(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (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 |
Page | |||||
Unaudited Consolidated Financial Statements of ZoomInfo Technologies Inc. and Subsidiaries | |||||
ZoomInfo Technologies Inc. | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(in millions, except share data) | |||||||||||
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(unaudited) | (*) | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Income tax receivable | |||||||||||
Total current assets | |||||||||||
Restricted cash, non-current | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Deferred tax assets | |||||||||||
Deferred costs and other assets, net of current portion | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Permanent Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities | |||||||||||
Unearned revenue, current portion | |||||||||||
Income taxes payable | |||||||||||
Current portion of tax receivable agreements liability | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Total current liabilities | |||||||||||
Unearned revenue, net of current portion | |||||||||||
Tax receivable agreements liability, net of current portion | |||||||||||
Operating lease liabilities, net of current portion | |||||||||||
Long-term debt, net of current portion | |||||||||||
Deferred tax liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and Contingencies (Note 11) | |||||||||||
Permanent Equity: | |||||||||||
Class A common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income (loss) | |||||||||||
Retained Earnings | |||||||||||
Total equity | |||||||||||
Total liabilities and permanent equity | $ | $ |
ZoomInfo Technologies Inc. | |||||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||||
(in millions, except per share amounts; unaudited) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of service: | |||||||||||||||||||||||
(1) | |||||||||||||||||||||||
Amortization of acquired technology | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing(1) | |||||||||||||||||||||||
Research and development(1) | |||||||||||||||||||||||
General and administrative(1) | |||||||||||||||||||||||
Amortization of other acquired intangibles | |||||||||||||||||||||||
Restructuring and transaction-related expenses | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Loss on debt modification and extinguishment | |||||||||||||||||||||||
Other (income) expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income taxes | |||||||||||||||||||||||
Income tax expense (benefit) | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
Net income (loss) attributable to ZoomInfo Technologies Inc. | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Net income (loss) per share of Class A and Class C common stock: | |||||||||||||||||||||||
Basic | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Diluted | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of service | $ | $ | $ | $ | |||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total equity-based compensation expense | $ | $ | $ | $ |
ZoomInfo Technologies Inc. | |||||||||||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||||||||||
(in millions; unaudited) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges | |||||||||||||||||||||||
Realized (gain) loss on settlement of cash flow hedges | ( | ( | |||||||||||||||||||||
Amortization of deferred losses related to the dedesignated Interest Rate Swap | |||||||||||||||||||||||
Other comprehensive income (loss) before tax | |||||||||||||||||||||||
Tax effect | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) attributable to ZoomInfo Technologies Inc. | $ | $ | ( | $ | $ | ( |
ZoomInfo Technologies Inc. Consolidated Statements of Changes in Equity (Deficit) (in millions, except share data) | ||||||||||||||||||||||||||||||||||||||
New ZoomInfo Common Stock | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional paid-in capital | Retained Earnings | AOCI | Total Equity | |||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Issuance of Class A common stock upon vesting of RSUs | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement and other | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | |||||||||||||||||||||||||||||||||||
Forfeitures / cancellations | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Issuance of Class A common stock upon vesting of RSUs | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement and other | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | |||||||||||||||||||||||||||||||||||
Forfeitures / cancellations | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
ZoomInfo Technologies Inc. Consolidated Statements of Changes in Equity (Deficit) (in millions, except share data) (continued) | ||||||||||||||||||||||||||||||||||||||
New ZoomInfo Common Stock | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional paid-in capital | Retained Earnings | AOCI | Total Equity | |||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Issuance of Class A common stock upon vesting of RSUs | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement and other | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | |||||||||||||||||||||||||||||||||||
Forfeitures / cancellations | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | $ |
ZoomInfo Technologies Inc. Consolidated Statements of Changes in Equity (Deficit) (in millions, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Old ZoomInfo | New ZoomInfo Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class A Amount | Class B Shares | Class B Amount | Class C Shares | Class C Amount | Shares | Amount | Additional paid-in capital | Retained Earnings | AOCI | Noncontrolling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of LLC Unit Exchanges | ( | ( | ( | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock upon vesting of RSUs | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement and other | ( | — | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeitures / cancellations | — | — | ( | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paid and accrued tax distributions | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of LLC Unit Exchanges | ( | ( | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock upon vesting of RSUs | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement and other | ( | — | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeitures / cancellations | — | — | ( | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paid and accrued tax distributions | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ZoomInfo Technologies Inc. Consolidated Statements of Changes in Equity (Deficit) (in millions, except share data) (continued) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Old ZoomInfo | New ZoomInfo Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class A Amount | Class B Shares | Class B Amount | Class C Shares | Class C Amount | Shares | Amount | Additional paid-in capital | Retained Earnings | AOCI | Noncontrolling interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of LLC Unit Exchanges | ( | ( | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of reorganization transaction | — | — | — | — | — | — | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock upon vesting of RSUs | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement and other | ( | — | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeitures / cancellations | — | — | ( | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registered offering costs | — | — | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paid and accrued tax distributions | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ |
ZoomInfo Technologies Inc. Consolidated Statements of Cash Flows (in millions; unaudited) | |||||||||||
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of debt discounts and issuance costs | |||||||||||
Amortization of deferred commissions costs | |||||||||||
Asset impairments | |||||||||||
Loss on debt modification and extinguishment | |||||||||||
Deferred consideration valuation adjustments | |||||||||||
Equity-based compensation expense | |||||||||||
Deferred income taxes | |||||||||||
Tax receivable agreement remeasurement | ( | ( | |||||||||
Provision for bad debt expense | |||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable | |||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Deferred costs and other assets, net of current portion | ( | ( | |||||||||
Income tax receivable | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued expenses and other liabilities | ( | ||||||||||
Unearned revenue | |||||||||||
Net cash provided by (used in) operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of short-term investments | ( | ( | |||||||||
Maturities of short-term investments | |||||||||||
Proceeds from sales of short-term investments | |||||||||||
Purchases of property and equipment and other assets | ( | ( | |||||||||
Cash paid for acquisitions, net of cash acquired | ( | ( | |||||||||
Net cash provided by (used in) investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Payments of deferred consideration | ( | ( | |||||||||
Proceeds from debt | |||||||||||
Repayment of debt | ( | ||||||||||
Payments of debt issuance and modification costs | ( | ( | |||||||||
Proceeds from exercise of stock options | |||||||||||
Taxes paid related to net share settlement of equity awards | ( | ( | |||||||||
Payments of equity issuance costs | ( | ( | |||||||||
Tax receivable agreement payments | ( | ||||||||||
Tax distributions | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | ( | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||||||
Cash, cash equivalents, and restricted cash at end of period: | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash, non-current | |||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ | |||||||||
ZoomInfo Technologies Inc. Consolidated Statements of Cash Flows (in millions; unaudited) (continued) | |||||||||||
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Supplemental disclosures of cash flow information | |||||||||||
Interest paid in cash | $ | $ | |||||||||
Cash paid for taxes | $ | $ | |||||||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||||||
Deferred variable consideration from acquisition of a business | $ | $ | |||||||||
Property and equipment included in accounts payable and accrued expenses and other current liabilities | $ | $ | |||||||||
Estimated business combination consideration receivable (see Note 4) | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Subscription | $ | $ | $ | $ | |||||||||||||||||||
Usage-based | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
(in millions) | Recognized within year | Noncurrent | Total | ||||||||||||||
As of September 30, 2022 | $ | $ | $ |
Preliminary Fair Value at Acquisition Date | Measurement Period Adjustments | Adjusted Fair Value at Acquisition Date | |||||||||||||||
Cash | $ | $ | $ | ||||||||||||||
Conversion of Note Receivable | — | ||||||||||||||||
Total purchase consideration | $ | $ | $ |
Preliminary Fair Value at Acquisition Date | Measurement Period Adjustments | Adjusted Fair Value at Acquisition Date | |||||||||||||||
Cash and cash equivalents | $ | $ | — | $ | |||||||||||||
Accounts receivable | |||||||||||||||||
Prepaid expenses and other assets | |||||||||||||||||
Intangible assets | |||||||||||||||||
Accounts payable and other liabilities | ( | ( | ( | ||||||||||||||
Unearned revenue | ( | — | ( | ||||||||||||||
Deferred tax liabilities | ( | — | ( | ||||||||||||||
Total identifiable net assets acquired | ( | ||||||||||||||||
Goodwill | |||||||||||||||||
Total consideration | |||||||||||||||||
Cash Acquired | ( | ( | |||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ | $ | $ | ||||||||||||||
Cash paid (refunds received) for 2021 acquisitions in 2022 (see "2021 Acquisitions") | $ | ( | |||||||||||||||
Total cash paid for acquisitions in 2022 | $ |
Preliminary Fair Value at Acquisition Date | Measurement Period Adjustments | Adjusted Fair Value at Acquisition Date | Weighted Average Useful Life | ||||||||||||||||||||
Existing Technology | $ | $ | — | $ | |||||||||||||||||||
Customer Relationships | |||||||||||||||||||||||
Trade name / Trademarks | — | ||||||||||||||||||||||
$ | $ | $ |
Preliminary Fair Value at Acquisition Date | Measurement Period Adjustments | Adjusted Fair Value at Acquisition Date | |||||||||||||||
Cash | $ | $ | ( | $ | |||||||||||||
Deferred purchase consideration | — | ||||||||||||||||
Total purchase consideration | $ | $ | ( | $ |
Preliminary Fair Value at Acquisition Date | Measurement Period Adjustments | Adjusted Fair Value at Acquisition Date | |||||||||||||||
Cash and cash equivalents | $ | $ | — | $ | |||||||||||||
Accounts receivable | ( | ||||||||||||||||
Prepaid expenses and other assets | ( | ||||||||||||||||
Intangible assets | |||||||||||||||||
Accounts payable and other liabilities | ( | ( | ( | ||||||||||||||
Unearned revenue | ( | — | ( | ||||||||||||||
Deferred tax liabilities | ( | — | ( | ||||||||||||||
Total identifiable net assets acquired | ( | ||||||||||||||||
Goodwill | ( | ||||||||||||||||
Total consideration | ( | ||||||||||||||||
Cash refund from Chorus.ai acquisition | ( | ||||||||||||||||
Deferred consideration | ( | — | ( | ||||||||||||||
Accruals from adjustments to working capital balances | ( | ||||||||||||||||
Accruals from adjustments to tax liabilities | |||||||||||||||||
Cash acquired | ( | — | ( | ||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ | $ | ( | $ | |||||||||||||
Cash paid (received) for acquisitions in 2021 | $ | ||||||||||||||||
Cash paid (received) for acquisitions in 2022 | $ | ( |
Preliminary Fair Value at Acquisition Date | Measurement Period Adjustments | Adjusted Fair Value at Acquisition Date | Weighted Average Useful Life | ||||||||||||||||||||
Brand portfolio | $ | $ | — | $ | |||||||||||||||||||
Developed technology | |||||||||||||||||||||||
Customer relationships | — | ||||||||||||||||||||||
Total intangible assets | $ | $ | $ |
Year Ended December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Revenue | $ | $ | |||||||||
Net income (loss) | $ | $ | ( |
(in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | |||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Corporate debt securities | — | — | |||||||||||||||||||||
Money market mutual funds | — | — | |||||||||||||||||||||
Total cash equivalents | — | — | |||||||||||||||||||||
Total cash and cash equivalents | — | — | |||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Securities guaranteed by U.S. government | |||||||||||||||||||||||
Other governmental securities | |||||||||||||||||||||||
Total short-term investments | |||||||||||||||||||||||
Total cash, cash equivalents, and short-term investments | $ | $ | $ | $ |
(in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | |||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Corporate debt securities | — | — | |||||||||||||||||||||
Money market mutual funds | — | — | |||||||||||||||||||||
Total cash equivalents | — | — | |||||||||||||||||||||
Total cash and cash equivalents | — | — | |||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total short-term investments | |||||||||||||||||||||||
Total cash, cash equivalents, and short-term investments | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(in millions) | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
Due within one year | $ | $ | $ | $ | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
Computer equipment | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Internal use developed software | |||||||||||
Construction in progress | |||||||||||
Property and equipment, gross | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net | Weighted Average Amortization Period in Years | |||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | |||||||||||||||||||
Acquired technology | ( | ||||||||||||||||||||||
Brand portfolio | ( | ||||||||||||||||||||||
Net intangible assets subject to amortization | $ | $ | ( | $ | |||||||||||||||||||
Intangible assets not subject to amortization | |||||||||||||||||||||||
Pre-Acquisition ZI brand portfolio | $ | $ | — | $ | |||||||||||||||||||
Goodwill | $ | $ | — | $ |
Balance at December 31, 2021 | $ | ||||
Adjustments from 2021 acquisitions | ( | ||||
Goodwill from 2022 acquisitions | |||||
Balance at September 30, 2022 | $ |
Carrying Value as of | ||||||||||||||||||||||||||||||||
Instrument | Date of Issuance | Maturity Date | Elected Interest Rate | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
First Lien Term Loan | February 1, 2019 | February 1, 2026 | LIBOR + | $ | $ | |||||||||||||||||||||||||||
First Lien Revolver | February 1, 2019 | November 2, 2025 | LIBOR + | |||||||||||||||||||||||||||||
Senior Notes | February 2, 2021 | February 1, 2029 | ||||||||||||||||||||||||||||||
Total Carrying Value of Debt | $ | $ | ||||||||||||||||||||||||||||||
Less current portion | ||||||||||||||||||||||||||||||||
Total Long Term Debt | $ | $ |
Interest Rate Derivatives (Level 2) | Number of Instruments | Notional Aggregate Principal Amount | Interest Cap / Swap Rate | Maturity Date | ||||||||||||||||||||||
Interest rate cap contract | $ | % | April 30, 2024 | |||||||||||||||||||||||
Interest rate swap contracts | $ | % | January 30, 2026 |
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||
Instrument | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate cap contract(1) | $ | $ | $ | $ | ||||||||||||||||||||||
Interest rate cap contract(2) | ||||||||||||||||||||||||||
Interest rate cap contract(3) | ||||||||||||||||||||||||||
Interest rate swap contracts(1) | ||||||||||||||||||||||||||
Interest rate swap contracts(2) | ||||||||||||||||||||||||||
Interest rate swap contracts(3) | ||||||||||||||||||||||||||
Forward-starting interest rate swap contracts(2) | ||||||||||||||||||||||||||
Forward-starting interest rate swap contracts(3) | ||||||||||||||||||||||||||
Total designated derivative fair value | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate cap contract(1) | ||||||||||||||||||||||||||
Interest rate cap contract(3) | ||||||||||||||||||||||||||
Total undesignated derivative fair value | ||||||||||||||||||||||||||
Total derivative fair value | $ | $ | $ | $ |
Fair Value at September 30, 2022 | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Measured on a recurring basis: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Corporate debt securities | $ | $ | $ | |||||||||||||||||
Money market mutual funds | $ | $ | $ | |||||||||||||||||
Short-term investments: | ||||||||||||||||||||
Corporate debt securities | $ | $ | $ | |||||||||||||||||
Securities guaranteed by U.S. government | $ | $ | $ | |||||||||||||||||
Other governmental securities | $ | $ | $ | |||||||||||||||||
Prepaid expenses and other current assets: | ||||||||||||||||||||
Interest rate cap contract | $ | $ | $ | |||||||||||||||||
Interest rate swap contracts | $ | $ | $ | |||||||||||||||||
Deferred costs and other assets, net of current portion | ||||||||||||||||||||
Interest rate cap contract | $ | $ | $ | |||||||||||||||||
Interest rate swap contracts | $ | $ | $ | |||||||||||||||||
Fair Value at December 31, 2021 | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Measured on a recurring basis: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Corporate debt securities | $ | $ | $ | |||||||||||||||||
Money market mutual funds | $ | $ | $ | |||||||||||||||||
Short-term investments: | ||||||||||||||||||||
Corporate debt securities | $ | $ | $ | |||||||||||||||||
Prepaid expenses and other current assets: | ||||||||||||||||||||
Forward-starting interest rate swap contracts | $ | $ | $ | |||||||||||||||||
Deferred costs and other assets, net of current portion | ||||||||||||||||||||
Interest rate cap contract | $ | $ | $ | |||||||||||||||||
Forward-starting interest rate swap contracts | $ | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative contracts: | ||||||||||||||||||||
Interest rate cap contract | $ | $ | ( | $ | ||||||||||||||||
Interest rate swap contracts | $ | $ | ( | $ | ||||||||||||||||
Measured on a non-recurring basis: | ||||||||||||||||||||
Impaired lease-related assets | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Add: Net (income) loss attributable to noncontrolling interests | |||||||||||||||||||||||
Net income (loss) attributable to ZoomInfo Technologies Inc. | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | ||||||||||
Common Stock | Common Stock | ||||||||||
Basic net income (loss) per share attributable to common stockholders | |||||||||||
Numerator: | |||||||||||
Allocation of net income (loss) attributable to ZoomInfo Technologies Inc. | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted average number of shares of Common Stock outstanding | |||||||||||
Basic net income (loss) per share attributable to common stockholders | $ | $ | |||||||||
Diluted net income (loss) per share attributable to common stockholders | |||||||||||
Numerator: | |||||||||||
Allocation of undistributed earnings | $ | $ | |||||||||
Denominator: | |||||||||||
Number of shares used in basic computation | |||||||||||
Add: weighted-average effect of dilutive securities exchangeable for Common Stock: | |||||||||||
Restricted Stock Awards | |||||||||||
Exercise of Common Stock Options | |||||||||||
Employee Stock Purchase Plan | |||||||||||
Weighted average shares of Common Stock outstanding used to calculate diluted net income (loss) per share | |||||||||||
Diluted net income (loss) per share attributable to common stockholders | $ | $ |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||
Class A | Class C | Class A | Class C | ||||||||||||||||||||
Basic net income (loss) per share attributable to common stockholders | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Allocation of net income (loss) attributable to ZoomInfo Technologies Inc. | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average number of shares of Class A and Class C common stock outstanding | |||||||||||||||||||||||
Basic net income (loss) per share attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Diluted net income (loss) per share attributable to common stockholders | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Undistributed earnings for basic computation | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Increase in earnings attributable to common shareholders upon conversion of potentially dilutive instruments | ( | ||||||||||||||||||||||
Reallocation of undistributed earnings as a result of conversion of Class C to Class A shares | ( | ( | |||||||||||||||||||||
Allocation of undistributed earnings | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Number of shares used in basic computation | |||||||||||||||||||||||
Add: weighted-average effect of dilutive securities exchangeable for Class A common stock: | |||||||||||||||||||||||
HSKB II Class 1 Units | |||||||||||||||||||||||
HSKB II Phantom Units | |||||||||||||||||||||||
Conversion of Class C to Class A common shares outstanding | |||||||||||||||||||||||
Weighted average shares of Class A and Class C common stock outstanding used to calculate diluted net income (loss) per share | |||||||||||||||||||||||
Diluted net income (loss) per share attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
OpCo Units | |||||||||||||||||||||||
Class P Units | |||||||||||||||||||||||
HSKB I Class 1 Units | |||||||||||||||||||||||
HSKB II Class 1 Units | |||||||||||||||||||||||
HSKB II Phantom Units | |||||||||||||||||||||||
HoldCo Units | |||||||||||||||||||||||
Restricted Stock Awards | |||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||
LTIP Units | |||||||||||||||||||||||
Exercise of Class A Common Stock Options | |||||||||||||||||||||||
Total anti-dilutive securities |
September 30, | December 31, | |||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Operating lease right-of-use assets, net | $ | $ | ||||||||||||||||||
Liabilities | ||||||||||||||||||||
Current portion of operating lease liabilities | $ | $ | ||||||||||||||||||
Operating lease liabilities, net of current portion | $ | $ |
(in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
Supplemental Cash Flow Information | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | $ | $ | |||||||||||||||||||
Cash received for tenant incentive reimbursement | $ | $ | $ | $ | |||||||||||||||||||
Lease liabilities arising from obtaining right-of-use assets | |||||||||||||||||||||||
From acquisitions | $ | $ | $ | $ | |||||||||||||||||||
From new and existing lease agreements and modifications | $ | $ | $ | $ |
As of | ||||||||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||
Weighted average remaining lease term (in years) | ||||||||||||||
Weighted average discount rate | % | % |
Year Ending December 31, | Operating Leases | |||||||
2022 (excluding nine months ended September 30, 2022) | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
Thereafter | ||||||||
Total future minimum lease payments | ||||||||
less effects of discounting | ||||||||
Total lease liabilities | $ | |||||||
Reported as of September 30, 2022 | ||||||||
Current portion of operating lease liabilities | $ | |||||||
Operating lease liabilities, net of current portion | ||||||||
Total lease liabilities | $ |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||
Restricted Stock Units | Weighted Average Grant Date Fair Value | Restricted Stock Units | |||||||||||||||
Unvested at beginning of period | $ | ||||||||||||||||
Granted | $ | ||||||||||||||||
Granted - performance-based | $ | ||||||||||||||||
Vested | ( | $ | ( | ||||||||||||||
Forfeited | ( | $ | ( | ||||||||||||||
Unvested at end of period | $ |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||
Restricted stock | Weighted Average Grant Date Fair Value | Restricted stock | |||||||||||||||
Unvested at beginning of period | $ | ||||||||||||||||
Exchanged HoldCo Units | $ | ||||||||||||||||
Exchanged Class P Units | $ | ||||||||||||||||
Vested | ( | $ | ( | ||||||||||||||
Forfeited | ( | $ | ( | ||||||||||||||
Unvested at end of period | $ |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||
Options | Weighted Average Exercise Price | Options | |||||||||||||||
Outstanding at beginning of period | $ | ||||||||||||||||
Exercised | ( | $ | ( | ||||||||||||||
Expired | ( | $ | |||||||||||||||
Forfeited | ( | $ | ( | ||||||||||||||
Outstanding at end of period | $ |
September 30, 2022 | |||||
Aggregate intrinsic value (in millions) | |||||
Unit Options outstanding | $ | ||||
Unit Options exercisable | $ | ||||
Weighted average remaining contractual term (in years) | |||||
Unit Options outstanding | |||||
Unit Options exercisable |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||
HoldCo Units | Weighted Average Grant Date Fair Value | HoldCo Units | |||||||||||||||
Unvested at beginning of period | $ | ||||||||||||||||
Exchanged for Restricted Stock | $ | ( | |||||||||||||||
Vested | $ | ( | |||||||||||||||
Forfeited | $ | ( | |||||||||||||||
Unvested at end of period | $ |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||
Class P Units | Weighted Average Participation Threshold | Class P Units | |||||||||||||||
Unvested at beginning of period | $ | ||||||||||||||||
Exchanged for Restricted Stock | $ | ( | |||||||||||||||
Vested | $ | ( | |||||||||||||||
Forfeited | $ | ( | |||||||||||||||
Unvested at end of period | $ |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||
LTIP Units | Weighted Average Participation Threshold | LTIP Units | |||||||||||||||
Unvested at beginning of period | $ | ||||||||||||||||
Granted | $ | ||||||||||||||||
Unvested at end of period | $ |
Nine Months Ended September 30, 2022 | |||||
Volatility | |||||
Expected term | |||||
Risk-free rate | |||||
Expected dividends | |||||
Fair value per unit | $ |
($ in millions, period in years) | Amount | Weighted Average Remaining Service Period | |||||||||
Restricted Stock Units | $ | ||||||||||
Common Stock Options | |||||||||||
Restricted Stock | |||||||||||
HSKB Incentive Units | |||||||||||
HSKB Phantom Units | |||||||||||
Employee Stock Purchase Plan | |||||||||||
Total unamortized equity-based compensation cost | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income (loss) | $ | 17.9 | $ | (40.9) | $ | 40.0 | $ | (50.3) | |||||||||||||||
Add (less): Expense (benefit) from income taxes | 32.1 | 45.5 | 55.6 | 101.4 | |||||||||||||||||||
Add: Interest expense, net | 11.6 | 13.9 | 35.1 | 30.5 | |||||||||||||||||||
Add: Loss on debt modification and extinguishment | — | 1.8 | — | 7.7 | |||||||||||||||||||
Add (less): Other expense (income), net(a) | (9.8) | (0.1) | (7.0) | (0.2) | |||||||||||||||||||
Income (loss) from operations | $ | 51.8 | $ | 20.2 | $ | 123.7 | $ | 89.1 | |||||||||||||||
Add: Impact of fair value adjustments to acquired unearned revenue(b) | 0.2 | 1.6 | 2.0 | 2.7 | |||||||||||||||||||
Add: Amortization of acquired technology | 12.3 | 10.7 | 35.8 | 24.2 | |||||||||||||||||||
Add: Amortization of other acquired intangibles | 5.6 | 5.4 | 16.5 | 15.0 | |||||||||||||||||||
Add: Equity-based compensation | 48.1 | 24.5 | 137.6 | 59.7 | |||||||||||||||||||
Add: Restructuring and transaction-related expenses(c) | 0.2 | 11.0 | 3.8 | 17.6 | |||||||||||||||||||
Add: Integration costs and acquisition-related expenses(d) | 0.1 | 5.1 | 1.6 | 12.0 | |||||||||||||||||||
Adjusted Operating Income | $ | 118.4 | $ | 78.4 | $ | 320.9 | $ | 220.2 | |||||||||||||||
Less: Interest expense, net | (11.6) | (13.9) | (35.1) | (30.5) | |||||||||||||||||||
Less (add): Other expense (income), net, excluding TRA liability remeasurement (benefit) expense | (0.6) | 0.1 | (2.4) | 0.1 | |||||||||||||||||||
Add (less): Benefit (expense) from income taxes | (32.1) | (45.5) | (55.6) | (101.4) | |||||||||||||||||||
Add (less): Tax impacts of adjustments to net income (loss) | 22.7 | 31.8 | 27.0 | 69.5 | |||||||||||||||||||
Adjusted Net Income | $ | 96.8 | $ | 50.7 | $ | 254.7 | $ | 157.8 | |||||||||||||||
Shares for Adjusted Net Income Per Share(e) | 411 | 406 | 410 | 405 | |||||||||||||||||||
Adjusted Net Income Per Share | $ | 0.24 | $ | 0.13 | $ | 0.62 | $ | 0.39 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Cost of service | $ | — | $ | 0.6 | $ | 0.2 | $ | 1.8 | |||||||||||||||
Sales and marketing | — | 1.9 | 0.5 | 2.9 | |||||||||||||||||||
Research and development | 0.1 | 1.7 | 0.5 | 5.4 | |||||||||||||||||||
General and administrative | — | 0.8 | 0.3 | 1.8 | |||||||||||||||||||
Total integration costs and acquisition-related compensation | $ | 0.1 | $ | 5.1 | $ | 1.6 | $ | 12.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Income (loss) from operations | $ | 51.8 | $ | 20.2 | $ | 123.7 | $ | 89.1 | |||||||||||||||
Adjusted Operating Income | $ | 118.4 | $ | 78.4 | $ | 320.9 | $ | 220.2 | |||||||||||||||
Revenue | $ | 287.6 | $ | 197.6 | $ | 796.4 | $ | 524.9 | |||||||||||||||
Impact of fair value adjustments to acquired unearned revenue | 0.2 | 1.6 | 2.0 | 2.7 | |||||||||||||||||||
Revenue for adjusted operating margin calculation | $ | 287.8 | $ | 199.2 | $ | 798.4 | $ | 527.5 | |||||||||||||||
Operating Income Margin | 18 | % | 10 | % | 16 | % | 17 | % | |||||||||||||||
Adjusted Operating Income Margin | 41 | % | 39 | % | 40 | % | 42 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income (loss) | $ | 17.9 | $ | (40.9) | $ | 40.0 | $ | (50.3) | |||||||||||||||
Add (less): Expense (benefit) from income taxes | 32.1 | 45.5 | 55.6 | 101.4 | |||||||||||||||||||
Add: Interest expense, net | 11.6 | 13.9 | 35.1 | 30.5 | |||||||||||||||||||
Add: Loss on debt modification and extinguishment | — | 1.8 | — | 7.7 | |||||||||||||||||||
Add: Depreciation | 4.8 | 2.9 | 12.9 | 10.4 | |||||||||||||||||||
Add: Amortization of acquired technology | 12.3 | 10.7 | 35.8 | 24.2 | |||||||||||||||||||
Add: Amortization of other acquired intangibles | 5.6 | 5.4 | 16.5 | 15.0 | |||||||||||||||||||
EBITDA | $ | 84.3 | $ | 39.3 | $ | 195.9 | $ | 138.9 | |||||||||||||||
Add (less): Other expense (income), net(a) | (9.8) | (0.1) | (7.0) | (0.2) | |||||||||||||||||||
Add: Impact of fair value adjustments to acquired unearned revenue(b) | 0.2 | 1.6 | 2.0 | 2.7 | |||||||||||||||||||
Add: Equity-based compensation expense | 48.1 | 24.5 | 137.6 | 59.7 | |||||||||||||||||||
Add: Restructuring and transaction related expenses (excluding depreciation)(c) | 0.2 | 11.0 | 3.8 | 15.6 | |||||||||||||||||||
Add: Integration costs and acquisition-related expenses(d) | 0.1 | 5.1 | 1.6 | 12.0 | |||||||||||||||||||
Adjusted EBITDA | $ | 123.2 | $ | 81.3 | $ | 333.7 | $ | 228.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Cost of service | $ | — | $ | 0.6 | $ | 0.2 | $ | 1.8 | |||||||||||||||
Sales and marketing | — | 1.9 | 0.5 | 2.9 | |||||||||||||||||||
Research and development | 0.1 | 1.7 | 0.5 | 5.4 | |||||||||||||||||||
General and administrative | — | 0.8 | 0.3 | 1.8 | |||||||||||||||||||
Total integration costs and acquisition-related compensation | $ | 0.1 | $ | 5.1 | $ | 1.6 | $ | 12.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenue | $ | 287.6 | $ | 197.6 | $ | 796.4 | $ | 524.9 | |||||||||||||||
Cost of service: | |||||||||||||||||||||||
Cost of service(1) | 35.9 | 27.2 | 103.4 | 72.1 | |||||||||||||||||||
Amortization of acquired technology | 12.3 | 10.7 | 35.8 | 24.2 | |||||||||||||||||||
Gross profit | 239.4 | 159.7 | 657.2 | 428.6 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing(1) | 96.4 | 65.3 | 275.7 | 164.0 | |||||||||||||||||||
Research and development(1) | 54.2 | 34.4 | 149.3 | 78.8 | |||||||||||||||||||
General and administrative(1) | 31.2 | 23.4 | 88.2 | 64.1 | |||||||||||||||||||
Amortization of other acquired intangibles | 5.6 | 5.4 | 16.5 | 15.0 | |||||||||||||||||||
Restructuring and transaction-related expenses | 0.2 | 11.0 | 3.8 | 17.6 | |||||||||||||||||||
Total operating expenses | 187.6 | 139.5 | 533.5 | 339.5 | |||||||||||||||||||
Income (loss) from operations | 51.8 | 20.2 | 123.7 | 89.1 | |||||||||||||||||||
Interest expense, net | 11.6 | 13.9 | 35.1 | 30.5 | |||||||||||||||||||
Loss on debt modification and extinguishment | — | 1.8 | — | 7.7 | |||||||||||||||||||
Other (income) expense, net | (9.8) | (0.1) | (7.0) | (0.2) | |||||||||||||||||||
Income (loss) before income taxes | 50.0 | 4.6 | 95.6 | 51.1 | |||||||||||||||||||
Income tax expense (benefit) | 32.1 | 45.5 | 55.6 | 101.4 | |||||||||||||||||||
Net income (loss) | $ | 17.9 | $ | (40.9) | $ | 40.0 | $ | (50.3) | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | (0.3) | — | (22.2) | |||||||||||||||||||
Net income (loss) attributable to ZoomInfo Technologies Inc. | $ | 17.9 | $ | (40.6) | $ | 40.0 | $ | (28.1) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Cost of service | $ | 5.1 | $ | 2.8 | $ | 14.7 | $ | 9.5 | |||||||||||||||
Sales and marketing | 19.2 | 9.5 | 55.7 | 25.1 | |||||||||||||||||||
Research and development | 17.0 | 7.4 | 47.9 | 13.2 | |||||||||||||||||||
General and administrative | 6.8 | 4.8 | 19.3 | 11.9 | |||||||||||||||||||
Total equity-based compensation expense | $ | 48.1 | $ | 24.5 | $ | 137.6 | $ | 59.7 |
Nine Months Ended September 30, | |||||||||||
($ in millions) | 2022 | 2021 | |||||||||
Net cash provided by (used in) operating activities | $ | 296.9 | $ | 228.1 | |||||||
Net cash provided by (used in) investing activities | (180.3) | (739.4) | |||||||||
Net cash provided by (used in) financing activities | (18.3) | 442.9 | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | $ | 98.3 | $ | (68.4) |
Nine Months Ended September 30, | |||||||||||
($ in millions) | 2022 | 2021 | |||||||||
Cash interest expense | $ | 44.0 | $ | 26.3 | |||||||
Restructuring and transaction-related expenses paid in cash(a) | $ | 12.6 | $ | 19.3 | |||||||
Integration costs and acquisition-related compensation paid in cash(b) | $ | 3.0 | $ | 4.7 |
($ in millions, except leverage ratios) | |||||
Total contractual maturity of outstanding indebtedness | $ | 1,250.0 | |||
Less: Cash and cash equivalents, restricted cash, and short-term investments | 444.8 | ||||
Net Debt | $ | 805.2 | |||
Trailing Twelve Months (TTM) Adjusted EBITDA | $ | 423.4 | |||
Total net leverage ratio to Adjusted EBITDA | 1.9x |
($ in millions, except leverage ratios) | |||||
Total contractual maturity of First Lien indebtedness | $ | 600.0 | |||
Less: Cash and cash equivalents, and short-term investments | 438.7 | ||||
Net Debt | $ | 161.3 | |||
Trailing Twelve Months (TTM) Cash EBITDA | $ | 512.0 | |||
Consolidated first lien net leverage ratio | 0.3x |
($ in millions, except leverage ratios) | |||||
Total contractual maturity of outstanding indebtedness | $ | 1,250.0 | |||
Less: Cash and cash equivalents, restricted cash, and short-term investments | 444.8 | ||||
Net Debt | $ | 805.2 | |||
Trailing Twelve Months (TTM) Cash EBITDA | $ | 512.0 | |||
Total net leverage ratio to Cash EBITDA | 1.6x |
Trailing Twelve Months as of | |||||
(in millions) | September 30, 2022 | ||||
Net income (loss) | $ | 185.1 | |||
Add (less): Expense (benefit) from income taxes | (39.7) | ||||
Add: Interest expense, net | 48.5 | ||||
Add: Loss on debt modification and extinguishment | — | ||||
Add: Depreciation | 16.2 | ||||
Add: Amortization of acquired technology | 47.0 | ||||
Add: Amortization of other acquired intangibles | 21.8 | ||||
EBITDA | $ | 278.9 | |||
Add (less): Other expense (income), net(a) | (46.0) | ||||
Add: Impact of fair value adjustments to acquired unearned revenue(b) | 3.8 | ||||
Add: Equity-based compensation expense | 170.8 | ||||
Add: Restructuring and transaction related expenses (excluding depreciation)(c) | 9.8 | ||||
Add: Integration costs and acquisition-related expenses(d) | 6.0 | ||||
Adjusted EBITDA | $ | 423.4 | |||
Add: Unearned revenue adjustment | 82.7 | ||||
Add (less): Cash rent adjustment | 2.8 | ||||
Add (less): Pre-Acquisition EBITDA | 1.2 | ||||
Add (less): Other lender adjustments | 1.9 | ||||
Cash EBITDA | $ | 512.0 |
Trailing Twelve Months as of | |||||
(in millions) | September 30, 2022 | ||||
Cost of service | $ | 0.5 | |||
Sales and marketing | 3.7 | ||||
Research and development | 0.9 | ||||
General and administrative | 0.9 | ||||
Total integration costs and acquisition-related compensation | $ | 6.0 |
Period | Total Number of Shares Purchased (1) | Weighted Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plan or Programs | ||||||||||||||||||||||
July 1 through July 31, 2022 | — | $ | — | — | — | |||||||||||||||||||||
August 1 through August 31, 2022 | 6,333 | $ | 41.97 | — | — | |||||||||||||||||||||
September 1 through September 30, 2022 | 8,332 | $ | 45.42 | — | — | |||||||||||||||||||||
Total | 14,665 | — | — |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||||||||
3.1 | 8-K filed May 19, 2022 | 001-39310 | 3.1 | |||||||||||
3.2 | 8-K filed November 1, 2021 | 001-39310 | 3.2 | |||||||||||
4.1 | 8-K filed July 15, 2021 | 001-39310 | 4.1 | |||||||||||
4.2 | 8-K filed July 15, 2021 | 001-39310 | 4.2 | |||||||||||
4.3 | Form of 3.875% Senior Note due 2029 (included in Exhibit 4.1) | 8-K filed July 15, 2021 | 001-39310 | 4.3 | ||||||||||
+31.1 | ||||||||||||||
+31.2 | ||||||||||||||
+32.1* | ||||||||||||||
+101.INS | Inline XBRL Instance Document | |||||||||||||
+101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||
+101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||
+101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||
+101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||
+101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
ZOOMINFO TECHNOLOGIES INC. | |||||
By: | /s/ P. Cameron Hyzer | ||||
Name: P. Cameron Hyzer Title: Chief Financial Officer | |||||
(Principal Financial Officer and Authorized Signatory) |
/s/ Henry Schuck | |||||||||||
Date: November 1, 2022 | Henry Schuck | ||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: November 1, 2022 | /s/ P. Cameron Hyzer | ||||||||||
P. Cameron Hyzer | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
/s/ Henry Schuck | |||||||||||
Henry Schuck | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
/s/ P. Cameron Hyzer | |||||||||||
P. Cameron Hyzer | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Operations - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ 287.6 | $ 197.6 | $ 796.4 | $ 524.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of service: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of service | [1] | 35.9 | 27.2 | 103.4 | 72.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired technology | $ 12.3 | $ 10.7 | $ 35.8 | $ 24.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of service [Extensible List] | Service [Member] | Service [Member] | Service [Member] | Service [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | $ 239.4 | $ 159.7 | $ 657.2 | $ 428.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | [1] | 96.4 | 65.3 | 275.7 | 164.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | [1] | 54.2 | 34.4 | 149.3 | 78.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | [1] | 31.2 | 23.4 | 88.2 | 64.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of other acquired intangibles | 5.6 | 5.4 | 16.5 | 15.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and transaction-related expenses | 0.2 | 11.0 | 3.8 | 17.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 187.6 | 139.5 | 533.5 | 339.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | 51.8 | 20.2 | 123.7 | 89.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 11.6 | 13.9 | 35.1 | 30.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on debt modification and extinguishment | 0.0 | 1.8 | 0.0 | 7.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | (9.8) | (0.1) | (7.0) | (0.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 50.0 | 4.6 | 95.6 | 51.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 32.1 | 45.5 | 55.6 | 101.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 17.9 | (40.9) | 40.0 | (50.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.0 | (0.3) | 0.0 | (22.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to ZoomInfo Technologies Inc. | $ 17.9 | $ (40.6) | $ 40.0 | $ (28.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per share of Class A and Class C common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic (in dollars per share) | $ 0.04 | $ (0.15) | $ 0.10 | $ (0.13) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted (in dollars per share) | $ 0.04 | $ (0.15) | $ 0.10 | $ (0.13) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Total equity-based compensation expense | $ 48.1 | $ 24.5 | $ 137.6 | $ 59.7 |
Cost of service | ||||
Total equity-based compensation expense | 5.1 | 2.8 | 14.7 | 9.5 |
Sales and marketing | ||||
Total equity-based compensation expense | 19.2 | 9.5 | 55.7 | 25.1 |
Research and development | ||||
Total equity-based compensation expense | 17.0 | 7.4 | 47.9 | 13.2 |
General and administrative | ||||
Total equity-based compensation expense | $ 6.8 | $ 4.8 | $ 19.3 | $ 11.9 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 17.9 | $ (40.9) | $ 40.0 | $ (50.3) |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain (loss) on cash flow hedges | 17.0 | 1.5 | 44.7 | 8.6 |
Realized (gain) loss on settlement of cash flow hedges | (2.3) | 1.5 | (0.9) | 4.5 |
Amortization of deferred losses related to the dedesignated Interest Rate Swap | 0.1 | 0.1 | 0.2 | 0.2 |
Other comprehensive income (loss) before tax | 14.8 | 3.1 | 44.0 | 13.3 |
Tax effect | (3.9) | (0.8) | (11.7) | (2.1) |
Other comprehensive income | 10.9 | 2.3 | 32.3 | 11.2 |
Comprehensive income (loss) | 28.8 | (38.6) | 72.3 | (39.1) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.0 | (0.4) | 0.0 | (16.9) |
Comprehensive income (loss) attributable to ZoomInfo Technologies Inc. | $ 28.8 | $ (38.2) | $ 72.3 | $ (22.2) |
Consolidated Statements of Changes in Equity (Deficit) - USD ($) $ in Millions |
Total |
Common Stock |
Common Stock
Common Stock
|
Common Stock
Class B
|
Common Stock
Class C
|
Common Stock
New Common Class A
|
Additional paid-in capital |
Retained Earnings |
AOCI |
Noncontrolling interests |
|||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance, Stockholders' Equity (in shares) at Dec. 31, 2020 | 87,697,381 | 216,652,704 | 86,123,230 | 0 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 939.6 | $ 0.9 | $ 2.2 | $ 0.9 | $ 0.0 | $ 505.2 | $ (4.0) | $ (2.4) | $ 436.8 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Effect of LLC Unit Exchanges (in shares) | 14,500,582 | (9,776,683) | (3,869,894) | ||||||||||
Effect of LLC Unit Exchanges | 17.0 | $ 0.1 | $ (0.1) | $ (0.1) | 37.2 | (20.1) | |||||||
Issuance of Class A common stock upon vesting of RSUs (in shares) | 20,439 | ||||||||||||
Shares withheld related to net share settlement and other (in shares) | (30,936) | ||||||||||||
Shares withheld related to net share settlement and other | (1.6) | (1.6) | |||||||||||
Exercise of stock options (in shares) | 24,758 | ||||||||||||
Exercise of stock options | 0.5 | 0.5 | |||||||||||
Forfeitures / cancellations (in shares) | (7,852) | ||||||||||||
Net income (loss) | (33.9) | 3.2 | (37.1) | ||||||||||
Other comprehensive income | 10.2 | 4.0 | 6.2 | ||||||||||
Paid and accrued tax distributions | (3.0) | (3.0) | |||||||||||
Equity-based compensation | 18.1 | 8.3 | 9.8 | ||||||||||
Ending balance, Stockholders' Equity (in shares) at Mar. 31, 2021 | 102,212,224 | 206,868,169 | 82,253,336 | 0 | |||||||||
Ending balance at Mar. 31, 2021 | 946.9 | $ 1.0 | $ 2.1 | $ 0.8 | $ 0.0 | 549.6 | (0.8) | 1.6 | 392.6 | ||||
Beginning balance, Stockholders' Equity (in shares) at Dec. 31, 2020 | 87,697,381 | 216,652,704 | 86,123,230 | 0 | |||||||||
Beginning balance at Dec. 31, 2020 | 939.6 | $ 0.9 | $ 2.2 | $ 0.9 | $ 0.0 | 505.2 | (4.0) | (2.4) | 436.8 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (50.3) | ||||||||||||
Other comprehensive income | 11.2 | ||||||||||||
Ending balance, Stockholders' Equity (in shares) at Sep. 30, 2021 | 374,751,795 | 22,879,022 | 0 | 0 | |||||||||
Ending balance at Sep. 30, 2021 | 1,834.7 | $ 3.7 | $ 0.2 | $ 0.0 | $ 0.0 | 1,808.9 | (32.1) | 4.3 | 49.7 | ||||
Beginning balance, Stockholders' Equity (in shares) at Mar. 31, 2021 | 102,212,224 | 206,868,169 | 82,253,336 | 0 | |||||||||
Beginning balance at Mar. 31, 2021 | 946.9 | $ 1.0 | $ 2.1 | $ 0.8 | $ 0.0 | 549.6 | (0.8) | 1.6 | 392.6 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Effect of LLC Unit Exchanges (in shares) | 19,514,930 | (15,259,859) | (4,040,025) | ||||||||||
Effect of LLC Unit Exchanges | 14.1 | $ 0.2 | $ (0.2) | 45.1 | 0.1 | (31.1) | |||||||
Issuance of Class A common stock upon vesting of RSUs (in shares) | 123,729 | ||||||||||||
Shares withheld related to net share settlement and other (in shares) | (14,333) | ||||||||||||
Shares withheld related to net share settlement and other | (0.6) | (0.6) | |||||||||||
Exercise of stock options (in shares) | 11,056 | ||||||||||||
Exercise of stock options | 0.2 | 0.2 | |||||||||||
Forfeitures / cancellations (in shares) | (32,424) | ||||||||||||
Net income (loss) | 24.5 | 9.3 | 15.2 | ||||||||||
Other comprehensive income | (1.3) | (0.5) | (0.8) | ||||||||||
Paid and accrued tax distributions | (9.2) | (9.2) | |||||||||||
Equity-based compensation | 17.1 | 8.4 | 8.7 | ||||||||||
Ending balance, Stockholders' Equity (in shares) at Jun. 30, 2021 | 121,847,606 | 191,575,886 | 78,213,311 | 0 | |||||||||
Ending balance at Jun. 30, 2021 | 991.7 | $ 1.2 | $ 1.9 | $ 0.8 | $ 0.0 | 602.7 | 8.5 | 1.2 | 375.4 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Effect of LLC Unit Exchanges (in shares) | 252,796,919 | (168,693,583) | (78,213,311) | ||||||||||
Effect of LLC Unit Exchanges | 860.5 | $ 2.5 | $ (1.7) | $ (0.8) | 1,222.5 | 0.7 | (362.7) | ||||||
Effect of reorganization transaction | 0.0 | (27.8) | 27.8 | ||||||||||
Issuance of Class A common stock upon vesting of RSUs (in shares) | 147,368 | ||||||||||||
Shares withheld related to net share settlement and other (in shares) | (68,803) | ||||||||||||
Shares withheld related to net share settlement and other | (4.3) | (4.3) | |||||||||||
Exercise of stock options (in shares) | 28,705 | ||||||||||||
Exercise of stock options | 0.6 | 0.6 | |||||||||||
Forfeitures / cancellations (in shares) | (3,281) | ||||||||||||
Registered offering costs | (1.6) | (1.6) | |||||||||||
Net income (loss) | (40.9) | (40.6) | (0.3) | ||||||||||
Other comprehensive income | 2.3 | 2.4 | (0.1) | ||||||||||
Paid and accrued tax distributions | 1.9 | 1.9 | |||||||||||
Equity-based compensation | 24.5 | 16.8 | 7.7 | ||||||||||
Ending balance, Stockholders' Equity (in shares) at Sep. 30, 2021 | 374,751,795 | 22,879,022 | 0 | 0 | |||||||||
Ending balance at Sep. 30, 2021 | 1,834.7 | $ 3.7 | $ 0.2 | $ 0.0 | $ 0.0 | 1,808.9 | (32.1) | 4.3 | $ 49.7 | ||||
Beginning balance, Stockholders' Equity (in shares) at Dec. 31, 2021 | 403,315,989 | ||||||||||||
Beginning balance at Dec. 31, 2021 | 1,997.9 | [1] | $ 4.0 | 1,871.6 | 112.8 | 9.5 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of Class A common stock upon vesting of RSUs (in shares) | 187,659 | ||||||||||||
Shares withheld related to net share settlement and other (in shares) | (80,067) | ||||||||||||
Shares withheld related to net share settlement and other | (4.4) | (4.4) | |||||||||||
Exercise of stock options (in shares) | 14,790 | ||||||||||||
Exercise of stock options | 0.3 | 0.3 | |||||||||||
Forfeitures / cancellations (in shares) | (43,210) | ||||||||||||
Net income (loss) | 6.2 | 6.2 | |||||||||||
Other comprehensive income | 16.9 | 16.9 | |||||||||||
Equity-based compensation | 42.5 | 42.5 | |||||||||||
Ending balance, Stockholders' Equity (in shares) at Mar. 31, 2022 | 403,395,161 | ||||||||||||
Ending balance at Mar. 31, 2022 | 2,059.4 | $ 4.0 | 1,910.0 | 119.0 | 26.4 | ||||||||
Beginning balance, Stockholders' Equity (in shares) at Dec. 31, 2021 | 403,315,989 | ||||||||||||
Beginning balance at Dec. 31, 2021 | 1,997.9 | [1] | $ 4.0 | 1,871.6 | 112.8 | 9.5 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 40.0 | ||||||||||||
Other comprehensive income | 32.3 | ||||||||||||
Ending balance, Stockholders' Equity (in shares) at Sep. 30, 2022 | 403,657,328 | ||||||||||||
Ending balance at Sep. 30, 2022 | 2,196.3 | $ 4.0 | 1,997.7 | 152.8 | 41.8 | ||||||||
Beginning balance, Stockholders' Equity (in shares) at Mar. 31, 2022 | 403,395,161 | ||||||||||||
Beginning balance at Mar. 31, 2022 | 2,059.4 | $ 4.0 | 1,910.0 | 119.0 | 26.4 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of Class A common stock upon vesting of RSUs (in shares) | 233,923 | ||||||||||||
Shares withheld related to net share settlement and other (in shares) | (75,351) | ||||||||||||
Shares withheld related to net share settlement and other | (3.2) | (3.2) | |||||||||||
Exercise of stock options (in shares) | 13,714 | ||||||||||||
Exercise of stock options | 0.3 | 0.3 | |||||||||||
Forfeitures / cancellations (in shares) | (111,789) | ||||||||||||
Net income (loss) | 15.9 | 15.9 | |||||||||||
Other comprehensive income | 4.5 | 4.5 | |||||||||||
Equity-based compensation | 47.0 | 47.0 | |||||||||||
Ending balance, Stockholders' Equity (in shares) at Jun. 30, 2022 | 403,455,658 | ||||||||||||
Ending balance at Jun. 30, 2022 | 2,123.9 | $ 4.0 | 1,954.1 | 134.9 | 30.9 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of Class A common stock upon vesting of RSUs (in shares) | 399,979 | ||||||||||||
Shares withheld related to net share settlement and other (in shares) | (114,629) | ||||||||||||
Shares withheld related to net share settlement and other | (5.1) | (5.1) | |||||||||||
Exercise of stock options (in shares) | 27,715 | ||||||||||||
Exercise of stock options | 0.6 | 0.6 | |||||||||||
Forfeitures / cancellations (in shares) | (111,395) | ||||||||||||
Net income (loss) | 17.9 | 17.9 | |||||||||||
Other comprehensive income | 10.9 | 10.9 | |||||||||||
Equity-based compensation | 48.1 | 48.1 | |||||||||||
Ending balance, Stockholders' Equity (in shares) at Sep. 30, 2022 | 403,657,328 | ||||||||||||
Ending balance at Sep. 30, 2022 | $ 2,196.3 | $ 4.0 | $ 1,997.7 | $ 152.8 | $ 41.8 | ||||||||
|
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
||||
Cash flows from operating activities: | ||||||||||
Net income (loss) | $ 17.9 | $ 6.2 | $ (40.9) | $ (33.9) | $ 40.0 | $ (50.3) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
Depreciation and amortization | 65.2 | 49.6 | ||||||||
Amortization of debt discounts and issuance costs | 2.2 | 1.8 | ||||||||
Amortization of deferred commissions costs | 47.4 | 29.3 | ||||||||
Asset impairments | 0.0 | 2.7 | ||||||||
Loss on debt modification and extinguishment | 0.0 | 7.7 | ||||||||
Deferred consideration valuation adjustments | 0.0 | 0.2 | ||||||||
Equity-based compensation expense | 137.6 | 59.7 | ||||||||
Deferred income taxes | 47.5 | 84.5 | ||||||||
Tax receivable agreement remeasurement | (9.5) | (0.3) | ||||||||
Provision for bad debt expense | 1.8 | 3.1 | ||||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||
Accounts receivable | 22.6 | 7.2 | ||||||||
Prepaid expenses and other current assets | (6.3) | (5.7) | ||||||||
Deferred costs and other assets, net of current portion | (55.5) | (33.5) | ||||||||
Income tax receivable | (1.2) | (1.6) | ||||||||
Accounts payable | 6.1 | 11.8 | ||||||||
Accrued expenses and other liabilities | (11.2) | 6.9 | ||||||||
Unearned revenue | 10.2 | 55.0 | ||||||||
Net cash provided by (used in) operating activities | 296.9 | 228.1 | ||||||||
Cash flows from investing activities: | ||||||||||
Purchases of short-term investments | (40.7) | (119.8) | ||||||||
Maturities of short-term investments | 26.6 | 52.0 | ||||||||
Proceeds from sales of short-term investments | 0.0 | 61.7 | ||||||||
Purchases of property and equipment and other assets | (22.5) | (15.8) | ||||||||
Cash paid for acquisitions, net of cash acquired | (143.7) | (717.5) | ||||||||
Net cash provided by (used in) investing activities | (180.3) | (739.4) | ||||||||
Cash flows from financing activities: | ||||||||||
Payments of deferred consideration | (1.1) | (9.4) | ||||||||
Proceeds from debt | 0.0 | 1,071.8 | ||||||||
Repayment of debt | 0.0 | (581.4) | ||||||||
Payments of debt issuance and modification costs | (0.4) | (11.4) | ||||||||
Proceeds from exercise of stock options | 1.2 | 1.4 | ||||||||
Taxes paid related to net share settlement of equity awards | (12.7) | (7.2) | ||||||||
Payments of equity issuance costs | (0.3) | (1.0) | ||||||||
Tax receivable agreement payments | (5.0) | 0.0 | ||||||||
Tax distributions | 0.0 | (19.9) | ||||||||
Net cash provided by (used in) financing activities | (18.3) | 442.9 | ||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 98.3 | (68.4) | ||||||||
Cash, cash equivalents, and restricted cash at beginning of period | $ 314.1 | $ 271.0 | 314.1 | 271.0 | $ 271.0 | |||||
Cash, cash equivalents, and restricted cash at end of period | 412.4 | 202.6 | 412.4 | 202.6 | 314.1 | |||||
Cash, cash equivalents, and restricted cash at end of period: | ||||||||||
Cash and cash equivalents | 406.3 | 196.8 | 406.3 | 196.8 | 308.3 | [1] | ||||
Restricted cash, non-current | 6.1 | 5.8 | 6.1 | 5.8 | 5.8 | [1] | ||||
Total cash, cash equivalents, and restricted cash | 412.4 | 202.6 | 412.4 | 202.6 | $ 314.1 | |||||
Supplemental disclosures of cash flow information | ||||||||||
Interest paid in cash | 44.0 | 26.3 | ||||||||
Cash paid for taxes | 8.7 | 15.6 | ||||||||
Supplemental disclosures of non-cash investing and financing activities: | ||||||||||
Deferred variable consideration from acquisition of a business | 1.1 | 0.0 | ||||||||
Property and equipment included in accounts payable and accrued expenses and other current liabilities | 0.8 | 3.0 | ||||||||
Estimated business combination consideration receivable | $ 0.0 | $ 33.9 | $ 0.0 | $ 33.9 | ||||||
|
Organization and Background |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Note 1 - Organization and Background Business ZoomInfo Technologies Inc., through its operating subsidiaries provides a go-to-market intelligence and engagement platform for sales and marketing teams. The Company’s cloud-based platform provides workflow tools with integrated, accurate, and comprehensive information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage via automated sales tools, and track progress through the deal cycle. Unless otherwise indicated or the context otherwise requires, references to “we,” “us,” “our,” “ZoomInfo,” and the “Company” refer (1) prior to the consummation of the Reorganization Transactions, to ZoomInfo OpCo and its consolidated subsidiaries, (2) after the consummation of the Reorganization Transactions and prior to the consummation of the Holding Company Reorganization, to ZoomInfo Intermediate Inc. (formerly known as ZoomInfo Technologies Inc.) and its consolidated subsidiaries and (3) after the consummation of the Holding Company Reorganization, to ZoomInfo Technologies Inc. (formerly known as ZoomInfo NewCo Inc.) and its consolidated subsidiaries. Organization ZoomInfo Technologies Inc. was formed on November 14, 2019 with no operating assets or operations as a Delaware corporation for the purposes of facilitating an initial public offering (“IPO”) and other related transactions in order to carry on the business of ZoomInfo Holdings LLC (“ZoomInfo OpCo”) (formerly known as DiscoverOrg Holdings, LLC), a Delaware limited liability company. Following consummation of the Reorganization Transactions (as described below), ZoomInfo OpCo became a direct subsidiary of ZoomInfo Intermediate Holdings LLC (“ZoomInfo HoldCo”), a Delaware limited liability company and an indirect subsidiary of ZoomInfo Technologies Inc. Following the consummation of the Holding Company Reorganization, ZoomInfo OpCo became a direct subsidiary of ZoomInfo Technologies Inc. and ZoomInfo Intermediate Inc. The Company headquarters are located in Vancouver, WA, and we have additional offices throughout the United States, and in Israel, Canada, the United Kingdom, and India. Initial Public Offering On June 8, 2020, ZoomInfo Technologies Inc. completed the IPO, in which it sold 51,175,000 shares of Class A common stock (including shares issued pursuant to the exercise in full of the underwriters’ option to purchase additional shares) at a public offering price of $21.00 per share for net proceeds of $1,019.6 million, after deducting underwriters’ discounts (but excluding other offering expenses and reimbursements). ZoomInfo Technologies Inc. used all of the proceeds from the IPO to (i) purchase 48,528,783 newly issued HoldCo Units from ZoomInfo HoldCo for approximately $966.9 million (which ZoomInfo HoldCo in turn used to purchase the same number of newly issued OpCo Units from ZoomInfo OpCo); (ii) purchase 2,370,948 OpCo Units from certain Pre-IPO OpCo Unitholders for approximately $47.2 million; and (iii) fund $5.5 million of merger consideration payable to certain Pre-IPO Blocker Holders in connection with the Blocker Mergers. Reorganization Transactions In connection with the IPO, the Company completed the following transactions (“Reorganization Transactions”): •ZoomInfo OpCo effected a four—for—one reverse unit split; •ZoomInfo Technologies Inc. formed a new merger subsidiary with respect to each of the Blocker Companies through which certain of our Pre-IPO Blocker Holders held their interests in ZoomInfo OpCo, each merger subsidiary merged with and into the respective Blocker Companies in reverse-subsidiary mergers, and the surviving entities merged with and into ZoomInfo Technologies Inc. (such mergers, the “Blocker Mergers”), which Blocker Mergers resulted in the Pre-IPO Blocker Holders receiving a combination of (i) shares of Class C common stock of ZoomInfo Technologies Inc. and (ii) a cash amount in respect of reductions in such Pre-IPO Blocker Holders’ equity interests, based on the initial offering price of our Class A common stock in the IPO; •certain Pre-IPO Owners acquired interests in ZoomInfo HoldCo as a result of the merger of an entity that held OpCo Units on behalf of such Pre-IPO Owners into ZoomInfo HoldCo (the “ZoomInfo HoldCo Contributions”) and the redemption of some OpCo Units pursuant to which the holders of such OpCo Units received HoldCo Units; and •the limited liability company agreement of each of ZoomInfo OpCo and ZoomInfo HoldCo was amended and restated to, among other things, modify their capital structure by reclassifying the interests held by the Pre-IPO OpCo Unitholders, the Continuing Class P Unitholders, and the Pre-IPO HoldCo Unitholders, resulting in OpCo Units of ZoomInfo OpCo, Class P Units of ZoomInfo OpCo, and HoldCo Units of ZoomInfo HoldCo, respectively (such reclassification, the “Reclassification”). We refer to the Reclassification, together with the Blocker Mergers and the ZoomInfo HoldCo Contributions, as the “Reorganization Transactions.” Following the Reorganization Transactions, ZoomInfo Technologies Inc. became a holding company, with its sole material asset being a controlling equity interest in ZoomInfo HoldCo, which became a holding company with its sole material asset being a controlling equity interest in ZoomInfo OpCo. ZoomInfo Technologies Inc. will operate and control all of the business and affairs, and consolidate the financial results, of ZoomInfo OpCo through ZoomInfo HoldCo and, through ZoomInfo OpCo and its subsidiaries, conduct our business. Accordingly, ZoomInfo Technologies Inc. consolidates the financial results of ZoomInfo HoldCo, and therefore ZoomInfo OpCo, and reports the non-controlling interests of the Pre-IPO HoldCo Units and Pre-IPO OpCo Units on its consolidated financial statements. In connection with the Reorganization Transactions and the IPO, ZoomInfo Technologies Inc. entered into two tax receivable agreements. Refer to Note 16 - Tax Receivable Agreements for additional information. Corporate Structure Simplification Transactions In August 2021, the Company completed a series of reorganization transactions to simplify its corporate structure, including the distribution of shares of common stock of RKSI Acquisition Corp (“RKSI”) from ZoomInfo Holdings LLC to ZoomInfo HoldCo, the merger of RKSI with and into ZoomInfo HoldCo with ZoomInfo HoldCo surviving, and the merger of ZoomInfo HoldCo with and into the Company with the Company surviving. Prior to the consummation of the HoldCo Merger, all holders of HoldCo Units (other than the Company) exchanged their HoldCo Units and paired shares of Class B common stock of the Company for shares of Class A common stock of the Company pursuant to the terms of the limited liability company agreement of HoldCo. UP-C Corporate Structure and Multi-Class Voting Structure Elimination In September 2021, the Board of Directors unanimously approved streamlining the Company’s corporate structure and governance by eliminating the Company’s umbrella partnership-C-corporation (“UP-C”) and multi-class voting structure. In October 2021, the Company implemented this reorganization, pursuant to which (i) a subsidiary of ZoomInfo Technologies Inc. (formerly known as ZoomInfo NewCo Inc.) (“New ZoomInfo”) merged with and into ZoomInfo Intermediate Inc. (“Old ZoomInfo”), formerly known as ZoomInfo Technologies Inc., which resulted in New ZoomInfo becoming the direct parent company of Old ZoomInfo, and (ii) immediately thereafter, another subsidiary of New ZoomInfo merged with and into ZoomInfo Holdings LLC (“ZoomInfo OpCo”), which resulted in ZoomInfo OpCo becoming a subsidiary of New ZoomInfo (the combined transaction described in (i) and (ii), the “Holding Company Reorganization”). As a result of the Holding Company Reorganization, New ZoomInfo became the successor issuer and reporting company to Old ZoomInfo pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and replaced the Predecessor Registrant as the public company trading on the Nasdaq Global Select Market (the “Nasdaq”) under the ticker symbol “ZI.”. After the consummation of the Holding Company Reorganization, the only class of common stock of the New ZoomInfo remaining issued and outstanding was the Class A common stock and all shares of Class B common stock were cancelled, and all shares of Class C common stock were converted to Class A common stock. In May 2022, following approval by the Company’s stockholders, the Company further amended and restated its Amended and Restated Certification of Incorporation to eliminate the multiple classes of common stock and to rename the Company’s Class A common stock as “Common Stock.”
|
Basis of Presentation and Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2 - Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) has been condensed or omitted pursuant to those rules and regulations. The financial statements included in this report should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2021. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the operating results that may be expected for the full fiscal year ending December 31, 2022 or any future period. The accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair statement of financial position as of September 30, 2022, and results of operations for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021. The Condensed Consolidated Balance Sheet as of December 31, 2021 was derived from the audited consolidated balance sheet of the Company but does not contain all of the footnote disclosures from those annual financial statements. Accordingly, certain footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Effective May 23, 2022, the Company’s Class A common stock was renamed as “Common Stock.” All references within this document to Class A common stock for periods subsequent to May 23, 2022, and, where the context requires, references within this document to Class A common stock for periods prior to May 23, 2022, have been updated for the renaming. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. We base these estimates on historical and anticipated results, trends, and other assumptions with respect to future events that we believe are reasonable and evaluate our estimates on an ongoing basis. Given that estimates and judgments are required, actual results may differ from our estimates and such differences could be material to our consolidated financial position and results of operations. Principles of Consolidation The consolidated financial statements include the accounts of ZoomInfo Technologies Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Revenue Recognition The Company derives revenue primarily from subscription services. Our subscription services consist of our SaaS applications and related access to our databases. Subscription contracts are generally based on the number of users that access our applications, the level of functionality that they can access, and the amount of data that a customer integrates with their systems. Our subscription contracts typically have a term of to three years and are non-cancelable. We typically bill for services annually, semi-annually, or quarterly in advance of delivery. The Company accounts for revenue contracts with customers through the following steps: (1)identify the contract with a customer; (2)identify the performance obligations in the contract; (3)determine the transaction price; (4)allocate the transaction price; and (5)recognize revenue when or as the Company satisfies a performance obligation. We recognize revenue for subscription contracts on a ratable basis over the contract term based on the number of calendar days in each period, beginning on the date that our service is made available to the customer. Unearned revenue results from revenue amounts billed to customers in advance or cash received from customers in advance of the satisfaction of performance obligations. Determining the transaction price often involves judgment and making estimates that can have a significant impact on the timing and amount of revenue reported. At times, the Company may adjust billing under a contract based on the addition of services or other circumstances, which are accounted for as variable consideration. The Company estimates these amounts based on historical experience and adjusts revenue recognized. Cash, Cash Equivalents, and Short-term Investments Cash equivalents consist of highly liquid marketable debt securities with remaining maturities of three months or less at the date of purchase. We classify our investments in marketable securities as “available-for-sale.” We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity on our Condensed Consolidated Balance Sheets. Gains and losses are determined using the specific identification method and recognized when realized on our Consolidated Statements of Operations. If we were to determine that an other-than-temporary decline in fair value has occurred, the amount of the decline related to a credit loss will be recognized in income. Fair Value Measurements The Company measures assets and liabilities at fair value based on an expected exit price, which represents the amount that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: Level 1 - Observable inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities Level 2 - Other inputs that are directly or indirectly observable in the marketplace Level 3 - Unobservable inputs that are supported by little or no market activity, including the Company’s own assumptions in determining fair value The inputs or methodology used for valuing financial assets and liabilities are not necessarily an indication of the risk associated with investing in them. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments, and accounts receivable. The Company holds cash at major financial institutions that often exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits. The Company manages its credit risk associated with cash concentrations by concentrating its cash deposits in high-quality financial institutions and by periodically evaluating the credit quality of the primary financial institutions holding such deposits. The carrying value of cash approximates fair value. Our investment portfolio is comprised of highly rated securities with a weighted-average maturity of less than 12 months in accordance with our investment policy which seeks to preserve principal and maintain a high degree of liquidity. Historically, the Company has not experienced any losses due to such cash concentrations. The Company does not have any off-balance-sheet credit exposure related to its customers. Concentrations of credit risk with respect to accounts receivable and revenue are limited due to a large, diverse customer base. We do not require collateral from clients. We maintain an allowance for credit losses based upon the expected collectability of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for possible losses, which, when realized, have been within the range of management’s expectations. No single customer accounted for 10% or more of our revenue for the three and nine months ended September 30, 2022 and 2021, or accounted for more than 10% of accounts receivable as of September 30, 2022 and December 31, 2021. Long-lived assets located outside of the United States were immaterial as of September 30, 2022 and December 31, 2021. Accounts Receivable and Contract Assets Accounts receivable is comprised of invoices of revenue, net of allowance for credit losses, and does not bear interest. We consider receivables past due based on the contractual payment terms. Management’s evaluation of the adequacy of the allowance for credit losses considers historical collection experience, changes in customer payment profiles, the aging of receivable balances, as well as current economic conditions, all of which may impact a customer’s ability to pay. Account balances are written-off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have significant bad debt experience with customers, and therefore, the allowance for credit losses is immaterial as of September 30, 2022 and December 31, 2021. The assessment of variable consideration to be constrained is based on estimates, and actual consideration may vary from current estimates. As adjustments to these estimates become necessary, they are reported in earnings in the periods in which they become known. Changes in variable consideration are recorded as a component of net revenue. Contract assets represent a contractual right to consideration in the future. Contract assets are generated when contractual billing schedules differ from revenue recognition timing. Property and Equipment, Net Property and equipment is stated at cost, net of accumulated depreciation and amortization. All repairs and maintenance costs are expensed as incurred. Depreciation and amortization costs are expensed on a straight-line basis over the lesser of the estimated useful life of the asset or the remainder of the lease term for leasehold improvements. Qualifying internal use software costs incurred during the application development stage, which consist primarily of internal product development costs, outside services, and purchased software license costs, are capitalized and amortized over the estimated useful life of the asset. Estimated useful lives range from three years to ten years. Deferred Commissions Certain sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These sales commissions for initial contracts are capitalized and included in Deferred costs and other assets, net of current portion on our Condensed Consolidated Balance Sheets. Deferred sales commissions are amortized on a straight-line basis over the estimated period of benefit from the customer relationship which we have determined to be and three years for renewals and new clients, respectively. We determined the period of benefit by taking into consideration our customer contracts, our technology, and other factors. Amortization expense is included in Sales and marketing expense on our Consolidated Statements of Operations. Commissions payable at September 30, 2022 were $28.9 million, of which the current portion of $26.7 million was included in Accrued expenses and other current liabilities on our Condensed Consolidated Balance Sheets, and the long-term portion of $2.2 million was included in Other long-term liabilities on our Condensed Consolidated Balance Sheets. Commissions payable at December 31, 2021 were $34.1 million, of which the current portion of $31.4 million was included in Accrued expenses and other current liabilities on our Condensed Consolidated Balance Sheets, and the long-term portion of $2.7 million was included in Other long-term liabilities on our Condensed Consolidated Balance Sheets. Certain commissions are not capitalized as they do not represent incremental costs of obtaining a contract. Such commissions are expensed as incurred. Advertising and Promotional Expenses The Company expenses advertising costs as incurred. Advertising expenses of $6.6 million and $21.7 million were recorded for the three and nine months ended September 30, 2022. Advertising expenses of $7.1 million and $15.7 million were recorded for the three and nine months ended September 30, 2021. Advertising expenses are included in Sales and marketing on our Consolidated Statements of Operations. Research and Development Research and development expenses consist primarily of compensation expense for our employees, including employee benefits, certain IT program expenses, facilities and related overhead costs. We continue to focus our research and development efforts on developing new products, adding new features and services, integrating acquired technologies, and increasing functionality. Expenditures for software developed or obtained for internal use are capitalized and amortized over a four-year period on a straight-line basis. Restructuring and Transaction-Related Expenses The Company defines restructuring and transaction-related expenses as costs directly associated with restructuring, acquisition, or disposal activities. Such costs include employee severance and termination benefits, contract termination fees and penalties, and other exit or disposal costs. In general, the Company records involuntary employee-related exit and disposal costs when there is a substantive plan for employee severance and related costs that are probable and estimable. For one-time termination benefits for key members of management (i.e., no substantive plan) expense is recorded when the employees are entitled to receive such benefits and the amount can be reasonably estimated. Transaction related bonuses and related employee retention costs are recognized over the relevant service period. Contract termination fees and penalties and other exit and disposal costs are generally recorded when incurred. Business Combinations We allocate purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The purchase price is determined based on the fair value of the assets transferred, liabilities assumed and equity interests issued, after considering any transactions that are separate from the business combination. The fair value of equity issued as part of a business combination is determined based on grant date stock price of the Company. The excess of fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and contingent liabilities. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customer bases, acquired technology and acquired trade names, useful lives, royalty rates, and discount rates. The estimates are inherently uncertain and subject to revision as additional information is obtained during the measurement period for an acquisition, which may last up to one year from the acquisition date. During the measurement period, we may record adjustments to the fair value of tangible and intangible assets acquired and liabilities assumed, with a corresponding offset to goodwill. After the conclusion of the measurement period or the final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to earnings. In addition, uncertain tax positions and tax-related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. We reevaluate these items based upon the facts and circumstances that existed as of the acquisition date, with any revisions to our preliminary estimates being recorded to goodwill, provided that the timing is within the measurement period. Subsequent to the measurement period, changes to uncertain tax positions and tax-related valuation allowances will be recorded to earnings. Goodwill and Acquired Intangible Assets Goodwill is calculated as the excess of the purchase consideration paid in a business combination over the fair value of the assets acquired less liabilities assumed. Goodwill is not amortized and is tested for impairment at least annually or when events and circumstances indicate that fair value of a reporting unit may be below its carrying value. The company has one reporting unit. We first assess qualitative factors to evaluate whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount or elect to bypass such assessment. If it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying value, or we elect to bypass the qualitative assessment, we perform a quantitative test by determining the fair value of the reporting unit. If the carrying value of the reporting unit exceeds the fair value, then an impairment loss is recognized for the difference. Acquired technology, customer lists, trade names or brand portfolios, and other intangible assets are related to previous acquisitions (refer to Note 7 - Goodwill and Acquired Intangible Assets). Acquired intangible assets are amortized on a straight-line basis over the estimated period over which we expect to realize economic value related to the intangible asset. The amortization periods range from 2 years to 15 years. Any costs incurred to renew or extend the life of an intangible or long-lived asset are reviewed for capitalization. Indefinite-lived intangible assets consist primarily of brand portfolios acquired from Pre-Acquisition ZI and represent costs paid to legally register phrases and graphic designs that identify and distinguish products sold by the Company. Brand portfolios are not amortized, rather potential impairment is considered on an annual basis in the fourth quarter, or more frequently upon the occurrence of a triggering event, when circumstances indicate that the book value of trademarks are greater than their fair value. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than the carrying value as a basis to determine whether further impairment testing is necessary. No impairment charges relating to acquired goodwill or indefinite lived intangible assets were recorded for the three and nine month periods ended September 30, 2022 and 2021. Impairment of Long-lived Assets Long-lived assets, such as property and equipment and acquired intangible assets, are reviewed for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future cash flows expected to be generated by the asset or group of assets. If the carrying amount of the asset exceeds the estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated future cash flows of the asset. During the year ended December 31, 2021, we recorded impairment charges of $1.5 million to reduce the carrying value of our existing Waltham right-of-use asset and $1.2 million to reduce the carrying value of the related leasehold improvements to their respective fair values. Leases We determine if an arrangement is or contains a lease at contract inception. For these arrangements, primarily those related to our data center arrangements, there is judgment in evaluating if the arrangement involves an identified asset that is physically distinct or whether we have the right to substantially all of the capacity of an identified asset that is not physically distinct. In arrangements that involve an identified asset, there is also judgment in evaluating if we have the right to direct the use of that asset. We do not have any finance leases. Operating leases are recorded on our Condensed Consolidated Balance Sheets. Right-of-use assets and lease liabilities are measured at the lease commencement date based on the present value of the fixed minimum remaining lease payments over the lease term, determined using the discount rate for the lease at the commencement date. Because the rates implicit in our leases are not readily determinable, we use our incremental borrowing rate as the discount rate for each respective lease, which approximates the interest rate at which we could borrow on a collateralized basis with similar terms and payments and in similar economic environments. Some leases include options to extend or options to terminate the lease prior to the stated lease expiration. Optional periods to extend a lease, including by not exercising a termination option, are included in the lease term when it is reasonably certain that the option will be exercised (or not exercised in the case of termination options). Operating lease expense is recognized on a straight-line basis over the lease term. We account for lease and non-lease components, principally common area maintenance and related taxes for our facilities leases, as a single lease component. Short term leases, defined as leases having an original lease term less than or equal to one year, are excluded from our right-of-use assets and liabilities. Unearned Revenue Unearned revenue consists of customer payments and billings in advance of revenue being recognized from our subscription services. Unearned revenue that is anticipated to be recognized within the next 12 months is recorded as Unearned revenue, current portion and the remaining portion is included in Unearned revenue, net of current portion on our Condensed Consolidated Balance Sheets. Debt Issuance Costs Costs incurred in connection with the issuance of long-term debt are deferred and amortized as interest expense over the terms of the related debt using the effective interest method for term debt and on a straight-line basis for revolving debt. Debt issuance costs are generally presented on our Condensed Consolidated Balance Sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts. However, the Company classifies the debt issuance costs related to its first lien revolving credit facility within Deferred costs and other assets, net of current portion on our Condensed Consolidated Balance Sheets regardless of whether the Company has any outstanding borrowings on our first lien revolving credit facility. Upon a refinancing or amendment, the Company evaluates the modified debt instrument in accordance with ASC 470-50-40-10. When the present value of the cash flows under the modified debt instrument has changed by greater than 10 percent from the present value of the remaining cash flows under the terms of the original debt instrument, the Company accounts for the amendment as a debt extinguishment and all previously-capitalized debt issuance costs are expensed and included in Loss on debt modification and extinguishment. If the change in the present value of cash flows is less than 10 percent, any previously-capitalized debt issuance costs are amortized as interest expense over the term of the new debt instrument. The Company performs assessments of debt modifications at a lender-specific level for all syndicated financing arrangements. Tax Receivable Agreements In connection with our IPO, we entered into two Tax Receivable Agreements ("TRAs") with certain non-controlling interest owners (the “TRA Holders”). The TRAs generally provide for payment by the Company to the TRA Holders of 85% of the net cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company actually realizes or is deemed to realize in certain circumstances. The Company will retain the benefit of the remaining 15% of these net cash savings. Amounts payable under the TRA are accrued by a charge to income when it is probable that a liability has been incurred and the amount is estimable. TRA related liabilities are classified as current or noncurrent based on the expected date of payment and are included on our Condensed Consolidated Balance Sheets under the captions Current portion of tax receivable agreements liability and Tax receivable agreements liability, net of current portion, respectively. Subsequent changes to the measurement of the TRA liability are recognized on our Consolidated Statements of Operations as a component of Other (income) expense, net. Refer to Note 16 - Tax Receivable Agreements for further details on the TRA liability. Income Taxes ZoomInfo Technologies Inc. and its direct subsidiary, ZoomInfo Intermediate Inc., are subject to U.S. federal as well as state income tax related to its ownership percentage in ZoomInfo Holdings LLC. ZoomInfo Holdings LLC is a limited liability company treated as a partnership for U.S. federal income tax purposes and files a U.S. Return of Partnership Income. Consequently, the members of ZoomInfo Holdings are taxed on their share of earnings for U.S. federal and state income tax purposes. During the three months ended December 31, 2021, ZoomInfo Midco LLC, which is held by ZoomInfo Holdings LLC, made an election to be classified as a corporation for U.S. federal and state income tax purposes. ZoomInfo Midco LLC owns ZoomInfo Technologies LLC, our primary operating entity, among other entities. As such, under our tax elections, ZoomInfo Midco LLC is now subject to U.S. federal and state income tax as a result of our operations. Refer to Note 17 - Income Taxes for additional information regarding income taxes. Deferred taxes are recorded using the asset and liability method, whereby tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. We regularly evaluate the valuation allowances established for deferred tax assets for which future realization is uncertain. In assessing the realizability of deferred tax assets, we consider both positive and negative evidence, including scheduled reversals of deferred tax assets and liabilities, projected future taxable income, tax planning strategies and results of recent operations. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is recorded. Equity-Based Compensation Expense The Company periodically grants incentive awards to employees and non-employees, which generally vest over periods up to four years. Incentive awards may be in the form of various equity-based awards such as Restricted Stock and Restricted Stock Units, and Common Stock Options. Historically, the Company also granted awards in one of the Company’s legacy subsidiary partnerships and such awards were typically in the form of profits interests. Profits interests are an interest in the increase in the value of the entity over a participation threshold. Prior to the IPO, the participation threshold was based on the valuation determined by the Board of Managers of OpCo Units on or around the grant date. Subsequent to the IPO, the participation threshold was determined by reference to the closing price of our Class A common stock from the preceding trading day. The holders of profits interests had the right to participate in distributions of profits only in excess of the participation threshold. Previously awarded profits interests were converted into Restricted Stock awards in connection with the Holding Company Reorganization (refer to Note 1 - Organization and Background). Compensation expense for incentive awards is measured at the estimated fair value of the incentive units and is included as compensation expense over the vesting period during which an employee provides service in exchange for the award. Compensation expense for performance-based Restricted Stock Units is measured at the estimated fair value of the units and is recognized using the accelerated attribution method over the service period when it is probable that the performance condition will be satisfied. The Company uses a Black-Scholes option pricing model to determine the fair value of stock options and profits interests, as profits interests have certain economic similarities to options. The Black-Scholes option pricing model includes various assumptions, including the expected term of incentive units, the expected volatility and the expected risk-free interest rate. These assumptions reflect the Company’s best estimates, but they involve inherent uncertainties based on market conditions generally outside the control of the Company. As a result, if other assumptions are used, compensation cost could be materially impacted. Compensation expense related to the Company’s Employee Stock Purchase Plan is measured at the estimated fair value using the Black-Scholes option pricing model using the estimated number of awards as of the beginning of the offering period. The Company measures employee, non-employee, and board of director equity-based compensation on the grant date fair value basis. Equity-based compensation expense is recognized over the requisite service period of the awards. For equity awards that have a performance condition, the Company recognizes compensation expense based on its assessment of the probability that the performance condition will be achieved. The Company classifies equity-based compensation expense on our Consolidated Statements of Operations in the same manner in which the award recipient’s salary and related costs are classified or in which the award recipient’s service payments are classified. Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The standard applies to contract modifications that replace a reference rate affected by reference rate reform and contemporaneous modifications of other contract terms related to the replacement of the reference rate. Further, the standard provides exceptions to certain guidance in ASC 815, Derivatives and Hedging, related to changes to the critical terms of a hedging relationship due to reference rate reform and provides optional expedients for fair value, cash flow, and net investment hedging relationships for which the component excluded from the assessment of hedge effectiveness is affected by reference rate reform. The standard is effective for us as of March 12, 2020 through December 31, 2022, and we may elect to apply the provisions of the standard as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 up to the date that the financial statements are available to be issued. Once elected, the provisions of the standard must be applied prospectively for all similar eligible contract modifications other than derivatives, which may be applied at a hedging relationship level. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to provide supplemental guidance and to further clarify the scope of the amended guidance. The standards would apply to our existing variable rate financing and derivatives designated as hedges if elected in the future. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contract. The Update is intended to improve the accounting for acquired revenue contracts with customers in a business combination, related to the recognition of an acquired contract liability, and to payment terms and their effect on subsequent revenue recognized by the acquirer. The amendment also provides certain practical expedients when applying the guidance. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022, on a prospective basis, with early adoption permitted. The company has elected to early adopt this standard, effective January 1, 2022. The adoption of this guidance did not have a material impact on our financial position, results of operations and cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 introduce the following new guidance: (1) provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax; and (2) provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The amendments in ASU 2019-12 make changes to the following current guidance: (1) making an intraperiod allocation if there is a loss in continuing operations and a gain outside of continuing operations; (2) determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting; (3) accounting for tax law changes and year-to-date losses in interim periods; and (4) determining how to apply the income tax guidance to franchise taxes that are partially based on income. ASU 2019-12 is effective for public business entities' fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. During Q3 2021, the Company liquidated Insent, creating a step-up in the tax basis separate from the acquisition. In accordance with ASU 2019-12, the Company recorded a deferred tax asset on this step-up in tax basis. The additional deferred tax asset recognized as of December 31, 2021 was $6.3 million as a result of the adoption of this standard.
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Revenue from Contracts with Customers |
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Revenue from Contracts with Customers | Note 3 - Revenue from Contracts with Customers Revenue comprised the following service offerings:
Go-To-Market business intelligence tools are subscription services that allow customers access to our SaaS tools to support sales and marketing processes, which include data, analytics, and insights to provide accurate and comprehensive intelligence on organizations and professionals. Our customers use our platform to identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage via automated sales tools, and track progress through the deal cycle. Usage-based revenue is comprised largely of email verification and intent-driven audience and targeting services, which are charged to our customers on a per unit basis based on their usage. We regularly observe that customers integrate our usage-based services into their internal workflows and use our services on an ongoing basis. We recognize usage-based revenue at the point in time the services are consumed by the customer, thereby satisfying our performance obligation. Other revenue is comprised largely of implementation and professional services fees. We recognize other revenue as services are delivered. Of the total revenue recognized in the three and nine months ended September 30, 2022, $60.9 million and $325.9 million were included in the unearned revenue balance as of December 31, 2021. Of the total revenue recognized in the three and nine months ended September 30, 2021, $37.8 million and $205.5 million were included in the unearned revenue balance as of December 31, 2020. Revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods was not material. Revenues derived from customers and partners located outside the United States, as determined based on the address provided by our customers and partners, accounted for approximately 13% and 11% of our total revenues for the three months ended September 30, 2022 and 2021, respectively. Revenues derived from customers and partners located outside the United States, as determined based on the address provided by our customers and partners, accounted for approximately 12% and 11% of our total revenues for the nine months ended September 30, 2022 and 2021, respectively. Contracts denominated in currencies other than U.S. Dollar were not material for the three and nine months ended September 30, 2022 and 2021. Contract Assets and Unearned Revenue The Company’s standard billing terms typically require payment at the beginning of each annual, semi-annual, or quarterly period. Subscription revenue is generally recognized ratably over the contract term starting with when our service is made available to the customer. Usage-based revenue is recognized in the period services are utilized by our customers. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company records a contract asset when revenue recognized on a contract exceeds the billings to date for that contract. Unearned revenue results from cash received or amounts billed to customers in advance of revenue recognized upon the satisfaction of performance obligations. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size, and new business timing within the quarter. The unearned revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. As of September 30, 2022 and December 31, 2021, the Company had contract assets of $4.7 million and $3.7 million, respectively, which are recorded as current assets within Prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. As of September 30, 2022 and December 31, 2021, the Company had unearned revenue of $381.2 million and $364.2 million, respectively. ASC 606 requires the allocation of the transaction price to the remaining performance obligations of a contract. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to remaining performance obligations is influenced by several factors, including seasonality, the timing of renewals, and disparate contract terms. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and backlog. The Company's backlog represents installment billings for periods beyond the current billing cycle. The majority of the Company’s noncurrent remaining performance obligations will be recognized in the next 13 to 45 months. The remaining performance obligations consisted of the following:
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Business Combinations |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Note 4 - Business Combinations 2022 Acquisitions In April 2022, the Company acquired all the outstanding equity interests of Comparably, Inc. (“Comparably”) and acquired substantially all the assets and certain specified liabilities of Dogpatch Advisors, LLC (“Dogpatch”) (collectively, the “2022 Acquired Companies”) for a total purchase consideration of $150.6 million in cash and $10.0 million in convertible notes receivable. As part of the acquisitions, the Company issued 448,740 restricted stock units at a total grant date fair value of $26.8 million and could be required to issue additional equity awards up to a maximum value of $3.7 million based on the attainment of certain revenue thresholds and the continued employment of acquired employees. The acquisition of Comparably provides ZoomInfo with unique proprietary data to further build TalentOS into a best-in-class talent platform by enriching recruiter search options and providing recruiters with access to millions of quality candidates and employer brand solutions. We acquired Dogpatch Advisors to launch ZoomInfo Labs, a new go-to-market thought leadership team, driving go-to-market data analysis, product enhancements and strategy for our enterprise customers. Dogpatch is a go-to-market consultancy with expertise in scaling revenue teams and building modern sales and marketing systems. The purchase accounting for the 2022 Acquired Companies transactions is not yet finalized. The Company has included the financial results of the 2022 Acquired Companies in the consolidated financial statements from each date of acquisition. Due to the integration of the 2022 Acquired Companies into the operations of ZoomInfo, the Company cannot practicably determine the contribution of the 2022 Acquired Companies to consolidated net earnings. Transaction costs associated with each acquisition were not material. The acquisition date fair value of the total consideration transferred was comprised of the following (in millions):
The following table summarizes the aggregate fair values of the assets acquired and liabilities assumed, as of the dates of the acquisition for the 2022 Acquired Companies (in millions):
The excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The fair values of assets acquired and liabilities assumed in the Comparably acquisition may be subject to change as additional information is received regarding working capital balances at the acquisition date, and the values of the identifiable intangible assets. The following table sets forth the components of identifiable intangible assets acquired and the estimated useful lives as of the dates of acquisition (in millions):
Developed technology represents the fair value of the technology portfolios acquired. The goodwill is primarily attributed to the expanded market opportunities when integrating technology with the Company’s technology and the assembled workforce. All goodwill acquired in the nine months ended September 30, 2022 is expected to be deductible for U.S. income tax purposes. Pro forma information related to the acquisitions has not been presented as the impact was not material to the Company’s financial results. 2021 Acquisitions During the twelve months ended December 31, 2021, the Company consummated the following acquisitions (collectively, “2021 Acquired Companies”) which have been accounted for as business combinations under ASC Topic 805. •In June 2021, the Company acquired all of the outstanding equity interests of Insent, Inc. (“Insent”) for total purchase consideration of $34.0 million, consisting of $32.9 million in cash and estimated deferred purchase consideration of $1.1 million. The purchase accounting for this transaction has been finalized. As part of the acquisition, the Company issued 36,118 RSUs, at a total grant date fair value of $2.4 million, and agreed to pay $2.0 million of incentive compensation to acquired employees, subject to continued employment, to be recognized in the post-combination periods. •In July 2021, the Company acquired substantially all of the net assets of AffectLayer, Inc. (d/b/a Chorus.ai) (“Chorus.ai”). At the time of purchase, the Company reserved a portion of cash transferred to settle the Seller’s estimated tax liability arising from the sale of Chorus.ai’s net assets. The Seller has since completed the final determination of its tax liability, resulting in a refund to the Company of approximately $33.9 million in cash, which was received in the fourth quarter of 2021 and previously included in the Prepaid expenses and other current assets balance. After adjustment for this refund, purchase consideration transferred for the assets of Chorus.ai is $547.4 million in cash. The total purchase consideration includes $31.8 million attributable to certain unvested options issued by Chorus.ai that were accelerated in contemplation of the acquisition by ZoomInfo. The purchase accounting for this transaction has been finalized. As part of the acquisition, the Company issued 572,921 RSUs that replaced previously unvested equity in Chorus.ai or were issued as incremental incentive grants at a total grant date fair value of $30.3 million, and agreed to pay $6.0 million of compensation to acquired employees, subject to continued employment, to be recognized in the post-combination periods. •In September 2021, the Company acquired substantially all of the net assets of RingLead, Inc. (“RingLead”) for total purchase consideration of $116.0 million, consisting of $114.9 million in cash and estimated deferred purchase consideration of $1.1 million. The purchase accounting for this transaction has been finalized. As part of the acquisition, the Company issued 42,854 replacement RSUs, at a total grant date fair value of $2.8 million and agreed to pay $3.7 million of incentive compensation to acquired employees, subject to continued employment, to be recognized in the post-combination periods. The Company has included the financial results of the 2021 Acquired Companies in the consolidated financial statements from each date of acquisition. During the twelve months ended December 31, 2021, the 2021 Acquired Companies contributed $13.2 million to revenue. Due to the integration of the 2021 Acquired Companies into the operations of ZoomInfo, the Company cannot practicably determine the contribution of the 2021 Acquired Companies to consolidated net earnings. Transaction costs associated with each acquisition were not material. The acquisition date fair value of the total consideration transferred was comprised of the following (in millions):
The following table summarizes the aggregate fair values of the assets acquired and liabilities assumed, as of the dates of the acquisition for the 2021 Acquired Companies, as adjusted in the fourth quarter of 2021 and the first quarter of 2022 (in millions):
The excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The following table sets forth the components of identifiable intangible assets acquired and the estimated useful lives as of the dates of acquisition (in millions):
Developed technology represents the fair value of the technology portfolios acquired. The goodwill is primarily attributed to the expanded market opportunities when integrating technology with the Company’s technology and the assembled workforce. All goodwill acquired in the twelve months ended December 31, 2021 is expected to be deductible for U.S. income tax purposes. Unaudited Pro Forma Financial Information for the 2021 Acquisitions The following table presents the unaudited pro forma results for the years ended December 31, 2021 and 2020. The unaudited pro forma financial information combines the results of operations of the 2021 Acquired Companies and ZoomInfo as though each of the acquisitions had been completed on January 1, 2020. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at such time. The unaudited pro forma results presented below primarily include adjustments for amortization of identifiable intangible assets, the valuation of deferred revenue assumed in the acquisitions (“the deferred revenue write-down”), interest expense, aggregate transaction expenses and transaction success bonuses of $12.6 million, equity-based compensation, and related tax effects of the adjustments:
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Cash, Cash Equivalents, and Short-term Investments |
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Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Short-term Investments | Note 5 - Cash, Cash Equivalents, and Short-term Investments Cash, cash equivalents, and short-term investments consisted of the following as of September 30, 2022:
Cash, cash equivalents, and short-term investments consisted of the following as of December 31, 2021:
Refer to Note 10 - Fair Value for further information regarding the fair value of our financial instruments. Gross unrealized losses on our available-for sale securities were immaterial at September 30, 2022 and December 31, 2021. The following table summarizes the cost and estimated fair value of the securities classified as short-term investments based on stated effective maturities as of September 30, 2022 and December 31, 2021:
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Note 6 - Property and Equipment The Company’s fixed assets consist of the following (in millions):
During the fiscal year ending December 31, 2021, in relation to our Waltham office relocation, we recorded an impairment charge of $2.7 million, comprised of $1.5 million relating to the operating lease right-of-use asset, and $1.2 million relating to the leasehold improvements. We also recorded accelerated depreciation of furniture and fixtures of $2.1 million. These charges were recognized within Restructuring and transaction-related expenses on our Consolidated Statements of Operations. Depreciation expense was $4.8 million and $2.9 million for the three months ended September 30, 2022 and 2021, respectively. Depreciation expense was $12.9 million and $10.4 million for the nine months ended September 30, 2022 and 2021, respectively.
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Goodwill and Acquired Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Acquired Intangible Assets | Note 7 - Goodwill and Acquired Intangible Assets Intangible assets consisted of the following as of September 30, 2022:
Amortization expense was $17.9 million and $16.1 million for the three months ended September 30, 2022 and 2021, respectively. Amortization expense was $52.3 million and $39.2 million for the nine months ended September 30, 2022 and 2021, respectively. The following summarized changes to the Company’s goodwill (in millions):
Based on the results of the Company’s impairment assessment, the Company did not recognize any impairment of goodwill during the nine months ended September 30, 2022 or September 30, 2021.
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Financing Arrangements |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Arrangements | Note 8 - Financing Arrangements As of September 30, 2022 and December 31, 2021, the carrying values of the Company’s borrowings were as follows (in millions):
First Lien Term Loan In February 2021, we used all of the net proceeds from issuance of the Senior Notes, along with cash on hand, to prepay $356.4 million aggregate principal amount of our first lien term loans outstanding under the First Lien Credit Agreement (the “Debt Prepayment”). Following the Debt Prepayment, $400.0 million aggregate principal amount of first lien term loans were outstanding under our First Lien Credit Agreement. In February 2021, we entered into an amendment to our First Lien Credit Agreement (the “Second Amendment”), pursuant to which the Company completed a repricing of its First Lien Term Loan Facility, which decreased the interest rate from LIBOR plus 3.75% per annum to LIBOR plus 3.00% per annum. The Company recognized $7.7 million in the twelve months ended December 31, 2021 within Loss on debt modification and extinguishment on our Consolidated Statements of Operations, primarily comprised of the write-off of unamortized issuance costs associated with the Debt Prepayment. In July 2021, we entered into an amendment to our existing First Lien Credit Agreement, that provided for the incurrence of an additional $200.0 million aggregate principal amount of additional term loans under our existing First Lien Credit Agreement. The first lien term debt has a variable interest rate whereby the Company can elect to use a Base Rate or LIBOR plus an applicable rate. The applicable rate is 2.00% for Base Rate loans or 3.00% for LIBOR Based Loans. The effective interest rate on the first lien debt was 5.83% and 3.41% as of September 30, 2022 and December 31, 2021, respectively. First Lien Revolving Credit Facility Pursuant to the Second Amendment to the First Lien Credit Agreement entered into in February 2021, the Company increased the aggregate commitments to $250.0 million under our first lien revolving credit facility. The Second Amendment also provided an extension of the maturity date of our first lien revolving credit facility to November 2025. The first lien revolving debt has a variable interest rate whereby the Company can elect to use a Base Rate or LIBOR plus an applicable rate. The applicable margin is 1.00% to 1.25% for Base Rate loans or 2.00% to 2.25% for LIBOR Based Loans, depending on the Company’s leverage. In July 2021, the Company drew down $225.0 million under the revolving credit facility and then paid off the outstanding $225.0 million balance of the revolving credit facility with proceeds from the Credit Agreement Amendment and proceeds from the Senior Notes. The effective interest rate was 4.4% as of the repayment date. Immaterial debt issuance costs were incurred in connection with these entries into the revolving credit facility. These debt issuance costs are amortized into interest expense over the expected life of the arrangement. Unamortized debt issuance costs included in Deferred costs and other assets, net of current portion on our Condensed Consolidated Balance Sheets were immaterial as of September 30, 2022 and December 31, 2021. First Lien Credit Agreement The First Lien Credit Agreement is secured by substantially all the productive assets of the Company. The First Lien Credit Agreement contains a number of covenants that restrict, subject to certain exceptions, the Company’s ability to, among other things: •incur additional indebtedness; •create or incur liens; •engage in certain fundamental changes, including mergers or consolidations; •sell or transfer assets; •pay dividends and distributions on our subsidiaries’ capital stock; •make acquisitions, investments, loans or advances; •engage in certain transactions with affiliates; and •enter into negative pledge clauses and clauses restricting subsidiary distributions. If the Company draws more than $87.5 million of the revolving credit loan, the revolving credit loan is subject to a springing financial covenant pursuant to which the consolidated first lien net leverage ratio must not exceed 5.00 to 1.00. The credit agreements also contain certain customary affirmative covenants and events of default, including a change of control. If an event of default occurs, the lenders under the credit agreements will be entitled to take various actions, including the acceleration of amounts due under the credit agreements and all actions permitted to be taken by a secured creditor. Senior Notes In February 2021, ZoomInfo Technologies LLC and ZoomInfo Finance Corp., indirect subsidiaries of ZoomInfo Technologies Inc. (the “Issuers”), issued $350.0 million in aggregate principal amount of 3.875% Senior Notes due February 2029 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Interest on the Senior Notes is payable semi-annually in arrears beginning on August 1, 2021. The Issuers may redeem all or a part of the Notes at any time prior to February 1, 2024 at a price equal to the present value of the redemption price as of February 1, 2024, defined below, plus unaccrued and unpaid interest to February 1, 2024. In addition, beginning on February 1, 2024, the Issuers may redeem all or a part of the Notes at a redemption price equal to 101.938% of the principal amount redeemed. The redemption price decreases to 100.969% and 100.000% of the principal amount redeemed on February 1, 2025 and February 1, 2026, respectively. In addition, at any time prior to February 1, 2024, the Issuers may redeem up to 40% of the Notes from the proceeds of certain equity offerings at a redemption price equal to 103.875% of the principal amount of the Senior Notes, plus accrued and unpaid interest. In July 2021, ZoomInfo Technologies LLC and ZoomInfo Finance Corp., indirect subsidiaries of ZoomInfo Technologies Inc., issued and sold $300.0 million in aggregate principal amount of additional 3.875% senior notes due in 2029. The notes were issued under the same indenture as the Issuers’ existing $350.0 million aggregate principal amount of 3.875% senior notes due 2029 (the “Existing Notes”), which were issued in February 2021, and constitute part of the same series as the Existing Notes.
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Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | Note 9 - Derivatives and Hedging Activities We are exposed to changes in interest rates, primarily relating to changes in interest rates on our first lien term loan. Consequently, from time to time, we may use interest rate swaps or other financial instruments to manage our exposure to interest rate movements. Our primary objective in holding derivatives is to reduce the volatility of cash flows associated with changes in interest rates. We do not enter into derivative transactions for speculative or trading purposes. We recognize derivative instruments and hedging activities on a gross basis as either assets or liabilities on our Condensed Consolidated Balance Sheets and measure them at fair value. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the earnings effect of the hedged forecasted transactions in a cash flow hedge. For derivatives designated as cash flow hedges, the change in the estimated fair value of the effective portion of the derivative is recognized in Accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. Gains and losses resulting from valuation adjustments on dedesignated portions of our derivative contract subsequent to dedesignation of hedge accounting are recorded within Interest expense, net on our Consolidated Statements of Operations. As it is not probable the forecasted transaction will not occur, the amounts in Accumulated other comprehensive income (loss) as of the date of dedesignation will be released based on our original forecast. In the first quarter of 2021, concurrent with the prepayment of $356.4 million aggregate principal amount of the first lien term loans outstanding under the First Lien Credit Agreement, we fully dedesignated the interest rate cap contract and partially dedesignated $100.0 million of the notional amount of one of the forward-starting interest rate swap contracts. In the third quarter of 2021, the Company redesignated $100.0 million of available notional of the partially dedesignated forward-starting interest rate swap contract and redesignated $100.0 million of available notional of the interest-rate cap contract in connection with the incurrence of an incremental $200.0 million of variable-rate debt under the First Lien Credit Agreement. In the second quarter of 2022, two interest rate swap contracts in the notional amount of $350.0 million matured. Interest rate swaps in the notional amount of $500.0 million became effective in April 2022. In the third quarter of 2022, the Company sold $400.0 million of the notional amount of the interest rate cap contract which was not designated as an accounting hedge. We recognized a gain of $3.0 million, partially offset by the derecognition of $2.5 million of derivative assets, resulting from this sale within Interest expense, net on our Consolidated Statements of Operations. As of September 30, 2022, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ($ in millions):
The following table summarizes the fair value and presentation on our Condensed Consolidated Balance Sheets for derivatives as of September 30, 2022 and December 31, 2021 (in millions):
________________ (1) Included in Accrued expenses and other current liabilities on our Condensed Consolidated Balance Sheets. (2) Included in Prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (3) Included in Deferred costs and other assets, net of current portion on our Condensed Consolidated Balance Sheets. The change in fair value of any derivative instruments was recorded, net of income tax, in Accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets to the extent the agreements were designated as effective hedges. In the period that the hedged item affects earnings, such as when interest payments are made on the Company’s variable-rate debt, we reclassify the related gain or loss on the interest rate swap cash flow hedges and any receipts on the cap to Interest expense, net and as operating cash flows on our Consolidated Statements of Cash Flows in the period settled in cash. Income tax effects from changes in fair value of derivative instruments are recorded on our Consolidated Statements of Operations when the derivative instruments are settled. Over the next 12 months, we expect to reclassify approximately $19.9 million into interest income from AOCI. Refer to the Company’s Consolidated Statements of Comprehensive Income (Loss) for amounts reclassified from AOCI into earnings related to the Company’s Derivative Instruments designated as cash flow hedging instruments for each of the reporting periods.
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Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Note 10 - Fair Value The Company's financial instruments consist principally of cash and cash equivalents, short-term investments, prepaid expenses and other current assets, accounts receivable, and accounts payable, accrued expenses, and long-term debt. The carrying value of cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses approximate fair value, primarily due to short maturities. We classify our money market mutual funds as Level 1 within the fair value hierarchy. We classify our corporate debt securities, securities guaranteed by U.S. government, and other governmental securities as Level 2 within the fair value hierarchy. The fair value of our first term lien debt and Senior Notes as of September 30, 2022 was $591.0 million and $526.5 million, respectively, based on observable market prices in less active markets and categorized as Level 2 within the fair value measurement framework. The Company has elected to use the income approach to value the interest rate derivatives using observable Level 2 market expectations at measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) reflecting current market expectations about those future amounts. Level 2 inputs for the derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR cash and swap rates, implied volatility for options, caps and floors, basis swap adjustments, overnight indexed swap (“OIS”) short term rates and OIS swap rates, when applicable, and credit risk at commonly quoted intervals). Mid-market pricing is used as a practical expedient for most fair value measurements. Key inputs, including the cash rates for very short term futures rates and swap rates beyond the derivative maturity are interpolated to provide spot rates at resets specified by each derivative (reset rates are then further adjusted by the basis swap, if necessary). Derivatives are discounted to present value at the measurement date at LIBOR rates unless they are fully collateralized. Fully collateralized derivatives are discounted to present value at the measurement date at OIS rates (short term OIS rates and long term OIS swap rates). Inputs are collected from SuperDerivatives, an independent third-party derivative pricing data provider, as of the close on the last day of the period. The valuation of the interest rate swaps also take into consideration estimates of our own, as well as our counterparty’s, risk of non-performance under the contract. We estimate the value of other long-lived assets that are recorded at fair value on a non-recurring basis based on a market valuation approach. We use prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as our historical experience in divestitures, acquisitions, and real estate transactions. Additionally, we may use a cost valuation approach to value long-lived assets when a market valuation approach is unavailable. Under this approach, we determine the cost to replace the service capacity of an asset, adjusted for physical and economic obsolescence. When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and brokers, to corroborate our estimates of fair value. Real estate appraisers’ and brokers’ valuations are typically developed using one or more valuation techniques including market, income and replacement cost approaches. Because these valuations contain unobservable inputs, we classify the measurement of fair value of long-lived assets as Level 3. The fair value (in millions) of our financial assets and (liabilities) was determined using the following inputs:
There have been no transfers between fair value measurements levels during the nine months ended September 30, 2022. Refer to Note 5 - Cash, Cash Equivalents, and Short-term Investments for further information regarding the fair value of our financial instruments. Refer to Note 9 - Derivatives and Hedging Activities for further information regarding the fair value of our derivative instruments. Refer to Note 15 - Leases, “recent leasing activity” of our 2021 Form 10-K for further information regarding the impairment of our Waltham operating lease.
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Commitment and Contingencies |
9 Months Ended |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 - Commitments and Contingencies Non-cancelable purchase obligations As of September 30, 2022, we had additional outstanding non-cancelable purchase obligations with a term of 12 months or longer of $58.0 million over the corresponding amount disclosed in the audited financial statements in our 10-K for the year ended December 31, 2021, mainly related to third-party cloud hosting and software as a service arrangements. For information regarding financing-related obligations, refer to Note 8 - Financing Arrangements. For information regarding lease-related obligations, refer to Note 14 - Leases. Sales and use tax The Company has conducted an assessment of sales and use tax exposure in states where the Company has established nexus. Based on this assessment, the Company has recorded a liability for taxes owed and related penalties and interest in the amount of $3.3 million and $3.1 million at September 30, 2022 and December 31, 2021, respectively. This liability is included in Accrued expenses and other current liabilities on our Condensed Consolidated Balance Sheets. Contingent earnout payments In connection with the acquisition of Dogpatch, the Company could be required to issue equity awards up to $3.7 million. Refer to Note 4 - Business Combinations for additional information. Deferred acquisition-related payments In connection with the acquisition of Insent, the Company expects to pay an additional $3.0 million in December 2022, of which $1.1 million represents deferred consideration. Refer to Note 4 - Business Combinations for additional information. Legal matters We are subject to various legal proceedings, claims, and governmental inspections, audits, or investigations that arise in the ordinary course of our business. There are inherent uncertainties in these matters, some of which are beyond management’s control, making the ultimate outcomes difficult to predict. Moreover, management’s views and estimates related to these matters may change in the future, as new events and circumstances arise and the matters continue to develop. Based on the information known by the Company as of the date of this filing, it is not possible to provide an estimated amount of any loss or range of loss that may occur with respect to these matters, including without limitation the matters described below. On April 15, 2021, a putative class action lawsuit was filed against ZoomInfo Technologies LLC in the United States District Court for the Northern District of Illinois (Eastern Division) alleging ZoomInfo’s use of Illinois residents’ names in public-facing web pages violates the Illinois Right of Publicity Act, and seeking statutory, compensatory and punitive damages, costs, and attorneys’ fees. The Company intends to vigorously defend against this lawsuit. On September 30, 2021, a putative class action lawsuit was filed against ZoomInfo Technologies Inc. in the United States District Court for the Western District of Washington alleging ZoomInfo’s use of California residents’ names in public-facing web pages violates California statutory and common law regarding the right of publicity as well as misappropriation, and seeking compensatory and punitive damages, restitution, injunctive relief, declaratory relief, costs, and attorneys’ fees. The Company intends to vigorously defend against this lawsuit.
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Noncontrolling Interest |
9 Months Ended |
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Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Note 12 - Noncontrolling Interest ZoomInfo Technologies Inc. operates and controls all of the business and affairs, and consolidates the financial results through ZoomInfo OpCo and its subsidiaries, which conduct our business. Accordingly, ZoomInfo Technologies Inc. consolidates the financial results of ZoomInfo OpCo, and reports the noncontrolling interests of its consolidated subsidiaries on its consolidated financial statements based on the HoldCo Units and OpCo Units held by Continuing Members. Changes in ZoomInfo’s ownership interest in its consolidated subsidiaries are accounted for as equity transactions. As such, redemptions or direct exchanges of HoldCo Units or OpCo Units by Continuing Members resulted in a change in ownership and reduced or increased the amount recorded as Noncontrolling interests and increased or decreased Additional paid-in capital on our Condensed Consolidated Balance Sheets. During the third quarter of 2021, all remaining HoldCo Units held by Continuing Members were exchanged for shares in ZoomInfo Technologies Inc. followed by the merger of HoldCo into ZoomInfo Technologies Inc. During the fourth quarter of 2021, all remaining OpCo Units held by Continuing Members were converted into Class A shares in connection with the merger of ZoomInfo OpCo into a newly formed subsidiary of ZoomInfo Technologies, Inc. As of September 30, 2022, ZoomInfo Technologies Inc. held units resulting in an ownership interest of 100% in the consolidated subsidiaries. The holders of OpCo Units may be subject to U.S. federal, state and local income taxes on their proportionate share of any taxable income of ZoomInfo OpCo. Net profits and net losses of ZoomInfo OpCo will generally be allocated to its holders pro rata in accordance with the percentages of their respective limited liability company interests. The amended and restated limited liability company agreement of ZoomInfo OpCo provides for cash distributions (“tax distributions”) to the holders of OpCo Units and Class P Units. During the nine months ended September 30, 2021, the Company paid $19.9 million in tax distributions to the noncontrolling interest.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Note 13 - Earnings Per Share For the periods in which we had multiple classes of stock participating in earnings, we use the two-class method in calculating earnings per share. Basic earnings per share of Class A and Class C common stock is computed by dividing net income attributable to ZoomInfo Technologies Inc. by the weighted-average number of shares of Class A and Class C common stock outstanding during the period. Diluted earnings per share of Class A and Class C common stock is computed by dividing net income attributable to ZoomInfo Technologies Inc., adjusted for the assumed exchange of all potentially dilutive instruments for Class A common stock, by the weighted-average number of shares of Class A and Class C common stock outstanding, adjusted to give effect to potentially dilutive elements. As of the fourth quarter of 2021, as a result of the Holding Company Reorganization discussed in Note 1 - Organization and Background, the only remaining class of common stock issued and outstanding was the Class A common stock, and as such, the two-class method is not presented for subsequent periods. As previously discussed, in May 2022, following approval by the Company’s stockholders, the Company further amended and restated its Amended and Restated Certificate of Incorporation to eliminate the multiple classes of common stock and to rename the Company’s Class A common stock to “Common Stock.” The following table sets forth reconciliations of the numerators and denominators used (in millions) to compute basic and diluted earnings (loss) per share of Class A and Class C (as applicable) common stock for the three and nine months ended September 30, 2022 and 2021.
The following tables set forth the computation of basic and diluted net income per share of Class A and Class C (as applicable) common stock (in millions, except share and per share amounts):
Shares of the Company’s Class B common stock did not participate in the earnings or losses of ZoomInfo Technologies Inc. and were therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Shares of the Company's Class A common stock were renamed "Common Stock" effective May 23, 2022. The following weighted-average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded from diluted net loss per share in the periods presented due to their anti-dilutive effect:
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Leases |
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Leases | Note 14 - Leases The Company has operating leases for corporate offices under non-cancelable agreements with various expiration dates. Our leases do not have significant rent escalation, holidays, concessions, material residual value guarantees, material restrictive covenants, or contingent rent provisions. Our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component. In addition, we have elected the practical expedient to exclude short-term leases, which have an original lease term of one year or less, from our right-of-use assets and lease liabilities as well as the package of practical expedients relating to adoption of Topic 842. The Company subleases two offices. The subleases have remaining lease terms of less than nine years. Sublease income, which is recorded as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income (loss) from operations on our Consolidated Statements of Operations, was immaterial for the three and nine months ended September 30, 2022 and 2021. The following are additional details related to operating leases recorded on our Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021:
Rent expense was $2.8 million and $2.9 million for the three months ended September 30, 2022 and 2021, respectively. Rent expense was $9.6 million and $8.1 million for the nine months ended September 30, 2022 and 2021, respectively. Other information related to leases was as follows:
The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized as of September 30, 2022 (in millions):
The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced. Expense associated with short term leases and variable lease costs were immaterial for the three and nine months ended September 30, 2022. The expense related to short-term leases reasonably reflected our short-term lease commitments. Recent Leasing Activity In the third quarter of 2022, the Company executed a sublease termination agreement for sublet office space in Waltham, Massachusetts. Pursuant to the termination agreement, the sublessee paid the Company a lease termination penalty in the amount of $2.5 million. Additionally, this termination resulted in the impairment of the previously capitalized initial direct costs of $1.4 million and the recognition of a gain of $1.1 million as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income (loss) from operations on our Consolidated Statements of Operations. The Company executed an agreement to sublet the Waltham office space to a new tenant for the remainder of our lease term which commenced in September 2022. Sublease income will be recorded as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income (loss) from operations on our Consolidated Statements of Operations. The Company's head lease for the sublet office space in Waltham provides for the option to extend for an additional five years which we were previously not reasonably certain to exercise. In connection with the subleasing activity detailed above, the Company reassessed the lease term of our sublet office space in Waltham and determined that the Company is reasonably certain of exercising the option. In July, the Company recorded a $5.1 million increase in the operating lease right-of-use asset and a $5.1 million increase in the lease liability. During the nine months ended September 30, 2022, the Company executed a seven-year lease for office space in Ra’anana, Israel, with the rent payments for the first phase expected to commence at the earliest in July 2023, and the rent payments for the additional phases expected to commence between August 2023 and January 2024. Upon execution of the lease, the Company paid rent in advance of $1.7 million. The lease contains two options to extend for an additional and five years, respectively, for which the company is not reasonably certain of exercising as of September 30, 2022. The lease is subject to fixed rate rent with the addition of VAT and certain future increases of the Israel Consumer Price Index. The lease provides for $13.8 million in tenant improvements. The Company determined that it is the accounting owner of all tenant improvements. As the commencement of this lease is expected to occur in the future, the Company has not recorded operating lease right-of-use assets or lease liabilities as of September 30, 2022. Undiscounted lease payments under all leases executed and not yet commenced are anticipated to be $340.9 million, which are not included in the tabular disclosure of undiscounted future minimum lease payments under non-cancelable leases above.
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Equity-based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based Compensation | Note 15 - Equity-based Compensation 2020 Omnibus Incentive Plan - On May 27, 2020, the Board of Directors of the Company (the “Board”) adopted the ZoomInfo Technologies Inc. 2020 Omnibus Incentive Plan (the “Omnibus Plan”). The Omnibus Plan provides for potential grants of the following awards with respect to shares of the Common Stock and OpCo Units: (i) incentive stock options qualified as such under U.S. federal income tax laws; (ii) non-qualified stock options or any other form of stock options; (iii) stock appreciation rights; (iv) Restricted Stock; (v) Restricted Stock Units; (vi) OpCo Units, and (vii) other equity-based and cash-based incentive awards as determined by the compensation committee of the Board or any properly delegated subcommittee. The maximum aggregate number of shares of Common Stock that may be issued pursuant to awards under the Omnibus Plan shall not exceed 18,650,000 shares (including OpCo Units or other securities which have been issued under the plan and were converted into awards based on shares of common stock) (the “Plan Share Reserve”). The Omnibus Plan also contains a provision that will add an additional number of shares of Common Stock to the Plan Share Reserve on the first day of each year starting with January 1, 2021, equal to the lesser of (i) the positive difference between (x) 5% of the number of shares of Common Stock outstanding on the last day of the immediately preceding year, and (y) the Plan Share Reserve on the last day of the immediately preceding year, and (ii) a lower number of shares of Common Stock as may be determined by the Board. The Company currently has equity-based compensation awards outstanding as follows: Restricted Stock Units, Common Stock Options, and Restricted Stock. In addition, the Company recognizes equity-based compensation expense from awards granted to employees as further described below under HSKB Incentive Units. Except where indicated otherwise, the equity-based compensation awards described below are subject to time-based service requirements. For grants issued prior to June 2020, the service vesting condition is generally over four years with 50% vesting on the two years anniversary of the grant date of the award and the remainder vesting monthly thereafter. For awards made after May 2020 to existing employees, the service vesting condition is generally four years with 25% vesting on the one year anniversary of the grant date of the award and 6.25% vesting quarterly thereafter. For performance-based Restricted Stock Units issued in Q3 2022, the service vesting condition is one year and specified company performance targets. Certain additional grants have other vesting periods approved by the Compensation Committee of the Board. Restricted Stock Units Restricted Stock Unit activity was as follows during the periods indicated:
Restricted Stock During the year ended December 31, 2021, the Company issued shares of Restricted Stock in exchange for all unvested HoldCo Units, Class P Units, and LTIP Units owned directly by employees of the Company (refer to Note 1 - Organization and Background). The exchanged shares of Restricted Stock remain subject to the same service vesting requirements of the original units. Upon fulfillment of the original employment service conditions, the restrictions will be lifted, and the Restricted Stock will convert to unrestricted Common Stock. Restricted Stock activity was as follows during the periods indicated:
Common Stock Options Options activity was as follows during the period indicated:
Options have a maximum contractual term of ten years. The aggregate intrinsic value and weighted average remaining contractual terms of Options outstanding and Options exercisable were as follows as of September 30, 2022.
All Options outstanding were issued at the time of the IPO in 2020. No additional options have been issued to date. The fair value of Common Stock Options granted at the time of the IPO was determined using the Black-Scholes option pricing model. We estimated the future stock price volatility based on the volatility of a set of publicly traded comparable companies with a look back period consistent with the expected term. The estimated life for the units was based on the expected hold period of private equity owners. The risk-free rate is based on the rate for a U.S. government security with the same estimated life at the time of grant. HoldCo Units During the year ended December 31, 2021, ZoomInfo HoldCo waived the restriction on exchanges of unvested HoldCo Units on condition that such holders accept shares of our common stock subject to the same vesting terms as the corresponding exchanged HoldCo Units. Subsequently, all unvested HoldCo Units, along with the same number of corresponding shares of our Class B common stock held directly by employees of the Company were voluntarily exchanged for shares of Restricted Stock. HoldCo Unit activity was as follows during the periods indicated:
Class P Units During the year ended December 31, 2021, the Company permitted employees to exercise the exchange rights on unvested Class P Units, pursuant to Board approval. Subsequently, the Company exercised the exchange rights on unvested Class P Units due to the Holding Company Reorganization (refer to Note 1 - Organization and Background). The recipients received a number of shares of Restricted Stock equal in value to the implied “spread value” of the corresponding Class P Units, calculated based on the excess of the public trading price of Class A common stock at the time of the exchange over the per unit participation threshold of such Class P Units. The shares of Restricted Stock received are subject to the same vesting terms as the corresponding exchanged unvested Class P units. Class P Unit activity was as follows during the periods indicated:
LTIP Units During the year ended December 31, 2021, the Company exercised the exchange rights on unvested LTIP Units due to the Holding Company Reorganization (refer to Note 1 - Organization and Background). LTIP Unit activity was as follows during the periods indicated:
OpCo Units There are no OpCo Units that are unvested and all vested OpCo Units have been converted into shares of our Common Stock due to the Holding Company Reorganization (refer to Note 1 - Organization and Background). There was no OpCo Unit activity during the nine months ended September 30, 2022 and 2021. Employee Stock Purchase Plan On June 3, 2020, the Board adopted the ZoomInfo Technologies Inc. 2020 Employee Stock Purchase Plan (the “ESPP”) that allows eligible employees to purchase shares of the Company's common stock at a discounted price, through payroll deductions of up to 15% of their eligible compensation and the IRS allowable limit per calendar year. The Board’s Compensation Committee administers the ESPP, including with respect to the frequency and duration of offering periods, the maximum number of shares that an eligible employee may purchase during an offering period, and, subject to certain limitations set forth in the ESPP, the per-share purchase price. Currently, the maximum number of shares that can be purchased by an eligible employee under the ESPP is 1,500 shares per offering period and there are two six-month offering periods that begin in the second and fourth quarter of each fiscal year. The purchase price for one share of Common Stock under the ESPP is currently equal to 90% of the fair market value of one share of Common Stock on the first trading day of the offering period or the purchase date, whichever is lower. The maximum aggregate number of shares of the Common Stock that may be issued under the ESPP is no more than 7,500,000 shares (the “ESPP Plan Share Reserve”). The ESPP plan also contains a provision that will add an additional number of shares of Common Stock to the ESPP Plan Reserve on the first day of each year starting with January 1, 2021, equal to the lesser of (i) the positive difference between (x) 1% of the number of shares of Common Stock outstanding on the last day of the immediately preceding fiscal year, and (y) the ESPP Plan Share Reserve on the last day of the immediately preceding fiscal year, and (ii) a lower number of shares of Common Stock as may be determined by the Board. The fair value of the ESPP purchase was determined using the Black-Scholes option pricing model with the following assumption ranges and fair value per unit:
The expected term for the purchases was based on the six-month offering period. We estimate the future stock price volatility based on the historical volatility of the Company with a lookback period commensurate with the expected term of the ESPP purchases. The risk-free rate is the implied yield available on U.S. Treasury zero-coupon bonds issued with a remaining term equal to the expected term. The Company withheld $2.3 million and $2.9 million worth of ESPP contributions for the three and nine months ended September 30, 2022 on behalf of participating employees through payroll deductions included in Accrued expenses and other current liabilities on our Condensed Consolidated Balance Sheets. No shares of Common Stock were purchased under the ESPP for the three and nine months ended September 30, 2022. The Company recognized $0.8 million and $0.9 million of equity-based compensation expenses related to the ESPP for the three and nine months ended September 30, 2022. HSKB Incentive Units The founders of the Company contributed membership units of ZoomInfo OpCo into an upper tier entity, HSKB Funds, LLC, which is controlled by the current CEO of the Company (“HSKB Manager”). In connection with the Reorganization Transactions, HSKB was reorganized into HSKB I and HSKB II (together, “HSKB”), with HSKB I owning OpCo Units and HSKB II owning HoldCo Units. During the year ended December 31, 2021, HSKB II exchanged their HoldCo Units and paired shares of Class B common stock of the Company for shares of Class A common stock of the Company pursuant to the terms of the limited liability company agreement of HoldCo. Subsequently, HSKB I exchanged their OpCo Units and paired shares of Class B common stock of the Company for shares of Class A common stock of the Company. HSKB has issued LLC units to the employees of the Company (“HSKB Grant”) in the form of Class 1 units and Class 2 units. Such units may be exchangeable into one share of Common Stock upon vesting. HSKB awards are recorded as compensation expense of the Company in accordance with the measurement and recognition criteria of ASC 718 for awards made by economic interest holders to employees of the Company. HSKB has also allocated $31.3 million to be paid in cash over three years from 2019 to 2021 if the holder of an HSKB Grant remains employed by the Company as of the payment date. This pool was further expanded in March 31, 2020, when HSKB allocated an additional $5.3 million to be paid out over three years, starting with March 31, 2020, to holders of HSKB Grants who received grants after the March 2018 Carlyle Investment, subject to the holder’s continued employment by the Company. During the nine months ended September 30, 2022, HSKB paid $1.7 million from allocated funds and has $1.1 million remaining to be paid through 2023. HSKB Phantom Units In December 2019, HSKB I adopted the HSKB Funds, LLC 2019 Phantom Unit Plan wherein HSKB may grant Phantom Units (“HSKB Phantom Units”) to employees of the Company. HSKB Phantom Units are recorded as compensation expense of the Company in accordance with the measurement and recognition criteria of ASC 718 for awards made by economic interest holders to employees of the Company. HSKB Phantom Units represent the economic equivalent of one share of common stock in the Company. In connection with the Reorganization Transactions, all HSKB Phantom Units were moved from HSKB I to HSKB II. Within 30 days of the later of the date upon which a Phantom Unit vests, HSKB II must settle the HSKB Phantom Unit in exchange for either (1) cash or (2) Common Stock as determined by the HSKB Manager, in each case, equal to the fair market value of such Common Unit at the time of such exchange. Unamortized Equity-based Compensation As of September 30, 2022, unamortized equity-based compensation costs related to each equity-based incentive award described above is the following:
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Tax Receivable Agreements |
9 Months Ended |
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Sep. 30, 2022 | |
Tax Receivable Agreements [Abstract] | |
Tax Receivable Agreements | Note 16 - Tax Receivable Agreements In connection with the Reorganization Transactions and the IPO, the Company entered into (i) the Exchange Tax Receivable Agreement with certain Pre-IPO OpCo Unitholders and (ii) the Reorganization Tax Receivable Agreement with the Pre-IPO Blocker Holders (collectively, the “Tax Receivable Agreements”). These Tax Receivable Agreements provide for the payment by the “ZoomInfo Tax Group” to such Pre-IPO Owners and certain Pre-IPO HoldCo Unitholders of 85.0% of the benefits, if any, the ZoomInfo Tax Group actually realizes, or is deemed to realize in certain circumstances, as a result of certain tax attributes and benefits covered by the Tax Receivable Agreements. The Exchange Tax Receivable Agreement provides for the payment by members of the ZoomInfo Tax Group to certain Pre-IPO OpCo Unitholders and certain Pre-IPO HoldCo Unitholders of 85.0% of the benefits, if any, that the ZoomInfo Tax Group realizes as a result of (i) the ZoomInfo Tax Group’s allocable share of existing tax basis acquired in the IPO and (ii) increases in the ZoomInfo Tax Group’s allocable share of existing tax basis and tax basis adjustments that will increase the tax basis of the tangible and intangible assets of the ZoomInfo Tax Group as a result of sales or exchanges of OpCo Units for shares of common stock after the IPO, and certain other tax benefits, including tax benefits attributable to payments under the Exchange Tax Receivable Agreement. During the three months ended December 31, 2021, all remaining units subject to the Exchange Tax Receivable Agreement had been converted into Class A common stock. The Reorganization Tax Receivable Agreement provides for the payment by ZoomInfo Intermediate Inc. to the Pre-IPO Blocker Holders and certain Pre-IPO HoldCo Unitholders of 85.0% of the benefits, if any, that the ZoomInfo Tax Group realizes as a result of the ZoomInfo Tax Group’s utilization of certain tax attributes of the Blocker Companies (including the ZoomInfo Tax Group’s allocable share of existing tax basis acquired in the Reorganization Transactions), and certain other tax benefits, including tax benefits attributable to payments under the Reorganization Tax Receivable Agreement. The Company expects to benefit from the remaining 15.0% of any of cash savings that it realizes. The Company reflected an increase in its share of the tax basis in the net assets of ZoomInfo HoldCo when OpCo Units were exchanged by Pre-IPO OpCo Unitholders. The Company treats any redemptions and exchanges of OpCo Units as direct purchases for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that it would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. As of September 30, 2022, the Company had a liability of $3,042.0 million related to its projected obligations under the Tax Receivable Agreements in connection with the Reorganization Transactions and OpCo Units exchanged. Tax Receivable Agreements related liabilities are classified as current or noncurrent based on the expected date of payment and are included on our Condensed Consolidated Balance Sheets under the captions Current portion of tax receivable agreements liability and Tax receivable agreements liability, net of current portion, respectively. During the nine months ended September 30, 2022, we paid a total of $5.0 million pursuant to the Tax Receivable Agreements. During the nine months ended September 30, 2022, we recognized a TRA measurement gain of $9.5 million principally due to legislation passed in Q3 2022 that impacted our blended state tax rate, as well as updates to tax attributes, within Other (income) expense, net on our Consolidated Statements of Operations.
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Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17 - Income Taxes The Company recorded $32.1 million of income tax expense and $45.5 million of income tax expense for the three months ended September 30, 2022 and 2021, respectively, and $55.6 million of income tax expense and $101.4 million of income tax expense for the nine months ended September 30, 2022 and 2021, respectively. The Company’s estimated effective tax rate for the nine months ended September 30, 2022 was 58.1%. The Company’s estimated annual effective tax rate differs from the U.S federal statutory rate of 21.0% as it reflects applicable U.S. state taxes and foreign taxes, inclusive of research and development credits. Furthermore, the Company’s annual effective rate considers the impact of state law changes and certain compensation expenses that will not have a corresponding deduction for tax. The Company does not believe it has any significant uncertain tax positions and therefore has no unrecognized tax benefits as of September 30, 2022, that if recognized, would affect the annual effective tax rate.
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Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Organization ZoomInfo Technologies Inc. was formed on November 14, 2019 with no operating assets or operations as a Delaware corporation for the purposes of facilitating an initial public offering (“IPO”) and other related transactions in order to carry on the business of ZoomInfo Holdings LLC (“ZoomInfo OpCo”) (formerly known as DiscoverOrg Holdings, LLC), a Delaware limited liability company. Following consummation of the Reorganization Transactions (as described below), ZoomInfo OpCo became a direct subsidiary of ZoomInfo Intermediate Holdings LLC (“ZoomInfo HoldCo”), a Delaware limited liability company and an indirect subsidiary of ZoomInfo Technologies Inc. Following the consummation of the Holding Company Reorganization, ZoomInfo OpCo became a direct subsidiary of ZoomInfo Technologies Inc. and ZoomInfo Intermediate Inc. Principles of Consolidation The consolidated financial statements include the accounts of ZoomInfo Technologies Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
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Reorganization Transactions | We refer to the Reclassification, together with the Blocker Mergers and the ZoomInfo HoldCo Contributions, as the “Reorganization Transactions.” Following the Reorganization Transactions, ZoomInfo Technologies Inc. became a holding company, with its sole material asset being a controlling equity interest in ZoomInfo HoldCo, which became a holding company with its sole material asset being a controlling equity interest in ZoomInfo OpCo. ZoomInfo Technologies Inc. will operate and control all of the business and affairs, and consolidate the financial results, of ZoomInfo OpCo through ZoomInfo HoldCo and, through ZoomInfo OpCo and its subsidiaries, conduct our business. Accordingly, ZoomInfo Technologies Inc. consolidates the financial results of ZoomInfo HoldCo, and therefore ZoomInfo OpCo, and reports the non-controlling interests of the Pre-IPO HoldCo Units and Pre-IPO OpCo Units on its consolidated financial statements. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) has been condensed or omitted pursuant to those rules and regulations. The financial statements included in this report should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2021.
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. We base these estimates on historical and anticipated results, trends, and other assumptions with respect to future events that we believe are reasonable and evaluate our estimates on an ongoing basis. Given that estimates and judgments are required, actual results may differ from our estimates and such differences could be material to our consolidated financial position and results of operations.
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Revenue Recognition, Deferred Commissions, Unearned Revenue | Revenue Recognition The Company derives revenue primarily from subscription services. Our subscription services consist of our SaaS applications and related access to our databases. Subscription contracts are generally based on the number of users that access our applications, the level of functionality that they can access, and the amount of data that a customer integrates with their systems. Our subscription contracts typically have a term of to three years and are non-cancelable. We typically bill for services annually, semi-annually, or quarterly in advance of delivery. The Company accounts for revenue contracts with customers through the following steps: (1)identify the contract with a customer; (2)identify the performance obligations in the contract; (3)determine the transaction price; (4)allocate the transaction price; and (5)recognize revenue when or as the Company satisfies a performance obligation. We recognize revenue for subscription contracts on a ratable basis over the contract term based on the number of calendar days in each period, beginning on the date that our service is made available to the customer. Unearned revenue results from revenue amounts billed to customers in advance or cash received from customers in advance of the satisfaction of performance obligations. Determining the transaction price often involves judgment and making estimates that can have a significant impact on the timing and amount of revenue reported. At times, the Company may adjust billing under a contract based on the addition of services or other circumstances, which are accounted for as variable consideration. The Company estimates these amounts based on historical experience and adjusts revenue recognized. Deferred Commissions Certain sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These sales commissions for initial contracts are capitalized and included in Deferred costs and other assets, net of current portion on our Condensed Consolidated Balance Sheets. Deferred sales commissions are amortized on a straight-line basis over the estimated period of benefit from the customer relationship which we have determined to be and three years for renewals and new clients, respectively. We determined the period of benefit by taking into consideration our customer contracts, our technology, and other factors. Amortization expense is included in Sales and marketing expense on our Consolidated Statements of Operations. Commissions payable at September 30, 2022 were $28.9 million, of which the current portion of $26.7 million was included in Accrued expenses and other current liabilities on our Condensed Consolidated Balance Sheets, and the long-term portion of $2.2 million was included in Other long-term liabilities on our Condensed Consolidated Balance Sheets. Commissions payable at December 31, 2021 were $34.1 million, of which the current portion of $31.4 million was included in Accrued expenses and other current liabilities on our Condensed Consolidated Balance Sheets, and the long-term portion of $2.7 million was included in Other long-term liabilities on our Condensed Consolidated Balance Sheets. Certain commissions are not capitalized as they do not represent incremental costs of obtaining a contract. Such commissions are expensed as incurred. Unearned Revenue Unearned revenue consists of customer payments and billings in advance of revenue being recognized from our subscription services. Unearned revenue that is anticipated to be recognized within the next 12 months is recorded as Unearned revenue, current portion and the remaining portion is included in Unearned revenue, net of current portion on our Condensed Consolidated Balance Sheets.
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Cash and Cash Equivalents | Cash equivalents consist of highly liquid marketable debt securities with remaining maturities of three months or less at the date of purchase. |
Short-term Investments | We classify our investments in marketable securities as “available-for-sale.” We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity on our Condensed Consolidated Balance Sheets. Gains and losses are determined using the specific identification method and recognized when realized on our Consolidated Statements of Operations. If we were to determine that an other-than-temporary decline in fair value has occurred, the amount of the decline related to a credit loss will be recognized in income. |
Fair Value Measurements | Fair Value Measurements The Company measures assets and liabilities at fair value based on an expected exit price, which represents the amount that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: Level 1 - Observable inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities Level 2 - Other inputs that are directly or indirectly observable in the marketplace Level 3 - Unobservable inputs that are supported by little or no market activity, including the Company’s own assumptions in determining fair value The inputs or methodology used for valuing financial assets and liabilities are not necessarily an indication of the risk associated with investing in them.
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Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant CustomersFinancial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments, and accounts receivable. The Company holds cash at major financial institutions that often exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits. The Company manages its credit risk associated with cash concentrations by concentrating its cash deposits in high-quality financial institutions and by periodically evaluating the credit quality of the primary financial institutions holding such deposits. The carrying value of cash approximates fair value. Our investment portfolio is comprised of highly rated securities with a weighted-average maturity of less than 12 months in accordance with our investment policy which seeks to preserve principal and maintain a high degree of liquidity. Historically, the Company has not experienced any losses due to such cash concentrations. The Company does not have any off-balance-sheet credit exposure related to its customers. Concentrations of credit risk with respect to accounts receivable and revenue are limited due to a large, diverse customer base. We do not require collateral from clients. We maintain an allowance for credit losses based upon the expected collectability of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for possible losses, which, when realized, have been within the range of management’s expectations. |
Accounts Receivable and Contract Assets | Accounts Receivable and Contract Assets Accounts receivable is comprised of invoices of revenue, net of allowance for credit losses, and does not bear interest. We consider receivables past due based on the contractual payment terms. Management’s evaluation of the adequacy of the allowance for credit losses considers historical collection experience, changes in customer payment profiles, the aging of receivable balances, as well as current economic conditions, all of which may impact a customer’s ability to pay. Account balances are written-off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have significant bad debt experience with customers, and therefore, the allowance for credit losses is immaterial as of September 30, 2022 and December 31, 2021. The assessment of variable consideration to be constrained is based on estimates, and actual consideration may vary from current estimates. As adjustments to these estimates become necessary, they are reported in earnings in the periods in which they become known. Changes in variable consideration are recorded as a component of net revenue. Contract assets represent a contractual right to consideration in the future. Contract assets are generated when contractual billing schedules differ from revenue recognition timing.
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Property and Equipment, Net | Property and Equipment, Net Property and equipment is stated at cost, net of accumulated depreciation and amortization. All repairs and maintenance costs are expensed as incurred. Depreciation and amortization costs are expensed on a straight-line basis over the lesser of the estimated useful life of the asset or the remainder of the lease term for leasehold improvements. Qualifying internal use software costs incurred during the application development stage, which consist primarily of internal product development costs, outside services, and purchased software license costs, are capitalized and amortized over the estimated useful life of the asset. Estimated useful lives range from three years to ten years.
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Advertising and Promotional Expenses | Advertising and Promotional Expenses The Company expenses advertising costs as incurred. Advertising expenses of $6.6 million and $21.7 million were recorded for the three and nine months ended September 30, 2022. Advertising expenses of $7.1 million and $15.7 million were recorded for the three and nine months ended September 30, 2021. Advertising expenses are included in Sales and marketing on our Consolidated Statements of Operations.
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Research and Development | Research and Development Research and development expenses consist primarily of compensation expense for our employees, including employee benefits, certain IT program expenses, facilities and related overhead costs. We continue to focus our research and development efforts on developing new products, adding new features and services, integrating acquired technologies, and increasing functionality. Expenditures for software developed or obtained for internal use are capitalized and amortized over a four-year period on a straight-line basis.
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Restructuring and Transaction-Related Expenses | Restructuring and Transaction-Related Expenses The Company defines restructuring and transaction-related expenses as costs directly associated with restructuring, acquisition, or disposal activities. Such costs include employee severance and termination benefits, contract termination fees and penalties, and other exit or disposal costs. In general, the Company records involuntary employee-related exit and disposal costs when there is a substantive plan for employee severance and related costs that are probable and estimable. For one-time termination benefits for key members of management (i.e., no substantive plan) expense is recorded when the employees are entitled to receive such benefits and the amount can be reasonably estimated. Transaction related bonuses and related employee retention costs are recognized over the relevant service period. Contract termination fees and penalties and other exit and disposal costs are generally recorded when incurred.
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Business Combinations | Business Combinations We allocate purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The purchase price is determined based on the fair value of the assets transferred, liabilities assumed and equity interests issued, after considering any transactions that are separate from the business combination. The fair value of equity issued as part of a business combination is determined based on grant date stock price of the Company. The excess of fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and contingent liabilities. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customer bases, acquired technology and acquired trade names, useful lives, royalty rates, and discount rates. The estimates are inherently uncertain and subject to revision as additional information is obtained during the measurement period for an acquisition, which may last up to one year from the acquisition date. During the measurement period, we may record adjustments to the fair value of tangible and intangible assets acquired and liabilities assumed, with a corresponding offset to goodwill. After the conclusion of the measurement period or the final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to earnings. In addition, uncertain tax positions and tax-related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. We reevaluate these items based upon the facts and circumstances that existed as of the acquisition date, with any revisions to our preliminary estimates being recorded to goodwill, provided that the timing is within the measurement period. Subsequent to the measurement period, changes to uncertain tax positions and tax-related valuation allowances will be recorded to earnings.
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Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill is calculated as the excess of the purchase consideration paid in a business combination over the fair value of the assets acquired less liabilities assumed. Goodwill is not amortized and is tested for impairment at least annually or when events and circumstances indicate that fair value of a reporting unit may be below its carrying value. The company has one reporting unit. We first assess qualitative factors to evaluate whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount or elect to bypass such assessment. If it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying value, or we elect to bypass the qualitative assessment, we perform a quantitative test by determining the fair value of the reporting unit. If the carrying value of the reporting unit exceeds the fair value, then an impairment loss is recognized for the difference. Acquired technology, customer lists, trade names or brand portfolios, and other intangible assets are related to previous acquisitions (refer to Note 7 - Goodwill and Acquired Intangible Assets). Acquired intangible assets are amortized on a straight-line basis over the estimated period over which we expect to realize economic value related to the intangible asset. The amortization periods range from 2 years to 15 years. Any costs incurred to renew or extend the life of an intangible or long-lived asset are reviewed for capitalization. Indefinite-lived intangible assets consist primarily of brand portfolios acquired from Pre-Acquisition ZI and represent costs paid to legally register phrases and graphic designs that identify and distinguish products sold by the Company. Brand portfolios are not amortized, rather potential impairment is considered on an annual basis in the fourth quarter, or more frequently upon the occurrence of a triggering event, when circumstances indicate that the book value of trademarks are greater than their fair value. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than the carrying value as a basis to determine whether further impairment testing is necessary.
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Impairment of Long-lived Assets | Impairment of Long-lived AssetsLong-lived assets, such as property and equipment and acquired intangible assets, are reviewed for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future cash flows expected to be generated by the asset or group of assets. If the carrying amount of the asset exceeds the estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated future cash flows of the asset. |
Leases | Leases We determine if an arrangement is or contains a lease at contract inception. For these arrangements, primarily those related to our data center arrangements, there is judgment in evaluating if the arrangement involves an identified asset that is physically distinct or whether we have the right to substantially all of the capacity of an identified asset that is not physically distinct. In arrangements that involve an identified asset, there is also judgment in evaluating if we have the right to direct the use of that asset. We do not have any finance leases. Operating leases are recorded on our Condensed Consolidated Balance Sheets. Right-of-use assets and lease liabilities are measured at the lease commencement date based on the present value of the fixed minimum remaining lease payments over the lease term, determined using the discount rate for the lease at the commencement date. Because the rates implicit in our leases are not readily determinable, we use our incremental borrowing rate as the discount rate for each respective lease, which approximates the interest rate at which we could borrow on a collateralized basis with similar terms and payments and in similar economic environments. Some leases include options to extend or options to terminate the lease prior to the stated lease expiration. Optional periods to extend a lease, including by not exercising a termination option, are included in the lease term when it is reasonably certain that the option will be exercised (or not exercised in the case of termination options). Operating lease expense is recognized on a straight-line basis over the lease term. We account for lease and non-lease components, principally common area maintenance and related taxes for our facilities leases, as a single lease component. Short term leases, defined as leases having an original lease term less than or equal to one year, are excluded from our right-of-use assets and liabilities.
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Debt Issuance Costs | Debt Issuance Costs Costs incurred in connection with the issuance of long-term debt are deferred and amortized as interest expense over the terms of the related debt using the effective interest method for term debt and on a straight-line basis for revolving debt. Debt issuance costs are generally presented on our Condensed Consolidated Balance Sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts. However, the Company classifies the debt issuance costs related to its first lien revolving credit facility within Deferred costs and other assets, net of current portion on our Condensed Consolidated Balance Sheets regardless of whether the Company has any outstanding borrowings on our first lien revolving credit facility. Upon a refinancing or amendment, the Company evaluates the modified debt instrument in accordance with ASC 470-50-40-10. When the present value of the cash flows under the modified debt instrument has changed by greater than 10 percent from the present value of the remaining cash flows under the terms of the original debt instrument, the Company accounts for the amendment as a debt extinguishment and all previously-capitalized debt issuance costs are expensed and included in Loss on debt modification and extinguishment. If the change in the present value of cash flows is less than 10 percent, any previously-capitalized debt issuance costs are amortized as interest expense over the term of the new debt instrument. The Company performs assessments of debt modifications at a lender-specific level for all syndicated financing arrangements.
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Tax Receivable Agreements | Tax Receivable Agreements In connection with our IPO, we entered into two Tax Receivable Agreements ("TRAs") with certain non-controlling interest owners (the “TRA Holders”). The TRAs generally provide for payment by the Company to the TRA Holders of 85% of the net cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company actually realizes or is deemed to realize in certain circumstances. The Company will retain the benefit of the remaining 15% of these net cash savings. Amounts payable under the TRA are accrued by a charge to income when it is probable that a liability has been incurred and the amount is estimable. TRA related liabilities are classified as current or noncurrent based on the expected date of payment and are included on our Condensed Consolidated Balance Sheets under the captions Current portion of tax receivable agreements liability and Tax receivable agreements liability, net of current portion, respectively. Subsequent changes to the measurement of the TRA liability are recognized on our Consolidated Statements of Operations as a component of Other (income) expense, net. Refer to Note 16 - Tax Receivable Agreements for further details on the TRA liability.
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Income Taxes | Income Taxes ZoomInfo Technologies Inc. and its direct subsidiary, ZoomInfo Intermediate Inc., are subject to U.S. federal as well as state income tax related to its ownership percentage in ZoomInfo Holdings LLC. ZoomInfo Holdings LLC is a limited liability company treated as a partnership for U.S. federal income tax purposes and files a U.S. Return of Partnership Income. Consequently, the members of ZoomInfo Holdings are taxed on their share of earnings for U.S. federal and state income tax purposes. During the three months ended December 31, 2021, ZoomInfo Midco LLC, which is held by ZoomInfo Holdings LLC, made an election to be classified as a corporation for U.S. federal and state income tax purposes. ZoomInfo Midco LLC owns ZoomInfo Technologies LLC, our primary operating entity, among other entities. As such, under our tax elections, ZoomInfo Midco LLC is now subject to U.S. federal and state income tax as a result of our operations. Refer to Note 17 - Income Taxes for additional information regarding income taxes. Deferred taxes are recorded using the asset and liability method, whereby tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. We regularly evaluate the valuation allowances established for deferred tax assets for which future realization is uncertain. In assessing the realizability of deferred tax assets, we consider both positive and negative evidence, including scheduled reversals of deferred tax assets and liabilities, projected future taxable income, tax planning strategies and results of recent operations. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is recorded.
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Equity-Based Compensation Expense | Equity-Based Compensation Expense The Company periodically grants incentive awards to employees and non-employees, which generally vest over periods up to four years. Incentive awards may be in the form of various equity-based awards such as Restricted Stock and Restricted Stock Units, and Common Stock Options. Historically, the Company also granted awards in one of the Company’s legacy subsidiary partnerships and such awards were typically in the form of profits interests. Profits interests are an interest in the increase in the value of the entity over a participation threshold. Prior to the IPO, the participation threshold was based on the valuation determined by the Board of Managers of OpCo Units on or around the grant date. Subsequent to the IPO, the participation threshold was determined by reference to the closing price of our Class A common stock from the preceding trading day. The holders of profits interests had the right to participate in distributions of profits only in excess of the participation threshold. Previously awarded profits interests were converted into Restricted Stock awards in connection with the Holding Company Reorganization (refer to Note 1 - Organization and Background). Compensation expense for incentive awards is measured at the estimated fair value of the incentive units and is included as compensation expense over the vesting period during which an employee provides service in exchange for the award. Compensation expense for performance-based Restricted Stock Units is measured at the estimated fair value of the units and is recognized using the accelerated attribution method over the service period when it is probable that the performance condition will be satisfied. The Company uses a Black-Scholes option pricing model to determine the fair value of stock options and profits interests, as profits interests have certain economic similarities to options. The Black-Scholes option pricing model includes various assumptions, including the expected term of incentive units, the expected volatility and the expected risk-free interest rate. These assumptions reflect the Company’s best estimates, but they involve inherent uncertainties based on market conditions generally outside the control of the Company. As a result, if other assumptions are used, compensation cost could be materially impacted. Compensation expense related to the Company’s Employee Stock Purchase Plan is measured at the estimated fair value using the Black-Scholes option pricing model using the estimated number of awards as of the beginning of the offering period. The Company measures employee, non-employee, and board of director equity-based compensation on the grant date fair value basis. Equity-based compensation expense is recognized over the requisite service period of the awards. For equity awards that have a performance condition, the Company recognizes compensation expense based on its assessment of the probability that the performance condition will be achieved. The Company classifies equity-based compensation expense on our Consolidated Statements of Operations in the same manner in which the award recipient’s salary and related costs are classified or in which the award recipient’s service payments are classified.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The standard applies to contract modifications that replace a reference rate affected by reference rate reform and contemporaneous modifications of other contract terms related to the replacement of the reference rate. Further, the standard provides exceptions to certain guidance in ASC 815, Derivatives and Hedging, related to changes to the critical terms of a hedging relationship due to reference rate reform and provides optional expedients for fair value, cash flow, and net investment hedging relationships for which the component excluded from the assessment of hedge effectiveness is affected by reference rate reform. The standard is effective for us as of March 12, 2020 through December 31, 2022, and we may elect to apply the provisions of the standard as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 up to the date that the financial statements are available to be issued. Once elected, the provisions of the standard must be applied prospectively for all similar eligible contract modifications other than derivatives, which may be applied at a hedging relationship level. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to provide supplemental guidance and to further clarify the scope of the amended guidance. The standards would apply to our existing variable rate financing and derivatives designated as hedges if elected in the future. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contract. The Update is intended to improve the accounting for acquired revenue contracts with customers in a business combination, related to the recognition of an acquired contract liability, and to payment terms and their effect on subsequent revenue recognized by the acquirer. The amendment also provides certain practical expedients when applying the guidance. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022, on a prospective basis, with early adoption permitted. The company has elected to early adopt this standard, effective January 1, 2022. The adoption of this guidance did not have a material impact on our financial position, results of operations and cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 introduce the following new guidance: (1) provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax; and (2) provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The amendments in ASU 2019-12 make changes to the following current guidance: (1) making an intraperiod allocation if there is a loss in continuing operations and a gain outside of continuing operations; (2) determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting; (3) accounting for tax law changes and year-to-date losses in interim periods; and (4) determining how to apply the income tax guidance to franchise taxes that are partially based on income. ASU 2019-12 is effective for public business entities' fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. During Q3 2021, the Company liquidated Insent, creating a step-up in the tax basis separate from the acquisition. In accordance with ASU 2019-12, the Company recorded a deferred tax asset on this step-up in tax basis. The additional deferred tax asset recognized as of December 31, 2021 was $6.3 million as a result of the adoption of this standard.
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Revenue from Contracts with Customers (Tables) |
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Revenue Disaggregated by Service Offering | Revenue comprised the following service offerings:
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Remaining Performance Obligations | The remaining performance obligations consisted of the following:
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Business Combinations (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition Date Fair Value of Consideration Transferred | The acquisition date fair value of the total consideration transferred was comprised of the following (in millions):
The acquisition date fair value of the total consideration transferred was comprised of the following (in millions):
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Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate fair values of the assets acquired and liabilities assumed, as of the dates of the acquisition for the 2022 Acquired Companies (in millions):
The following table summarizes the aggregate fair values of the assets acquired and liabilities assumed, as of the dates of the acquisition for the 2021 Acquired Companies, as adjusted in the fourth quarter of 2021 and the first quarter of 2022 (in millions):
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Components of Identifiable Indefinite-Lived Intangible Assets Acquired | The following table sets forth the components of identifiable intangible assets acquired and the estimated useful lives as of the dates of acquisition (in millions):
The following table sets forth the components of identifiable intangible assets acquired and the estimated useful lives as of the dates of acquisition (in millions):
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Business Acquisition, Pro Forma Information | The following table presents the unaudited pro forma results for the years ended December 31, 2021 and 2020. The unaudited pro forma financial information combines the results of operations of the 2021 Acquired Companies and ZoomInfo as though each of the acquisitions had been completed on January 1, 2020. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at such time. The unaudited pro forma results presented below primarily include adjustments for amortization of identifiable intangible assets, the valuation of deferred revenue assumed in the acquisitions (“the deferred revenue write-down”), interest expense, aggregate transaction expenses and transaction success bonuses of $12.6 million, equity-based compensation, and related tax effects of the adjustments:
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Cash, Cash Equivalents, and Short-term Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, and short-term investments consisted of the following as of September 30, 2022:
Cash, cash equivalents, and short-term investments consisted of the following as of December 31, 2021:
Refer to Note 10 - Fair Value for further information regarding the fair value of our financial instruments.
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Schedule of Short-term Securities | The following table summarizes the cost and estimated fair value of the securities classified as short-term investments based on stated effective maturities as of September 30, 2022 and December 31, 2021:
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Property and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | The Company’s fixed assets consist of the following (in millions):
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Goodwill and Acquired Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible assets consisted of the following as of September 30, 2022:
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Changes to Goodwill | The following summarized changes to the Company’s goodwill (in millions):
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Financing Arrangements (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Values of Borrowings | As of September 30, 2022 and December 31, 2021, the carrying values of the Company’s borrowings were as follows (in millions):
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Derivatives and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk | As of September 30, 2022, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ($ in millions):
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Fair Value and Presentation in the Consolidated Balance Sheets for Derivatives | The following table summarizes the fair value and presentation on our Condensed Consolidated Balance Sheets for derivatives as of September 30, 2022 and December 31, 2021 (in millions):
________________ (1) Included in Accrued expenses and other current liabilities on our Condensed Consolidated Balance Sheets. (2) Included in Prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (3) Included in Deferred costs and other assets, net of current portion on our Condensed Consolidated Balance Sheets.
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Fair Value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and (Liabilities) Measured at Fair Value | The fair value (in millions) of our financial assets and (liabilities) was determined using the following inputs:
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings (Loss) per Share | The following table sets forth reconciliations of the numerators and denominators used (in millions) to compute basic and diluted earnings (loss) per share of Class A and Class C (as applicable) common stock for the three and nine months ended September 30, 2022 and 2021.
The following tables set forth the computation of basic and diluted net income per share of Class A and Class C (as applicable) common stock (in millions, except share and per share amounts):
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Potential Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share | The following weighted-average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded from diluted net loss per share in the periods presented due to their anti-dilutive effect:
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Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Details Related to Leases Recorded on the Balance Sheet | The following are additional details related to operating leases recorded on our Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021:
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Other Information Related to Leases | Other information related to leases was as follows:
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Undiscounted Future Minimum Lease Payments Under Non-Cancelable Leases | The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized as of September 30, 2022 (in millions):
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Equity-based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Unit Activity | Restricted Stock Unit activity was as follows during the periods indicated:
Restricted Stock activity was as follows during the periods indicated:
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Schedule of Unvested Options Activity | Options activity was as follows during the period indicated:
Options have a maximum contractual term of ten years. The aggregate intrinsic value and weighted average remaining contractual terms of Options outstanding and Options exercisable were as follows as of September 30, 2022.
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Schedule of Unit Activities | HoldCo Unit activity was as follows during the periods indicated:
Class P Unit activity was as follows during the periods indicated:
LTIP Unit activity was as follows during the periods indicated:
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Schedule of Valuation Assumptions | The fair value of the ESPP purchase was determined using the Black-Scholes option pricing model with the following assumption ranges and fair value per unit:
|
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Summary of Unamortized Equity-Based Compensation Costs | As of September 30, 2022, unamortized equity-based compensation costs related to each equity-based incentive award described above is the following:
|
Organization and Background (Details) $ / shares in Units, $ in Millions |
9 Months Ended | ||
---|---|---|---|
Jun. 08, 2020
USD ($)
agreement
$ / shares
shares
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
|
Disaggregation of Revenue [Line Items] | |||
Merger consideration payable | $ 1.1 | $ 9.4 | |
Conversion ratio | 0.25 | ||
Number of tax receivable agreements | agreement | 2 | ||
Blocker Mergers | |||
Disaggregation of Revenue [Line Items] | |||
Merger consideration payable | $ 5.5 | ||
HoldCo | |||
Disaggregation of Revenue [Line Items] | |||
Number of shares repurchased | shares | 48,528,783 | ||
Repurchase of shares, value | $ 966.9 | ||
OpCo | |||
Disaggregation of Revenue [Line Items] | |||
Number of shares repurchased | shares | 2,370,948 | ||
Repurchase of shares, value | $ 47.2 | ||
IPO | Class A | |||
Disaggregation of Revenue [Line Items] | |||
Number of shares sold | shares | 51,175,000 | ||
Public offering price (in dollars per share) | $ / shares | $ 21.00 | ||
Net proceeds | $ 1,019.6 |
Basis of Presentation and Summary of Significant Accounting Policies (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 08, 2020
agreement
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
reporting_unit
|
Sep. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Accounting Policies [Line Items] | ||||||
Commissions payable | $ 28,900,000 | $ 28,900,000 | $ 34,100,000 | |||
Advertising expenses | 6,600,000 | $ 7,100,000 | $ 21,700,000 | $ 15,700,000 | ||
Number of reporting units (segment) | reporting_unit | 1 | |||||
Impairment of goodwill | 0 | $ 0 | $ 0 | 0 | ||
Impairment charges | $ 0 | $ 2,700,000 | ||||
Number of tax receivable agreements | agreement | 2 | |||||
Payment provided as percent of net cash savings | 85.00% | |||||
Benefit retained as percent of net cash savings | 15.00% | |||||
Award vesting period | 4 years | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-12 | ||||||
Accounting Policies [Line Items] | ||||||
Total deferred tax assets | 6,300,000 | |||||
Waltham office relocation | ||||||
Accounting Policies [Line Items] | ||||||
Impairment charges | 2,700,000 | |||||
Internal use developed software | ||||||
Accounting Policies [Line Items] | ||||||
Amortization period | 4 years | |||||
Operating lease, right-of-use asset | Waltham office relocation | ||||||
Accounting Policies [Line Items] | ||||||
Impairment charges | 1,500,000 | |||||
Leasehold improvements | Waltham office relocation | ||||||
Accounting Policies [Line Items] | ||||||
Impairment charges | 1,200,000 | |||||
Accrued expenses and other current liabilities | ||||||
Accounting Policies [Line Items] | ||||||
Commissions payable, current | 26,700,000 | $ 26,700,000 | 31,400,000 | |||
Other noncurrent liabilities | ||||||
Accounting Policies [Line Items] | ||||||
Commissions payable, non-current | $ 2,200,000 | $ 2,200,000 | $ 2,700,000 | |||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Subscription contract, term | 1 year | |||||
Estimated useful life | 3 years | |||||
Deferred commissions, amortization period | 1 year | 1 year | ||||
Amortization period | 2 years | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Subscription contract, term | 3 years | |||||
Estimated useful life | 10 years | |||||
Deferred commissions, amortization period | 3 years | 3 years | ||||
Amortization period | 15 years |
Revenue from Contracts with Customers - Revenue Disaggregated by Service Offering (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 287.6 | $ 197.6 | $ 796.4 | $ 524.9 |
Subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 284.4 | 195.4 | 788.8 | 518.6 |
Usage-based | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2.4 | 2.2 | 6.5 | 6.3 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 0.8 | $ 0.0 | $ 1.1 | $ 0.0 |
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | |||||
Revenue recognized that was previously included in unearned revenue | $ 60.9 | $ 37.8 | $ 325.9 | $ 205.5 | |
Contract assets recorded within Prepaid expenses and other current assets | 4.7 | 4.7 | $ 3.7 | ||
Unearned revenue | $ 381.2 | $ 381.2 | $ 364.2 | ||
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | Outside the United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk (as a percent) | 13.00% | 11.00% | 12.00% | 11.00% |
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Millions |
Sep. 30, 2022
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, amount | $ 978.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, period | 1 year |
Remaining performance obligations, amount | $ 756.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, period | |
Remaining performance obligations, amount | $ 221.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, period | 13 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, period | 45 months |
Business Combinations - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 07, 2021 |
Apr. 30, 2022 |
Sep. 30, 2021 |
Jul. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
2022 Business Acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | $ 150.6 | $ 150.6 | ||||||||
Conversion of Note Receivable | 10.0 | 10.0 | ||||||||
Business combination, contingent consideration, equity awards | $ 3.7 | |||||||||
Value of consideration transferred | $ 160.6 | |||||||||
2022 Business Acquisitions | Restricted Stock Units | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of shares issued (in shares) | 448,740 | |||||||||
Equity interests issued and issuable | $ 26.8 | |||||||||
Insent | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | $ 32.9 | |||||||||
Value of consideration transferred | 34.0 | |||||||||
Deferred purchase consideration | $ 1.1 | 1.1 | ||||||||
Incentive compensation | $ 2.0 | |||||||||
Insent | Restricted Stock Units | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of shares issued (in shares) | 36,118 | |||||||||
Equity interests issued and issuable | $ 2.4 | |||||||||
Chorus.ai | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Value of consideration transferred | $ 547.4 | |||||||||
Incentive compensation | 6.0 | |||||||||
Cash refund from Chorus.ai acquisition | $ 33.9 | |||||||||
Certain unvested options issued | $ 31.8 | |||||||||
Chorus.ai | Restricted Stock Units | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of shares issued (in shares) | 572,921 | |||||||||
Equity interests issued and issuable | $ 30.3 | |||||||||
RingLead | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | $ 114.9 | |||||||||
Value of consideration transferred | 116.0 | |||||||||
Deferred purchase consideration | 1.1 | |||||||||
Incentive compensation | $ 3.7 | |||||||||
RingLead | Restricted Stock Units | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of shares issued (in shares) | 42,854 | |||||||||
Equity interests issued and issuable | $ 2.8 | |||||||||
2021 Business Acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Value of consideration transferred | $ 697.4 | |||||||||
Deferred purchase consideration | 2.2 | |||||||||
Cash refund from Chorus.ai acquisition | $ 0.0 | |||||||||
Revenue from acquired companies | $ 13.2 | |||||||||
Transaction costs incurred | $ 12.6 | $ 12.6 | $ 12.6 |
Business Combinations - Acquisition Date Fair Value of Consideration Transferred (Details) - USD ($) $ in Millions |
1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|---|
Apr. 01, 2022 |
Apr. 30, 2022 |
Sep. 30, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
|
2022 Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 150.6 | $ 150.6 | |||
Conversion of Note Receivable | $ 10.0 | 10.0 | |||
Total purchase consideration | 160.6 | ||||
2022 Business Acquisitions | Preliminary Fair Value at Acquisition Date | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 150.5 | ||||
Conversion of Note Receivable | 10.0 | ||||
Total purchase consideration | $ 160.5 | ||||
2022 Business Acquisitions | Measurement Period Adjustments | |||||
Business Acquisition [Line Items] | |||||
Measurement period consideration, total purchase consideration | 0.1 | ||||
Measurement Period Adjustments | $ 0.1 | ||||
2021 Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 695.2 | ||||
Deferred purchase consideration | 2.2 | ||||
Total purchase consideration | 697.4 | ||||
2021 Business Acquisitions | Preliminary Fair Value at Acquisition Date | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 697.7 | ||||
Deferred purchase consideration | 2.2 | ||||
Total purchase consideration | $ 699.9 | ||||
2021 Business Acquisitions | Measurement Period Adjustments | |||||
Business Acquisition [Line Items] | |||||
Measurement period consideration, total purchase consideration | (2.5) | ||||
Measurement Period Adjustments | $ (2.5) |
Business Combinations - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Apr. 01, 2022 |
Sep. 30, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 1,696.3 | $ 1,696.3 | $ 1,575.1 | [1] | ||||
Measurement period adjustments, goodwill | (1.8) | |||||||
Cash paid for acquisitions, net of cash acquired | 143.7 | $ 717.5 | ||||||
2022 Business Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash and cash equivalents | 14.8 | 14.8 | ||||||
Accounts receivable | 2.3 | 2.3 | ||||||
Prepaid expenses and other assets | 0.3 | 0.3 | ||||||
Intangible assets | 34.8 | 34.8 | ||||||
Accounts payable and other liabilities | (1.3) | (1.3) | ||||||
Unearned revenue | (6.8) | (6.8) | ||||||
Deferred tax liabilities | (6.5) | (6.5) | ||||||
Total identifiable net assets acquired | 37.6 | 37.6 | ||||||
Goodwill | 123.0 | 123.0 | ||||||
Total consideration | 160.6 | 160.6 | ||||||
Cash Acquired | (14.8) | |||||||
Deferred tax liabilities | 6.5 | 6.5 | ||||||
Cash paid for acquisitions, net of cash acquired | 145.8 | |||||||
Cash paid (received) for acquisitions | 143.7 | (2.1) | ||||||
2022 Business Acquisitions | Preliminary Fair Value at Acquisition Date | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash and cash equivalents | $ 14.8 | |||||||
Accounts receivable | 2.3 | |||||||
Prepaid expenses and other assets | 0.3 | |||||||
Intangible assets | 34.8 | |||||||
Accounts payable and other liabilities | (0.9) | |||||||
Unearned revenue | (6.8) | |||||||
Deferred tax liabilities | (6.5) | |||||||
Total identifiable net assets acquired | 38.0 | |||||||
Goodwill | 122.5 | |||||||
Total consideration | 160.5 | |||||||
Cash Acquired | (14.8) | |||||||
Deferred tax liabilities | 6.5 | |||||||
Cash paid for acquisitions, net of cash acquired | $ 145.7 | |||||||
2022 Business Acquisitions | Measurement Period Adjustments | ||||||||
Business Acquisition [Line Items] | ||||||||
Measurement period adjustments, accounts receivables | 0.0 | |||||||
Measurement period adjustments, intangible assets, Prepaid expenses and other assets | 0.0 | |||||||
Measurement period adjustments, intangible assets | 0.0 | |||||||
Measurement period adjustments, accounts payable and other liabilities | (0.4) | |||||||
Measurement period adjustments, total identifiable net assets acquired | (0.4) | |||||||
Measurement period adjustments, goodwill | 0.5 | |||||||
Measurement period consideration, total purchase consideration | 0.1 | |||||||
Cash Acquired | 0.0 | |||||||
Cash paid for acquisitions, net of cash acquired | 0.1 | |||||||
2021 Business Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash and cash equivalents | 13.9 | 13.9 | ||||||
Accounts receivable | 4.2 | 4.2 | ||||||
Prepaid expenses and other assets | 2.7 | 2.7 | ||||||
Intangible assets | 120.9 | 120.9 | ||||||
Accounts payable and other liabilities | (4.6) | (4.6) | ||||||
Unearned revenue | (10.2) | (10.2) | ||||||
Deferred tax liabilities | (2.7) | (2.7) | ||||||
Total identifiable net assets acquired | 124.2 | 124.2 | ||||||
Goodwill | 573.2 | 573.2 | ||||||
Total consideration | 697.4 | 697.4 | ||||||
Cash refund from Chorus.ai acquisition | 0.0 | |||||||
Deferred consideration | (2.2) | |||||||
Cash Acquired | (13.9) | |||||||
Adjustments to working capital balances | 0.1 | 0.1 | ||||||
Deferred tax liabilities | 2.7 | 2.7 | ||||||
Accruals from adjustments to tax liabilities | 0.4 | 0.4 | ||||||
Cash paid for acquisitions, net of cash acquired | 681.8 | |||||||
Cash paid (received) for acquisitions | $ (2.1) | 683.9 | ||||||
2021 Business Acquisitions | Preliminary Fair Value at Acquisition Date | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash and cash equivalents | 13.9 | |||||||
Accounts receivable | 4.3 | |||||||
Prepaid expenses and other assets | 2.8 | |||||||
Intangible assets | 120.7 | |||||||
Accounts payable and other liabilities | (4.1) | |||||||
Unearned revenue | (10.2) | |||||||
Deferred tax liabilities | (2.7) | |||||||
Total identifiable net assets acquired | 124.7 | |||||||
Goodwill | 575.2 | |||||||
Total consideration | 699.9 | |||||||
Cash refund from Chorus.ai acquisition | 33.9 | |||||||
Deferred consideration | (2.2) | |||||||
Cash Acquired | (13.9) | |||||||
Adjustments to working capital balances | (0.5) | |||||||
Deferred tax liabilities | 2.7 | |||||||
Accruals from adjustments to tax liabilities | 0.0 | |||||||
Cash paid for acquisitions, net of cash acquired | $ 717.2 | |||||||
2021 Business Acquisitions | Measurement Period Adjustments | ||||||||
Business Acquisition [Line Items] | ||||||||
Measurement period adjustments, accounts receivables | (0.1) | |||||||
Measurement period adjustments, intangible assets, Prepaid expenses and other assets | (0.1) | |||||||
Measurement period adjustments, intangible assets | 0.2 | |||||||
Measurement period adjustments, accounts payable and other liabilities | (0.5) | |||||||
Measurement period adjustments, total identifiable net assets acquired | (0.5) | |||||||
Measurement period adjustments, goodwill | (2.0) | |||||||
Measurement period consideration, total purchase consideration | (2.5) | |||||||
Measurement period consideration, total purchase consideration, cash refund from Chorus.ai acquisition | (33.9) | |||||||
Measurement period consideration, total purchase consideration, accruals from adjustments to working capital balances | 0.6 | |||||||
Measurement period consideration, total purchase consideration, accruals from adjustments to tax liabilities | 0.4 | |||||||
Measurement period consideration, total purchase consideration, cash paid for acquisitions, net of cash acquired | $ (35.4) | |||||||
|
Business Combinations - Components of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Millions |
6 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Apr. 01, 2022 |
Sep. 30, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
|
2022 Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 34.8 | |||
2022 Business Acquisitions | Preliminary Fair Value at Acquisition Date | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 34.8 | |||
2022 Business Acquisitions | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Measurement period adjustments, intangible assets | 0.0 | |||
2022 Business Acquisitions | Existing Technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | 27.6 | |||
Weighted Average Useful Life | 5 years 9 months 18 days | |||
2022 Business Acquisitions | Existing Technology | Preliminary Fair Value at Acquisition Date | ||||
Business Acquisition [Line Items] | ||||
Fair Value | 27.6 | |||
2022 Business Acquisitions | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Fair Value | 3.4 | |||
Weighted Average Useful Life | 9 years | |||
2022 Business Acquisitions | Customer relationships | Preliminary Fair Value at Acquisition Date | ||||
Business Acquisition [Line Items] | ||||
Fair Value | 3.4 | |||
2022 Business Acquisitions | Customer relationships | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Measurement period adjustments, intangible assets | 0.0 | |||
2022 Business Acquisitions | Trade name / Trademarks | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 3.8 | |||
Weighted Average Useful Life | 8 years | |||
2022 Business Acquisitions | Trade name / Trademarks | Preliminary Fair Value at Acquisition Date | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 3.8 | |||
2021 Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 120.9 | |||
2021 Business Acquisitions | Preliminary Fair Value at Acquisition Date | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 120.7 | |||
2021 Business Acquisitions | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Measurement period adjustments, intangible assets | 0.2 | |||
2021 Business Acquisitions | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 12.1 | |||
Weighted Average Useful Life | 7 years 8 months 12 days | |||
2021 Business Acquisitions | Customer relationships | Preliminary Fair Value at Acquisition Date | ||||
Business Acquisition [Line Items] | ||||
Fair Value | 12.1 | |||
2021 Business Acquisitions | Brand portfolio | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 1.1 | |||
Weighted Average Useful Life | 2 years | |||
2021 Business Acquisitions | Brand portfolio | Preliminary Fair Value at Acquisition Date | ||||
Business Acquisition [Line Items] | ||||
Fair Value | 1.1 | |||
2021 Business Acquisitions | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 107.7 | |||
Weighted Average Useful Life | 6 years 1 month 6 days | |||
2021 Business Acquisitions | Developed technology | Preliminary Fair Value at Acquisition Date | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 107.5 | |||
2021 Business Acquisitions | Developed technology | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Measurement period adjustments, intangible assets | $ 0.2 |
Business Combinations - Pro Forma (Details) - 2021 Business Acquisitions - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Business Acquisition [Line Items] | ||
Revenue | $ 764.0 | $ 490.6 |
Net income (loss) | $ 84.9 | $ (78.8) |
Cash, Cash Equivalents, and Short-term Investments - Components (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
|||
---|---|---|---|---|---|---|
Current assets: | ||||||
Cash | $ 112.8 | $ 276.5 | ||||
Cash equivalents | ||||||
Total cash equivalents | 293.5 | 31.8 | ||||
Cash and cash equivalents | 406.3 | 308.3 | [1] | $ 196.8 | ||
Short-term investments: | ||||||
Amortized Cost | 32.4 | 18.4 | ||||
Unrealized Gains | 0.0 | 0.0 | ||||
Unrealized Losses | 0.0 | 0.0 | ||||
Estimated Fair Value | 32.4 | 18.4 | ||||
Cash, cash equivalents, and short-term investments, amortized cost | 438.7 | 326.7 | ||||
Total cash, cash equivalents, and short-term investments | 438.7 | 326.7 | ||||
Corporate debt securities | ||||||
Cash equivalents | ||||||
Total cash equivalents | 151.5 | 15.7 | ||||
Short-term investments: | ||||||
Amortized Cost | 25.7 | 18.4 | ||||
Estimated Fair Value | 25.7 | 18.4 | ||||
Money market mutual funds | ||||||
Cash equivalents | ||||||
Total cash equivalents | 142.0 | $ 16.1 | ||||
Securities guaranteed by U.S. government | ||||||
Short-term investments: | ||||||
Amortized Cost | 5.0 | |||||
Unrealized Gains | 0.0 | |||||
Unrealized Losses | 0.0 | |||||
Estimated Fair Value | 5.0 | |||||
Other governmental securities | ||||||
Short-term investments: | ||||||
Amortized Cost | 1.7 | |||||
Unrealized Gains | 0.0 | |||||
Unrealized Losses | 0.0 | |||||
Estimated Fair Value | $ 1.7 | |||||
|
Cash, Cash Equivalents, and Short-term Investments - Cost and Estimated Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Amortized Cost | $ 32.4 | $ 18.4 |
Estimated Fair Value | $ 32.4 | $ 18.4 |
Property and Equipment (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | $ 87.7 | $ 87.7 | $ 71.4 | |||||
Less: accumulated depreciation | (37.5) | (37.5) | (29.7) | |||||
Property and equipment, net | 50.2 | 50.2 | 41.7 | [1] | ||||
Impairment charges | 0.0 | $ 2.7 | ||||||
Depreciation expense | 4.8 | $ 2.9 | 12.9 | $ 10.4 | ||||
Waltham office relocation | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment charges | 2.7 | |||||||
Computer equipment | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 12.7 | 12.7 | 12.5 | |||||
Furniture and fixtures | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 3.7 | 3.7 | 3.6 | |||||
Furniture and fixtures | Waltham office relocation | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Accelerated depreciation | 2.1 | |||||||
Leasehold improvements | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 9.6 | 9.6 | 8.6 | |||||
Leasehold improvements | Waltham office relocation | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment charges | 1.2 | |||||||
Internal use developed software | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 58.7 | 58.7 | 40.8 | |||||
Construction in progress | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | $ 3.0 | $ 3.0 | 5.9 | |||||
Operating lease, right-of-use asset | Waltham office relocation | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment charges | $ 1.5 | |||||||
|
Goodwill and Acquired Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
[1] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Carrying Amount | $ 629.9 | $ 629.9 | ||||||
Accumulated Amortization | (249.4) | (249.4) | ||||||
Net | 380.5 | 380.5 | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Goodwill | 1,696.3 | 1,696.3 | $ 1,575.1 | |||||
Amortization expense | 17.9 | $ 16.1 | 52.3 | $ 39.2 | ||||
Pre-Acquisition ZI brand portfolio | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Intangible assets not subject to amortization | 33.0 | 33.0 | ||||||
Customer relationships | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Carrying Amount | 287.6 | 287.6 | ||||||
Accumulated Amortization | (87.0) | (87.0) | ||||||
Net | 200.6 | $ 200.6 | ||||||
Weighted Average Amortization Period in Years | 14 years 4 months 24 days | |||||||
Acquired technology | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Carrying Amount | 330.8 | $ 330.8 | ||||||
Accumulated Amortization | (157.0) | (157.0) | ||||||
Net | 173.8 | $ 173.8 | ||||||
Weighted Average Amortization Period in Years | 6 years 3 months 18 days | |||||||
Brand portfolio | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Carrying Amount | 11.5 | $ 11.5 | ||||||
Accumulated Amortization | (5.4) | (5.4) | ||||||
Net | $ 6.1 | $ 6.1 | ||||||
Weighted Average Amortization Period in Years | 7 years 6 months | |||||||
|
Goodwill and Acquired Intangible Assets - Changes to Goodwill (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|||
Goodwill [Roll Forward] | ||||||
Beginning balance | [1] | $ 1,575,100,000 | ||||
Adjustments from 2021 acquisitions | (1,800,000) | |||||
Goodwill from 2022 acquisitions | 123,000,000.0 | |||||
Ending balance | $ 1,696,300,000 | 1,696,300,000 | ||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | $ 0 | ||
|
Financing Arrangements - Carrying Values of Borrowings (Details) - USD ($) $ in Millions |
1 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 28, 2021 |
Sep. 30, 2022 |
Dec. 31, 2021 |
||||
Debt Instrument [Line Items] | ||||||
Total Carrying Value of Debt | $ 1,235.0 | $ 1,232.9 | ||||
Less current portion | 0.0 | 0.0 | ||||
Total Long Term Debt | 1,235.0 | 1,232.9 | [1] | |||
First Lien Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Total Carrying Value of Debt | $ 0.0 | 0.0 | ||||
First Lien Revolver | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Elected Interest Rate | 2.00% | |||||
Term Loan | First Lien Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Total Carrying Value of Debt | $ 595.1 | 594.1 | ||||
Term Loan | First Lien Term Loan | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Elected Interest Rate | 3.75% | 3.00% | ||||
Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.875% | |||||
Total Carrying Value of Debt | $ 639.9 | $ 638.8 | ||||
|
Financing Arrangements - First Lien (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 |
Feb. 28, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Debt Instrument [Line Items] | ||||||||
Gain (loss) on extinguishment of debt | $ 0 | $ (1,800,000) | $ 0 | $ (7,700,000) | $ (7,700,000) | |||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Draws on revolving credit loan which trigger springing financial covenant (more than) | $ 87,500,000 | $ 87,500,000 | ||||||
LIBOR | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.00% | |||||||
First Lien Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt | $ 356,400,000 | |||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
First Lien Term Loan | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount outstanding | $ 225,000,000 | |||||||
Effective interest rate | 4.40% | |||||||
First Lien Credit Agreement, Amendment | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt | $ 225,000,000 | |||||||
Term Loan | First Lien Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt | 356,400,000 | |||||||
Aggregate principal amount outstanding | $ 400,000,000 | |||||||
Effective interest rate | 5.83% | 5.83% | 3.41% | |||||
Net leverage ratio (not to exceed) | 5.00 | 5.00 | ||||||
Term Loan | First Lien Term Loan | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.75% | 3.00% | ||||||
Term Loan | First Lien Term Loan | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.00% | |||||||
Term Loan | First Lien Term Loan | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | |||||||
Term Loan | First Lien Term Loan | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.00% | |||||||
Term Loan | First Lien Term Loan | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Term Loan | First Lien Term Loan | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
Term Loan | First Lien Credit Agreement, Amendment | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | $ 200,000,000 |
Financing Arrangements - Senior Notes (Details) - Senior Notes - 3.875% Senior Notes due 2029 - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2022 |
Jul. 31, 2021 |
Feb. 28, 2021 |
|
Debt Instrument [Line Items] | |||
Face amount of debt | $ 300,000,000 | $ 350,000,000 | |
Interest rate | 3.875% | ||
Beginning on February 1, 2024 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage | 101.938% | ||
Principal amount redeemed on February 1, 2025 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage | 100.969% | ||
Principal amount redeemed on February 1, 2026 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage | 100.00% | ||
Prior to February 1, 2024 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage | 103.875% | ||
Prior to February 1, 2024 | Maximum | |||
Debt Instrument [Line Items] | |||
Percentage of principal amount that may be redeemed | 40.00% |
Derivatives and Hedging Activities - Narrative (Details) |
1 Months Ended | 3 Months Ended | |||||
---|---|---|---|---|---|---|---|
Feb. 28, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
instrument
|
Mar. 31, 2021
USD ($)
|
Jun. 30, 2022
USD ($)
derivative_instrument
|
Apr. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Jul. 31, 2021
USD ($)
|
|
First Lien Term Loan | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Extinguishment of debt | $ 356,400,000 | ||||||
First Lien Term Loan | Term Loan | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Extinguishment of debt | $ 356,400,000 | ||||||
First Lien Credit Agreement, Amendment | Term Loan | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Face amount of debt | $ 200,000,000 | ||||||
First Lien Term Loan | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Changes in fair value included in AOCI expected to be reclassified over the next 12 months | $ 19,900,000 | ||||||
Interest rate cap contract | Cash Flow Hedging | Not Designated as Hedging Instrument | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | 400,000,000 | $ 100,000,000 | $ 100,000,000 | ||||
Gain on derivatives | 3,000,000 | ||||||
Derecognition of derivative asset | 2,500,000 | ||||||
Interest rate cap contract | Cash Flow Hedging | Designated as Hedging Instrument | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | $ 100,000,000.0 | ||||||
Number of Instruments | instrument | 1 | ||||||
Forward-starting interest rate swap contracts - April 2022 | Cash Flow Hedging | Not Designated as Hedging Instrument | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | $ 100,000,000 | ||||||
Interest rate swap contracts | Cash Flow Hedging | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | $ 350,000,000 | $ 500,000,000 | |||||
Interest rate swap contracts | Cash Flow Hedging | Designated as Hedging Instrument | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | $ 500,000,000.0 | ||||||
Number of Instruments | 2 | 2 |
Derivatives and Hedging Activities - Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk (Details) - Cash Flow Hedging |
Sep. 30, 2022
USD ($)
instrument
|
Jun. 30, 2022
USD ($)
derivative_instrument
|
Apr. 30, 2022
USD ($)
|
---|---|---|---|
Interest rate cap contract | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | instrument | 1 | ||
Notional Aggregate Principal Amount | $ 100,000,000.0 | ||
Interest Cap (as a percent) | 3.50% | ||
Interest rate swap contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Aggregate Principal Amount | $ 350,000,000 | $ 500,000,000 | |
Interest rate swap contracts | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Number of Instruments | 2 | 2 | |
Notional Aggregate Principal Amount | $ 500,000,000.0 | ||
Swap Rate (as a percent) | 0.37% |
Derivatives and Hedging Activities - Fair Value and Presentation in the Consolidated Balance Sheets for Derivatives (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 57.8 | $ 16.0 |
Derivative Liabilities | 0.0 | 2.8 |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 57.8 | 15.9 |
Derivative Liabilities | 0.0 | 2.5 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate cap contract | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.0 | 0.0 |
Derivative Liabilities | 0.0 | 0.1 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate swap contracts | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.0 | 0.0 |
Derivative Liabilities | 0.0 | 2.4 |
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Interest rate cap contract | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.8 | 0.0 |
Derivative Liabilities | 0.0 | 0.0 |
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Interest rate swap contracts | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 19.2 | 0.0 |
Derivative Liabilities | 0.0 | 0.0 |
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Forward-starting interest rate swap contracts - April 2022 | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.0 | 0.7 |
Derivative Liabilities | 0.0 | 0.0 |
Designated as Hedging Instrument | Deferred costs and other assets, net of current portion | Interest rate cap contract | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.6 | 0.0 |
Derivative Liabilities | 0.0 | 0.0 |
Designated as Hedging Instrument | Deferred costs and other assets, net of current portion | Interest rate swap contracts | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 37.2 | 0.0 |
Derivative Liabilities | 0.0 | 0.0 |
Designated as Hedging Instrument | Deferred costs and other assets, net of current portion | Forward-starting interest rate swap contracts - April 2022 | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.0 | 15.2 |
Derivative Liabilities | 0.0 | 0.0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.0 | 0.1 |
Derivative Liabilities | 0.0 | 0.3 |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate cap contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.0 | 0.0 |
Derivative Liabilities | 0.0 | 0.3 |
Not Designated as Hedging Instrument | Deferred costs and other assets, net of current portion | Interest rate cap contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.0 | 0.1 |
Derivative Liabilities | $ 0.0 | $ 0.0 |
Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
|||
---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | $ 293.5 | $ 31.8 | |||
Short-term investments | 32.4 | 18.4 | [1] | ||
Prepaid expenses and other current assets | 53.5 | 27.1 | [1] | ||
Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | 151.5 | 15.7 | |||
Money market mutual funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | 142.0 | 16.1 | |||
Level 1 | Measured on a recurring basis | Forward-starting interest rate swap contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0.0 | ||||
Deferred costs and other assets, net of current portion | 0.0 | ||||
Level 1 | Measured on a recurring basis | Interest rate cap contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0.0 | ||||
Deferred costs and other assets, net of current portion | 0.0 | 0.0 | |||
Derivative liability | 0.0 | ||||
Level 1 | Measured on a recurring basis | Interest rate swap contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0.0 | ||||
Deferred costs and other assets, net of current portion | 0.0 | ||||
Derivative liability | 0.0 | ||||
Level 1 | Measured on a recurring basis | Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | 0.0 | 0.0 | |||
Short-term investments | 0.0 | 0.0 | |||
Level 1 | Measured on a recurring basis | Money market mutual funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | 142.0 | 16.1 | |||
Level 1 | Measured on a recurring basis | Securities guaranteed by U.S. government | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term investments | 0.0 | ||||
Level 1 | Measured on a recurring basis | Other governmental securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term investments | 0.0 | ||||
Level 1 | Measured on a non-recurring basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired lease-related assets | 0.0 | ||||
Level 2 | Measured on a recurring basis | Forward-starting interest rate swap contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0.7 | ||||
Deferred costs and other assets, net of current portion | 15.2 | ||||
Level 2 | Measured on a recurring basis | Interest rate cap contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0.8 | ||||
Deferred costs and other assets, net of current portion | 0.6 | 0.1 | |||
Derivative liability | (0.4) | ||||
Level 2 | Measured on a recurring basis | Interest rate swap contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 19.2 | ||||
Deferred costs and other assets, net of current portion | 37.2 | ||||
Derivative liability | (2.4) | ||||
Level 2 | Measured on a recurring basis | Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | 151.5 | 15.7 | |||
Short-term investments | 25.7 | 18.4 | |||
Level 2 | Measured on a recurring basis | Money market mutual funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | 0.0 | 0.0 | |||
Level 2 | Measured on a recurring basis | Securities guaranteed by U.S. government | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term investments | 5.0 | ||||
Level 2 | Measured on a recurring basis | Other governmental securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term investments | 1.7 | ||||
Level 2 | Measured on a non-recurring basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired lease-related assets | 0.0 | ||||
Level 3 | Measured on a recurring basis | Forward-starting interest rate swap contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0.0 | ||||
Deferred costs and other assets, net of current portion | 0.0 | ||||
Level 3 | Measured on a recurring basis | Interest rate cap contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0.0 | ||||
Deferred costs and other assets, net of current portion | 0.0 | 0.0 | |||
Derivative liability | 0.0 | ||||
Level 3 | Measured on a recurring basis | Interest rate swap contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0.0 | ||||
Deferred costs and other assets, net of current portion | 0.0 | ||||
Derivative liability | 0.0 | ||||
Level 3 | Measured on a recurring basis | Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | 0.0 | 0.0 | |||
Short-term investments | 0.0 | 0.0 | |||
Level 3 | Measured on a recurring basis | Money market mutual funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total cash equivalents | 0.0 | 0.0 | |||
Level 3 | Measured on a recurring basis | Securities guaranteed by U.S. government | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term investments | 0.0 | ||||
Level 3 | Measured on a recurring basis | Other governmental securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term investments | 0.0 | ||||
Level 3 | Measured on a non-recurring basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired lease-related assets | $ 14.2 | ||||
Secured Debt | First Lien Term Loan | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument fair value | 591.0 | ||||
Senior Notes | Senior Notes | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument fair value | $ 526.5 | ||||
|
Commitment and Contingencies (Details) - USD ($) $ in Millions |
1 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 07, 2021 |
Dec. 31, 2022 |
Jun. 30, 2021 |
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Commitments and Contingencies Disclosure [Abstract] | |||||
Non-cancelable purchase obligations with a term of 12 months or longer | $ 58.0 | ||||
Liability for taxes owed and related penalties and interest | 3.3 | $ 3.1 | |||
Dogpatch Advisors, LLC | |||||
Recorded Unconditional Purchase Obligation [Line Items] | |||||
Business combination, contingent consideration, equity awards | $ 3.7 | ||||
Insent | |||||
Recorded Unconditional Purchase Obligation [Line Items] | |||||
Deferred purchase consideration | $ 1.1 | $ 1.1 | |||
Insent | Forecast | |||||
Recorded Unconditional Purchase Obligation [Line Items] | |||||
Business combination, additional consideration transferred | $ 3.0 |
Noncontrolling Interest (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Noncontrolling Interest [Line Items] | ||
Cash distributions | $ 0.0 | $ 19.9 |
ZoomInfo HoldCo | OpCo Units | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest (as a percent) | 100.00% |
Earnings Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Earnings Per Share [Abstract] | ||||||||
Net income (loss) | $ 17.9 | $ 15.9 | $ 6.2 | $ (40.9) | $ 24.5 | $ (33.9) | $ 40.0 | $ (50.3) |
Add: Net (income) loss attributable to noncontrolling interests | 0.0 | 0.3 | 0.0 | 22.2 | ||||
Net income (loss) attributable to ZoomInfo Technologies Inc. | $ 17.9 | $ (40.6) | $ 40.0 | $ (28.1) | ||||
Basic net income (loss) per share attributable to common stockholders | ||||||||
Basic net income (loss) per share attributable to common stockholders (in dollars per share) | $ 0.04 | $ (0.15) | $ 0.10 | $ (0.13) | ||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) | $ 0.04 | $ (0.15) | $ 0.10 | $ (0.13) | ||||
Class A | ||||||||
Basic net income (loss) per share attributable to common stockholders | ||||||||
Allocation of net income (loss) attributable to ZoomInfo Technologies Inc. | $ (33.2) | $ (18.6) | ||||||
Weighted average number of shares of Class A and Class C common stock outstanding (in shares) | 215,012,710 | 139,840,047 | ||||||
Basic net income (loss) per share attributable to common stockholders (in dollars per share) | $ (0.15) | $ (0.13) | ||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Undistributed earnings for basic computation | $ (33.2) | $ (18.6) | ||||||
Increase in earnings attributable to common shareholders upon conversion of potentially dilutive instruments | (0.1) | 0.0 | ||||||
Reallocation of undistributed earnings as a result of conversion of Class C to Class A shares | (7.4) | (9.5) | ||||||
Allocation of undistributed earnings | $ (40.7) | $ (28.1) | ||||||
Number of shares used in basic computation (in shares) | 215,012,710 | 139,840,047 | ||||||
Conversion of Class C to Class A common shares outstanding (in shares) | 48,273,078 | 71,058,293 | ||||||
Weighted average shares of Class A and Class C common stock outstanding used to calculate diluted net income (loss) per share (in shares) | 263,999,648 | 210,898,340 | ||||||
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) | $ (0.15) | $ (0.13) | ||||||
Class A | HSKB II Class 1 Units | ||||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Units exchangeable for Class A common stock (in shares) | 121,059 | 0 | ||||||
Class A | HSKB II Phantom Units | ||||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Units exchangeable for Class A common stock (in shares) | 592,801 | 0 | ||||||
Class C | ||||||||
Basic net income (loss) per share attributable to common stockholders | ||||||||
Allocation of net income (loss) attributable to ZoomInfo Technologies Inc. | $ (7.4) | $ (9.5) | ||||||
Weighted average number of shares of Class A and Class C common stock outstanding (in shares) | 48,273,078 | 71,058,293 | ||||||
Basic net income (loss) per share attributable to common stockholders (in dollars per share) | $ (0.15) | $ (0.13) | ||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Undistributed earnings for basic computation | $ (7.4) | $ (9.5) | ||||||
Increase in earnings attributable to common shareholders upon conversion of potentially dilutive instruments | 0.0 | 0.0 | ||||||
Reallocation of undistributed earnings as a result of conversion of Class C to Class A shares | 0.0 | 0.0 | ||||||
Allocation of undistributed earnings | $ (7.4) | $ (9.5) | ||||||
Number of shares used in basic computation (in shares) | 48,273,078 | 71,058,293 | ||||||
Conversion of Class C to Class A common shares outstanding (in shares) | 0 | 0 | ||||||
Weighted average shares of Class A and Class C common stock outstanding used to calculate diluted net income (loss) per share (in shares) | 48,273,078 | 71,058,293 | ||||||
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) | $ (0.15) | $ (0.13) | ||||||
Class C | HSKB II Class 1 Units | ||||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Units exchangeable for Class A common stock (in shares) | 0 | 0 | ||||||
Class C | HSKB II Phantom Units | ||||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Units exchangeable for Class A common stock (in shares) | 0 | 0 | ||||||
Common Stock | ||||||||
Basic net income (loss) per share attributable to common stockholders | ||||||||
Allocation of net income (loss) attributable to ZoomInfo Technologies Inc. | $ 17.9 | $ 40.0 | ||||||
Weighted average number of shares of Class A and Class C common stock outstanding (in shares) | 401,961,947 | 401,093,021 | ||||||
Basic net income (loss) per share attributable to common stockholders (in dollars per share) | $ 0.04 | $ 0.10 | ||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Undistributed earnings for basic computation | $ 17.9 | $ 40.0 | ||||||
Allocation of undistributed earnings | $ 17.9 | $ 40.0 | ||||||
Number of shares used in basic computation (in shares) | 401,961,947 | 401,093,021 | ||||||
Weighted average shares of Class A and Class C common stock outstanding used to calculate diluted net income (loss) per share (in shares) | 403,471,309 | 403,277,181 | ||||||
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) | $ 0.04 | $ 0.10 | ||||||
Common Stock | Restricted Stock Awards | ||||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Units exchangeable for Class A common stock (in shares) | 1,208,236 | 1,932,054 | ||||||
Common Stock | Exercise of Common Stock Options | ||||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Units exchangeable for Class A common stock (in shares) | 178,332 | 207,917 | ||||||
Common Stock | Employee Stock Purchase Plan | ||||||||
Diluted net income (loss) per share attributable to common stockholders | ||||||||
Units exchangeable for Class A common stock (in shares) | 122,794 | 44,189 |
Earnings Per Share - Potential Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 9,415,559 | 138,606,897 | 7,471,569 | 190,840,623 |
OpCo Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 122,610,642 | 0 | 170,523,418 |
Class P Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 9,047,255 | 0 | 10,241,645 |
HSKB I Class 1 Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 4,801,519 | 0 | 6,653,534 |
HSKB II Class 1 Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 0 | 0 | 301,339 |
HSKB II Phantom Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 0 | 0 | 1,082,296 |
HoldCo Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 700,241 | 0 | 1,184,900 |
Restricted Stock Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 582,263 | 0 | 194,088 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 9,415,559 | 454,718 | 7,471,569 | 324,043 |
LTIP Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 101,666 | 0 | 41,181 |
Exercise of Common Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 0 | 308,593 | 0 | 294,179 |
Leases - Narrative (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Jul. 31, 2022
USD ($)
|
Sep. 30, 2022
USD ($)
extension_option
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
extension_option
office
|
Sep. 30, 2021
USD ($)
|
|
Lessee, Lease, Description [Line Items] | |||||
Number of offices subleased | office | 2 | ||||
Sublease, remaining lease term (less than) | 9 years | ||||
Rent expense | $ 2.8 | $ 2.9 | $ 9.6 | $ 8.1 | |
Operating lease, lease not yet commenced, undiscounted amount | $ 340.9 | $ 340.9 | |||
Ra'anana, Israel, Office Space | |||||
Lessee, Lease, Description [Line Items] | |||||
Increase (decrease) operating lease right of use asset | $ 5.1 | ||||
Increase (decrease) in operating lease liability | $ 5.1 | ||||
Term of contract | 7 years | 7 years | |||
Prepaid rent paid in advance | $ 1.7 | $ 1.7 | |||
Lessee, operating lease, options for extension | extension_option | 2 | 2 | |||
Incentive from lessor | $ 13.8 | $ 13.8 | |||
Ra'anana, Israel, Office Space | Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Renewal term | 3 years | 3 years | |||
Ra'anana, Israel, Office Space | Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Renewal term | 5 years | 5 years | |||
MASSACHUSETTS | |||||
Lessee, Lease, Description [Line Items] | |||||
Payments of sublease | $ 2.5 | ||||
Operating lease impairment | 1.4 | ||||
Gain as a reduction of rent expense | $ 1.1 | $ 1.1 | |||
Renewal term | 5 years | 5 years |
Leases - Additional Details Related to Leases Recorded on the Balance Sheet (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
[1] | ||
---|---|---|---|---|---|
Assets | |||||
Operating lease right-of-use assets, net | $ 65.4 | $ 59.8 | |||
Liabilities | |||||
Current portion of operating lease liabilities | 10.5 | 8.1 | |||
Operating lease liabilities, net of current portion | $ 69.6 | $ 61.5 | |||
|
Leases - Other Information Related to Leases (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | |||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3.3 | $ 2.3 | $ 9.6 | $ 7.3 | |
Cash received for tenant incentive reimbursement | 5.0 | 0.0 | 5.0 | 0.0 | |
Lease liabilities arising from obtaining right-of-use assets | $ 7.6 | 0.0 | $ 11.3 | 37.5 | |
Weighted average remaining lease term (in years) | 11 years 8 months 12 days | 11 years 8 months 12 days | 9 years 7 months 6 days | ||
Weighted average discount rate | 5.40% | 5.40% | 4.40% | ||
Leases From Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Lease liabilities arising from obtaining right-of-use assets | $ 0.0 | $ 0.2 | $ 0.0 | $ 0.2 |
Leases - Future Minimum Payments Under Non-Cancelable Leases (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
[1] | ||
---|---|---|---|---|---|
Leases [Abstract] | |||||
2022 (excluding nine months ended September 30, 2022) | $ 4.8 | ||||
2023 | 13.1 | ||||
2024 | 11.5 | ||||
2025 | 10.7 | ||||
2026 | 8.1 | ||||
Thereafter | 59.8 | ||||
Total future minimum lease payments | 108.0 | ||||
less effects of discounting | 27.9 | ||||
Total lease liabilities | 80.1 | ||||
Current portion of operating lease liabilities | 10.5 | $ 8.1 | |||
Operating lease liabilities, net of current portion | $ 69.6 | $ 61.5 | |||
|
Equity-based Compensation - Narrative (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | 28 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 03, 2022
shares
|
Dec. 31, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019
USD ($)
shares
|
Sep. 30, 2022
USD ($)
shares
|
Sep. 30, 2021
USD ($)
|
May 31, 2020 |
Sep. 30, 2022
USD ($)
shares
|
Sep. 30, 2021
USD ($)
|
Dec. 31, 2020 |
Dec. 31, 2019
USD ($)
|
Sep. 30, 2022
USD ($)
shares
|
Jun. 03, 2020
instrument
shares
|
May 27, 2020
shares
|
Mar. 31, 2020
USD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 4 years | ||||||||||||||
Total equity-based compensation expense | $ | $ 48.1 | $ 24.5 | $ 137.6 | $ 59.7 | |||||||||||
Cash distributions | $ | $ 0.0 | $ 19.9 | |||||||||||||
Maximum | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Unit options outstanding, weighted average remaining term | 10 years | ||||||||||||||
Pre-IPO Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 4 years | ||||||||||||||
Pre-IPO Awards | Tranche one | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 2 years | ||||||||||||||
Award vesting percentage | 50.00% | ||||||||||||||
Post-IPO Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 4 years | ||||||||||||||
Post-IPO Awards | Tranche one | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 1 year | ||||||||||||||
Award vesting percentage | 25.00% | ||||||||||||||
Post-IPO Awards | Quarterly vesting | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting percentage | 6.25% | ||||||||||||||
Performance Based Restricted Stock Unit | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 1 year | ||||||||||||||
OpCo Units | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of units not yet vested (in shares) | 0 | 0 | 0 | ||||||||||||
HSKB Incentive Units | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Economic equivalent of Unit (in shares) | 1 | ||||||||||||||
Amount allocated to be paid if holder of grant remains employed | $ | $ 31.3 | $ 1.1 | $ 1.1 | $ 31.3 | $ 1.1 | $ 5.3 | |||||||||
Employment period | 3 years | 3 years | |||||||||||||
Cash distributions | $ | 1.7 | ||||||||||||||
2020 Omnibus Incentive Plan | Class A | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of Units authorized (in shares) | 18,650,000 | ||||||||||||||
2020 Omnibus Incentive Plan | Common Stock | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Increase to authorized plan shares based on stock outstanding, percentage | 5.00% | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share based compensation arrangement maximum employee subscription rate | 15.00% | ||||||||||||||
Number of purchase periods permitted under the ESPP | instrument | 2 | ||||||||||||||
Duration of each purchase period under the ESPP | 6 months | ||||||||||||||
Percentage of purchase price for common stock | 90.00% | ||||||||||||||
Shares withheld for future ESPP purchase (in shares) | 7,500,000 | ||||||||||||||
Shares withheld for future ESPP purchase | $ | $ 2.3 | $ 2.9 | |||||||||||||
Stock issued during period shares employee stock purchase plans (in shares) | 0 | 0 | |||||||||||||
Total equity-based compensation expense | $ | $ 0.8 | $ 0.9 | |||||||||||||
Employee Stock Purchase Plan | Maximum | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Maximum shares purchased (in shares) | 1,500 | ||||||||||||||
Employee Stock Purchase Plan | Common Stock | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Increase to authorized plan shares based on stock outstanding, percentage | 1.00% | ||||||||||||||
ZoomInfo OpCo and HSKB 2019 Phantom Unit Plans | HSKB Phantom Units | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Period to settle awards | 30 days | ||||||||||||||
ZoomInfo OpCo and HSKB 2019 Phantom Unit Plans | Common Units | HSKB Phantom Units | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Economic equivalent of Unit (in shares) | 1 |
Equity-based Compensation - Restricted Stock Activity (Details) - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Restricted Stock Units | ||
Shares | ||
Beginning balance (in shares) | 4,853,795 | 985,398 |
Granted (in shares) | 6,516,786 | 2,719,862 |
Vested (in shares) | (821,561) | (291,536) |
Forfeited (in shares) | (1,280,906) | (199,968) |
Ending balance (in shares) | 9,415,559 | 3,213,756 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 56.74 | |
Granted (in dollars per share) | 46.81 | |
Vested (in dollars per share) | 51.95 | |
Forfeited (in dollars per share) | 56.31 | |
Ending balance (in dollars per share) | $ 49.99 | |
Performance Based Restricted Stock Units | ||
Shares | ||
Granted (in shares) | 147,445 | 0 |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 33.89 | |
Restricted Stock Awards | ||
Shares | ||
Beginning balance (in shares) | 3,525,373 | 0 |
Vested (in shares) | (2,005,106) | (385,120) |
Forfeited (in shares) | (266,394) | (926) |
Ending balance (in shares) | 1,253,873 | 1,433,840 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 9.21 | |
Vested (in dollars per share) | 4.60 | |
Forfeited (in dollars per share) | 5.72 | |
Ending balance (in dollars per share) | $ 17.32 | |
Restricted Stock Awards | HoldCo Units | ||
Shares | ||
Exchanged units (in shares) | 0 | 872,371 |
Weighted Average Grant Date Fair Value | ||
Exchanged units (in dollars per shares) | $ 0 | |
Restricted Stock Awards | Class P Units | ||
Shares | ||
Exchanged units (in shares) | 0 | 947,515 |
Weighted Average Grant Date Fair Value | ||
Exchanged units (in dollars per shares) | $ 0 |
Equity-based Compensation - Class A Common Stock Options Activity (Details) - Exercise of Common Stock Options - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Options | ||||
Outstanding at beginning of period (in shares) | 332,446 | 467,730 | 417,085 | 552,440 |
Exercised (in shares) | (56,219) | (64,519) | ||
Expired (in shares) | (7,935) | 0 | ||
Forfeited (in shares) | (20,485) | (20,191) | ||
Outstanding at end of period (in shares) | 332,446 | 467,730 | ||
Weighted Average Exercise Price | ||||
Beginning balance (in dollars per share) | $ 21.00 | |||
Exercised (in dollars per share) | 21.00 | |||
Expired (in dollars per share) | 21.00 | |||
Forfeited (in dollars per share) | 21.00 | |||
Ending balance (in dollars per share) | $ 21.00 | |||
Unit options outstanding, aggregate intrinsic value | $ 6.9 | |||
Unit options exercisable, aggregate intrinsic value | $ 5.2 | |||
Unit options outstanding, weighted average remaining term | 7 years 7 months 6 days | |||
Unit options exercisable, weighted average remaining term | 7 years 7 months 6 days |
Equity-based Compensation - HoldCo Unit Activity (Details) - HoldCo Units - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Shares | ||
Beginning balance (in shares) | 0 | 1,214,105 |
Exchanged for Restricted Stock (in shares) | 0 | (872,371) |
Vested (in shares) | 0 | (298,177) |
Forfeited (in shares) | 0 | (43,557) |
Ending balance (in shares) | 0 | 0 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 0 | |
Exchanged for Restricted Stock (in dollars per share) | 0 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Ending balance (in dollars per share) | $ 0 |
Equity-based Compensation - Class P Units Activity (Details) - Class P Units - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Shares | ||
Beginning balance (in shares) | 0 | 8,796,642 |
Exchanged for Restricted Stock (in shares) | 0 | (1,133,142) |
Vested (in shares) | 0 | (4,506,931) |
Forfeited (in shares) | 0 | (94,621) |
Ending balance (in shares) | 0 | 3,061,948 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 0 | |
Exchanged for Restricted Stock (in dollars per share) | 0 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Ending balance (in dollars per share) | $ 0 |
Equity-based Compensation - LTIP Units Activity (Details) - LTIP Units - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Shares | ||
Beginning balance (in shares) | 0 | 47,620 |
Granted (in shares) | 0 | 247,045 |
Ending balance (in shares) | 0 | 294,665 |
Weighted Average Participation Threshold | ||
Beginning balance (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 0 | |
Ending balance (in dollars per share) | $ 0 |
Equity-based Compensation - Employee Stock Purchase Plan (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
$ / shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividends | 0.00% |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 71.90% |
Expected term | 6 months |
Risk-free rate | 2.20% |
Fair value per unit (in dollars per share) | $ 9.56 |
Equity-based Compensation - Unamortized Equity-based Compensation Costs (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unamortized equity-based compensation cost | $ 409.6 |
Weighted Average Remaining Service Period | 2 years 7 months 6 days |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized equity-based compensation cost, excluding options | $ 0.6 |
Weighted Average Remaining Service Period | 2 months 12 days |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized equity-based compensation cost, excluding options | $ 383.1 |
Weighted Average Remaining Service Period | 2 years 7 months 6 days |
Common Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized equity-based compensation cost, options | $ 0.2 |
Weighted Average Remaining Service Period | 10 months 24 days |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized equity-based compensation cost, excluding options | $ 11.7 |
Weighted Average Remaining Service Period | 1 year 3 months 18 days |
HSKB Incentive Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized equity-based compensation cost, excluding options | $ 0.2 |
Weighted Average Remaining Service Period | 3 months 18 days |
HSKB Phantom Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized equity-based compensation cost, excluding options | $ 13.8 |
Weighted Average Remaining Service Period | 2 years 9 months 18 days |
Tax Receivable Agreements (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Tax Receivable Agreements [Abstract] | ||
Tax benefits realized which must be paid (as a percent) | 85.00% | |
Expected benefit from remaining cash savings (as a percent) | 15.00% | |
Tax receivable agreements liability | $ 3,042.0 | |
Tax receivable agreement payments | 5.0 | $ 0.0 |
Tax receivable agreement remeasurement | $ 9.5 | $ 0.3 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 32,100,000 | $ 45,500,000 | $ 55,600,000 | $ 101,400,000 |
Effective tax rate | 58.10% | |||
Effective tax rate differs from the statutory rate | 21.00% | |||
Unrecognized tax benefits that would impact effective tax rate | $ 0 | $ 0 |
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