QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ____________ to ____________ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices, including zip code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
Item 2. | ||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Long-term investments | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Deferred revenue | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Warrants liability | |||||||||||
Deferred revenue, non-current | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 8) | |||||||||||
Redeemable convertible preferred stock, $ | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Subscription | $ | $ | $ | $ | |||||||||||||||||||
License | |||||||||||||||||||||||
Services | |||||||||||||||||||||||
Product | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Subscription | |||||||||||||||||||||||
License | |||||||||||||||||||||||
Services | |||||||||||||||||||||||
Product | |||||||||||||||||||||||
Total cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general, and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Change in fair value of warrants liability | |||||||||||||||||||||||
Change in fair value of contingent earn-out liability | |||||||||||||||||||||||
Other income (expense), net | ( | ( | |||||||||||||||||||||
Total other income | |||||||||||||||||||||||
Loss before provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Provision for (benefit from) income taxes | ( | ||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per share, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted-average shares used in per share calculation, basic and diluted | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | ( | |||||||||||||||||||||||||
Other comprehensive income (loss) | $ | $ | $ | $ | ( | |||||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock in connection with employee equity incentive plans, net of tax withholding | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock in connection with acquisitions | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock in connection with employee equity incentive plans, net of tax withholding | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock in connection with employee equity incentive plans, net of tax withholding | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock in connection with acquisitions | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | ( | $ | ( | $ |
Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of common stock in connection with employee equity incentive plans, net of tax withholding | ( | — | — | ( | |||||||||||||||||||||||||||||||
Issuance of common stock upon the reverse recapitalization, net of transaction costs | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock to a customer | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of public warrants | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock in connection with acquisitions | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of earn-out shares upon triggering events, net of tax withholding | ( | — | — | ( | |||||||||||||||||||||||||||||||
Earn-out liability recognized upon the re-allocation | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Reclassification of remaining contingent earn-out liability upon triggering events | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of common stock in connection with employee equity incentive plans, net of tax withholding | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock to a customer | — | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock in connection with employee equity incentive plans, net of tax withholding | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock in connection with acquisitions | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | ( | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of investment premiums, net of accretion of discounts | ( | ||||||||||
Stock-based compensation, net of amounts capitalized | |||||||||||
Cease use of certain leased facilities | |||||||||||
Change in fair value of warrants liability | ( | ( | |||||||||
Change in fair value of contingent earn-out liability | ( | ||||||||||
Deferred income taxes | ( | ( | |||||||||
Allowance for doubtful accounts | |||||||||||
Loss of excess inventory and purchase obligation | |||||||||||
Other | ( | ||||||||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable | ( | ||||||||||
Deferred revenue | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Net cash used in operating activities | ( | ( | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Capitalized software and development costs | ( | ( | |||||||||
Purchase of investments | ( | ( | |||||||||
Maturities of investments | |||||||||||
Business acquisitions, net of cash acquired | ( | ( | |||||||||
Net cash provided by investing activities | |||||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from sales of shares through employee equity incentive plans | |||||||||||
Payments for taxes related to net settlement of equity awards | ( | ( | |||||||||
Proceeds from exercise of warrants | |||||||||||
Other | |||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net change in cash, cash equivalents, and restricted cash | ( | ( | |||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||||||
Supplemental disclosures of non-cash investing and financing information | |||||||||||
Earn-out liability recognized upon the re-allocation | $ | $ | |||||||||
Reclassification of remaining contingent Earn-out liability upon triggering events | $ | $ | |||||||||
Common stock issued in connection with acquisition | $ | $ | |||||||||
Unpaid cash consideration in connection with acquisition | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
International | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Over time revenue | $ | $ | $ | $ | |||||||||||||||||||
Point-in-time revenue | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Accounts receivable, net | $ | $ | |||||||||
Unbilled accounts receivable | $ | $ | |||||||||
Deferred revenue | $ | $ |
Amount | |||||
Goodwill | $ | ||||
Identified intangible assets | |||||
Net assets acquired | |||||
Total | $ |
Fair Value | Estimated Useful Life | ||||||||||
Customer Relationships | $ | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2022 | 2022 | ||||||||||
(in thousands, except per share data) | |||||||||||
Total revenue | $ | $ | |||||||||
Net loss | $ | ( | $ | ( | |||||||
Basic earnings per share | $ | ( | $ | ( | |||||||
Diluted earnings per share | $ | ( | $ | ( |
Amount | |||||
Cash (1) | $ | ||||
Common stock ( | |||||
Total | $ |
Amount | |||||
Goodwill | $ | ||||
Identified intangible assets | |||||
Net assets acquired | |||||
Total | $ |
Fair Value | Estimated Useful Life | ||||||||||
Developed technology | $ | ||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||||||||||||
Developed technology | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ |
Amount | |||||
Remaining 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 and thereafter | |||||
Total future amortization expense | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Balance—beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Increase in reserves | ( | ( | ( | ( | |||||||||||||||||||
Write-offs | |||||||||||||||||||||||
Balance—end of period | $ | ( | $ | ( | $ | ( | $ | ( |
September 30, 2023 | December 31, 2022 | ||||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Purchased parts and raw materials | |||||||||||
Total inventories | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Machinery and equipment | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Capitalized software and development costs | |||||||||||
Total property and equipment | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Total property and equipment, net | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Accrued compensation | $ | $ | |||||||||
Tax payable | |||||||||||
ESPP contribution | |||||||||||
Current unpaid acquisition consideration | |||||||||||
Short-term operating lease liabilities | |||||||||||
Accrued loss on firm inventory purchase commitments | |||||||||||
Other current liabilities | |||||||||||
Total accrued expenses and other current liabilities | $ | $ |
September 30, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Total cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Non-U.S. government and agency securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Total short-term investments | $ | $ | $ | $ | |||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Total long-term investments | $ | $ | $ | $ | |||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||
Private warrants liability | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Total cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Non-U.S. government and agency securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Total short-term investments | $ | $ | $ | $ | |||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||
Corporate debt securities | $ | $ | $ | $ | |||||||||||||||||||
Total long-term investments | $ | $ | $ | $ | |||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||
Private warrants liability | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
September 30, 2023 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||
Investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Non-U.S. government and agency securities | ( | ||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Commercial paper | ( | ||||||||||||||||||||||
Total available-for-sale investments | $ | $ | $ | ( | $ |
December 31, 2022 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||
Investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Non-U.S. government and agency securities | ( | ||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Commercial paper | ( | ||||||||||||||||||||||
Total available-for-sale investments | $ | $ | $ | ( | $ |
September 30, 2023 | |||||||||||
Amortized Cost | Fair Value | ||||||||||
Due within one year | $ | $ | |||||||||
Due between one and three years | |||||||||||
Total | $ | $ |
Purchase Obligations | ||||||||
Remainder of 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total | $ |
September 30, 2023 | |||||
Private warrants to purchase common stock | |||||
Common stock options outstanding and unvested RSUs under the Amended and Restated 2011 Stock Incentive Plan | |||||
Shares available for future grant under 2021 Employee Stock Purchase Plan | |||||
Shares available for future grant under 2021 Incentive Award Plan | |||||
Total shares of common stock reserved |
Foreign Currency Translation, Net of Tax | Unrealized Gains/Losses on Available-for-Sale Debt Securities, Net of Tax | Total | |||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | |||||||||||
Net unrealized gain | |||||||||||||||||
Balance at September 30, 2023 | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation, Net of Tax | Unrealized Losses on Available-for-Sale Debt Securities, Net of Tax | Total | |||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | ( | $ | ( | |||||||||||
Net unrealized loss | ( | ( | |||||||||||||||
Balance at September 30, 2022 | $ | ( | $ | ( | $ | ( |
September 30, 2023 | |||||
Current stock price | $ | ||||
Strike price | $ | ||||
Expected term (in years) | |||||
Expected volatility | |||||
Risk-free interest rate | |||||
Expected dividend yield |
Total Warrants Liability | |||||
Fair value at December 31, 2022 | $ | ||||
Change in fair value | ( | ||||
Fair value at September 30, 2023 | $ |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
Balance at December 31, 2021 | $ | ||||
Reallocation of Earn-out Shares to earn-out liability upon forfeitures | |||||
Change in fair value of earn-out liability | ( | ||||
Issuance of Earn-out Shares upon triggering events | ( | ||||
Balance at September 30, 2022 | $ |
Options Outstanding | |||||||||||||||||||||||
Number of Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance—December 31, 2022 | $ | $ | |||||||||||||||||||||
Expired or canceled | ( | ||||||||||||||||||||||
Exercised | ( | $ | |||||||||||||||||||||
Balance—September 30, 2023 | $ | $ | |||||||||||||||||||||
Options vested and exercisable—September 30, 2023 | $ | $ |
RSUs and PRSUs | |||||||||||
Number of Shares | Weighted- Average Grant-Date Fair Value Price Per Share | ||||||||||
Balance—December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Canceled or forfeited | ( | ||||||||||
Balance—September 30, 2023 | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Expected term | |||||||||||
Expected volatility | |||||||||||
Risk-free interest rate | |||||||||||
Expected dividend yield |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general, and administrative | |||||||||||||||||||||||
Stock-based compensation, net of amounts capitalized | |||||||||||||||||||||||
Capitalized stock-based compensation | |||||||||||||||||||||||
Total stock-based compensation | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Numerator : | |||||||||||||||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted | |||||||||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
As of September 30, | |||||||||||
2023 | 2022 | ||||||||||
Private warrants | |||||||||||
Common stock options outstanding | |||||||||||
Unvested RSUs | |||||||||||
ESPP shares | |||||||||||
Total potentially dilutive common stock equivalents |
Severance and Other Personnel Costs | Office Space Reductions(1) | Total | ||||||||||||||||||
Cost of revenue - Subscription | $ | $ | $ | |||||||||||||||||
Cost of revenue - Services | ||||||||||||||||||||
Cost of revenue - Product | ||||||||||||||||||||
Cost of revenue | ||||||||||||||||||||
Research and development | ||||||||||||||||||||
Selling, general, and administrative | ||||||||||||||||||||
Total restructuring charge | $ | $ | $ |
Severance and Other Personnel Costs | Office Space Reductions | Total | ||||||||||||||||||
Cost of revenue - Subscription | $ | 5 | $ | — | $ | 5 | ||||||||||||||
Cost of revenue - Services | 152 | — | 152 | |||||||||||||||||
Cost of revenue - Product | 151 | — | 151 | |||||||||||||||||
Cost of revenue | 308 | — | 308 | |||||||||||||||||
Research and development | 600 | — | 600 | |||||||||||||||||
Selling, general, and administrative | 2,116 | 123 | 2,239 | |||||||||||||||||
$ | 3,024 | $ | 123 | $ | 3,147 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Spaces under management | 11.1 | 8.7 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Free subscribers | 816 | 594 | |||||||||
Paid subscribers | 71 | 63 | |||||||||
Total subscribers | 887 | 657 |
Three Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Net dollar expansion rate | 106 | % | 106 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Subscription | $ | 22,850 | $ | 18,981 | $ | 63,565 | $ | 54,508 | ||||||||||||||||||
License | 28 | 21 | 82 | 70 | ||||||||||||||||||||||
Services | 9,936 | 10,015 | 29,324 | 19,001 | ||||||||||||||||||||||
Product | 7,828 | 8,976 | 25,232 | 21,405 | ||||||||||||||||||||||
Total revenue | 40,642 | 37,993 | 118,203 | 94,984 | ||||||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||||
Subscription | 7,379 | 6,592 | 21,576 | 17,963 | ||||||||||||||||||||||
License | — | — | — | — | ||||||||||||||||||||||
Services | 6,725 | 6,553 | 20,978 | 12,705 | ||||||||||||||||||||||
Product | 6,641 | 8,457 | 23,377 | 24,303 | ||||||||||||||||||||||
Total cost of revenue | 20,745 | 21,602 | 65,931 | 54,971 | ||||||||||||||||||||||
Gross profit | 19,897 | 16,391 | 52,272 | 40,013 | ||||||||||||||||||||||
Gross margin | 49% | 43% | 44% | 42% | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Research and development | 15,577 | 19,084 | 52,711 | 66,604 | ||||||||||||||||||||||
Selling, general, and administrative | 53,719 | 56,293 | 164,660 | 186,527 | ||||||||||||||||||||||
Total operating expenses | 69,296 | 75,377 | 217,371 | 253,131 | ||||||||||||||||||||||
Loss from operations | (49,399) | (58,986) | (165,099) | (213,118) | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | 1,573 | 1,691 | 4,525 | 4,470 | ||||||||||||||||||||||
Change in fair value of warrants liability | 513 | — | 564 | 26,147 | ||||||||||||||||||||||
Change in fair value of contingent earn-out liability | — | — | — | 136,043 | ||||||||||||||||||||||
Other income (expense), net | 2,669 | (981) | 5,075 | (3,655) | ||||||||||||||||||||||
Total other income | 4,755 | 710 | 10,164 | 163,005 | ||||||||||||||||||||||
Loss before provision for income taxes | (44,644) | (58,276) | (154,935) | (50,113) | ||||||||||||||||||||||
Provision for (benefit from) income taxes | 110 | (17) | 197 | 876 | ||||||||||||||||||||||
Net loss | $ | (44,754) | $ | (58,259) | $ | (155,132) | $ | (50,989) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription | $ | 22,850 | $ | 18,981 | $ | 3,869 | 20 | % | $ | 63,565 | $ | 54,508 | $ | 9,057 | 17 | % | |||||||||||||||||||||||||||||||
License | 28 | 21 | 7 | 33 | % | 82 | 70 | 12 | 17 | % | |||||||||||||||||||||||||||||||||||||
Services | 9,936 | 10,015 | (79) | (1) | % | 29,324 | 19,001 | 10,323 | 54 | % | |||||||||||||||||||||||||||||||||||||
Product | 7,828 | 8,976 | (1,148) | (13) | % | 25,232 | 21,405 | 3,827 | 18 | % | |||||||||||||||||||||||||||||||||||||
Total revenue | $ | 40,642 | $ | 37,993 | $ | 2,649 | 7 | % | $ | 118,203 | $ | 94,984 | $ | 23,219 | 24 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Cost of subscription revenue | $ | 7,379 | $ | 6,592 | $ | 787 | 12 | % | $ | 21,576 | $ | 17,963 | $ | 3,613 | 20 | % | |||||||||||||||||||||||||||||||
Cost of license revenue | — | — | — | — | % | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||
Cost of services revenue | 6,725 | 6,553 | 172 | 3 | % | 20,978 | 12,705 | 8,273 | 65 | % | |||||||||||||||||||||||||||||||||||||
Cost of products revenue | 6,641 | 8,457 | (1,816) | (21) | % | 23,377 | 24,303 | (926) | (4) | % | |||||||||||||||||||||||||||||||||||||
Total cost of revenue | $ | 20,745 | $ | 21,602 | $ | (857) | (4) | % | $ | 65,931 | $ | 54,971 | $ | 10,960 | 20 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Gross profit | $ | 19,897 | $ | 16,391 | $ | 52,272 | $ | 40,013 | |||||||||||||||
Gross margin | 49% | 43% | 44% | 42% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development expenses | $ | 15,577 | $ | 19,084 | $ | (3,507) | (18) | % | $ | 52,711 | $ | 66,604 | $ | (13,893) | (21) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 53,719 | $ | 56,293 | $ | (2,574) | (5) | % | $ | 164,660 | $ | 186,527 | $ | (21,867) | (12) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest income | $ | 1,573 | $ | 1,691 | $ | 4,525 | $ | 4,470 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Change in fair value of warrants liability | $ | 513 | $ | — | $ | 564 | $ | 26,147 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Change in fair value of contingent earn-out liability | $ | — | $ | — | $ | — | $ | 136,043 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Other income (expense), net | $ | 2,669 | $ | (981) | $ | 5,075 | $ | (3,655) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Provision for income taxes | $ | 110 | $ | (17) | $ | 197 | $ | 876 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
GAAP loss from operations | $ | (49,399) | $ | (58,986) | $ | (165,099) | $ | (213,118) | |||||||||||||||
Add back: stock based compensation expense, net | 29,721 | 30,671 | 97,281 | 119,648 | |||||||||||||||||||
Add back: restructuring charges | 3,147 | — | 3,147 | — | |||||||||||||||||||
Add back: acquisition-related costs | — | 222 | — | 1,294 | |||||||||||||||||||
Add back: amortization expense of acquired intangible assets | 443 | 443 | 1,329 | 968 | |||||||||||||||||||
Add back: payroll tax related to contingent earn-out share issuance | — | — | — | 1,164 | |||||||||||||||||||
Non-GAAP loss from operations | $ | (16,088) | $ | (27,650) | $ | (63,342) | $ | (90,044) |
Nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Net cash used in operating activities | $ | (48,317) | $ | (99,358) | |||||||
Less: purchases of property and equipment | 112 | 1,417 | |||||||||
Less: capitalized software and development costs | 7,528 | 9,890 | |||||||||
Free cash flow | $ | (55,957) | $ | (110,665) |
September 30, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Cash, cash equivalents, and investments: | |||||||||||
Cash and cash equivalents | $ | 80,142 | $ | 117,128 | |||||||
Investments | 349,563 | 359,774 | |||||||||
Total cash, cash equivalents, and investments | $ | 429,705 | $ | 476,902 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash provided by (used in): | |||||||||||
Operating activities | $ | (48,317) | $ | (99,358) | |||||||
Investing activities | $ | 8,326 | $ | 43,063 | |||||||
Financing activities | $ | 2,980 | $ | (1,212) |
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed Herewith | |||||||||||||||||
2.1† | 8-K | 001-39790 | 2.1 | 7/28/2021 | |||||||||||||||||||
3.1 | 8-K | 001-39790 | 3.1 | 7/28/2021 | |||||||||||||||||||
3.2 | 8-K | 001-39790 | 3.2 | 7/28/2021 | |||||||||||||||||||
4.1 | 8-K | 001-39790 | 4.1 | 12/16/2020 | |||||||||||||||||||
4.2 | 8-K | 001-39790 | 4.3 | 7/28/2021 | |||||||||||||||||||
31.1 | * | ||||||||||||||||||||||
31.2 | * | ||||||||||||||||||||||
32.1 | * | ||||||||||||||||||||||
32.2 | * | ||||||||||||||||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. | * | |||||||||||||||||||||
101.SCH | 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. | * | |||||||||||||||||||||
Exhibit 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
MATTERPORT, INC. | |||||||||||
Date: November 7, 2023 | By: | /s/ R.J. Pittman | |||||||||
R.J. Pittman | |||||||||||
Chief Executive Officer | |||||||||||
(Duly Authorized Officer and Principal Executive Officer) |
Date: November 7, 2023 | By: | /s/ R.J. Pittman | |||||||||
R.J. Pittman | |||||||||||
Chief Executive Officer |
Date: November 7, 2023 | By: | /s/ James D. Fay | |||||||||
James D. Fay | |||||||||||
Chief Financial Officer |
Date: November 7, 2023 | By: | /s/ R.J. Pittman | |||||||||
R.J. Pittman | |||||||||||
Chief Executive Officer |
Date: November 7, 2023 | By: | /s/ James D. Fay | |||||||||
James D. Fay | |||||||||||
Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 897,000 | $ 1,212,000 |
Redeemable convertible preferred stock, par value ($ per share) | $ 0.0001 | $ 0.0001 |
Redeemable convertible preferred, authorized (shares) | 30,000,000 | 30,000,000 |
Redeemable convertible preferred, issued (shares) | 0 | 0 |
Redeemable convertible preferred, outstanding (shares) | 0 | 0 |
Common stock, par value ($ per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (shares) | 640,000,000 | 640,000,000 |
Common stock, issued (shares) | 305,562,000 | 290,541,000 |
Common stock, outstanding (shares) | 305,562,000 | 290,541,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Total revenue | $ 40,642 | $ 37,993 | $ 118,203 | $ 94,984 |
Total cost of revenue | 20,745 | 21,602 | 65,931 | 54,971 |
Gross profit | 19,897 | 16,391 | 52,272 | 40,013 |
Operating expenses: | ||||
Research and development | 15,577 | 19,084 | 52,711 | 66,604 |
Selling, general, and administrative | 53,719 | 56,293 | 164,660 | 186,527 |
Total operating expenses | 69,296 | 75,377 | 217,371 | 253,131 |
Loss from operations | (49,399) | (58,986) | (165,099) | (213,118) |
Other income (expense): | ||||
Interest income | 1,573 | 1,691 | 4,525 | 4,470 |
Change in fair value of warrants liability | 513 | 0 | 564 | 26,147 |
Change in fair value of contingent earn-out liability | 0 | 0 | 0 | 136,043 |
Other income (expense), net | 2,669 | (981) | 5,075 | (3,655) |
Total other income | 4,755 | 710 | 10,164 | 163,005 |
Loss before provision for income taxes | (44,644) | (58,276) | (154,935) | (50,113) |
Provision for (benefit from) income taxes | 110 | (17) | 197 | 876 |
Net loss | $ (44,754) | $ (58,259) | $ (155,132) | $ (50,989) |
Net loss per share, basic and diluted | ||||
Basic ($ per share) | $ (0.15) | $ (0.20) | $ (0.52) | $ (0.18) |
Diluted ($ per share) | $ (0.15) | $ (0.20) | $ (0.52) | $ (0.18) |
Weighted-average shares used in per share calculation, basic and diluted | ||||
Basic (shares) | 303,432 | 286,458 | 298,226 | 281,729 |
Diluted (shares) | 303,432 | 286,458 | 298,226 | 281,729 |
Subscription | ||||
Total revenue | $ 22,850 | $ 18,981 | $ 63,565 | $ 54,508 |
Total cost of revenue | 7,379 | 6,592 | 21,576 | 17,963 |
License | ||||
Total revenue | 28 | 21 | 82 | 70 |
Total cost of revenue | 0 | 0 | 0 | 0 |
Services | ||||
Total revenue | 9,936 | 10,015 | 29,324 | 19,001 |
Total cost of revenue | 6,725 | 6,553 | 20,978 | 12,705 |
Product | ||||
Total revenue | 7,828 | 8,976 | 25,232 | 21,405 |
Total cost of revenue | $ 6,641 | $ 8,457 | $ 23,377 | $ 24,303 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (44,754) | $ (58,259) | $ (155,132) | $ (50,989) |
Other comprehensive income (loss), net of taxes: | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 514 | 72 | 4,435 | (6,039) |
Other comprehensive income (loss) | 514 | 72 | 4,435 | (6,039) |
Comprehensive loss | $ (44,240) | $ (58,187) | $ (150,697) | $ (57,028) |
ORGANIZATION AND DESCRIPTION OF BUSINESS |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESS Matterport, Inc., together with its subsidiaries (“Matterport” or the “Company”), is leading the digitization and datafication of the built world. Matterport’s pioneering technology has set the standard for digitizing, accessing and managing buildings, spaces and places online. Matterport’s platform, comprised of innovative software, spatial data-driven data science, and 3D capture technology, has broken down the barriers that have kept the largest asset class in the world, buildings and physical spaces, offline and underutilized for so long. The Company was incorporated in the state of Delaware in 2011. The Company is headquartered at Sunnyvale, California. On July 22, 2021 (the “Closing Date”), the Company consummated the merger (collectively with the other transactions described in the Merger Agreement, the “Merger”, “Closing”, or “Transactions”) pursuant to an Agreement and Plan of Merger, dated February 7, 2021 (the “Merger Agreement”), by and among the Company (formerly known as Gores Holdings VI, Inc.), the pre-Merger Matterport, Inc. (now known as Matterport Operating, LLC) (“Legacy Matterport”), Maker Merger Sub, Inc. (“First Merger Sub”), a direct, wholly owned subsidiary of the Company, and Maker Merger Sub II, LLC (“Second Merger Sub”), a direct, wholly owned subsidiary of the Company, pursuant to which First Merger Sub merged with and into Legacy Matterport, with Legacy Matterport continuing as the surviving corporation (the “First Merger”), and immediately following the First Merger and as part of the same overall transaction as the First Merger, Legacy Matterport merged with and into Second Merger Sub, with Second Merger Sub continuing as the surviving entity as a wholly owned subsidiary of the Company, under the new name “Matterport Operating, LLC”. Upon the closing of the Merger, we changed our name to Matterport, Inc. Unless the context otherwise requires, the “Company” refers to the combined company and its subsidiaries following the Merger, “Gores” refers to the Company prior to the Merger and “Legacy Matterport” refers to Matterport, Inc. prior to the Merger.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in “Note 2 - Summary of Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 28, 2023. There have been no significant changes to these policies during the three and nine months ended September 30, 2023. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC, regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s 2022 Form 10-K for the fiscal year ended December 31, 2022, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2023, and its results of operations for the three and nine months ended September 30, 2023 and 2022, and cash flows for the nine months ended September 30, 2023 and 2022. The condensed consolidated balance sheet as of December 31, 2022, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the condensed consolidated financial statements and accompanying notes. Significant estimates include assumptions related to the fair value of common stock before the Merger and other assumptions used to measure stock-based compensation, fair value of assets acquired and liabilities assumed in business combinations, fair value of identified intangibles, goodwill impairment, valuation of deferred tax assets, the estimate of net realizable value of inventory, allowance for doubtful accounts, the fair value of warrants liability, loss contingencies, and the determination of stand-alone selling price of various performance obligations. As a result, many of the Company’s estimates and assumptions required increased judgment and these estimates may change materially in future periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and various other factors, including the current economic environment, which management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company adjusts such estimates and assumptions when dictated by facts and circumstances. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the condensed consolidated financial statements in future periods. Actual results may differ materially from those estimates. Segment Information The Company has a single operating segment and reportable segment. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 3 for information regarding the Company’s revenue by geography. Substantially all of the Company’s long-lived assets are located in the United States. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company maintains its cash balances in accounts held by major banks and financial institutions located in the United States. Such bank deposits from time to time may be exposed to credit risk in excess of the Federal Deposit Insurance Corporation insurance limit, and the Company considers such risk to be minimal. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale investments in fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits. The Company’s accounts receivable is derived from customers located both inside and outside the United States. The Company mitigates its credit risks by performing ongoing credit evaluations of the financial condition of its customers and requires advance payment from customers in certain circumstances. The Company generally does not require collateral from its customers. No customer accounted for more than 10% of the Company’s total accounts receivable at September 30, 2023 and December 31, 2022. No customer accounted for more than 10% of the Company’s total revenue for the three and nine months ended September 30, 2023 and 2022. Restructuring Costs The Company’s restructuring costs consist of a one-time payment of termination benefits and the ongoing cost of benefits related to the reduction of its workforce and other costs, and the charges related to the cease use of certain facilities to align with the Company’s anticipated operating needs. The timing of recognition for severance costs depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefit costs covered by existing benefit arrangements are recognized when management has committed to a restructuring plan and has determined the severance costs are probable and estimable. Other costs primarily consist of cease use charges for the related operating lease right-of-use assets for office leases, which are recognized ratably from the decision date to the cease-use date. Recently Adopted Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contract with Customers, as if it had originated the contracts. The Company adopted this standard effective January 1, 2023, which did not have a material impact on the Company’s condensed consolidated financial statements.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE Disaggregated Revenue—The following table shows the revenue by geography for the three and nine months ended September 30, 2023 and 2022, respectively (in thousands):
No country other than the United States accounted for more than 10% of the Company’s revenue for the three and nine months ended September 30, 2023 and 2022, respectively. The geographical revenue information is determined by the ship-to address of the products and the billing address of the customers of the services. The following table shows over time versus point-in-time revenue for the three and nine months ended September 30, 2023 and 2022, respectively (in thousands):
Contract Asset and Liability Balances—Contract assets consist of unbilled accounts receivable and are recorded when revenue is recognized in advance of scheduled billings. The timing of revenue recognition differs from the timing of invoicing to customers and this timing difference results in contract liabilities (deferred revenue) on the Company’s condensed consolidated balance sheets. The accounts receivable and contract balances as of September 30, 2023 and December 31, 2022 were as follows (in thousands):
During the nine months ended September 30, 2023 and 2022, the Company recognized revenue of $13.3 million and $8.6 million that was included in the deferred revenue balance at the beginning of the fiscal year, respectively. Contracted but unsatisfied performance obligations were $62.0 million at the end of September 30, 2023 and consisted of deferred revenue and backlog. The contracted but unsatisfied or partially unsatisfied performance obligations expected to be recognized over the next 12 months at the end of September 30, 2023 were $41.7 million, and the remaining obligations are expected to be recognized thereafter.
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ACQUISITIONS |
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ACQUISITIONS | ACQUISITIONS VHT, Inc. Acquisition On June 10, 2022, the Company entered into an Agreement and Plan of Merger (the “Purchase Agreement”) with VHT, Inc. (“VHT”), known as VHT Studios, a U.S.-based real estate marketing company that offers brokerages and agents digital solutions to promote and sell properties. On July 7, 2022 (the “VHT Acquisition Date”), pursuant to the Purchase Agreement, the Company completed the acquisition of VHT (the “VHT Acquisition”), which expands Matterport Capture Services by bringing together Matterport digital twins with professional photography, drone capture and marketing services. With this acquisition, the Company aims to increase adoption of digital twin technology and expand further into the residential real estate industry while adding marketing services for other key markets such as commercial real estate, travel and hospitality, and the retail sector. Under the terms of the Purchase Agreement, the consideration consisted of an all-cash purchase price of $23.0 million subject to certain adjustments based on a determination of closing net working capital, transaction expenses, cash and investments and closing indebtedness. The total purchase consideration for the VHT Acquisition was $22.7 million. The Company has accounted for the VHT Acquisition as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on the estimated fair values at the VHT Acquisition Date, as presented in the following table (in thousands):
Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from leveraging VHT’s customer relationships. The goodwill is not deductible for income tax purposes. The following table summarizes the preliminary estimated fair values and estimated useful lives of the components of identifiable intangible assets acquired as of the VHT Acquisition Date (in thousands, except years):
Customer relationships represent the fair value of future projected revenue that will be derived from sales to existing customers of VHT. The economic useful life was determined based on historical customer turnover rates and industry benchmarks. The fair value of customer relationships was estimated using the multi-period excess earnings method, an income approach (Level 3), which converts projected revenues and costs into cash flows. Significant assumptions used in the discounted cash flow analysis for direct customer relationships were the revenue growth rate, customer attrition rate, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margins, and discount rate. Unaudited Pro Forma Financial Information The following table summarizes the pro forma consolidated information for the Company assuming the acquisition of VHT had occurred as of January 1, 2021. The unaudited pro forma information for all periods presented includes the business combination accounting effects resulting from the acquisition, including amortization for intangible assets acquired and acquisition-related charges. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal year 2021.
Enview Inc. Acquisition On January 5, 2022 (the “Enview Acquisition Date”), the Company completed the acquisition (the “Enview Acquisition”) of Enview, Inc. (“Enview”), a privately-held company engaged in the development of artificial intelligence algorithms to identify natural and man-made features in geospatial data using various techniques. The total purchase consideration for the Enview Acquisition was $64.3 million, including an insignificant working capital adjustment finalized during the measurement period that reduced the purchase price for Enview. The total purchase consideration consisted of the following (in thousands):
(1) The Company paid $2.4 million and $4.3 million in cash consideration during the three and nine months ended September 30, 2023, respectively and nil and $35.0 million in cash consideration during the three and nine months ended September 30, 2022. (2) On the Enview Acquisition Date, the Company's closing stock price was $15.73 per share. The Company issued 0.1 million and 0.4 million shares during the three and nine months ended September 30, 2023, respectively, and nil and 1.2 million shares during the three and nine months ended September 30, 2022. The Company has accounted for the Enview Acquisition as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on the fair values at the Enview Acquisition Date. The purchase price allocation includes adjustments for additional information that existed as of the Acquisition Date but at that time was unknown and became known during the measurement period of 12 months from the Acquisition Date. The following table summarizes the allocation of purchase consideration on the Enview Acquisition Date, inclusive of measurement period adjustments (in thousands):
Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating Enview technology with Matterport’s products and services. The goodwill is not deductible for income tax purposes. The following table summarizes the estimated fair values and estimated useful lives of the components of identifiable intangible assets acquired as of the Enview Acquisition Date (in thousands, except years):
Developed technology relates to existing Enview technology of its artificial intelligence algorithms to identify natural and man-made features in geospatial data. The economic useful life was determined based on the technology cycle related to the developed technology of existing services, as well as the cash flows anticipated over the forecasted periods. The fair value of developed technology was estimated using the multi-period excess earnings method, an income approach (Level 3), which converts projected revenues and costs into cash flows. Significant assumptions used in the discounted cash flow analysis for the developed technology were the revenue growth rates, EBITDA margins, obsolescence technology factor, and discount rate. Pro forma results of operations have not been presented because the effects of the Enview Acquisition were not material to the Company’s condensed consolidated statements of operations. Acquisition-related transaction costs are expensed as incurred and are recorded in selling, general, and administrative expenses in the Condensed Consolidated Statements of Operations. The Company incurred $0.2 million and $1.6 million of acquisition-related costs for the three and nine months ended September 30, 2022, respectively. There were no acquisition-related costs incurred for the three and nine months ended September 30, 2023.
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GOODWILL AND INTANGIBLE ASSETS |
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GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill—As of September 30, 2023 and December 31, 2022, goodwill was $69.6 million. The Company did not recognize any impairment losses on goodwill during the three and nine months ended September 30, 2023 and 2022, respectively. Purchased Intangible Assets—The following table presents details of the Company’s purchased intangible assets as of September 30, 2023 and December 31, 2022 (in thousands).
The Company recognized amortization expense of $0.4 million and $0.5 million for the three months ended September 30, 2023 and 2022, respectively, and $1.3 million and $1.0 million for the nine months ended September 30, 2023 and 2022, respectively. The Company did not recognize any impairment losses on intangible assets or other long-lived assets during the three and nine months ended September 30, 2023 and 2022, respectively. The following table summarizes estimated future amortization expense for the Company’s intangible assets as of September 30, 2023 (in thousands):
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BALANCE SHEET COMPONENTS |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Allowance for Doubtful Accounts—Allowance for doubtful accounts as of September 30, 2023 and 2022 and the rollforward for three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
Inventories—Inventories as of September 30, 2023 and December 31, 2022, consisted of the following (in thousands):
Property and Equipment, Net—Property and equipment as of September 30, 2023 and December 31, 2022, consisted of the following (in thousands):
Depreciation and amortization expenses of property and equipment were $4.6 million and $3.3 million for the three months ended September 30, 2023 and 2022, respectively, and $12.8 million and $8.3 million for the nine months ended September 30, 2023 and 2022, respectively. Additions to capitalized software and development costs, inclusive of stock-based compensation in the three months ended September 30, 2023 and 2022 were $4.7 million and $5.7 million, respectively. Additions to capitalized software and development costs, inclusive of stock-based compensation in the nine months ended September 30, 2023 and 2022 were $15.0 million and $21.4 million, respectively. These are recorded as part of property and equipment, net on the condensed consolidated balance sheets. Amortization expense was $4.4 million and $3.0 million for three months ended September 30, 2023 and 2022, respectively, of which $4.0 million and $2.8 million was recorded to cost of revenue related to subscription and $0.4 million and $0.2 million to selling, general and administrative in the condensed consolidated statements of operations, respectively. Amortization expense was $12.2 million and $7.8 million for the nine months ended September 30, 2023 and 2022, respectively, of which $11.2 million and $7.0 million was recorded to cost of revenue related to subscription and $1.0 million and $0.8 million to selling, general and administrative in the condensed consolidated statements of operations, respectively. Accrued Expenses and Other Current Liabilities—Accrued expenses and other current liabilities as of September 30, 2023 and December 31, 2022, consisted of the following (in thousands):
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We categorize assets and liabilities recorded or disclosed at fair value on our condensed consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: Level 1—Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The inputs require significant management judgment or estimation. The Company’s financial assets and liabilities that were measured at fair value on a recurring basis were as follows (in thousands):
Available-for-sale Debt Securities The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale debt securities as of September 30, 2023 and December 31, 2022 (in thousands):
As of September 30, 2023, the gross unrealized losses of $0.5 million are substantially all in a continuous unrealized loss position for less than 12 months, which were related to $341.6 million of available-for-sale debt securities. As of December 31, 2022, the gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months were $0.2 million, which were related to $49.4 million of available-for-sale debt securities, and the gross unrealized losses that have been in a continuous unrealized loss position for more than 12 months were $4.8 million, which were related to $291.0 million of available-for-sale debt securities. Unrealized losses related to these securities are due to interest rate fluctuations as opposed to credit quality. In addition, we do not intend to sell and it is not likely that we would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity. We did not recognize any credit losses related to our available-for sale debt securities during the three and nine months ended September 30, 2023 and 2022. The following table summarizes the amortized cost and fair value of our available-for-sale debt securities as of September 30, 2023, by contractual years-to-maturity (in thousands):
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COMMITMENTS AND CONTINGENCIES |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Obligation—The Company has purchase obligations, which include agreements and issued purchase orders containing non-cancelable payment terms to purchase goods and services. As of September 30, 2023, future minimum purchase obligations are as follows (in thousands):
Litigation—The Company is named from time to time as a party to lawsuits and other types of legal proceedings and claims in the normal course of business. The Company accrues for contingencies when it believes that a loss is probable and that it can reasonably estimate the amount of any such loss. On July 23, 2021, plaintiff William J. Brown, a former employee and a shareholder of Matterport, Inc. (now known as Matterport Operating, LLC) (“Legacy Matterport”), sued Legacy Matterport, Gores Holdings VI, Inc. (now known as Matterport, Inc.), Maker Merger Sub Inc., Maker Merger Sub II, LLC, and Legacy Matterport directors R.J. Pittman, David Gausebeck, Matt Bell, Peter Hebert, Jason Krikorian, Carlos Kokron and Michael Gustafson (collectively, the “Defendants”) in the Court of Chancery of the State of Delaware. The plaintiff’s initial complaint claimed that Defendants imposed invalid transfer restrictions on his shares of Matterport stock in connection with the merger transactions between Matterport, Inc. and Legacy Matterport (the “Transfer Restrictions”), and that Legacy Matterport’s board of directors violated their fiduciary duties in connection with a purportedly misleading letter of transmittal. The initial complaint sought damages and costs, as well as a declaration from the court that he may freely transfer his shares of Class A common stock of Matterport received in connection with the merger transactions. An expedited trial regarding the facial validity of the Transfer Restrictions took place in December 2021. On January 11, 2022, the court issued a ruling that the Transfer Restrictions did not apply to the plaintiff. The opinion did not address the validity of the Transfer Restrictions more broadly. Matterport filed a notice of appeal of the court’s ruling on February 8, 2022, and a hearing was held in front of the Delaware Supreme Court on July 13, 2022, after which the appellate court affirmed the lower court’s ruling. Separate proceedings regarding the plaintiff’s remaining claims are pending. The plaintiff filed a Third Amended Complaint on September 16, 2022, which asserts the causes of action described above but omits as defendants Maker Merger Sub Inc., Maker Merger Sub II, LLC, and Legacy Matterport directors David Gausebeck, Matt Bell, and Carlos Kokron, and adds an additional cause of action alleging that Matterport, Inc. violated the Delaware Uniform Commercial Code by failing to timely register Brown’s requested transfer of Matterport, Inc. shares. The remaining defendants’ answer to the Third Amended Complaint was filed on November 9, 2022, and the parties have completed discovery. Trial is scheduled to begin November 13, 2023. On July 20, 2021, the Company, then operating under the name Gores Holdings VI, Inc., held a special meeting of stockholders (the “2021 Special Meeting”) in lieu of the 2021 annual meeting of the Company’s stockholders to approve certain matters relating to its proposed business combination with Matterport, Inc., Maker Merger Sub, Inc. and Maker Merger Sub II, LLC. One of these matters was a proposal to adopt the Second Amended and Restated Certificate of Incorporation of the Company (the “New Certificate of Incorporation”), which, among other things, increased the total number of authorized shares of the Company’s Class A common stock, par value $0.0001 per share (the “Class A common stock”), from 400,000,000 shares to 600,000,000 shares. The New Certificate of Incorporation was approved by a majority of the shares of Class A common stock and the Company’s Class F common stock, par value $0.0001 per share (the “Class F common stock”), voting together as a single class, that were outstanding as of the record date for the 2021 Special Meeting. After the 2021 Special Meeting, the business combination was consummated and the New Certificate of Incorporation became effective. A December 2022 decision of the Delaware Court of Chancery (the “Court of Chancery”) has created uncertainty as to whether Section 242(b)(2) of the Delaware General Corporation Law (“DGCL”) would have required the New Certificate of Incorporation to be approved by a separate vote of the majority of the Company’s then-outstanding shares of Class A common stock, in addition to a majority of the shares of Class A common stock and Class F common stock voting together. The Company continues to believe that a separate vote of Class A common stock was not required to approve the New Certificate of Incorporation. However, in light of the recent Court of Chancery decision, on February 16, 2023 the Company filed a petition (the “Petition”) in the Court of Chancery pursuant to Section 205 of the DGCL seeking validation of the New Certificate of Incorporation, and the shares issued in reliance on the effectiveness of the New Certificate of Incorporation to resolve any uncertainty with respect to those matters. Section 205 of the DGCL permits the Court of Chancery, in its discretion, to ratify and validate potentially defective corporate acts and stock after considering a variety of factors. On March 14, 2023, the Court of Chancery granted the Petition validating the New Certificate of Incorporation and all shares of capital stock issued in reliance on the effectiveness of the New Certificate of Incorporation. On May 11, 2020, Redfin Corporation (“Redfin”) was served with a complaint by Appliance Computing, Inc. III, d/b/a Surefield (“Surefield”), filed in the United States District Court for the Western District of Texas, Waco Division. In the complaint, Surefield asserted that Redfin’s use of Matterport’s 3D-Walkthrough technology infringes four of Surefield’s patents. Redfin has asserted defenses in the litigation that the patents in question are invalid and have not been infringed upon. We have agreed to indemnify Redfin for this matter pursuant to our existing agreements with Redfin. The parties have vigorously defended against this litigation. The matter went to jury trial in May 2022 and resulted in a jury verdict finding that Redfin had not infringed upon any of the asserted patent claims and that all asserted patent claims were invalid. Final judgment was entered on August 15, 2022. On September 12, 2022, Surefield filed post trial motions seeking to reverse the jury verdict. Redfin has filed oppositions to the motions. In addition, on May 16, 2022, the Company filed a declaratory judgment action against Appliance Computing III, Inc., d/b/a Surefield, seeking a declaratory judgment that the Company had not infringed upon the four patents asserted against Redfin and one additional, related patent. The matter is pending in the Western District of Washington and captioned Matterport, Inc. v. Appliance Computing III, Inc. d/b/a Surefield, Case No. 2:22-cv-00669 (W.D. Wash.). Surefield has filed a motion to dismiss or in the alternative transfer the case to the United States District Court for the Western District of Texas. The Company filed an opposition to the motion. On August 28, 2023, the Court denied Surefield’s motion to dismiss but stayed the action pending the resolution of the Texas case. On January 29, 2021, Legacy Matterport received a voluntary request for information from the Division of Enforcement of the SEC relating to certain sales and repurchases of its securities in the secondary market. We believe we have complied fully with the request. We have not received any updates from the SEC as to the scope, duration or ultimate resolution of the investigation. The Company monitors developments in these legal matters that could affect the estimate if the Company had previously accrued. As of September 30, 2023 and December 31, 2022, there were no amounts accrued that the Company believes would be material to its financial position. Indemnification—In the ordinary course of business, the Company enters into certain agreements that provide for indemnification by the Company of varying scope and terms to customers, vendors, directors, officers, employees and other parties with respect to certain matters. Indemnification includes losses from breach of such agreements, services provided by the Company, or third-party intellectual property infringement claims. These indemnities may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments, in some circumstances, are not subject to a cap. As of September 30, 2023, there were no known events or circumstances that have resulted in a material indemnification liability.
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STOCKHOLDERS’ EQUITY |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY The Company had reserved shares of common stock for future issuance as of September 30, 2023 as follows (in thousands):
Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss by component, net of tax (in thousands):
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PUBLIC AND PRIVATE WARRANTS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PUBLIC AND PRIVATE WARRANTS | PUBLIC AND PRIVATE WARRANTS Prior to the Closing, Gores issued 6,900,000 Public Warrants and 4,450,000 Private Warrants. Each whole warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustments. The Warrants became exercisable on December 15, 2021 and will expire on July 22, 2026, which is five years after the Closing. On January 14, 2022, the Public Warrants ceased trading on the Nasdaq Global Market. As of the Redemption Date of January 14, 2022, a total of 9.1 million shares of Common Stock have been issued upon the exercise of 6.4 million Public Warrants and 2.7 million Private Warrants by the holders thereof at an exercise price of $11.50 per share, resulting in aggregate proceeds to Matterport of $104.4 million, including 7.1 million shares issued upon the exercise of Public Warrants and Private Warrants by the holders with a total proceeds of $76.6 million received during the year ended December 31, 2021 and 2.0 million shares issued upon the exercise of 2.0 million Public Warrants with a total proceeds of $27.8 million received in January 2022. The remaining 0.6 million unexercised and outstanding Public Warrants as of 5:00 p.m. January 14, 2022 New York City time were redeemed at a price of $0.01 per Public Warrant and, as a result, no Public Warrants remained outstanding thereafter. Warrants to purchase Common Stock that were issued under the Warrant Agreement in a private placement simultaneously with the Company’s initial public offering and that are still held by the initial holders thereof or their permitted transferees were not subject to this redemption. A total of 1.7 million Private Warrants remained outstanding as of September 30, 2023 and December 31, 2022. No Private Warrants have been exercised during the three and nine months ended September 30, 2023. The Public Warrants were classified as Level 1 because there was adequate trading volume to provide a reliable indication of value from the Closing Date to the Redemption Date. The Private Warrants were classified as Level 2, from the Closing Date until the Redemption Date, because the Private Warrants had similar terms and were subject to substantially the same redemption features as the Public Warrants. The fair value of the Private Warrants was deemed to be substantially the same as the fair value of the Public Warrants. Both the Public Warrants and the Private Warrants were valued at $2.00 per unit as of the Redemption Date. Upon the ceasing of trading of the Public Warrants on the Redemption Date, the fair value measurement of Private Warrants transferred from Level 2 to Level 3 and the Company used a Black Scholes model to determine the fair value of the Private Warrants. The primary significant unobservable input used to evaluate the fair value measurement of the Company’s Private Warrants is the expected volatility of the ordinary shares. Significant increase or decrease in the expected volatility in isolation would result in a significant change in fair value measurement. The Private Warrants were valued at $0.14 per unit as of September 30, 2023. The following table provides the assumptions used to estimate the fair value of the Private Warrants as of September 30, 2023:
The Private Warrants are measured for fair value at the end of each quarter. The following table presents the changes in the warrants liability as of September 30, 2023 (in thousands):
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CONTINGENT EARN-OUT AWARDS |
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Reverse Recapitalization [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
CONTINGENT EARN-OUT AWARDS | CONTINGENT EARN-OUT AWARDS Legacy Matterport stockholders and certain holders of Legacy Matterport Stock Options and RSUs were entitled to receive a number of Earn-out Shares comprising up to 23.5 million shares of Class A common stock in the aggregate. There are six distinct tranches, and each tranche has 3,910,000 Earn-out Shares. Pursuant to the Merger Agreement, Common Share Price means the share price equal to the volume weighted average price of the Matterport Class A common stock for a period of at least 10 days out of 30 consecutive trading days ending on the trading day immediately prior to the date of determination. If the Common Share Price exceeds $13.00, $15.50, $18.00, $20.50, $23.00, and $25.50, the Earn-out Shares are issuable during the period beginning on the 180th day following the Closing and ending on the fifth anniversary of such date (the “Earn-out Period”). The Earn-out Shares are subject to early release if a change of control that will result in the holders of the Company common stock receiving a per share price equal to or in excess of the price target as above (collectively, the “Earn-Out Triggering Events”). Any Earn-out Shares issuable to any holder of Matterport Stock Options and Matterport RSUs in respect of such Matterport Stock Options and Matterport RSUs shall be issued to such holder only if such holder continues to provide services to the Post-Combination Company through the date of the occurrence of the corresponding triggering event that causes such Earn-out Shares to become issuable. Any Earn-out Shares that are forfeited pursuant to the preceding sentence shall be reallocated to the other Legacy Matterport stockholders and Legacy Matterport stock options and RSUs holders who remain entitled to receive Earn-out Shares in accordance with their respective Earn-out pro rata shares. At the Closing, the estimated fair value of the total Earn-out Shares was $294.8 million. The contingent obligation to issue Earn-out Shares to Legacy Matterport stockholders was accounted for as a liability because the Earn-out Triggering Events that determine the number of Earn-out Shares required to be issued include events that are not solely indexed to the Common Stock of Matterport, Inc. The Earn-out pro rata Shares issuable to holders of Legacy Matterport’s RSUs and holders of Legacy Matterport’s Stock Options are accounted for as a stock-based compensation expense as they are subject to forfeiture based on the satisfaction of certain employment conditions, see Note 12 “Stock Plan” for more information. The Company recognized $231.6 million of contingent earn-out liability attributable to the Earn-out Shares to Matterport legacy Stockholders upon the Closing on July 22, 2021. On January 18, 2022, all six Earn-out Triggering Events for issuing up to 23.5 million Earn-out Shares occurred. A total of 18.8 million shares of common stock became issuable to the eligible Matterport legacy Stockholders. Another total of 4.7 million pro rata Earn-out Shares became issuable to holders of Matterport's eligible legacy RSU and options holders were immediately vested. The Company issued an aggregate of 21.5 million Earn-out Shares to the eligible Legacy Matterport stockholders and Legacy Matterport RSU and stock option holders, which reflects the withholding of approximately 2.0 million Earn-out Shares to cover tax obligations during the nine months ended September 30, 2022. The following table sets forth a summary of the changes in the earn-out liabilities during the nine months ended September 30, 2022 (in thousands):
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STOCK PLAN |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK PLAN | STOCK PLAN 2021 Incentive Award Plan In connection with the Closing on July 22, 2021, the Company approved the 2021 Incentive Award Plan (the “2021 Plan”), an incentive compensation plan for the benefit of eligible employees, consultants, and directors of the Company and its subsidiaries. The Company concurrently assumed the Amended and Restated 2011 Stock Incentive Plan (the “2011 Plan”) and all outstanding awards thereunder, effective as of the Closing, and no further awards shall be granted under the 2011 Plan. The 2021 Plan provides that the initial aggregate number of shares of Class A common stock, available for issuance pursuant to awards thereunder shall be the sum of (a) 10% of the outstanding shares of Class A common stock as of the Closing, which is equivalent to 24.2 million shares of Class A common stock (the “Initial Plan Reserve”), (b) any shares of Class A common stock subject to outstanding equity awards under the 2011 Stock Plan which, following the effective date of the 2021 Plan, became available for issuance under the 2021 Plan and (c) an annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031 equal to a number of shares equal to 5% of the aggregate number of shares of Class A common stock outstanding on the final day of the immediately preceding calendar year. The maximum aggregate number of shares of common stock that may be issued under the 2021 Plan upon the exercise of ISOs is 181.5 million shares of Class A common stock. Shares forfeited due to employee termination or expiration are returned to the share pool. Similarly, shares withheld upon exercise to provide for the exercise price and/or taxes due and shares repurchased by the Company are also returned to the pool. As of September 30, 2023, a total of 10.7 million shares remained available for future grant under the Company’s 2021 Plan. 2021 Employee Stock Purchase Plan In connection with the Closing on July 22, 2021, the Company approved the 2021 Employee Stock Purchase Plan (“2021 ESPP”). The 2021 ESPP provides that the aggregate number of shares of Class A common stock available for issuance pursuant to awards under the 2021 ESPP shall be the sum of (a) 3% of the number of outstanding shares of Class A common stock as of the Closing, which is equivalent to 7.3 million shares of Class A common stock (the “Initial ESPP Reserve”), and (b) an annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031 equal to the lesser of (i) 1% of the aggregate number of shares of Class A common stock outstanding on the last day of the immediately preceding fiscal year and (ii) such smaller number of shares of common stock as may be determined by the Company’s board of directors; provided, however, that the number of shares of common stock that may be issued or transferred pursuant to the rights granted under the 2021 ESPP shall not exceed 15.25% of the outstanding shares of Class A common stock as of the Closing, which is equivalent to 36.9 million shares. Our 2021 ESPP permits eligible employees to acquire shares of our common stock at 85% of the lower of the fair market value of our common stock on the first trading day of each offering period or on the purchase date. If the fair market value of our common stock on the purchase date is lower than the first trading day of the offering period, the current offering period will be cancelled after purchase and a new 24-month offering period will begin. Participants may purchase shares of common stock through payroll deductions of up to 15% of their eligible compensation, subject to purchase limits of 3,000 shares per purchase period, 12,000 per offering period, and $25,000 worth of stock for each calendar year. The 2021 ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length, and is comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 1 and December 1 of each year, except for the first offering period commenced on July 23, 2021 and ended on May 31, 2023. As of September 30, 2023, a total of 11.4 million shares of our common stock remained available for sale under our 2021 ESPP. For the three and nine months ended September 30, 2023, there were nil and 0.5 million, shares of common stock purchased under the 2021 ESPP. Stock Option Activities—The following table summarizes the stock option activities under the Company’s stock plans for nine months ended September 30, 2023 (in thousands, except for per share data):
As of September 30, 2023, unrecognized stock-based compensation expense related to unvested options was $0.4 million, which is expected to be amortized over a weighted-average vesting period of 0.8 years. RSU and PRSU Activities—The following table summarizes the RSU activity under the Company’s stock plans for the nine months ended September 30, 2023 (in thousands, except per share data):
Stock-based compensation expense for awards with only service conditions are recognized on a straight-line basis over the requisite service period of the related award. The performance-based RSU (“PRSU”) awards have both service-based and performance-based vesting conditions. The service-based vesting condition for these awards is typically satisfied over four years with a cliff vesting period of one year and continued vesting quarterly thereafter. The performance-based vesting condition is satisfied upon the occurrence of a liquidity event, as defined in the Amended and Restated 2011 Stock Plan. The performance based vesting condition was deemed satisfied upon the Closing. As of September 30, 2023, unrecognized compensation costs related to unvested RSUs and PRSUs were $239.4 million and $1.3 million, respectively. The remaining unrecognized compensation costs for RSUs and PRSUs are expected to be recognized over a weighted-average period of 2.1 years and 1.0 years, respectively, excluding additional stock-based compensation expense related to any future grants of share-based awards. Earn-out Award Activities As discussed in Note 11 “Contingent Earn-Out Awards”, the pro rata Earn-out Shares issuable to holders of Legacy Matterport’s RSUs and holders of Legacy Matterport’s Stock Options for such holders with respect to such holders’ Legacy RSUs and Options were accounted as stock-based compensation expense as they were subject both a market condition and a service condition to the eligible employees. On January 18, 2022, all six Earn-out Triggering Events for issuing up to 23.5 million Earn-out Shares occurred. A total of 4.7 million pro rata Earn-out Shares issuable to holders of Matterport's eligible legacy RSU and options holders were immediately vested. The Company issued 2.7 million Earn-out Shares to Matterport's eligible legacy RSU and options holders after withholding 2.0 million of these Earn-out Shares to cover tax withholding obligations. The Company recognized all the remaining $27.6 million unamortized stock-based compensation related to the Earn-out Shares during the nine months ended September 30, 2022, as both the Triggering event condition was satisfied and the service condition was met. No further Earn-out Shares remained contingently issuable thereafter. Employee Stock Purchase Plan—The fair value of shares issued under our 2021 ESPP are estimated on the grant date using the Black-Scholes option pricing model. The following table summarizes the assumptions used to determine fair value of our 2021 ESPP:
The expected volatility is based on the average volatility of a peer group of representative public companies with sufficient trading history over the expected term. The expected term represents the term from the first day of the offering period to the purchase dates within each offering period. The dividend yield assumption is based on our expectations about our anticipated dividend policy. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with maturities that approximate the expected term. As of September 30, 2023, unrecognized compensation cost related to the 2021 ESPP was $1.1 million, which is expected to be recognized over the remaining weighted-average service period of 1.2 years. Stock-based Compensation— The Company recognizes stock-based compensation expense for awards with only service conditions on a straight-line basis over the requisite service period of the related award and recognizes stock-based compensation expenses for awards with performance conditions on a straight-line basis over the requisite service period for each separate vesting portion of the awards when it is probable that the performance condition will be achieved. The stock-based compensation expenses of Earn-out Awards were recognized on a straight-line basis over the derived services period during which the market conditions are expected to be met. Forfeitures are accounted for in the period in which they occur. The amount of stock-based compensation related to stock-based awards to employees in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
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INCOME TAXES |
9 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe income tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate as adjusted for discrete items arising in that quarter.Given the Company has a full valuation allowance recorded against its domestic net deferred tax assets and operating losses in the US, and its foreign subsidiaries are in operating profit, the Company has applied the exception to use a worldwide effective tax rate under ASC 740-270-30-36. The Company used the foreign jurisdiction’s statutory rate as an estimate for the annual effective tax rate (“AETR”). The quarterly tax provision, and estimate of the Company’s annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how we do business, and tax law developments. Tax benefit and tax expense for the three and nine months ended September 30, 2023 and 2022 were primarily attributable to foreign income taxes. The Company records deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, the Company considered all available positive and negative evidence and continued to conclude that as of September 30, 2023, it is not more likely than not that the Company will realize the benefits of its remaining net deferred tax assets. |
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic net loss per share attributable to common stockholders was computed by dividing net loss by the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2023 and 2022 (in thousands, except for per share data). Diluted net loss per share gives effect to all potential shares of common stock, including common stock issuable upon conversion of our redeemable convertible preferred stock, stock options and RSUs to the extent these are dilutive. We calculated basic and diluted net loss per share attributable to common stockholders as follows (in thousands, except per share amounts):
Basic net loss per share is the same as diluted net loss per share for the period we reported a net loss. The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share attributable to common stockholders, basic and diluted, because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (shares in thousands):
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RESTRUCTURING |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING | RESTRUCTURING July 2023 Restructuring Plan In July 2023, the Company announced a restructuring plan (the "2023 Plan") intended to reduce operating costs and continue to accelerate its path to profitable growth. As part of the 2023 Plan, the Company commenced a workforce reduction of approximately 30%. The Company also recorded accelerated amortization costs to real estate operating lease right-of-use assets, which was primarily related to the cease use of certain leased office spaces to adjust our office space footprint to better align with the needs of our operation and the remote-work organizational structure. Restructuring charges during the three and nine months ended September 30, 2023 were as follows (in thousands):
(1) Office space reductions primarily represent the accelerated amortization expense related to operating lease right-of-use assets. We expect that the execution of the 2023 Plan will be substantially complete by the end of the fourth quarter of fiscal 2023, subject to local law and consultation requirements. The Company currently estimates the charges of approximately $4.0 million in connection with the 2023 Plan, consisting primarily of cash expenditures for employee transition, notice period and severance payments, employee benefits, exit charges associated with office space reductions, and related costs. As of September 30, 2023, there were $0.2 million restructuring-related liabilities were recorded in accrued expenses and other current liabilities, primarily related to the unpaid severance costs.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
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Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||||||||
Net loss | $ (44,754) | $ (56,536) | $ (53,842) | $ (58,259) | $ (64,634) | $ 71,904 | $ (155,132) | $ (50,989) |
Insider Trading Arrangements |
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Sep. 30, 2023
shares
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Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
J.D. Fay [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On August 11, 2023, J.D. Fay, the Company’s Chief Financial Officer, entered into a Rule 10b5-1 trading plan with a termination date of October 31, 2024, covering a maximum of 900,000 shares of the Company’s Class A common stock to be sold at various designated prices during the duration of the plan. |
Name | J.D. Fay |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 11, 2023 |
Arrangement Duration | 447 days |
Aggregate Available | 900,000 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC, regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s 2022 Form 10-K for the fiscal year ended December 31, 2022, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2023, and its results of operations for the three and nine months ended September 30, 2023 and 2022, and cash flows for the nine months ended September 30, 2023 and 2022. The condensed consolidated balance sheet as of December 31, 2022, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.
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Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
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Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the condensed consolidated financial statements and accompanying notes. Significant estimates include assumptions related to the fair value of common stock before the Merger and other assumptions used to measure stock-based compensation, fair value of assets acquired and liabilities assumed in business combinations, fair value of identified intangibles, goodwill impairment, valuation of deferred tax assets, the estimate of net realizable value of inventory, allowance for doubtful accounts, the fair value of warrants liability, loss contingencies, and the determination of stand-alone selling price of various performance obligations. As a result, many of the Company’s estimates and assumptions required increased judgment and these estimates may change materially in future periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and various other factors, including the current economic environment, which management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company adjusts such estimates and assumptions when dictated by facts and circumstances. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the condensed consolidated financial statements in future periods. Actual results may differ materially from those estimates.
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Segment Information | Segment Information The Company has a single operating segment and reportable segment. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 3 for information regarding the Company’s revenue by geography. Substantially all of the Company’s long-lived assets are located in the United States.
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Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company maintains its cash balances in accounts held by major banks and financial institutions located in the United States. Such bank deposits from time to time may be exposed to credit risk in excess of the Federal Deposit Insurance Corporation insurance limit, and the Company considers such risk to be minimal. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale investments in fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits. The Company’s accounts receivable is derived from customers located both inside and outside the United States. The Company mitigates its credit risks by performing ongoing credit evaluations of the financial condition of its customers and requires advance payment from customers in certain circumstances. The Company generally does not require collateral from its customers. No customer accounted for more than 10% of the Company’s total accounts receivable at September 30, 2023 and December 31, 2022. No customer accounted for more than 10% of the Company’s total revenue for the three and nine months ended September 30, 2023 and 2022.
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Restructuring Costs | Restructuring Costs The Company’s restructuring costs consist of a one-time payment of termination benefits and the ongoing cost of benefits related to the reduction of its workforce and other costs, and the charges related to the cease use of certain facilities to align with the Company’s anticipated operating needs. The timing of recognition for severance costs depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefit costs covered by existing benefit arrangements are recognized when management has committed to a restructuring plan and has determined the severance costs are probable and estimable. Other costs primarily consist of cease use charges for the related operating lease right-of-use assets for office leases, which are recognized ratably from the decision date to the cease-use date.
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Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contract with Customers, as if it had originated the contracts. The Company adopted this standard effective January 1, 2023, which did not have a material impact on the Company’s condensed consolidated financial statements.
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REVENUE (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disaggregation of Revenue | The following table shows the revenue by geography for the three and nine months ended September 30, 2023 and 2022, respectively (in thousands):
The following table shows over time versus point-in-time revenue for the three and nine months ended September 30, 2023 and 2022, respectively (in thousands):
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Summary of Account Receivable and Contract Balances | The accounts receivable and contract balances as of September 30, 2023 and December 31, 2022 were as follows (in thousands):
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ACQUISITIONS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unaudited Pro Forma Financial Information | The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal year 2021.
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VHT Inc | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The Company has accounted for the VHT Acquisition as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on the estimated fair values at the VHT Acquisition Date, as presented in the following table (in thousands):
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the preliminary estimated fair values and estimated useful lives of the components of identifiable intangible assets acquired as of the VHT Acquisition Date (in thousands, except years):
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Enview Inc | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The total purchase consideration for the Enview Acquisition was $64.3 million, including an insignificant working capital adjustment finalized during the measurement period that reduced the purchase price for Enview. The total purchase consideration consisted of the following (in thousands):
(1) The Company paid $2.4 million and $4.3 million in cash consideration during the three and nine months ended September 30, 2023, respectively and nil and $35.0 million in cash consideration during the three and nine months ended September 30, 2022. (2) On the Enview Acquisition Date, the Company's closing stock price was $15.73 per share. The Company issued 0.1 million and 0.4 million shares during the three and nine months ended September 30, 2023, respectively, and nil and 1.2 million shares during the three and nine months ended September 30, 2022.
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the estimated fair values and estimated useful lives of the components of identifiable intangible assets acquired as of the Enview Acquisition Date (in thousands, except years):
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of purchase consideration on the Enview Acquisition Date, inclusive of measurement period adjustments (in thousands):
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchased Intangible Assets | The following table presents details of the Company’s purchased intangible assets as of September 30, 2023 and December 31, 2022 (in thousands).
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes estimated future amortization expense for the Company’s intangible assets as of September 30, 2023 (in thousands):
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BALANCE SHEET COMPONENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Allowance for Doubtful Accounts | Allowance for doubtful accounts as of September 30, 2023 and 2022 and the rollforward for three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
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Summary of Inventories | Inventories as of September 30, 2023 and December 31, 2022, consisted of the following (in thousands):
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Schedule of Property Plant and Equipment | Property and equipment as of September 30, 2023 and December 31, 2022, consisted of the following (in thousands):
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Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of September 30, 2023 and December 31, 2022, consisted of the following (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | The Company’s financial assets and liabilities that were measured at fair value on a recurring basis were as follows (in thousands):
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Schedule of Amortized Cost, Unrealized Gains and Losses, and Fair Value of AFS Debt Securities | The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale debt securities as of September 30, 2023 and December 31, 2022 (in thousands):
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Summary of Amortized Cost and Fair Value of AFS Securities by Contractual Maturity Date | The following table summarizes the amortized cost and fair value of our available-for-sale debt securities as of September 30, 2023, by contractual years-to-maturity (in thousands):
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COMMITMENTS AND CONTINGENCIES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Future Minimum Operating Lease Payments and Purchase Obligations | As of September 30, 2023, future minimum purchase obligations are as follows (in thousands):
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STOCKHOLDERS’ EQUITY (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Common Stock Reserved for Future Issuance | The Company had reserved shares of common stock for future issuance as of September 30, 2023 as follows (in thousands):
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Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss by component, net of tax (in thousands):
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PUBLIC AND PRIVATE WARRANTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Valuation Assumptions to Fair Value of Private Warrants | The following table provides the assumptions used to estimate the fair value of the Private Warrants as of September 30, 2023:
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Schedule of Warrants Measured at Fair Value | The following table presents the changes in the warrants liability as of September 30, 2023 (in thousands):
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CONTINGENT EARN-OUT AWARDS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||
Reverse Recapitalization [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Changes in Estimated Fair Value of the Company's Level 3 Financial Liabilities | The following table sets forth a summary of the changes in the earn-out liabilities during the nine months ended September 30, 2022 (in thousands):
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STOCK PLAN (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | The following table summarizes the stock option activities under the Company’s stock plans for nine months ended September 30, 2023 (in thousands, except for per share data):
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Schedule of RSU and PRSU Activity | The following table summarizes the RSU activity under the Company’s stock plans for the nine months ended September 30, 2023 (in thousands, except per share data):
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Employee Stock Option Valuation | The following table summarizes the assumptions used to determine fair value of our 2021 ESPP:
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Stock-based Compensation Arrangement | The amount of stock-based compensation related to stock-based awards to employees in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
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NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Income (Loss) Attributable to Common Stockholders, Basic and Diluted | Basic net loss per share attributable to common stockholders was computed by dividing net loss by the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2023 and 2022 (in thousands, except for per share data). Diluted net loss per share gives effect to all potential shares of common stock, including common stock issuable upon conversion of our redeemable convertible preferred stock, stock options and RSUs to the extent these are dilutive. We calculated basic and diluted net loss per share attributable to common stockholders as follows (in thousands, except per share amounts):
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Summary of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Loss Per Share Attributable to Common Stockholders | The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share attributable to common stockholders, basic and diluted, because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (shares in thousands):
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Restructuring and Related Activities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Charges and Related Activities | Restructuring charges during the three and nine months ended September 30, 2023 were as follows (in thousands):
(1) Office space reductions primarily represent the accelerated amortization expense related to operating lease right-of-use assets.
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REVENUE - Disaggregated Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 40,642 | $ 37,993 | $ 118,203 | $ 94,984 |
Over time revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 32,786 | 28,996 | 92,889 | 73,509 |
Point-in-time revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,856 | 8,997 | 25,314 | 21,475 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 26,667 | 25,310 | 76,130 | 58,187 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 13,975 | $ 12,683 | $ 42,073 | $ 36,797 |
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 15,351 | $ 19,037 |
Unbilled accounts receivable | 1,854 | 1,807 |
Deferred revenue | $ 24,459 | $ 17,932 |
REVENUE - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized | $ 13.3 | $ 8.6 |
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands |
21 Months Ended | ||
---|---|---|---|
Jun. 10, 2022 |
Jan. 05, 2022 |
Sep. 30, 2023 |
|
VHT Inc | |||
Business Acquisition [Line Items] | |||
Purchase agreement, all cash purchase price | $ 23,000 | ||
Total | $ 22,700 | ||
Enview Inc | |||
Business Acquisition [Line Items] | |||
Total | $ 64,300 | $ 64,324 |
ACQUISITIONS - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Jun. 10, 2022 |
Jan. 05, 2022 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 69,593 | $ 69,593 | ||
VHT Inc | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 15,603 | |||
Identified intangible assets | 6,900 | |||
Net assets acquired | 215 | |||
Total | $ 22,718 | |||
Enview Inc | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 53,990 | |||
Identified intangible assets | 5,400 | |||
Net assets acquired | 4,934 | |||
Total | $ 64,324 |
ACQUISITIONS - Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - USD ($) $ in Thousands |
Jun. 10, 2022 |
Jan. 05, 2022 |
---|---|---|
Customer relationships | VHT Inc | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 6,900 | |
Weighted Average Life (in years) | 10 years | |
Developed technology | Enview Inc | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 5,400 | |
Weighted Average Life (in years) | 5 years |
ACQUISITIONS - Schedule of Unaudited Pro Forma Financial Information (Details) - VHT Inc - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2022 |
|
Business Acquisition [Line Items] | ||
Total revenue | $ 38,345 | $ 105,432 |
Net loss | $ (58,118) | $ (50,103) |
Basic earnings per share ($ per share) | $ (0.20) | $ (0.18) |
Diluted earnings per share ($ per share) | $ (0.20) | $ (0.18) |
ACQUISITIONS - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 21 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 05, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
|
Business Acquisition [Line Items] | ||||||
Common stock (1.2 million shares) | $ 5,748 | $ 19,219 | ||||
Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Stock Issued during period (shares) | 1,600,000 | |||||
Enview Inc | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 2,400 | $ 0 | $ 4,300 | $ 35,000 | $ 39,336 | |
Total | $ 64,300 | 64,324 | ||||
Stock Issued during period (shares) | 100,000 | 0 | 400,000 | 1,200,000 | ||
Closing stock price ($ per share) | $ 15.73 | |||||
Enview Inc | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock (1.2 million shares) | $ 24,988 |
Business Combinations and Asset Acquisitions (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Business Combination and Asset Acquisition [Abstract] | ||||
Transaction costs | $ 0 | $ 200,000 | $ 0 | $ 1,600,000 |
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 69,593,000 | $ 69,593,000 | $ 69,593,000 | ||
Impairment loss | 0 | $ 0 | 0 | $ 0 | |
Amortization of expense | 400,000 | 500,000 | 1,300,000 | 1,000,000 | |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,300 | $ 12,300 |
Accumulated Amortization | (2,738) | (1,410) |
Total future amortization expense | 9,562 | 10,890 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,400 | 5,400 |
Accumulated Amortization | (1,876) | (1,065) |
Total future amortization expense | 3,524 | 4,335 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,900 | 6,900 |
Accumulated Amortization | (862) | (345) |
Total future amortization expense | $ 6,038 | $ 6,555 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2023 | $ 442 | |
2024 | 1,770 | |
2025 | 1,770 | |
2026 | 1,770 | |
2027 | 705 | |
2028 and thereafter | 3,105 | |
Total future amortization expense | $ 9,562 | $ 10,890 |
BALANCE SHEET COMPONENTS - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance—beginning of period | $ (933) | $ (421) | $ (1,212) | $ (291) |
Increase in reserves | (101) | (148) | (150) | (343) |
Write-offs | 137 | 0 | 465 | 65 |
Balance—end of period | $ (897) | $ (569) | $ (897) | $ (569) |
BALANCE SHEET COMPONENTS - Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 1,136 | $ 2,112 |
Work in process | 7,094 | 3,477 |
Purchased parts and raw materials | 4,112 | 5,472 |
Total inventories | $ 12,342 | $ 11,061 |
BALANCE SHEET COMPONENTS - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation | $ 5,002 | $ 5,609 |
Tax payable | 1,203 | 1,669 |
ESPP contribution | 871 | 341 |
Current unpaid acquisition consideration | 0 | 6,109 |
Short-term operating lease liabilities | 1,293 | 1,267 |
Accrued loss on firm inventory purchase commitments | 31 | 3,991 |
Other current liabilities | 6,944 | 4,930 |
Total accrued expenses and other current liabilities | $ 15,344 | $ 23,916 |
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
AFS, Less than 12 months, gross unrealized losses | $ 500,000 | $ 200,000 | |
AFS, in continuous unrealized loss position, less than 12 months | 341,600,000 | 49,400,000 | |
Unrealized loss position for more than 12 months | 4,800,000 | ||
AFS, in continuous unrealized loss position, 12 months or longer | $ 291,000,000 | ||
Debt securities, allowance for credit loss | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Amortized Cost and Fair Value by Maturity (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Due within one year | $ 328,208 | |
Due between one and three years | 21,902 | |
Total available-for-sale investments | 350,110 | $ 364,808 |
Fair value, due within one year | 327,682 | |
Fair value, due between one and three years | 21,881 | |
Total available-for-sale investments | $ 349,563 | $ 359,774 |
COMMITMENTS AND CONTINGENCIES - Future Minimum Operating Lease Payments and Purchase Obligations (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Purchase Obligations | |
Remainder of 2023 | $ 6,337 |
2024 | 9,125 |
2025 | 185 |
Thereafter | 0 |
Total | $ 15,647 |
COMMITMENTS AND CONTINGENCIES - Narrative (Details) |
May 16, 2022
patent
|
May 11, 2020
patent
|
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
Jul. 20, 2021
$ / shares
shares
|
Jul. 19, 2021
shares
|
---|---|---|---|---|---|---|
Loss Contingencies [Line Items] | ||||||
Common stock, par value ($ per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Common stock, authorized (shares) | shares | 640,000,000 | 640,000,000 | ||||
Number of alleged patent infringements | 4 | |||||
Patents found not infringed | 4 | |||||
Additional patent found not infringed | 1 | |||||
Estimated litigation liability | $ | $ 0 | $ 0 | ||||
Class A Common Stock | ||||||
Loss Contingencies [Line Items] | ||||||
Common stock, par value ($ per share) | $ / shares | $ 0.0001 | |||||
Common stock, authorized (shares) | shares | 600,000,000 | 400,000,000 |
STOCKHOLDERS’ EQUITY - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 583,911 | $ 268,163 |
Net unrealized gain | 4,435 | (6,039) |
Ending balance | 540,056 | 605,827 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (5,034) | (1,539) |
Ending balance | (599) | (7,578) |
Foreign Currency Translation, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (52) | (52) |
Net unrealized gain | 0 | 0 |
Ending balance | (52) | (52) |
Unrealized Gains/Losses on Available-for-Sale Debt Securities, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (4,982) | (1,487) |
Net unrealized gain | 4,435 | (6,039) |
Ending balance | $ (547) | $ (7,526) |
PUBLIC AND PRIVATE WARRANTS - Valuation Assumptions to Fair Value of Private Warrants (Details) - Private warrants |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
| |
Current stock price | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 2.17 |
Strike price | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 11.50 |
Expected term (in years) | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input, term | 2 years 9 months 21 days |
Expected volatility | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 0.620 |
Risk-free interest rate | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 0.047 |
Expected dividend yield | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 0 |
PUBLIC AND PRIVATE WARRANTS - Fair Value (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Warrant Liability [Roll Forward] | ||||
Fair value at beginning balance | $ 803 | |||
Change in fair value of warrants liability | $ (513) | $ 0 | (564) | $ (26,147) |
Fair value at ending balance | 239 | 239 | ||
Private warrants | ||||
Warrant Liability [Roll Forward] | ||||
Fair value at beginning balance | 803 | |||
Change in fair value of warrants liability | (564) | |||
Fair value at ending balance | $ 239 | $ 239 |
CONTINGENT EARN-OUT AWARDS - Rollforward of Contingent Earn-out Liability (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance at beginning | $ 377,576 |
Reallocation of Earn-out Shares to earn-out liability upon forfeitures | 896 |
Change in fair value of earn-out liability | (136,043) |
Issuance of Earn-out Shares upon triggering events | (242,429) |
Balance at ending | $ 0 |
STOCK PLAN - RSU and PRSU Activities (Details) - RSUs and PRSUs shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (shares) | shares | 37,176 |
Granted (shares) | shares | 10,069 |
Vested (shares) | shares | (10,552) |
Canceled or forfeited (shares) | shares | (6,761) |
Ending balance (shares) | shares | 29,932 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning, weighted-average grant date fair value ($ per share) | $ / shares | $ 10.47 |
Granted ($ per share) | $ / shares | 2.92 |
Vested ($ per share) | $ / shares | 10.29 |
Canceled or forfeited ($ per share) | $ / shares | 6.09 |
Outstanding, ending, weighted-average grant date fair value ($ per share) | $ / shares | $ 8.98 |
STOCK PLAN - Fair Value Assumptions, Options and Earn-out Shares (Details) - 2021 ESPP |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum (percent) | 36.10% | 34.40% |
Expected volatility, maximum (percent) | 47.30% | 47.40% |
Risk-free interest rate, minimum (percent) | 0.60% | 0.20% |
Risk-free interest rate, maximum (percent) | 5.40% | 2.70% |
Expected dividend yield (percent) | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 6 months | 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years | 2 years |
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Numerator : | ||||||||
Net loss attributable to common stockholders | $ (44,754) | $ (56,536) | $ (53,842) | $ (58,259) | $ (64,634) | $ 71,904 | $ (155,132) | $ (50,989) |
Denominator: | ||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (shares) | 303,432 | 286,458 | 298,226 | 281,729 | ||||
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted (shares) | 303,432 | 286,458 | 298,226 | 281,729 | ||||
Net loss per share attributable to common stockholders, basic ($ per share) | $ (0.15) | $ (0.20) | $ (0.52) | $ (0.18) | ||||
Net loss per share attributable to common stockholders, diluted ($ per share) | $ (0.15) | $ (0.20) | $ (0.52) | $ (0.18) |
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS - Antidilutive Securities (Details) - shares shares in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 62,767 | 74,246 |
Private warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 1,708 | 1,708 |
Common stock options outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 29,393 | 34,546 |
Unvested RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 29,932 | 36,143 |
ESPP shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 1,734 | 1,849 |
Restructuring and Related Activities - Narrative (Details) - July 2023 Restructuring Plan $ in Millions |
1 Months Ended | |
---|---|---|
Jul. 31, 2023 |
Sep. 30, 2023
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||
Reduction of cost on workforce | 0.30 | |
Expected cost remaining | $ 4.0 | |
Accrued expenses and other current liabilities | $ 0.2 |
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