compensation expense | — | 7,322 | |||||||||
Non-operational real estate and other expense, net | 24 | 116 | |||||||||
Interest expense, net | 7,958 | 8,175 | |||||||||
Foreign exchange (gain) loss, net | (2,315) | 233 | |||||||||
(Gain) loss on extinguishment of debt | 7,387 | (8,549) | |||||||||
Other debt refinancing expense | 3,140 | — | |||||||||
Benefit for income taxes | (7,809) | (309) | |||||||||
Adjusted EBITDA | $ | 25,026 | $ | 23,338 |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(in thousands) | |||||||||||
Cash flows used in operating activities | $ | (60,411) | $ | (30,893) | |||||||
Cash flows used in investing activities | (9,252) | (7,467) | |||||||||
Cash flows used in financing activities | (3,101) | (51,809) | |||||||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (621) | 265 | |||||||||
Change in cash, cash equivalents and restricted cash | $ | (73,385) | $ | (89,904) |
Remaining 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Lease liabilities associated with leases included Right of Use Asset as of March 31, 2024 | $ | 18,596 | $ | 18,265 | $ | 15,178 | $ | 10,119 | $ | 7,839 | $ | 14,358 | $ | 84,355 | |||||||||||||||||||||||||||
Convertible Senior Notes | — | — | 205,067 | — | — | — | 205,067 | ||||||||||||||||||||||||||||||||||
Interest, Convertible Senior Notes | 256 | 513 | 256 | — | — | — | 1,025 | ||||||||||||||||||||||||||||||||||
2024 Term Loan B Facility (1) | 2,737 | 3,650 | 3,650 | 3,650 | 3,650 | 347,663 | 365,000 | ||||||||||||||||||||||||||||||||||
Interest, 2024 Term Loan B Facility (2) | 27,216 | 35,808 | 35,446 | 35,084 | 34,817 | 71,780 | 240,151 | ||||||||||||||||||||||||||||||||||
Contractual fees related to the 2024 Term Loan B Facility and the 2024 Revolving Credit Facility (3) | 656 | 939 | 939 | 939 | 939 | 309 | 4,721 | ||||||||||||||||||||||||||||||||||
Other non-cancelable obligations | 44,596 | 21,990 | 346 | 241 | 241 | — | 67,414 | ||||||||||||||||||||||||||||||||||
Total | $ | 94,057 | $ | 81,165 | $ | 260,882 | $ | 50,033 | $ | 47,486 | $ | 434,110 | $ | 967,733 | |||||||||||||||||||||||||||
(1) Includes only customary scheduled loan amortization payments and excludes currently unknown prepayment amounts that may be required, per terms of the 2024 Credit Agreement, after the end of each fiscal year. | |||||||||||||||||||||||||||||||||||||||||
(2) Interest payments are based on an assumed rate of 9.79%, which was the rate as of March 31, 2024 for the associated 2024 Term Loan B Facility. | |||||||||||||||||||||||||||||||||||||||||
(3) Includes estimated fees based on current available amounts under our 2024 Revolving Credit Facility and using the current commitment rate as of March 31, 2024, fees based on outstanding but undrawn letters of credit as of March 31, 2024, and fees owed to our administrative agents for both facilities under the 2024 Credit Agreement. |
Period | Total Number of Shares Purchased | Average Price per Share | ||||||
January 1 - January 31, 2024 | ||||||||
Equity withholding(1) | 3 | $ | 9.25 | |||||
February 1 - February 29, 2024 | ||||||||
Equity withholding(1) | 899 | $ | 9.72 | |||||
March 1 - March 31, 2024 | ||||||||
Equity withholding(1) | 14 | $ | 12.20 | |||||
916 |
Officer Name | Officer Title | Date Plan Adopted/Terminated | Duration of Plan | Shares to be Purchased or Sold | Intended to Satisfy Rule 10b5-1(c)? | |||||||||||||||||||||||||||
June 10, 2024 - March 7, 2025 | Sell up to | Yes | ||||||||||||||||||||||||||||||
June 13, 2024 - March 14, 2025 | Sell up to | Yes | ||||||||||||||||||||||||||||||
June 14, 2024 - March 14, 2025 | Sell up to | Yes |
Number | Description | |||||||
10.1 | Credit Agreement, dated as of February 6, 2024, by and among Magnite, Inc., Morgan Stanley Senior Funding, Inc. as term loan administrative agent and Citibank, N.A. as revolving facility administrative agent and collateral agent, and other lender parties thereto (incorporated by reference to Exhibit 10.28 of the Registrant's Annual Report on Form 10-K filed with the Commission on February 28, 2024). | |||||||
31.1* | ||||||||
31.2* | ||||||||
32*(1) | ||||||||
101.ins * | Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.sch * | XBRL Taxonomy Schema Linkbase Document | |||||||
101.cal * | XBRL Taxonomy Calculation Linkbase Document | |||||||
101.def * | XBRL Taxonomy Definition Linkbase Document | |||||||
101.lab * | XBRL Taxonomy Label Linkbase Document | |||||||
101.pre * | XBRL Taxonomy Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
MAGNITE, INC. (Registrant) | |||||
/s/ David Day | |||||
David Day | |||||
Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer) | |||||
Date May 8, 2024 |
Signature: | /s/ Michael Barrett | |||||||
Date May 8, 2024 | Michael Barrett President and Chief Executive Officer (Principal Executive Officer) |
Signature: | /s/ David Day | |||||||
Date May 8, 2024 | David Day Chief Financial Officer (Principal Financial Officer) |
/s/ Michael Barrett | |||||
Michael Barrett President and Chief Executive Officer (Principal Executive Officer) |
/s/ David Day | |||||
David Day Chief Financial Officer (Principal Financial Officer) |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, shares, issued (in shares) | 140,024 | 138,577 |
Common stock, shares, outstanding (in shares) | 140,024 | 138,577 |
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
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Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (17,757) | $ (98,732) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (1,015) | 367 |
Other comprehensive income (loss) | (1,015) | 367 |
Comprehensive loss | $ (18,772) | $ (98,365) |
Organization and Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Company Overview Magnite, Inc. ("Magnite" or the "Company") was formed in Delaware and began operations on April 20, 2007. The Company operates a sell side advertising platform that offers buyers and sellers of digital advertising a single partner for transacting globally across all channels, formats, and auction types. The Company's common stock is listed on the Nasdaq Global Select Market of The Nasdaq Stock Market LLC ("Nasdaq") under the symbol "MGNI." Magnite has its principal offices in New York City, Los Angeles, Denver, London, and Sydney, and additional offices in Europe, Asia, North America, and South America. The Company’s platform features applications and services for sellers of digital advertising inventory, or publishers, that own or operate websites, applications, connected television ("CTV") channels, and other digital media properties, to manage and monetize their inventory; applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms, to buy digital advertising inventory; and a transparent, independent marketplace that brings buyers and sellers together and facilitates intelligent decision making and automated transaction execution at scale. The Company's clients include many of the world's leading sellers and buyers of digital advertising inventory. Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for the interim period presented have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for any future interim period, the year ending December 31, 2024, or for any future year. The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in its 2023 Annual Report on Form 10-K. There have been no significant changes in the Company's accounting policies from those disclosed in its audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in its Annual Report on Form 10-K. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed financial statements and accompanying footnotes. Actual results could differ materially from these estimates. In connection with the Company's periodic review of the estimated useful lives of its property and equipment, the Company extended the estimated useful lives of its network hardware assets from three years to five years effective January 1, 2024. The change in estimated useful lives were due to actual and expected longer refresh cycles for these assets. Based on the carrying value of network hardware assets as of December 31, 2023 and those placed in service during the three months ended March 31, 2024, the effect of this change in estimate was a decrease in loss from operations of $3.6 million and an increase in net loss of $2.0 million, or $0.01 per basic and diluted share, for the three months ended March 31, 2024. The updated policy reflecting the change in estimated useful lives is below. Property and Equipment, Net Property and equipment are recorded at historical cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets. The estimated useful lives of the Company’s property and equipment are as follows:
Repair and maintenance costs are charged to expense as incurred, while renewals and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gains or loss is reflected in the Company's results of operations. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures ("ASU 2023-09") to enhance income tax information primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. The Company is evaluating the impact of adopting this new accounting guidance on its disclosures. The Company does not believe there are any other recently issued and effective or not yet effective pronouncements that would have or are expected to have a material impact on the Company’s present or future condensed consolidated financial statements.
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Net Loss Per Share |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Net Loss Per Share The following table presents the basic and diluted net loss per share:
The following weighted-average shares have been excluded from the calculation of diluted net loss per share attributable to common stockholders for each period presented because they are anti-dilutive:
For the three months ended March 31, 2024 and 2023, the Company excluded outstanding performance stock units from the calculation of diluted net loss per share because they were anti-dilutive. As of March 31, 2024, the performance stock units granted during 2021, 2022, 2023, and 2024 had expected achievement levels of 0%, 80%, 93%, and 150%, respectively. As of March 31, 2023, the performance stock units granted in 2020, 2021, 2022, and 2023 had expected achievement levels of 94%, 0%, 54%, and 29%, respectively. Refer to Note 9—"Stock-Based Compensation" for additional information related to performance stock units. For the three months ended March 31, 2024 and 2023, shares that would be issuable assuming conversion of all of the Convertible Senior Notes (as defined in Note 13) were excluded from the calculation of diluted loss per share because they were anti-dilutive. The Convertible Senior Notes have an initial conversion rate of 15.6539 shares of common stock per $1,000 principal amount of the Convertible Senior Notes, which will be subject to anti-dilution adjustments in certain circumstances. As of March 31, 2024 and 2023, the number of shares that would be issuable assuming conversion of all of the Convertible Senior Notes is approximately 3,210,098 and 5,474,952, respectively.
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Revenue |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue For the majority of transactions on the Company's platform, the Company reports revenue on a net basis as it does not act as the principal in the purchase and sale of digital advertising inventory because it does not have control of the digital advertising inventory and does not set prices agreed upon within the auction marketplace. For certain advertising campaigns that are transacted through insertion orders, the Company reports revenue on a gross basis, based primarily on its determination that the Company acts as the primary obligor in the delivery of advertising campaigns for buyers with respect to such transactions. The following table presents the Company's revenue recognized on a net basis and on a gross basis for the three months ended March 31, 2024 and 2023:
The following table presents the Company's revenue by channel for the three months ended March 31, 2024 and 2023:
The following table presents the Company's revenue disaggregated by geographic location, based on the location of the Company's sellers for the three months ended March 31, 2024 and 2023:
Payment terms are specified in agreements between the Company and the buyers and sellers on its platform. The Company generally bills buyers at the end of each month for the full purchase price of impressions filled in that month. The Company recognizes volume discounts as a reduction of revenue as they are incurred. Specific payment terms may vary by agreement, but are generally seventy-five days or less. The Company's accounts receivable are recorded at the amount of gross billings to buyers, net of allowances for the amounts the Company is responsible to collect. The Company's accounts payable related to amounts due to sellers are recorded at the net amount payable to sellers (see Note 5). Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis. Accounts receivable are recorded at the invoiced amount, are unsecured, and do not bear interest. The allowance for doubtful accounts is reviewed quarterly, requires judgment, and is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The Company reviews the status of the then-outstanding accounts receivable on a customer-by-customer basis, taking into consideration the aging schedule of receivables, its historical collection experience, current information regarding the client, subsequent collection history, and other relevant data, in establishing the allowance for doubtful accounts. Accounts receivable are presented net of an allowance for doubtful accounts of $2.5 million at March 31, 2024, and $20.4 million at December 31, 2023. Accounts receivable are written off against the allowance for doubtful accounts when the Company determines amounts are no longer collectible. The Company reviews the associated payable to sellers for recovery of buyer receivable allowance and write-offs; in some cases, the Company can reduce the payable to sellers. The reduction of seller payables related to recovery of uncollected buyer receivables is netted against allowance expense. The contra seller payables related to recoveries were $1.5 million and $1.1 million as of March 31, 2024 and December 31, 2023, respectively. The following is a summary of activity in the allowance for doubtful accounts for the three months ended March 31, 2024 and 2023:
During the three months ended March 31, 2024 the Company wrote off $18.5 million of allowance for doubtful accounts, which was primarily attributable to the outstanding accounts receivable from a buyer that had filed for bankruptcy during 2023. During the three months ended March 31, 2024, the provision for expected credit losses associated with accounts receivable increased by $0.6 million, offset by increases of contra seller payables related to recoveries of uncollected buyer receivables of $0.5 million, which resulted in $0.1 million of bad debt expense. During the three months ended March 31, 2023, the provision for expected credit losses associated with accounts receivable increased by $0.6 million, offset by increases of contra seller payables related to recoveries of uncollected buyer receivables of $0.5 million, which resulted in $0.1 million of bad debt expense.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are based on market data obtained from independent sources. The fair value hierarchy is based on the following three levels of inputs, of which the first two are considered observable and the last one is considered unobservable: •Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. •Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. •Level 3 – Unobservable inputs. The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at March 31, 2024:
The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2023:
At March 31, 2024 and December 31, 2023, cash equivalents of $212.4 million and $281.2 million, respectively, consisted of money market funds and commercial paper, with original maturities of three months or less. The carrying amounts of cash equivalents are classified as Level 1 or Level 2 depending on whether or not their fair values are based on quoted market prices for identical securities that are traded in an active market. At March 31, 2024 the Company had debt outstanding under its Convertible Senior Notes and loans under its 2024 Term Loan B Facility (as defined in Note 13), and at December 31, 2023, had debt outstanding under its Convertible Senior Notes and loans under its 2021 Term Loan B Facility (as defined in Note 13) included in its balance sheets, respectively. The estimated fair value of the Company's Convertible Senior Notes was $183.3 million and $174.3 million as of March 31, 2024 and December 31, 2023, respectively. The estimated fair value of Convertible Senior Notes is based on market rates and the closing trading price of the Convertible Senior Notes as of March 31, 2024 and December 31, 2023 and is classified as Level 2 in the fair value hierarchy. At March 31, 2024 and December 31, 2023, the estimated fair value of the Company's 2024 Term Loan B Facility and of the Company's 2021 Term Loan B Facility was $365.5 million and $352.3 million, respectively. The estimated fair value is based on borrowing rates currently available to the Company for financing with similar terms and is classified as Level 2 in the fair value hierarchy. There were no transfers between Level 1 and Level 2 fair value measurements during the three months ended March 31, 2024 and 2023.
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Other Balance Sheet Amounts |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Balance Sheet Amounts | Other Balance Sheet Amounts Accounts payable and accrued expenses included the following:
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Major classes of property and equipment were as follows:
Depreciation expense on property and equipment totaled $3.2 million and $5.3 million for the three months ended March 31, 2024 and 2023, respectively. See Note 1 for information related to the change in estimated useful lives of network hardware assets. The Company's property and equipment, net by geographical region was as follows:
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets The Company’s intangible assets as of March 31, 2024 and December 31, 2023 included the following:
Amortization of intangible assets for the three months ended March 31, 2024 and 2023 was $7.6 million and $86.4 million, respectively. The estimated remaining amortization expense associated with the Company's intangible assets was as follows as of March 31, 2024:
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Merger, Acquisition, and Restructuring Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merger, Acquisition, and Restructuring Costs | Merger, Acquisition, and Restructuring Costs Merger, acquisition, and restructuring costs primarily consists of professional services fees and employee termination costs, including stock-based compensation charges, associated with historical acquisitions and restructuring activities. The following table summarizes merger, acquisition, and restructuring cost activity (in thousands):
During the three months ended March 31, 2024, the Company did not incur any merger, acquisition, and restructuring costs. During the three months ended March 31, 2023, the Company incurred merger, acquisition, and restructuring costs of $7.5 million, which included the Company's reduction of its global workforce primarily associated with the elimination of duplicative roles and other costs associated with the consolidation of its legacy CTV and SpotX CTV platforms following the 2021 acquisition of SpotX Inc., including loss contracts for office facilities the Company does not plan to continue to occupy and impairment charges related to certain assets it no longer plans to utilize.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Stock Options A summary of stock option activity for the three months ended March 31, 2024 is as follows:
At March 31, 2024, the Company had unrecognized employee stock-based compensation expense relating to nonvested stock options of approximately $5.4 million, which is expected to be recognized over a weighted-average period of 2.3 years. Total grant date fair value of options vested during the three months ended March 31, 2024 was $1.1 million. The Company estimates the fair value of stock options that contain service conditions using the Black-Scholes option pricing model. The grant date fair value of options granted during the three months ended March 31, 2024 was $6.34 per share. The weighted-average input assumptions used by the Company were as follows:
Restricted Stock Units A summary of restricted stock unit ("RSU") activity for the three months ended March 31, 2024 is as follows:
The weighted-average grant date fair value per share of restricted stock units granted during the three months ended March 31, 2024 was $9.20. The intrinsic value of restricted stock units that vested during the three months ended March 31, 2024 was $23.2 million. At March 31, 2024, the intrinsic value of unvested restricted stock units was $167.1 million. At March 31, 2024, the Company had unrecognized stock-based compensation expense relating to unvested restricted stock units of approximately $161.2 million, which is expected to be recognized over a weighted-average period of 3.0 years. Performance Stock Units The Company grants performance stock units ("PSU") to select executive employees that vest based on share price metrics tied to total shareholder return relative ("TSR") to a peer group, subject to a time-based service component. Between 0% and 150% of the performance stock units will vest at the end of the performance period, which is generally on the third anniversary of the PSU grant date. During the three months ended March 31, 2024, the Company granted PSUs with an aggregate target of 486,431 shares, assuming a performance measurement of 100%. The amount of shares that will ultimately vest will be determined based on the Company's TSR relative to the TSRs of a peer group for the three year-period beginning January 1, 2024, as well as certain interim measurements based on relative TSR for the one-year and two-year periods beginning on January 1, 2024. A summary of PSU activity for the three months ended March 31, 2024 is as follows:
The grant date fair value for the PSUs was estimated using a Monte-Carlo simulation model that incorporates option-pricing inputs covering the period from the grant date through the end of the performance period. Stock-based compensation expense for PSUs is based on the grant date fair value and the number of shares assuming a performance measurement of 100%. The compensation expense will not be reversed if the performance metrics are not met. The weighted-average input assumptions used by the Company were as follows:
At March 31, 2024, the intrinsic value of unvested performance stock units based on expected achievement levels was $13.3 million. As of March 31, 2024, the Company had unrecognized stock-based compensation expense relating to outstanding PSUs of approximately $12.0 million, which will be recognized over a weighted-average period of 2.2 years. Stock-Based Compensation Expense Total stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows:
As of March 31, 2024, an aggregate of 16,787,890 shares remained available for future grants under the Magnite, Inc. Amended and Restated 2014 Equity Incentive Plan (the "Amended and Restated 2014 Equity Incentive Plan"). As of March 31, 2024, the Company has reserved 4,730,838 shares of its common stock for issuance under the Magnite, Inc. Amended and Restated 2014 Employee Stock Purchase Plan (the "Amended and Restated 2014 Employee Stock Purchase Plan").
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Income Taxes |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date income. The Company's annual estimated effective tax rate differs from the statutory rate primarily as a result of state taxes, foreign taxes, deductible stock option expenses, nondeductible executive compensation, and changes in the Company's valuation allowance. The Company recorded an income tax benefit of $7.8 million for the three months ended March 31, 2024, and an income tax benefit of $0.3 million for the three months ended March 31, 2023. The tax benefit for the three months ended March 31, 2024 was primarily the result of the Company's ability to recognize deferred tax assets ("DTAs") subject to the domestic valuation allowance, Base Erosion and Anti-Abuse Tax (“BEAT”), and the foreign income tax provision. The tax benefit for the three months ended March 31, 2023 was primarily the result of the Company's ability to recognize DTAs subject to the domestic valuation allowance and the foreign income tax provision. The Company continues to maintain a partial valuation allowance for the domestic DTAs. Due to uncertainty as to the realization of benefits from the Company's domestic and certain international DTAs, including net operating loss carryforwards and research and development tax credits, the Company has a partial valuation allowance reserved against such assets. The Company intends to continue to maintain a partial valuation allowance on the DTAs until there is sufficient evidence to support the reversal of all or some additional portion of these allowances. Due to the net operating loss carryforwards, all of the Company's United States federal and a majority of its state returns are open to examination by the Internal Revenue Service and state jurisdictions for all years since inception. For the Netherlands, India, Sweden, and the United Kingdom, all tax years remain open for examination by the local country tax authorities, for France, only 2021 and forward are open, for Singapore, only 2019 and forward are open for examination, for Australia, Brazil, Germany, and New Zealand, 2019 and forward are open for examination, for Canada, Italy, and Malaysia, 2018 and forward are open for examination, and for Japan, 2017 and forward remain open for examination. Pursuant to Section 382 of the Internal Revenue Code, the Company and Telaria, Inc. both underwent ownership changes for tax purposes (i.e. a more than 50% change in stock ownership in aggregated 5% shareholders) on April 1, 2020 due to the merger with Telaria Inc. As a result, the use of the Company's total domestic NOL carryforwards and tax credits generated prior to the ownership change will be subject to annual use limitations under Section 382 and Section 383 of the Code and comparable state income tax laws. The Company believes that the ownership change will not impact its ability to utilize substantially all of its NOLs and state research and development carryforward tax credits to the extent it will generate taxable income that can be offset by such losses. The Company reasonably expects its federal research and development carryforward tax credits will not be recovered prior to expiration. There was no material change to the Company's unrecognized tax benefits in the three months ended March 31, 2024 and the Company does not expect to have any material changes to unrecognized tax benefits through the end of the fiscal year.
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Lease Obligations |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Obligations | Lease Obligations Operating lease expense was $5.7 million and $6.5 million for the three months ended March 31, 2024 and 2023, respectively, and variable lease expense was $0.9 million during each of the three months ended March 31, 2024 and 2023. The Company also received rental income of $1.3 million and $1.3 million for real estate leases for which it subleases the property to third parties during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, a weighted average discount rate of 6.21% and 6.19%, respectively, has been applied to the remaining lease payments to calculate the lease liabilities included within the condensed consolidated balance sheet. The lease terms of the Company’s operating leases generally range from one year to ten years, and the weighted average remaining lease term of leases included in the lease liability is 5.0 years and 5.2 years as of March 31, 2024 and December 31, 2023, respectively. The maturity of the Company's lease liabilities associated with leases included in the lease liability and ROU asset were as follows as of March 31, 2024 (in thousands):
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Commitments and Contingencies |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has commitments under non-cancelable operating leases for facilities, certain equipment, and its managed data center facilities (Note 11). As of March 31, 2024 and December 31, 2023, the Company had $5.2 million and $5.3 million, respectively, of letters of credit associated with office leases available for borrowing, on which there were no outstanding borrowings as of either date. In the normal course of business, the Company enters into non-cancelable contractual obligations with various parties, primarily related to software services agreements and data center providers. As of March 31, 2024, the Company's outstanding non-cancelable contractual obligations with a remaining term of one year or longer consist of the following (in thousands):
The amounts above include commitments under a cloud-managed services agreement, under which the Company has a non-cancelable minimum spend commitment from July 2024 to June 2025 of $57.6 million. The minimum spend commitment reflected above approximates the manner in which the Company expects to fulfill the obligation. Guarantees and Indemnification The Company’s agreements with sellers, buyers, and other third parties typically obligate the Company to provide indemnity and defense for losses resulting from claims of intellectual property infringement, damages to property or persons, business losses, or other liabilities. Generally, these indemnity and defense obligations relate to the Company’s own business operations, obligations, and acts or omissions. However, under some circumstances, the Company agrees to indemnify and defend contract counterparties against losses resulting from their own business operations, obligations, and acts or omissions, or the business operations, obligations, and acts or omissions of third parties. For example, because the Company’s business interposes the Company between buyers and sellers in various ways, buyers often require the Company to indemnify them against acts and omissions of sellers, and sellers often require the Company to indemnify them against acts and omissions of buyers. In addition, the Company’s agreements with sellers, buyers, and other third parties typically include provisions limiting the Company’s liability to the counterparty, and the counterparty’s liability to the Company. These limits sometimes do not apply to certain liabilities, including indemnity obligations. These indemnity and limitation of liability provisions generally survive termination or expiration of the agreements in which they appear. The Company has also entered into indemnification agreements with its directors, executive officers, and certain other officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees. No material demands have been made upon the Company to provide indemnification under such agreements and there are no claims that the Company is aware of that could have a material effect on the Company’s condensed consolidated financial statements. Litigation The Company and its subsidiaries may from time to time be parties to legal or regulatory proceedings, lawsuits and other claims incident to their business activities and to the Company’s status as a public company. Such matters may include, among other things, assertions of contract breach or intellectual property infringement, claims for indemnity arising in the course of the Company’s business, regulatory investigations, audits by taxing authorities, or enforcement proceedings, and claims by persons whose employment has been terminated. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, management is unable to ascertain the ultimate aggregate amount of monetary liability, amounts which may be covered by insurance or recoverable from third parties, or the financial impact with respect to such matters as of March 31, 2024. However, based on management’s knowledge as of March 31, 2024, management believes that the final resolution of these matters known at such date, individually and in the aggregate, will not have a material adverse effect upon the Company’s condensed consolidated financial position, results of operations or cash flows. Employment Contracts The Company has entered into severance agreements with certain employees and officers. The Company may be required to pay severance and accelerate the vesting of certain equity awards in the event of involuntary terminations.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Long term debt as of March 31, 2024 and December 31, 2023 consisted of the following:
Maturities of the principal amount of the Company's long-term debt as of March 31, 2024 are as follows (in thousands):
Amortization of debt discount and debt issuance cost is computed using the effective interest method and is included in interest expense in the condensed consolidated statement of operations. Amortization of the debt discount and debt issuance cost associated with the Company's indebtedness totaled $1.0 million for the three months ended March 31, 2024 and $1.6 million for the three months ended March 31, 2023. In addition, amortization of deferred financing costs was $0.1 million for the three months ended March 31, 2024 and $0.1 million for the three months ended March 31, 2023. Deferred financing costs are included in other assets, non-current assets. Convertible Senior Notes and Capped Call Transactions In March 2021, the Company issued $400.0 million aggregate principal amount of 0.25% convertible senior notes in a private placement, including $50.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the initial purchasers (collectively, the "Convertible Senior Notes"). The Convertible Senior Notes will mature on March 15, 2026, unless earlier repurchased, redeemed or converted. The total net proceeds from the offering, after deducting debt issuance costs, paid by the Company, were approximately $388.6 million. The Company used approximately $39.0 million of the net proceeds from the offering to pay for the Capped Call Transactions (as described below). The Convertible Senior Notes are senior, unsecured obligations and are (i) equal in right of payment with the existing and future senior, unsecured indebtedness; (ii) senior in right of payment to any of the Company’s future indebtedness that is expressly subordinated to the Convertible Senior Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness, including amounts outstanding under the Loan Agreement or the new Credit Agreement (see section below); and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries that do not guarantee the Convertible Senior Notes. The Convertible Senior Notes accrue interest at 0.25% per annum payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. The Convertible Senior Notes will mature on March 15, 2026 unless they are redeemed, repurchased or converted prior to such date. The Convertible Senior Notes are convertible at the option of holders only during certain periods and upon satisfaction of certain conditions. Holders have the right to convert their notes (or any portion of a note in an authorized denomination), in the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (ii) during the five consecutive business days immediately after any ten consecutive trading day period (such ten consecutive trading day period, the "measurement period") in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day; (iii) upon the occurrence of certain corporate events or distributions on the Company’s common stock; (iv) if the Company calls such Convertible Senior Notes for redemption; and (v) on or after September 15, 2025, until the close of business on the second scheduled trading day immediately before the maturity date, holders of the Convertible Senior Notes may, at their option, convert all or a portion of their Convertible Senior Notes regardless of the foregoing conditions at any time from, and including, September 15, 2025 until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Convertible Senior Notes may be settled in shares of the Company’s common stock, cash or a combination of cash and shares of the Company’s common stock, at the Company’s election. All conversions with a conversion date that occurs on or after September 15, 2025 will be settled using the same settlement method, and the Company will send notice of such settlement method to noteholders no later than the open of business on September 15, 2025. The Company may not redeem the Convertible Senior Notes at their option at any time before March 20, 2024. Subject to the terms of the indenture agreement, the Company has the right, at its election, to redeem all, or any portion (subject to the partial redemption limitation) in an authorized denomination, of the Convertible Senior Notes, at any time, and from time to time, on a redemption date on or after March 20, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, for cash, but only if the "last reported sale price," as defined under the Offering Memorandum, per share of common stock exceeds 130% of the “conversion price” on (i) each of at least 20 trading days, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any note for redemption will constitute a "make-whole fundamental change" (as defined below) with respect to that note, in which case the conversion rate applicable to the conversion of that note will be increased in certain circumstances if it is converted after it is called for redemption. If the Company elects to redeem less than all of the outstanding notes, then the redemption will not constitute a make-whole fundamental change with respect to the notes not called for redemption, and holders of the notes not called for redemption will not be entitled to an increased conversion rate for such notes as described above on account of the redemption, except to the limited extent described further below. No sinking fund is provided for the Convertible Senior Notes, which means that the Company is not required to redeem or retire the Convertible Senior Notes periodically. If a fundamental change occurs, then each noteholder will have the right to require the Company to repurchase its notes (or any portion thereof in an authorized denomination) for cash on a date (the "fundamental change repurchase date") of the Company’s choosing, which must be a business day that is no more than 45, nor less than 20, business days after the date the Company distributes the related fundamental change notice. If an event of default, other than a reporting default remedied by special interest as defined in the indenture agreement, occurs with respect to the Company or any guarantor, then the principal amount of, and all accrued and unpaid interest on, all of the notes then outstanding will immediately become due and payable without any further action or notice by any person. If an event of default (other than a reporting event of default described above with respect to the Company or any guarantor and not solely with respect to a significant subsidiary of the Company’s or a guarantor, other than the Company or such guarantor) occurs and is continuing, then, the trustee, by notice to the Company, or noteholders of at least 25% of the aggregate principal amount of notes then outstanding, by written notice to the Company and the trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the notes then outstanding to become due and payable immediately. The Convertible Senior Notes have an initial conversion rate of 15.6539 shares of common stock per $1,000 principal amount of the Convertible Senior Notes, which will be subject to customary anti-dilution adjustments in certain circumstances. In connection with the pricing of the Convertible Senior Notes, the Company entered into privately negotiated capped call transactions with various financial institutions (the "Capped Call Transactions"). The Capped Call Transactions were entered into with third party broker-dealers to limit the potential dilution that would occur if the Company has to settle the conversion value in excess of the principal in shares. This exposure will be covered (i.e., the Company will receive as many shares as are required to be issued between the conversion price of $63.8818 and the maximum price of $91.2600). Any shares required to be issued by the Company over this amount would have net earnings per share dilution impact. By entering into the Capped Call Transactions, the Company expects to reduce the potential dilution to its common stock (or, in the event the conversion is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion its stock price exceeds the conversion price under the Convertible Senior Notes. The Company paid $39.0 million for the Capped Call Transactions, which was recorded as additional paid-in capital, using a portion of the gross proceeds from the sale of the Convertible Senior Notes. The cost of the Capped Call Transactions is not expected to be tax deductible as the Company did not elect to integrate the capped call into the Convertible Senior Notes for tax purposes. The cost of the Capped Call Transaction was recorded as a reduction of the Company’s additional paid-in capital in the accompanying condensed consolidated financial statements. The Company incurred debt issuance costs of $11.4 million in March 2021. The Convertible Senior Notes are presented net of issuance costs on the Company's condensed consolidated balance sheets. The debt issuance costs are amortized on an effective interest basis over the term of the Convertible Senior Notes and are included in interest expense and amortization of debt discount in the accompanying condensed consolidated statements of operations. During the three months ended March 31, 2023, the Company repurchased its Convertible Senior Notes in the open market with cash on hand for $40.8 million. The Company recognized a gain on extinguishment of debt of $8.5 million related to the repurchase of $50.3 million of principal balance of Convertible Senior Notes and $0.9 million of unamortized debt issuance costs associated with the extinguished debt during the three months ended March 31, 2023. The gain on extinguishment is included in other (income) expense in the Company's condensed consolidated statement of operations. The following table sets forth interest expense related to the Convertible Senior Notes for the three months ended March 31, 2024 and 2023 (in thousands, except interest rates):
Amortization expense for the Company's debt issuance costs related to the Convertible Senior Notes for the fiscal years 2024 through 2026 is as follows (in thousands):
2021 and 2024 Credit Agreements On April 30, 2021, the Company entered into a credit agreement (the "2021 Credit Agreement") with Goldman Sachs Bank USA as administrative agent and collateral agent, and other lender parties thereto. The 2021 Credit Agreement provided for a $360.0 million seven-year senior secured term loan facility ("2021 Term Loan B Facility"), which had a maturity in April 2028, and a $65.0 million senior secured revolving credit facility (as amended in June 2021, the "2021 Revolving Credit Facility"), which had a maturity in December 2025. In June 2023, the Company amended the 2021 Credit Agreement (the "Amended 2021 Credit Agreement") to transition away from a variable interest rate based on the Eurodollar Rate towards a similar variable interest rate based on Adjusted Term SOFR, as defined in the Amended 2021 Credit Agreement, which is based on the secured overnight financing rate (“SOFR”). Amounts outstanding under the Amended 2021 Credit Agreement accrued interest at a rate equal to either, (1) for the 2021 Term Loan B Facility, at the Company’s election, the Adjusted Term SOFR plus a margin of 5.00% per annum, or ABR (as defined in the Amended 2021 Credit Agreement) plus a margin of 4.00%, and (2) for the 2021 Revolving Credit Facility, at the Company’s election, Adjusted Term SOFR plus a margin of 4.25% to 4.75%, or ABR plus a margin of 3.25% to 3.75%, in each case, depending on the Company’s first lien net leverage ratio. On February 6, 2024, the Company entered into a credit agreement (the “2024 Credit Agreement”) with Morgan Stanley Senior Funding, Inc. as the Company term loan administrative agent and Citibank, N.A. as the Company's revolving facility administrative agent and collateral agent, and other lender parties thereto. The 2024 Credit Agreement includes a $365.0 million seven-year senior secured term loan facility (the "2024 Term Loan B Facility"), whose loans will mature in February 2031 and a $175.0 million five-year senior secured revolving credit facility (the "2024 Revolving Credit Facility"), which matures in February 2029. The Company primarily used the proceeds from the 2024 Term Loan B Facility to repay in full all outstanding amounts owed under the Company's Amended 2021 Credit Agreement. Accordingly, the Amended 2021 Credit Agreement was terminated and replaced in its entirely. The obligations under the 2024 Credit Agreement are secured by substantially all of the assets of the Company. Amounts outstanding under the 2024 Credit Agreement accrue interest at a rate equal to either, (1) for the 2024 Term Loan B Facility, at the Company’s election, Term SOFR (as defined in the 2024 Credit Agreement) plus a margin of 4.50% per annum, or ABR (as defined in the 2024 Credit Agreement) plus a margin of 3.50%, and (2) for the 2024 Revolving Credit Facility, at the Company’s election, Term SOFR plus a margin of 3.50% to 4.00%, or ABR plus a margin of 2.50% to 3.00%, in each case, depending on the Company’s First Lien Net Leverage Ratio (as defined in the 2024 Credit Agreement). As of March 31, 2024, the contractual interest rate related to the Term Loan B Facility was 9.79%. In addition to having to pay contractual interest on the 2024 Term Loan B Facility, the Company is also required to pay certain other fees, primarily to the lenders under the 2024 Revolving Credit Facility, in order to maintain their revolving facility commitments. The covenants of the 2024 Credit Agreement include customary negative covenants that, among other things, restrict the Company’s ability to incur additional indebtedness, grant liens and make certain acquisitions, investments, asset dispositions and restricted payments. In addition, the 2024 Credit Agreement contains a springing financial covenant that is tested on the last day of any fiscal quarter only if utilization of the 2024 Revolving Credit Facility exceeds 35% of the total revolving commitments, whereby the Company is required to maintain a First Lien Net Leverage Ratio below 3.25 to 1.00. As of March 31, 2024, no amounts were outstanding under the 2024 Revolving Credit Facility and the Company was in compliance with its debt covenants. At March 31, 2024, amounts available under the 2024 Revolving Credit Facility were $169.8 million, net of letters of credit outstanding in the amount of $5.2 million. The 2024 Credit Agreement includes customary events of default, and customary rights and remedies upon the occurrence of any event of default thereunder, including rights to accelerate the loans, terminate the commitments thereunder and realize upon the collateral securing the obligations under the 2024 Credit Agreement. The 2024 Credit Agreement calls for customary scheduled loan amortization payments of 0.25% of the initial principal balance payable quarterly (i.e. 1% in aggregate per year) as well as a provision that requires the Company to prepay the 2024 Term Loan B Facility based on an annual calculation of free cash flow ("Excess Cash Flow") as defined by the 2024 Credit Agreement. The Company was not required to make any such mandatory prepayment required by the Excess Cash Flow provision for the period ended March 31, 2024. The following table summarizes the amount outstanding under the Company's 2024 Term Loan B Facility and 2021 Term Loan B Facility at March 31, 2024 and December 31, 2023, respectively:
As part of the debt refinance on February 6, 2024, where lenders under the 2021 Credit Agreement continued to be lenders under the 2024 Credit Agreement, certain of their loans and revolving facility commitments were deemed to have been modified ("Modified Loans" and "Modified Commitments," respectively). The Company continued to defer debt discount costs of $3.7 million and debt issuance costs of $5.7 million from Modified Loans over the term of the new 2024 Term Loan B Facility. The Company continued to defer financing costs as of February 6, 2024 of $0.6 million from Modified Commitments over the term of the new 2024 Revolver Facility. For lenders of the 2021 Credit Agreement that did not continue to participate in the 2024 Credit Agreement, their pro-rata portion of the unamortized debt discount of $2.8 million, unamortized debt issuance cost of $4.3 million, and unamortized deferred financing costs of $0.3 million were deemed to be extinguished. The resulting loss on extinguishment of debt is included in other (income) expense in the Company's condensed consolidated statement of operations. The Company paid $7.7 million in third-party fees related to the closing of the 2024 Credit Agreement. Third-party fees attributed to new lenders of $2.4 million were capitalized as part of the debt issuance cost and will be amortized over the term of the 2024 Term Loan B Facility while third-party fees attributed to Modified Loans of $3.1 million were included in general and administrative expenses in the Company's condensed consolidated statement of operations for the three months ended March 31, 2024. In addition, third-party fees of $2.1 million attributed to new revolving lenders and Modified Commitments were capitalized as part of deferred financing costs and will be amortized over the term of the 2024 Revolving Facility. The Company also capitalized additional debt discount costs of $3.7 million associated with the closing of the 2024 Term Loan B Facility, which will be amortized over the term of the 2024 Term Loan B Facility. The following table sets forth interest expense related to the 2024 Term Loan B Facility and the 2021 Term Loan B Facility for the three months ended March 31, 2024 and related to the 2021 Term Loan B Facility for the three months ended March 31, 2023 (in thousands, except interest rates):
Amortization expense for the 2024 Term Loan B Facility debt discount and debt issuance costs for fiscal years 2024 through 2028 and thereafter is as follows (in thousands):
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net loss | $ (17,757) | $ (98,732) |
Insider Trading Arrangements |
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Mar. 31, 2024
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Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Material Terms of Trading Arrangement | Trading Plans In the first quarter of 2024, the following trading plans were adopted or terminated by our Section 16 officers or directors:
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Non-Rule 10b5-1 Arrangement Adopted | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Terminated | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Terminated | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
James Rossman [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | James Rossman | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Director | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | Adopted March 8, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 200 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 224,936 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Katheryn Evans [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Katheryn Evans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Chief Operating Officer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | Adopted March 14, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 274 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 49,888 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aaron Saltz [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Aaron Saltz | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Chief Legal Officer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | Adopted March 15, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 273 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 51,521 |
Organization and Summary of Significant Accounting Policies (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for the interim period presented have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for any future interim period, the year ending December 31, 2024, or for any future year. The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in its 2023 Annual Report on Form 10-K. There have been no significant changes in the Company's accounting policies from those disclosed in its audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in its Annual Report on Form 10-K.
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Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed financial statements and accompanying footnotes. Actual results could differ materially from these estimates. In connection with the Company's periodic review of the estimated useful lives of its property and equipment, the Company extended the estimated useful lives of its network hardware assets from three years to five years effective January 1, 2024. The change in estimated useful lives were due to actual and expected longer refresh cycles for these assets. Based on the carrying value of network hardware assets as of December 31, 2023 and those placed in service during the three months ended March 31, 2024, the effect of this change in estimate was a decrease in loss from operations of $3.6 million and an increase in net loss of $2.0 million, or $0.01 per basic and diluted share, for the three months ended March 31, 2024. The updated policy reflecting the change in estimated useful lives is below.
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Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at historical cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets. The estimated useful lives of the Company’s property and equipment are as follows:
Repair and maintenance costs are charged to expense as incurred, while renewals and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gains or loss is reflected in the Company's results of operations.
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Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures ("ASU 2023-09") to enhance income tax information primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. The Company is evaluating the impact of adopting this new accounting guidance on its disclosures. The Company does not believe there are any other recently issued and effective or not yet effective pronouncements that would have or are expected to have a material impact on the Company’s present or future condensed consolidated financial statements.
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Organization and Summary of Significant Accounting Policies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | The estimated useful lives of the Company’s property and equipment are as follows:
Major classes of property and equipment were as follows:
The Company's property and equipment, net by geographical region was as follows:
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Net Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Loss Per Share, Basic and Diluted | The following table presents the basic and diluted net loss per share:
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Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following weighted-average shares have been excluded from the calculation of diluted net loss per share attributable to common stockholders for each period presented because they are anti-dilutive:
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Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue Recognized on a Net Basis and on a Gross Basis | The following table presents the Company's revenue recognized on a net basis and on a gross basis for the three months ended March 31, 2024 and 2023:
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Summary of Disaggregation of Revenue | The following table presents the Company's revenue by channel for the three months ended March 31, 2024 and 2023:
The following table presents the Company's revenue disaggregated by geographic location, based on the location of the Company's sellers for the three months ended March 31, 2024 and 2023:
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Accounts Receivable, Allowance for Credit Loss | The following is a summary of activity in the allowance for doubtful accounts for the three months ended March 31, 2024 and 2023:
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at March 31, 2024:
The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2023:
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Other Balance Sheet Amounts (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses included the following:
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Property and Equipment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | The estimated useful lives of the Company’s property and equipment are as follows:
Major classes of property and equipment were as follows:
The Company's property and equipment, net by geographical region was as follows:
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Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The Company’s intangible assets as of March 31, 2024 and December 31, 2023 included the following:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated remaining amortization expense associated with the Company's intangible assets was as follows as of March 31, 2024:
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Merger, Acquisition, and Restructuring Costs (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merger, Acquisition, and Restructuring Costs | The following table summarizes merger, acquisition, and restructuring cost activity (in thousands):
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the three months ended March 31, 2024 is as follows:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average input assumptions used by the Company were as follows:
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Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted stock unit ("RSU") activity for the three months ended March 31, 2024 is as follows:
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Schedule of Nonvested Performance-Based Units Activity | A summary of PSU activity for the three months ended March 31, 2024 is as follows:
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Schedule of Stock Based Compensation Expense | Total stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows:
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Lease Obligations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturity of Lease Liabilities | The maturity of the Company's lease liabilities associated with leases included in the lease liability and ROU asset were as follows as of March 31, 2024 (in thousands):
|
Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity | As of March 31, 2024, the Company's outstanding non-cancelable contractual obligations with a remaining term of one year or longer consist of the following (in thousands):
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long term debt as of March 31, 2024 and December 31, 2023 consisted of the following:
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Schedule of Maturities of Long-term Debt | Maturities of the principal amount of the Company's long-term debt as of March 31, 2024 are as follows (in thousands):
Amortization expense for the Company's debt issuance costs related to the Convertible Senior Notes for the fiscal years 2024 through 2026 is as follows (in thousands):
Amortization expense for the 2024 Term Loan B Facility debt discount and debt issuance costs for fiscal years 2024 through 2028 and thereafter is as follows (in thousands):
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Interest Income and Interest Expense Disclosure | The following table sets forth interest expense related to the Convertible Senior Notes for the three months ended March 31, 2024 and 2023 (in thousands, except interest rates):
The following table sets forth interest expense related to the 2024 Term Loan B Facility and the 2021 Term Loan B Facility for the three months ended March 31, 2024 and related to the 2021 Term Loan B Facility for the three months ended March 31, 2023 (in thousands, except interest rates):
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Schedule of Debt | The following table summarizes the amount outstanding under the Company's 2024 Term Loan B Facility and 2021 Term Loan B Facility at March 31, 2024 and December 31, 2023, respectively:
|
Organization and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Jan. 01, 2024 |
Dec. 31, 2023 |
|
Property, Plant and Equipment [Line Items] | ||||
Decrease in loss from operations | $ (13,828) | $ (100,495) | ||
Increase in net loss | $ 17,757 | $ 98,732 | ||
Basic (in dollars per share) | $ 0.13 | $ 0.73 | ||
Diluted (in dollars per share) | $ 0.13 | $ 0.73 | ||
Change in Accounting Method Accounted for as Change in Estimate | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | 3 years | ||
Decrease in loss from operations | $ 3,600 | |||
Increase in net loss | $ 2,000 | |||
Basic (in dollars per share) | $ 0.01 | |||
Diluted (in dollars per share) | $ 0.01 |
Organization and Summary of Significant Accounting Policies - Property and Equipment (Details) |
Mar. 31, 2024 |
---|---|
Computer equipment and network hardware | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer equipment and network hardware | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture, fixtures, and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture, fixtures, and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Net Loss Per Share - Basic and Diluted Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Net loss | $ (17,757) | $ (98,732) |
Weighted-average common shares outstanding, basic (in shares) | 139,297 | 134,667 |
Weighted average number of shares outstanding, diluted (in shares) | 139,297 | 134,667 |
Basic loss per share (in dollars per share) | $ (0.13) | $ (0.73) |
Diluted loss per share (in dollars per share) | $ (0.13) | $ (0.73) |
Revenue - Revenue Recognized on a Gross and Net Basis (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 149,319 | $ 130,150 |
Net basis | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 121,092 | 107,457 |
Gross basis | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 28,227 | $ 22,693 |
Revenue from Contract with Customer Benchmark | Concentration of Basis of Revenue Recognition | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Revenue from Contract with Customer Benchmark | Concentration of Basis of Revenue Recognition | Net basis | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 81.00% | 83.00% |
Revenue from Contract with Customer Benchmark | Concentration of Basis of Revenue Recognition | Gross basis | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 19.00% | 17.00% |
Revenue - Revenue Disaggregated by Geographic Location (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 149,319 | $ 130,150 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 113,412 | 97,156 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 35,907 | $ 32,994 |
Revenue - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Revenue from Contract with Customer [Abstract] | ||||
Payment terms in days (or less) | 75 days | |||
Accounts receivable, allowance for credit loss | $ 2,467 | $ 1,662 | $ 20,363 | $ 1,092 |
Contra seller payable | 1,500 | $ 1,100 | ||
Allowance for doubtful accounts, writeoff | 18,511 | 16 | ||
Increase in provision for expected credit losses | 615 | 586 | ||
Increase (decrease) in contra seller payable | 500 | 500 | ||
Accounts receivable, credit loss expense (recovery) | $ 134 | $ 67 |
Revenue - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for doubtful accounts, beginning balance | $ 20,363 | $ 1,092 |
Write-offs | (18,511) | (16) |
Increase in provision for expected credit losses | 615 | 586 |
Allowance for doubtful accounts, ending balance | $ 2,467 | $ 1,662 |
Fair Value Measurements - Financial Instruments (Details) - Recurring - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 212,417 | $ 281,162 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 212,417 | 281,162 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Credit Agreements, 2021 and 2024 | Line of Credit | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan fair value | $ 365,500 | $ 352,300 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 212,417 | 281,162 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Convertible notes | $ 183,300 | $ 174,300 |
Other Balance Sheet Amounts (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable—seller | $ 1,072,080 | $ 1,333,242 |
Accounts payable—trade | 33,472 | 23,844 |
Accrued employee-related payables | 17,855 | 15,090 |
Total | $ 1,123,407 | $ 1,372,176 |
Property and Equipment - Summary of Property and Equipment by Major Class (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 173,482 | $ 163,869 |
Accumulated depreciation | (117,949) | (116,498) |
Net property and equipment | 55,533 | 47,371 |
Computer equipment and network hardware | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 164,546 | 154,821 |
Furniture, fixtures, and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 4,003 | 4,031 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 3,809 | 3,893 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 1,124 | $ 1,124 |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expense on property and equipment | $ 3.2 | $ 5.3 |
Property and Equipment - Summary of Property and Equipment by Geographical Region (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total | $ 55,533 | $ 47,371 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Total | 39,800 | 32,161 |
International | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 15,733 | $ 15,210 |
Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense of intangible assets | $ 7.6 | $ 86.4 |
Intangible Assets - Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fiscal Year | ||
Remaining 2024 | $ 22,545 | |
2025 | 14,445 | |
2026 | 6,001 | |
2027 | 431 | |
Total | $ 43,422 | $ 51,011 |
Merger, Acquisition, and Restructuring Costs - Merger and Restructuring Cost Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Loss contracts (facilities related) | $ 2,190 | |
Impairment of property and equipment, net | 506 | |
Non-cash stock-based compensation (double-trigger acceleration and severance) | 143 | |
Total merger, acquisition, and restructuring costs | $ 0 | 7,465 |
Personnel related (severance and one-time termination benefit costs) | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,218 | |
Exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1,408 |
Merger, Acquisition, and Restructuring Costs - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring and Related Activities [Abstract] | ||
Acquisition related costs | $ 0 | $ 7,465 |
Stock-Based Compensation - Stock Options Outstanding (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
$ / shares
shares
| |
Shares Under Option | |
Beginning balance (in shares) | shares | 4,262 |
Granted (in shares) | shares | 130 |
Expired (in shares) | shares | (7) |
Ending balance (in shares) | shares | 4,385 |
Exercisable (in shares) | shares | 3,781 |
Weighted- Average Exercise Price | |
Beginning balance (usd per share) | $ / shares | $ 8.65 |
Granted (usd per share) | $ / shares | 9.20 |
Expired (usd per share) | $ / shares | 15.30 |
Ending balance (usd per share) | $ / shares | 8.66 |
Exercisable (usd per share) | $ / shares | $ 7.70 |
Weighted- Average Contractual Life | |
Outstanding | 5 years 3 months 18 days |
Exercisable | 4 years 9 months 18 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 18,357 |
Exercisable | $ | $ 18,036 |
Stock-Based Compensation - Stock Options Narrative (Details) - Stock Option $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
$ / shares
| |
Number of Shares | |
Unrecognized employee stock-based compensation | $ 5.4 |
Unrecognized employee stock-based compensation, period for recognition | 2 years 3 months 18 days |
Fair value of options vested in period | $ 1.1 |
Grant date fair value of options granted (usd per share) | $ / shares | $ 6.34 |
Stock-Based Compensation - Valuation Assumptions (Details) - Stock Option |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years | 5 years |
Risk-free interest rate | 3.93% | 3.99% |
Expected volatility | 84.00% | 84.00% |
Dividend yield | 0.00% | 0.00% |
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | shares | 11,450 |
Granted (in shares) | shares | 6,673 |
Canceled (in shares) | shares | (216) |
Vested and released (in shares) | shares | (2,363) |
Ending balance (in shares) | shares | 15,544 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 12.63 |
Granted (in dollars per share) | $ / shares | 9.20 |
Canceled (in dollars per share) | $ / shares | 10.30 |
Vested and released (in dollars per share) | $ / shares | 11.90 |
Ending balance (in dollars per share) | $ / shares | $ 11.30 |
Stock-Based Compensation - Restricted Stock Units Narrative (Details) $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
$ / shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Intrinsic value of nonvested unit | $ 13.3 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ / shares | $ 9.20 |
Fair value of restricted stock vested | $ 23.2 |
Intrinsic value of nonvested unit | 167.1 |
Unrecognized employee stock-based compensation | $ 161.2 |
Unrecognized employee stock-based compensation, period for recognition | 3 years |
Stock-Based Compensation - Performance Stock Units Activity (Details) - Unvested performance stock units shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | shares | 967 |
Granted (in shares) | shares | 486 |
Ending balance (in shares) | shares | 1,453 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, nonvested (in dollars per share) | $ / shares | $ 18.17 |
Granted (in dollars per share) | $ / shares | 11.76 |
Ending balance, nonvested (in dollars per share) | $ / shares | $ 16.03 |
Stock-Based Compensation - Weighted Average Assumptions (Details) - Unvested performance stock units - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years | 3 years |
Risk-free interest rate | 4.05% | 4.19% |
Expected volatility of Magnite | 87.00% | 94.00% |
Expected volatility of selected peer companies | 55.00% | 64.00% |
Expected correlation coefficients of Magnite | 59.00% | 62.00% |
Expected correlation coefficients of selected peer companies | 47.00% | 54.00% |
Dividend yield | $ 0 | $ 0 |
Stock-Based Compensation - Stock Based Compensation Expense Narrative (Details) |
Mar. 31, 2024
shares
|
---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares reserved (in shares) | 16,787,890 |
2014 Employee Stock Purchase Plan | Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares reserved (in shares) | 4,730,838 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Benefit for income taxes | $ (7,809) | $ (309) |
Lease Obligations - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Lessee, Lease, Description [Line Items] | |||
Lease expense | $ 5.7 | $ 6.5 | |
Lease cost | 0.9 | 0.9 | |
Sublease income | $ 1.3 | $ 1.3 | |
Weighted average discount rate | 6.21% | 6.19% | |
Weighted average remaining lease term | 5 years | 5 years 2 months 12 days | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease contract | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease contract | 10 years |
Lease Obligations - Schedule of Lease Liability Maturities (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Fiscal Year | |
Remaining 2024 | $ 18,596 |
2025 | 18,265 |
2026 | 15,178 |
2027 | 10,119 |
2028 | 7,839 |
Thereafter | 14,358 |
Total lease payments (undiscounted) | 84,355 |
Less: imputed interest | (11,391) |
Lease liabilities—total (discounted) | $ 72,964 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Non Cancelable Inventory And Other Services Purchase Commitments Member | ||
Other Commitments [Line Items] | ||
Non-cancelable purchase commitments | $ 57.6 | |
Financial Standby Letter of Credit | ||
Other Commitments [Line Items] | ||
Letters of credit outstanding, amount | $ 5.2 | $ 5.3 |
Commitments and Contingencies - Contractual Obligations (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2024 | $ 44,596 |
2025 | 21,990 |
2026 | 346 |
2027 | 241 |
2028 | 241 |
Total | $ 67,414 |
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Total | $ 570,067 | |
Debt, current | 3,650 | $ 3,600 |
Debt, non-current, net of debt discount and debt issuance costs | 549,077 | 532,986 |
Total | 552,727 | 536,586 |
Convertible Senior Notes | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Total | 205,067 | 205,067 |
Less: Unamortized discount and debt issuance costs | (2,304) | (2,598) |
Total | 202,763 | 202,469 |
Credit Agreements, 2021 and 2024 | Line of Credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Total | 365,000 | 351,000 |
Less: Unamortized discount and debt issuance costs | (15,036) | (16,883) |
Debt, non-current, net of debt discount and debt issuance costs | 349,964 | 334,117 |
Total | $ 349,964 | $ 334,117 |
Debt - Long-term Debt (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Disclosure [Abstract] | ||
Amortization of debt discount and issuance costs | $ 1.0 | $ 1.6 |
Amortization of deferred financing costs | $ 0.1 | $ 0.1 |
Debt - Maturities of Principle Amount of Long-Term Debt (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remaining 2024 | $ 2,737 |
2025 | 3,650 |
2026 | 208,717 |
2027 | 3,650 |
2028 | 3,650 |
Thereafter | 347,663 |
Total | $ 570,067 |
Debt - Interest Expense Related to the Convertible Senior Notes (Details) - Convertible Debt - Convertible Senior Notes - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 128 | $ 241 |
Amortization of debt issuance costs | 293 | 551 |
Total interest expense | $ 421 | $ 792 |
Effective interest rate | 0.82% | 0.82% |
Debt - Amortization Expense for Debt Issuance Costs (Details) - Convertible Debt - Convertible Senior Notes $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Debt Issuance Costs | |
Remaining 2024 | $ 879 |
2025 | 1,173 |
2026 | 252 |
Total | $ 2,304 |
Debt - Summary of Term Loan B Facility (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Term Loan B Facility | $ 570,067 | |
Debt, net of debt discount and debt issuance costs | 549,077 | $ 532,986 |
Line of Credit | Credit Agreements, 2021 and 2024 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Term Loan B Facility | 365,000 | 351,000 |
Unamortized debt discounts | (7,146) | (6,594) |
Unamortized debt issuance costs | (7,890) | (10,289) |
Debt, net of debt discount and debt issuance costs | $ 349,964 | $ 334,117 |
Debt - Interest Expense Related to the Term Loan B Facility (Details) - Line of Credit - Credit Agreements, 2021 and 2024 - Secured Debt - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 9,166 | $ 8,436 |
Amortization of debt discount | 314 | 393 |
Amortization of debt issuance costs | 418 | 612 |
Total interest expense | $ 9,898 | $ 9,441 |
Effective interest rate | 11.03% | 10.65% |
Debt - Amortization Expense for the Term Loan B Facility Debt Discount and Issuance Costs (Details) - Line of Credit - Credit Agreements, 2021 and 2024 - Secured Debt - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Discount | ||
Remaining 2024 | $ 807 | |
2025 | 1,067 | |
2026 | 1,056 | |
2027 | 1,045 | |
2028 | 1,034 | |
Thereafter | 2,137 | |
Total | 7,146 | $ 6,594 |
Debt Issuance Costs | ||
Remaining 2024 | 891 | |
2025 | 1,178 | |
2026 | 1,166 | |
2027 | 1,154 | |
2027 | 1,142 | |
Thereafter | 2,359 | |
Total | $ 7,890 | $ 10,289 |
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