QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
☒ | Smaller reporting company | |||||||||||||
Emerging growth company |
Page | ||||||||
Part I | FINANCIAL INFORMATION | |||||||
Financial Statements | ||||||||
Condensed Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021 | ||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) for the three and nine months ended September 30, 2022 and 2021 | ||||||||
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (unaudited) for the three and nine months ended September 30, 2022 and 2021 | ||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2022 and 2021 | ||||||||
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Contract assets | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Non-current assets: | |||||||||||
Property and equipment, net | |||||||||||
Capitalized software, net | |||||||||||
Other non-current assets | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Total non-current assets | |||||||||||
Total assets | $ | $ |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
Liabilities, Convertible Preferred Stock and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other | |||||||||||
Deferred revenue | |||||||||||
Customer deposits | |||||||||||
Current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities: | |||||||||||
Deferred tax liability, net | |||||||||||
Long-term deferred revenue | |||||||||||
Long-term debt, net of current maturities and deferred financing costs | |||||||||||
Other non-current liabilities | |||||||||||
Total non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 15) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities, convertible preferred stock and stockholders’ equity | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Subscription and transaction fees | $ | $ | $ | $ | |||||||||||||||||||
Marketing technology solutions | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization presented separately below) | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Product development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating loss | ( | ( | ( | ( | |||||||||||||||||||
Interest and other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss on debt extinguishment | ( | ( | |||||||||||||||||||||
Net loss before income tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Income tax benefit | |||||||||||||||||||||||
Net loss | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||
Foreign currency translation losses, net | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss attributable to common stockholders: | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Adjustments to net loss (see Note 12) | ( | ||||||||||||||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Basic and diluted net loss per share attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Basic and diluted weighted-average shares of common stock outstanding used in computing net loss per share |
Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||
Stock option exercises | — | — | — | — | — | |||||||||||||||||||||
Foreign currency translation losses, net | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance at March 31, 2022 | ( | ( | ||||||||||||||||||||||||
Issuance of common stock for Employee Stock Purchase Plan | — | — | — | — | — | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||
Stock option exercises | — | — | — | — | — | |||||||||||||||||||||
Repurchase and retirement of common stock | — | — | ( | — | ( | — | — | ( | ||||||||||||||||||
Foreign currency translation losses, net | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance at June 30, 2022 | ( | ( | ||||||||||||||||||||||||
Issuance of common stock for Employee Stock Purchase Plan | — | — | — | — | ( | — | — | ( | ||||||||||||||||||
Common stock issued upon vesting of restricted stock units | — | — | — | — | — | — | — | |||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||
Stock option exercises | — | — | — | — | — | |||||||||||||||||||||
Repurchase and retirement of common stock | — | — | ( | — | ( | — | — | ( | ||||||||||||||||||
Foreign currency translation losses, net | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ |
Series B Convertible Preferred Stock | Series C Convertible Preferred Stock | Series A Convertible Preferred Stock | Total Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Rollover equity in consideration of net assets acquired | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation gains, net | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Accretion of Series B convertible preferred stock to redemption value | — | — | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Issuance of convertible preferred stock, net | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Measurement period adjustment to update fair value of rollover equity | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation gains, net | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||
Balance at June 30, 2021 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Conversion of convertible preferred stock to common stock upon closing of initial public offering | ( | ( | ( | ( | ( | ( | ( | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock upon closing of initial public offering, net of issuance costs and underwriters fees of $ | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Common stock issued in private placement | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation losses, net | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ |
Nine months ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows provided by operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Loss on debt extinguishment | |||||||||||
Depreciation and amortization | |||||||||||
Capitalized software abandonment | |||||||||||
Amortization of deferred financing costs and non-cash interest | |||||||||||
Deferred taxes | ( | ( | |||||||||
Stock-based compensation expense | |||||||||||
Other non-cash items | |||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Accounts receivable, net | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Other non-current assets | ( | ( | |||||||||
Accounts payable | ( | ( | |||||||||
Accrued expenses and other | ( | ( | |||||||||
Deferred revenue | |||||||||||
Other long-term liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows used in investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Capitalization of software costs | ( | ( | |||||||||
Acquisition of companies, net of cash acquired | ( | ||||||||||
Net cash used in investing activities | ( | ( |
Nine months ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||
Payments on debt | ( | ( | |||||||||
Proceeds from long-term debt | |||||||||||
Deferred financing costs | ( | ||||||||||
Exercise of stock options | |||||||||||
Proceeds from preferred stock issuance, net | |||||||||||
Proceeds from common stock issuance, net | |||||||||||
Proceeds from common stock issuance for Employee Stock Purchase Plan | |||||||||||
Repurchase and retirement of common stock | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of foreign currency exchange rate changes on cash | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash: | |||||||||||
Beginning of period | |||||||||||
End of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Supplemental disclosures of noncash investing and financing activities: | |||||||||||
Rollover equity in consideration of net assets acquired | $ | $ | |||||||||
Accretion of Series B convertible preferred stock to redemption value | $ | $ |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
Briostack | PulseM | MDTech | Timely | DrChrono | Total | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Cash | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Rollover equity | |||||||||||||||||||||||||||||||||||
Total consideration | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net assets acquired: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Accounts receivable, trade | |||||||||||||||||||||||||||||||||||
Other receivables | |||||||||||||||||||||||||||||||||||
Contract Assets | |||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||||||||||||||||||||
Property and equipment | |||||||||||||||||||||||||||||||||||
Deposits and other long-term assets | |||||||||||||||||||||||||||||||||||
Intangible—developed technology | |||||||||||||||||||||||||||||||||||
Intangible—customer relationships | |||||||||||||||||||||||||||||||||||
Intangible—trade name | |||||||||||||||||||||||||||||||||||
Intangible—non-compete agreements | |||||||||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||||
Deferred tax asset, net | |||||||||||||||||||||||||||||||||||
Accounts payable | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Other Current Liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Accrued expenses and other | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Deferred tax liability, net | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Deferred revenue | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Total net assets acquired | $ | $ | $ | $ | $ | $ |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 Pro Forma | 2021 Pro Forma | 2022 Pro Forma | 2021 Pro Forma | ||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Adjustments to net loss per share (see Note 10) | ( | ||||||||||||||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Basic and diluted net loss per share attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
By pattern of recognition (timing of transfer of services): | |||||||||||||||||||||||
Point in time | $ | $ | $ | $ | |||||||||||||||||||
Over time | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
By geographical market: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
International | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
Accounts receivable, net | $ | $ | |||||||||
Contract assets | $ | $ | |||||||||
Deferred revenue | $ | $ | |||||||||
Customer deposits | $ | $ | |||||||||
Long-term deferred revenue | $ | $ | |||||||||
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
Balance at December 31, 2021 | $ | ||||
Measurement period adjustments(1) | ( | ||||
Effect of foreign currency exchange rate changes | ( | ||||
Balance at September 30, 2022 | $ |
September 30, 2022 | |||||||||||||||||||||||
Useful Life | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Customer relationships | $ | $ | $ | ||||||||||||||||||||
Developed technology | |||||||||||||||||||||||
Trade name | |||||||||||||||||||||||
Non-compete agreements | |||||||||||||||||||||||
Total | $ | $ | $ |
December 31, 2021 | |||||||||||||||||||||||
Useful Life | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Customer relationships | $ | $ | $ | ||||||||||||||||||||
Developed technology | |||||||||||||||||||||||
Trade name | |||||||||||||||||||||||
Non-compete agreements | |||||||||||||||||||||||
Total | $ | $ | $ |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
Computer equipment and software | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Total property and equipment | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
Capitalized software | $ | $ | |||||||||
Less: accumulated amortization | ( | ( | |||||||||
Capitalized software, net | $ | $ |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
Term notes with interest payable monthly, interest rate at Adjusted LIBOR or Alternative Base Rate, plus an applicable margin of | $ | $ | |||||||||
Revolver with interest payable monthly, interest rate at Adjusted LIBOR or Alternative Base Rate, plus an applicable margin of | |||||||||||
Subordinated unsecured promissory note related to acquisition of Service Nation, Inc., interest paid-in-kind, interest rate at | |||||||||||
Subordinated unsecured promissory note related to acquisition of Technique Fitness, Inc. D/B/A Club OS, interest paid-in-kind, interest rate at | |||||||||||
Principal debt | |||||||||||
Deferred financing costs on long-term debt | ( | ( | |||||||||
Discount on long-term debt | ( | ( | |||||||||
Total debt | |||||||||||
Less current maturities | |||||||||||
Long-term portion | $ | $ |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
Years ending December 31: | |||||
2022 (remaining three months) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total aggregate maturities of the Company’s debt | $ |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
RSUs | Options | ||||||||||
(in thousands) | |||||||||||
Outstanding as of January 1, 2022 | |||||||||||
Granted | |||||||||||
Vested or exercised | ( | ||||||||||
Cancelled or forfeited | ( | ( | |||||||||
Outstanding as of March 31, 2022 | |||||||||||
Granted | |||||||||||
Vested or exercised | ( | ||||||||||
Cancelled or forfeited | ( | ( | |||||||||
Outstanding as of June 30, 2022 | |||||||||||
Granted | |||||||||||
Vested or exercised | ( | ( | |||||||||
Cancelled or forfeited | ( | ( | |||||||||
Outstanding as of September 30, 2022 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cost of revenues | $ | $ | $ | $ | |||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Product development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands except share and per share amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Accretion of Series B to redemption value | ( | ||||||||||||||||||||||
Numerator for basic and diluted EPS – net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic and diluted EPS – weighted-average shares of common stock outstanding used in computing net loss per share | |||||||||||||||||||||||
Basic and diluted net loss per share attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( |
September 30, | |||||||||||
2022 | 2021 | ||||||||||
Outstanding options to purchase common stock and unvested RSUs | |||||||||||
Total anti-dilutive outstanding potential common stock |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
September 30, 2022 | Balance Sheet Classification | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Asset: | |||||||||||||||||||||||||||||
Money market | $ | $ | $ | $ | Cash equivalents | ||||||||||||||||||||||||
December 31, 2021 | Balance Sheet Classification | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Asset: | |||||||||||||||||||||||||||||
Money market | $ | $ | $ | $ | Cash equivalents | ||||||||||||||||||||||||
Liability: | |||||||||||||||||||||||||||||
Contingent consideration | $ | $ | $ | $ | Other current liabilities |
Opening balance | $ | ||||
Amounts settled through payment | ( | ||||
Fair value adjustments | ( | ||||
Ending balance | $ |
EverCommerce Inc. | ||
September 30, 2022 | ||
Notes to Condensed Consolidated Financial Statements |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
United States | $ | $ | |||||||||
International | $ | $ |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Gross profit (1) | $ | 95,027 | (2) | $ | 80,327 | (3) | $ | 278,847 | (4) | $ | 220,493 | (5) | ||||||||||||||
Depreciation and amortization | 5,444 | 5,249 | 16,598 | 14,509 | ||||||||||||||||||||||
Adjusted gross profit | $ | 100,471 | $ | 85,576 | $ | 295,445 | $ | 235,002 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net loss | $ | (15,853) | $ | (36,906) | $ | (42,043) | $ | (77,235) | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Interest and other expense, net | 8,890 | 5,148 | 21,070 | 31,262 | |||||||||||||||||||
Income tax benefit | (291) | (1,022) | (5,953) | (4,182) | |||||||||||||||||||
Loss on debt extinguishment | — | 28,714 | — | 28,714 | |||||||||||||||||||
Depreciation and amortization | 27,613 | 25,996 | 82,524 | 73,917 | |||||||||||||||||||
Other amortization | 1,093 | 679 | 3,063 | 1,956 | |||||||||||||||||||
Acquisition related costs | 29 | 746 | 670 | 2,986 | |||||||||||||||||||
Stock-based compensation expense | 7,133 | 4,745 | 19,776 | 16,849 | |||||||||||||||||||
Other non-recurring costs | 1,541 | 938 | 4,759 | 3,654 | |||||||||||||||||||
Adjusted EBITDA | $ | 30,155 | $ | 29,038 | $ | 83,866 | $ | 77,921 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Subscription and transaction fees | $ | 120,085 | $ | 91,788 | $ | 343,734 | $ | 252,119 | |||||||||||||||
Marketing technology solutions | 36,276 | 31,610 | 101,340 | 88,974 | |||||||||||||||||||
Other | 1,765 | 5,136 | 13,874 | 13,397 | |||||||||||||||||||
Total revenues | 158,126 | 128,534 | 458,948 | 354,490 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenues (1) (exclusive of depreciation and amortization presented separately below) | 57,655 | 42,958 | 163,503 | 119,488 | |||||||||||||||||||
Sales and marketing (1) | 29,440 | 25,156 | 89,531 | 67,647 | |||||||||||||||||||
Product development (1) | 18,508 | 12,711 | 53,568 | 35,083 | |||||||||||||||||||
General and administrative (1) | 32,164 | 25,779 | 96,748 | 79,796 | |||||||||||||||||||
Depreciation and amortization | 27,613 | 25,996 | 82,524 | 73,917 | |||||||||||||||||||
Total operating expenses | 165,380 | 132,600 | 485,874 | 375,931 | |||||||||||||||||||
Operating loss | (7,254) | (4,066) | (26,926) | (21,441) | |||||||||||||||||||
Interest and other expense, net | (8,890) | (5,148) | (21,070) | (31,262) | |||||||||||||||||||
Loss on debt extinguishment | — | (28,714) | — | (28,714) | |||||||||||||||||||
Net loss before income tax benefit | (16,144) | (37,928) | (47,996) | (81,417) | |||||||||||||||||||
Income tax benefit | 291 | 1,022 | 5,953 | 4,182 | |||||||||||||||||||
Net loss | $ | (15,853) | $ | (36,906) | $ | (42,043) | $ | (77,235) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cost of revenues | $ | 109 | $ | 173 | $ | 278 | $ | 178 | |||||||||||||||
Sales and marketing | 380 | 160 | 1,127 | 298 | |||||||||||||||||||
Product development | 501 | 295 | 1,389 | 437 | |||||||||||||||||||
General and administrative | 6,143 | 4,117 | 16,982 | 15,936 | |||||||||||||||||||
Total stock-based compensation expense | $ | 7,133 | $ | 4,745 | $ | 19,776 | $ | 16,849 |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Subscription and transaction fees | $ | 120,085 | $ | 91,788 | $ | 28,297 | 30.8 | % | |||||||||||||||
Marketing technology solutions | 36,276 | 31,610 | 4,666 | 14.8 | % | ||||||||||||||||||
Other | 1,765 | 5,136 | (3,371) | (65.6) | % | ||||||||||||||||||
Total revenues | $ | 158,126 | $ | 128,534 | $ | 29,592 | 23.0 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Subscription and transaction fees | $ | 343,734 | $ | 252,119 | $ | 91,615 | 36.3 | % | |||||||||||||||
Marketing technology solutions | 101,340 | 88,974 | 12,366 | 13.9 | % | ||||||||||||||||||
Other | 13,874 | 13,397 | 477 | 3.6 | % | ||||||||||||||||||
Total revenues | $ | 458,948 | $ | 354,490 | $ | 104,458 | 29.5 | % |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization presented separately below) | $ | 57,655 | $ | 42,958 | $ | 14,697 | 34.2 | % | |||||||||||||||
Percentage of revenues | 36.5 | % | 33.4 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization presented separately below) | $ | 163,503 | $ | 119,488 | $ | 44,015 | 36.8 | % | |||||||||||||||
Percentage of revenues | 35.6 | % | 33.7 | % |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Sales and marketing | $ | 29,440 | $ | 25,156 | $ | 4,284 | 17.0 | % | |||||||||||||||
Percentage of revenues | 18.6 | % | 19.6 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Sales and marketing | $ | 89,531 | $ | 67,647 | $ | 21,884 | 32.4 | % | |||||||||||||||
Percentage of revenues | 19.5 | % | 19.1 | % |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Product development | $ | 18,508 | $ | 12,711 | $ | 5,797 | 45.6 | % | |||||||||||||||
Percentage of revenues | 11.7 | % | 9.9 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Product development | $ | 53,568 | $ | 35,083 | $ | 18,485 | 52.7 | % | |||||||||||||||
Percentage of revenues | 11.7 | % | 9.9 | % |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
General and administrative | $ | 32,164 | $ | 25,779 | $ | 6,385 | 24.8 | % | |||||||||||||||
Percentage of revenues | 20.3 | % | 20.1 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
General and administrative | $ | 96,748 | $ | 79,796 | $ | 16,952 | 21.2 | % | |||||||||||||||
Percentage of revenues | 21.1 | % | 22.5 | % |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Depreciation and amortization | $ | 27,613 | $ | 25,996 | $ | 1,617 | 6.2 | % | |||||||||||||||
Percentage of revenues | 17.5 | % | 20.2 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Depreciation and amortization | $ | 82,524 | $ | 73,917 | $ | 8,607 | 11.6 | % | |||||||||||||||
Percentage of revenues | 18.0 | % | 20.9 | % |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest and other expense, net | $ | 8,890 | $ | 5,148 | $ | 3,742 | 72.7 | % | |||||||||||||||
Percentage of revenues | 5.6 | % | 4.0 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest and other expense, net | $ | 21,070 | $ | 31,262 | $ | (10,192) | (32.6) | % | |||||||||||||||
Percentage of revenues | 4.6 | % | 8.8 | % |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loss on debt extinguishment | $ | — | $ | 28,714 | $ | (28,714) | N.M. | ||||||||||||||||
Percentage of revenues | — | % | 22.3 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loss on debt extinguishment | $ | — | $ | 28,714 | $ | (28,714) | N.M. | ||||||||||||||||
Percentage of revenues | — | % | 8.1 | % |
Three months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Income tax benefit | $ | 291 | $ | 1,022 | $ | (731) | (71.5) | % | |||||||||||||||
Percentage of revenues | 0.2 | % | 0.8 | % |
Nine months ended September 30, | Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Income tax benefit | $ | 5,953 | $ | 4,182 | $ | 1,771 | 42.3 | % | |||||||||||||||
Percentage of revenues | 1.3 | % | 1.2 | % |
Nine months ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 37,612 | $ | 13,673 | |||||||
Net cash used in investing activities | (13,595) | (194,239) | |||||||||
Net cash provided by (used in) financing activities | (24,559) | 180,514 | |||||||||
Effect of foreign currency exchange rate changes on cash | (1,796) | 59 | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | (2,338) | $ | 7 |
Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (1) (2) | Approximate dollar value of shares that may yet be purchased under the plans or programs | ||||||||||||||||||||
(in thousands, except per share and share amounts) | |||||||||||||||||||||||
July 1, 2022 - July 31, 2022 | 1,089,460 | $ | 9.79 | 1,089,460 | $ | 36,675 | |||||||||||||||||
August 1, 2022 - August 31, 2022 | 399,946 | 12.27 | 399,946 | $ | 31,767 | ||||||||||||||||||
September 1, 2022 - September 30, 2022 | 311,656 | 11.38 | 311,656 | $ | 28,220 | ||||||||||||||||||
Total | 1,801,062 | $ | 33.44 | 1,801,062 |
Incorporated by Reference | Filed/ | |||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Furnished Herewith | ||||||||||||||||||||||||||||||||
3.1 | 8-K | 001-40575 | 3.1 | 7/9/2021 | ||||||||||||||||||||||||||||||||||
3.2 | 8-K | 001-40575 | 3.2 | 7/9/2021 | ||||||||||||||||||||||||||||||||||
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 | * | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | * |
EVERCOMMERCE INC. | |||||||||||
Date: November 10, 2022 | By: | /s/ Eric Remer | |||||||||
Eric Remer | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: November 10, 2022 | By: | /s/ Marc Thompson | |||||||||
Marc Thompson | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
Date: November 10, 2022 | By: | /s/ Eric Remer | |||||||||
Eric Remer | |||||||||||
Chief Executive Officer and Director (principal executive officer) |
Date: November 10, 2022 | By: | /s/ Marc Thompson | |||||||||
Marc Thompson | |||||||||||
Chief Financial Officer (principal financial officer) |
Date: November 10, 2022 | By: | /s/ Eric Remer | |||||||||
Eric Remer | |||||||||||
Chief Executive Officer and Director (principal executive officer) |
Date: November 10, 2022 | By: | /s/ Marc Thompson | |||||||||
Marc Thompson | |||||||||||
Chief Financial Officer (principal financial officer) |
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3.2 | $ 1.9 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 193,937,954 | 195,384,291 |
Common stock, shares outstanding (in shares) | 193,937,954 | 195,384,291 |
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (unaudited) (Parenthetical) $ in Thousands |
3 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Statement of Stockholders' Equity [Abstract] | |
Stock issuance costs | $ 31,102 |
Nature of the Business |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the BusinessEverCommerce Inc. and subsidiaries (the “Company” or “EverCommerce”) is a leading provider of integrated software-as-a-service (“SaaS”) solutions or services for service-based small- and medium-sized businesses (“SMBs”). Our platform spans across the full lifecycle of interactions between consumers and service professionals with vertical-specific applications. Today, the Company serves over 600,000 customers across three core verticals: Home Services; Health Services; and Fitness & Wellness Services. Within the core verticals, customers operate within numerous micro-verticals, ranging from home service professionals, such as construction contractors and home maintenance technicians, to physician practices and therapists in the Health Services industry, to personal trainers and salon owners in the Fitness & Wellness sectors. The platform provides vertically-tailored SaaS solutions that address service SMBs’ increasingly nuanced demands, as well as highly complementary solutions that complete end-to-end offerings, allowing service SMBs and EverCommerce to succeed in the market, and provide end consumers more convenient service experiences. The Company was incorporated in Delaware on September 29, 2016, and began operations on October 17, 2016 (Inception). The Company is headquartered in Denver, Colorado, and has operations across the United States, Canada, Jordan, United Kingdom, Australia and New Zealand. The Company changed its name from PaySimple Holdings, Inc. to EverCommerce Inc. as of December 14, 2020. |
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2021 and the related notes (“Annual Report on Form 10-K”). The December 31, 2021 condensed consolidated balance sheet was derived from our audited consolidated financial statements as of that date. Our unaudited interim condensed consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the unaudited condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes in accounting policies during the nine months ended September 30, 2022 from those disclosed in the annual consolidated financial statements for the year ended December 31, 2021 and the related notes. The operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results expected for the full year ending December 31, 2022. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the unaudited condensed consolidated financial statements, including the accompanying notes. The Company bases its estimates on historical factors, current circumstances, and the experience and judgment of management. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ from those estimates. Significant estimates reflected in the consolidated financial statements include revenue recognition, allowance for doubtful accounts, valuation allowances with respect to deferred tax assets, assumptions underlying the fair value used in the calculation of stock-based compensation, valuation of intangible assets and goodwill and useful lives of tangible and intangible assets, among others. Emerging Growth Company As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use the extended transition period under the JOBS Act until the earlier of the date that it is (i) no longer an EGC or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The adoption dates are discussed below to reflect this election within the “Recently Issued Accounting Pronouncements” section. Recently Issued Accounting Pronouncements not yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. The ASU affects all companies that lease assets such as real estate and equipment for a period for more than 12 months, and will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The updated standard will be effective for annual reporting periods beginning after December 15, 2021 and interim periods the following year. The Company will adopt this standard in the fourth quarter of 2022. Based on management’s current assessment, the impact of adoption will result in an additional right-of-use asset and corresponding lease liability presented on the consolidated balance sheet, largely comprised of its future real estate lease obligations along with any embedded leases in service contracts. Based on our assessment through September 30, 2022, we expect no material impact to the consolidated statements of operations and comprehensive loss; however, management’s analysis of the impact of adoption is not complete. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company’s accounts receivable and contract assets. This updated standard will be effective for annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this standard will have on its financial statements. In October 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the guidance in ASC 805 to require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. FASB’s objective in issuing the ASU is to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity and inconsistency related to both the recognition of an acquired contract liability and payment terms’ effects on subsequent revenue recognized by the acquirer. This updated standard will be effective for annual reporting periods beginning after December 15, 2022. Early adoption is permitted. The impact of adoption is unknown as it will be based on any potential acquisitions consummated in the year of adoption.
|
Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions 2021 Acquisitions During 2021 and in the nine months ended September 30, 2021, the Company completed five and four business acquisitions, respectively, in conjunction with the execution of its long-term plans and objectives in building a service commerce platform supporting the success of SMBs. All of the acquisitions qualified as business combinations under ASC 805. Accordingly, the Company recorded all assets acquired and liabilities assumed at their acquisition date fair values, with any excess consideration recognized as goodwill. Goodwill primarily represents the value associated with the assembled workforce, and expected synergies subsumed into goodwill. Assets acquired and liabilities assumed in connection with each acquisition have been recorded at their fair values. Fair values were determined by management using the assistance of third-party valuation specialists. The valuation methods used to determine the fair value of intangible assets included the income approach—relief from royalty method for developed technology and trade name, the income approach—excess earnings method for customer relationships and the comparative business valuation method for non-compete agreements. A number of assumptions and estimates were involved in the application of these valuation methods, including revenue forecasts, expected competition, costs of revenues, obsolescence, tax rates, capital spending, discount rates and working capital changes. Cash flow forecasts were generally based on pre-acquisition forecasts coupled with estimated revenues and cost synergies available to a market participant. The Company’s condensed consolidated statements of operations and comprehensive loss include $8.4 million of acquisition related transaction costs in general and administrative for acquisitions consummated in 2021, with $4.1 million and $6.8 million incurred in the three and nine months ended September 30, 2021, respectively. Each acquisition allows for an adjustment to the purchase price to be made subsequent to the transaction closing date based on the actual amount of working capital and cash delivered to the Company. The consideration paid and purchase price allocations disclosed reflect the effects of these adjustments. The allocation of purchase consideration related to certain 2021 acquisitions is considered preliminary. The following table summarizes the estimated fair values of consideration transferred, assets acquired and liabilities assumed for each acquisition in 2021:
Briostack On January 19, 2021, the Company acquired 100% of the interest of Briostack LLC dba Briostack (“Briostack”), a provider of operational management software to pest control businesses, for $35.2 million. Under the terms of the purchase agreement, certain members of Briostack received 45,454 shares of common stock rollover equity. The Company finalized the fair value of the shares at $0.7 million in the quarter ended June 30, 2021 by applying a market approach. The fair value of the rollover equity is reflected in the total consideration above. PulseM On March 17, 2021, the Company acquired 100% of the interest of Speetra, Inc. dba PulseM (“PulseM”), a provider of enterprise-level reputation management software for small businesses, for $34.4 million. MDTech On July 8, 2021, the Company acquired 100% of the interest of PM Ventures, LLC dba MDTech (“MDTech”), a provider of electronic charge capture solutions to physicians via its SaaS-based MD Coder application and suite of add-ons, for $15.8 million. Timely On July 8, 2021, the Company acquired 100% of the interest of Timely Ltd. (“Timely”), a booking and business management software company, for $99.8 million. Timely is based in New Zealand and has operations in the United Kingdom and Australia, as well. DrChrono On November 18, 2021, the Company acquired 100% of the interest of DrChrono Inc. (“DrChrono”), an electronic health record and practice management provider, for $181.9 million. Pro Forma Results of Acquisitions (unaudited) The following table presents unaudited pro forma consolidated results of operations for the three and nine months ended September 30, 2022 and 2021, as if the aforementioned 2021 acquisitions had occurred as of January 1, 2021. The Company did not consummate any transactions during the three and nine months ended September 30, 2022; accordingly, no adjustments have been made to the results reported for that period. The pro forma information includes the business combination accounting effects resulting from these acquisitions, including interest expense of $4.9 million and $11.7 million for the three and nine months ended September 30, 2021, respectively, to account for funds borrowed earlier, issuance of our common stock at earlier dates which impacts the calculation of basic and diluted net loss per share, removal of transaction costs of $4.1 million and $6.8 million for the three and nine months ended September 30, 2021, respectively, and additional amortization expense of $1.8 million and $8.4 million for the three and nine months ended September 30, 2021, respectively, resulting from the amortization of intangible assets beginning as of January 1, 2021. We prepared the pro forma financial information for the combined entities for comparative purposes only, and the information is not indicative of what actual results would have been if the acquisitions had occurred at the beginning of the periods presented, nor is the information intended to represent or be indicative of future results of operations.
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Revenue | Revenue Disaggregation of Revenue The following tables present a disaggregation of our revenue from contracts with customers by revenue recognition pattern and geographical market:
Contract Balances Supplemental balance sheet information related to contracts from customers as of:
Accounts receivable, net: Accounts receivable represent rights to consideration in exchange for products or services that have been transferred by us, when payment is unconditional and only the passage of time is required before payment is due. Contract assets: Contract assets represent rights to consideration in exchange for products or services that have been transferred (i.e., the performance obligation or portion of the performance obligation has been satisfied), but payment is conditional on something other than the passage of time. These amounts typically relate to contracts that include on-premise licenses and professional services where the right to payment is not present until completion of the contract or achievement of specified milestones and the fair value of products or services transferred exceed this constraint. Contract liabilities: Contract liabilities represent our obligation to transfer products or services to a customer for which consideration has been received in advance of the satisfaction of performance obligations. Short-term contract liabilities are included within deferred revenue on the consolidated balance sheets. Long-term contract liabilities are included within long-term deferred revenue on the consolidated balance sheets. Revenue recognized from the contract liability balance at December 31, 2021 was $20.9 million for the nine months ended September 30, 2022. Customer deposits: Customer deposits relate to payments received in advance for contracts, which allow the customer to terminate a contract and receive a pro rata refund for the unused portion of payments received to date. In these arrangements, we have concluded there are no enforceable rights and obligations during the period in which the option to cancel is exercisable by the customer and therefore the consideration received is recorded as a customer deposit liability. Remaining Performance Obligations Remaining performance obligations represent the transaction price of unsatisfied or partially satisfied performance obligations within contracts with an original expected contract term that is greater than one year for which fulfillment of the contract has started as of the end of the reporting period. Variable consideration accounted for under the variable consideration allocation exception associated with unsatisfied performance obligations or an unsatisfied promise that forms part of a single performance obligation under application of the series guidance have been excluded. Remaining performance obligations generally relate to those which are stand-ready in nature, as found within the subscription and marketing technology solutions revenue streams. The aggregate amount of transaction consideration allocated to remaining performance obligations as of September 30, 2022, was $22.3 million, which is comprised of contracts where the contract term under ASC 606 is in excess of one year. The Company expects to recognize approximately 59% of its remaining performance obligations as revenue within the next year, 27% of its remaining performance obligations as revenue the subsequent year, 10% of its remaining performance obligations as revenue in the third year, and the remainder during the two year period thereafter. Cost to Obtain and Fulfill a Contract The Company incurs certain costs to obtain contracts, principally sales and third-party commissions, which the Company capitalizes when the liability has been incurred if they are (i) incremental costs of obtaining a contract, (ii) expected to be recovered and (iii) have an expected amortization period that is greater than one year (as the Company has elected the practical expedient to expense any costs to obtain a contract when the liability is incurred if the amortization period of such costs would be one year or less). Assets resulting from costs to obtain contracts are included within prepaid expenses and other current assets for short-term balances and other non-current assets for long-term balances on the Company’s consolidated balance sheets. The costs to obtain contracts are amortized over 5 years, which corresponds with the useful life of the related capitalized software. Short-term assets were $6.2 million and $4.8 million at September 30, 2022 and December 31, 2021, respectively, and long-term assets were $14.3 million and $11.9 million at September 30, 2022 and December 31, 2021, respectively. The Company recorded amortization expense within sales and marketing on the condensed consolidated statements of operations and comprehensive loss of $1.1 million and $0.7 million for the three months ended September 30, 2022 and 2021, respectively, and $3.1 million and $2.0 million for the nine months ended September 30, 2022 and 2021, respectively. The Company recorded amortization expense within cost of revenues on the condensed consolidated statements of operations and comprehensive loss of $0.4 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $1.2 million and $0.7 million for the nine months ended September 30, 2022 and 2021, respectively. The Company has concluded that there are no other material costs incurred in fulfillment of customer contracts that are not accounted for under other GAAP, which meet the capitalization criteria under ASC 606 and FASB ASC Topic 340-40, Accounting for Other Assets and Deferred Costs (“ASC 340-40”). The Company has elected to account for shipping and handling activities as fulfillment activities and recognize the associated expense when the transfer of control of the product has occurred, as permitted under the shipping and handling activities practical expedient.
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Goodwill | Goodwill Goodwill activity consisted of the following for the nine months ended September 30, 2022 (in thousands):
(1)The $0.6 million of measurement period adjustments relates to acquisitions consummated during the year ended December 31, 2021.
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Intangible assets consisted of the following as of:
Amortization expense was $25.2 million and $24.2 million for the three months ended September 30, 2022 and 2021, respectively, and $75.7 million and $68.7 million for the nine months ended September 30, 2022 and 2021, respectively.
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment consisted of the following as of:
Depreciation expense was $1.0 million for each of the three months ended September 30, 2022 and 2021 and $3.1 million and $2.8 million for the nine months ended September 30, 2022 and 2021, respectively.
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Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Software | Capitalized Software Capitalized software consisted of the following as of:
Amortization expense was $1.4 million and $0.9 million for the three months ended September 30, 2022 and 2021, respectively, and $3.7 million and $2.4 million for the nine months ended September 30, 2022 and 2021, respectively. During the three and nine months ended September 30, 2022 the Company recorded a charge to general and administrative on the accompanying condensed consolidated statements of operations and comprehensive loss for $0.1 million and $0.6 million, respectively, related to capitalized features no longer expected to be used.
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following as of:
On July 6, 2021, the Company entered into a credit facility (“Credit Agreement”) that includes term loans in an aggregate principal amount of $350.0 million (“Initial Term Loans”), a revolver with a capacity of $190.0 million (“Revolver”) and a sub-limit of the Revolver available for letters of credit up to an aggregate face amount of $20.0 million. The Initial Term Loans were used to retire the Company’s debt arrangements that were outstanding prior to the Initial Public Offering (“IPO”). A loss on debt extinguishment related to the refinancing of the Company’s debt arrangements was recorded during the three months ended September 30, 2021 totaling $28.7 million. As of November 2021, the Company had $35.0 million outstanding under the Revolver, and borrowed the remaining capacity of the Revolver to fund the acquisition of DrChrono. Subsequently in the same month, the Company received additional term loans in an aggregate principal amount of $200.0 million (together with the Initial Term Loans, the “Term Loans”), the proceeds of which were used to repay the outstanding principal balance of the Revolver of $190.0 million and for general corporate purposes. The Initial Term Loans, Revolver and Additional Term Loans are collectively referred to herein as the (“Credit Facilities”). The Company determines the fair value of long-term debt based on trading prices for its debt if available. As of September 30, 2022, the Company obtained trading prices for the term notes outstanding. However, as such trading prices require significant unobservable inputs to the pricing model, such instruments are classified as Level 2. If no such trading prices are available, the Company determines the fair value of long-term debt using discounted cash flows, applying current interest rates and current credit spreads, based on its own credit risk. The fair value amounts were approximately $520.1 million and $552.8 million as of September 30, 2022 and December 31, 2021, respectively. As of January 1, 2021, the Company also had outstanding subordinated promissory notes (“Legacy Subordinated Notes”) that included paid-in-kind (“PIK”) interest. The interest on the Legacy Subordinated Notes is all PIK and is due upon maturity. Total PIK interest was $0.1 million for each of the three months ended September 30, 2022 and 2021, and $0.3 million for each of the nine months ended September 30, 2022 and 2021. The company repaid the outstanding principal and PIK interest upon maturity of one of the Legacy Subordinated Notes for $2.0 million and $1.0 million, respectively, during the three months ended September 30, 2022. The remaining Legacy Subordinated Notes outstanding principal and PIK interest will be repaid upon maturity during the fourth quarter of 2022. The Company’s Credit Facilities are subject to certain financial and nonfinancial covenants and are secured by substantially all assets of the Company. As of September 30, 2022, the Company was in compliance with all of its covenants. Aggregate maturities of the Company’s debt for the years ending December 31 are as follows as of September 30, 2022 (in thousands):
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Equity |
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Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | Equity On May 5, 2021, the Company amended its Certificate of Incorporation (“Third Amended and Restated Certificate of Incorporation”) to increase the number of authorized shares of Preferred Stock from 125,000,000 shares to 140,000,000 shares of Preferred Stock, $0.00001 par value per share, of which 50,000,000 were designated as Series A, 75,000,000 were designated as Series B and 15,000,000 were designated as Series C as of such date. Each share of Series A, Series B and Series C could have been converted into common stock at any time, at the option of the holder, based on a prescribed formula set forth in the Company’s Third Amended and Restated Certificate of Incorporation. In the event of a liquidation, dissolution, winding up of the Company or other similar event, liquidation payments would have first been made to the holders of Series B, then to Series C, then to Series A. In May 2021, the Company issued 7.9 million shares of Series C for proceeds of $109.8 million net of issuance costs. In accordance with ASC 480, Distinguishing Liabilities from Equity, if the carrying value of redeemable preferred stock is less than its redemption value, redeemable preferred stock shall be accreted to its redemption value if it is probable it will become redeemable. Prior to March 15, 2021, the Company concluded it was probable that the Series B would become redeemable due to the passage of time. However, after that date the Company concluded that it was no longer probable that the Series B would become redeemable due to the increased likelihood of a successful IPO prior to February 23, 2026. The Company’s Series B accruing dividends comprised a component of the redemption value of such stock. The Company recorded the accretion of Series B through March 15, 2021, by increasing its carrying value and recording a corresponding reduction of additional paid-in capital in the amount of $15.1 million for the nine months ended September 30, 2021. Immediately prior to the closing of the IPO, the Company filed an Amended and Restated Certificate of Incorporation on July 6, 2021 with the Secretary of State of the State of Delaware to authorize the issuance up to 2,050,000,000 shares, par value $0.00001 per share, consisting of 2,000,000,000 shares of common stock and 50,000,000 shares of preferred stock. In connection with the IPO, all of the Company’s then outstanding convertible preferred stock converted into shares of common stock on a one-for-one basis. Upon conversion of the convertible preferred stock, the Company reclassified the carrying value of the convertible preferred stock to common stock and additional paid-in capital. On June 14, 2022, our Board of Directors approved a stock repurchase program (“The Repurchase Program”) with authorization to purchase up to $50.0 million in shares of the Company’s common stock through the expiration of the program on December 21, 2022. Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases to be determined at the Company’s discretion, depending on market conditions and corporate needs. This program does not obligate the Company to acquire any particular amount of common stock and may be modified, suspended or terminated at any time at the discretion of the Board of Directors. The Company expects to fund repurchases with existing cash on hand. The Company repurchased and retired 1,801,062 and 2,097,108 shares of common stock for $19.2 million and $21.9 million, including transaction fees, during the three and nine months ended September 30, 2022, respectively. On November 7, 2022, our Board of Directors approved an expansion of the Repurchase Program with authorization to purchase up to an additional $50.0 million in shares of the Company’s common stock ($100.0 million total) and an extension to the expiration of the Repurchase Program through December 31, 2023.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation In 2016, the Company adopted the 2016 Equity Incentive Plan (the “2016 Plan”). The 2016 Plan provided for the granting of stock-based awards, including stock options, stock appreciation rights, restricted or unrestricted stock awards, phantom stock, performance awards, and other stock-based awards. In connection with the IPO, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2021 Incentive Award Plan (the “2021 Plan”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO and, as a result of which, the Company can no longer make awards under the 2016 Plan. The 2021 Plan provides for the issuance of incentive stock options, non-qualified stock options, stock awards, stock units, stock appreciation rights and other stock-based awards. The number of shares initially reserved for issuance under the 2021 Plan was 22,000,000 shares, inclusive of available shares previously reserved for issuance under the 2016 Plan. In addition, the number of shares reserved for issuance under the 2021 Plan is subject to 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) 3% of the shares outstanding (on an as-converted basis) on the last day of the immediately preceding fiscal year and (ii) such smaller number of shares as determined by the Company’s board of directors, provided that no more than 22,000,000 shares may be issued upon the exercise of incentive stock options. Based on the Company’s outstanding shares of common stock as of December 31, 2021, as of January 1, 2022 the number of shares reserved for issuance under the 2021 Plan increased by 5.9 million. In connection with the IPO, the Company’s board of directors adopted the 2021 Employee Stock Purchase Plan (the “ESPP”). For more information on the ESPP, refer to Note 11 in the Annual Report on Form 10-K. The following table summarizes our restricted stock unit (“RSU”) and stock option activity for the nine months ended September 30, 2022:
As of September 30, 2022, total unrecognized compensation expense was $22.2 million and $28.7 million related to outstanding restricted stock units and outstanding stock options, respectively. Stock-based compensation expense was classified in the unaudited condensed consolidated statements of operations and comprehensive loss as follows:
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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 The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock as of:
The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented due to their anti-dilutive effect as of:
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The Company utilizes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: •Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. •Level 2: Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. •Level 3: Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying value of cash and cash equivalents, accounts receivable, contract assets, contract liabilities and accounts payable approximate their fair value because of the short-term nature of these instruments. There were no transfers between fair value measurement levels during the three and nine months ended September 30, 2022 or 2021. The following table presents information about the Company's financial assets and liabilities measured at fair value on a recurring basis as of:
The following is a reconciliation of the opening and closing balance for contingent consideration measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2022 (in thousands):
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Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision for income taxes in interim periods is based on our estimated annual effective tax rate. We record cumulative adjustments in the quarter in which a change in the estimated annual effective rate is determined. The income tax benefit was $0.3 million and $1.0 million for the three months ended September 30, 2022 and 2021, respectively, and $6.0 million and $4.2 million for the nine months ended September 30, 2022 and 2021, respectively. Our effective income tax rate was 1.8% and 2.7% for the three months ended September 30, 2022 and 2021, respectively, and 12.4% and 5.1% for the nine months ended September 30, 2022 and 2021, respectively. The difference in the effective income tax rate for the three months ended September 30, 2022 as compared to the corresponding period in 2021 was primarily driven by the establishment of a valuation allowance for our New Zealand subsidiaries, which resulted in the exclusion of their results from the computation of the annual effective income tax rate. The difference in the effective income tax rate for the nine months ended September 30, 2022 as compared to the corresponding period in 2021 was primarily driven by discrete items, including an intercompany intellectual property sale, acquisition accounting, a California law change, a United Kingdom corporate income tax rate change, and the valuation allowance for our New Zealand subsidiaries, as described above. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on our current analysis of the provisions, we do not believe this legislation will have a material impact on our consolidated financial statements.
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Commitment and Contingencies |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesFrom time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results. |
Geographic Areas |
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Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic Areas | Geographic Areas The following table sets forth long-lived assets by geographic area as of:
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsEffective October 31, 2022, the Company entered into an interest rate swap agreement in connection with the Company’s Credit Facilities for a notional amount of $200.0 million to convert a portion of the Term Loan from a floating rate to a fixed rate (the “Swap Agreement”). The Swap Agreement has a term of 5 years with a fixed rate in the agreement of 4.2295%. |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2021 and the related notes (“Annual Report on Form 10-K”). The December 31, 2021 condensed consolidated balance sheet was derived from our audited consolidated financial statements as of that date. Our unaudited interim condensed consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the unaudited condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes in accounting policies during the nine months ended September 30, 2022 from those disclosed in the annual consolidated financial statements for the year ended December 31, 2021 and the related notes. The operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results expected for the full year ending December 31, 2022.
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Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the unaudited condensed consolidated financial statements, including the accompanying notes. The Company bases its estimates on historical factors, current circumstances, and the experience and judgment of management. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ from those estimates. Significant estimates reflected in the consolidated financial statements include revenue recognition, allowance for doubtful accounts, valuation allowances with respect to deferred tax assets, assumptions underlying the fair value used in the calculation of stock-based compensation, valuation of intangible assets and goodwill and useful lives of tangible and intangible assets, among others.
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Recently Issued Accounting Pronouncements not yet Adopted | Recently Issued Accounting Pronouncements not yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. The ASU affects all companies that lease assets such as real estate and equipment for a period for more than 12 months, and will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The updated standard will be effective for annual reporting periods beginning after December 15, 2021 and interim periods the following year. The Company will adopt this standard in the fourth quarter of 2022. Based on management’s current assessment, the impact of adoption will result in an additional right-of-use asset and corresponding lease liability presented on the consolidated balance sheet, largely comprised of its future real estate lease obligations along with any embedded leases in service contracts. Based on our assessment through September 30, 2022, we expect no material impact to the consolidated statements of operations and comprehensive loss; however, management’s analysis of the impact of adoption is not complete. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company’s accounts receivable and contract assets. This updated standard will be effective for annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this standard will have on its financial statements. In October 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the guidance in ASC 805 to require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. FASB’s objective in issuing the ASU is to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity and inconsistency related to both the recognition of an acquired contract liability and payment terms’ effects on subsequent revenue recognized by the acquirer. This updated standard will be effective for annual reporting periods beginning after December 15, 2022. Early adoption is permitted. The impact of adoption is unknown as it will be based on any potential acquisitions consummated in the year of adoption.
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Acquisitions (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consideration Transferred and Net Assets Acquired | The following table summarizes the estimated fair values of consideration transferred, assets acquired and liabilities assumed for each acquisition in 2021:
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Schedule of Pro Forma Results | The following table presents unaudited pro forma consolidated results of operations for the three and nine months ended September 30, 2022 and 2021, as if the aforementioned 2021 acquisitions had occurred as of January 1, 2021. The Company did not consummate any transactions during the three and nine months ended September 30, 2022; accordingly, no adjustments have been made to the results reported for that period. The pro forma information includes the business combination accounting effects resulting from these acquisitions, including interest expense of $4.9 million and $11.7 million for the three and nine months ended September 30, 2021, respectively, to account for funds borrowed earlier, issuance of our common stock at earlier dates which impacts the calculation of basic and diluted net loss per share, removal of transaction costs of $4.1 million and $6.8 million for the three and nine months ended September 30, 2021, respectively, and additional amortization expense of $1.8 million and $8.4 million for the three and nine months ended September 30, 2021, respectively, resulting from the amortization of intangible assets beginning as of January 1, 2021. We prepared the pro forma financial information for the combined entities for comparative purposes only, and the information is not indicative of what actual results would have been if the acquisitions had occurred at the beginning of the periods presented, nor is the information intended to represent or be indicative of future results of operations.
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables present a disaggregation of our revenue from contracts with customers by revenue recognition pattern and geographical market:
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Supplemental Balance Sheet Information | Supplemental balance sheet information related to contracts from customers as of:
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Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill activity consisted of the following for the nine months ended September 30, 2022 (in thousands):
(1)The $0.6 million of measurement period adjustments relates to acquisitions consummated during the year ended December 31, 2021.
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Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following as of:
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment consisted of the following as of:
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Capitalized Software (Tables) |
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Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capitalized Software | Capitalized software consisted of the following as of:
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Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | Long-term debt consisted of the following as of:
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Schedule of Maturities of Long-term Debt | Aggregate maturities of the Company’s debt for the years ending December 31 are as follows as of September 30, 2022 (in thousands):
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Unit and Stock Option Activity | The following table summarizes our restricted stock unit (“RSU”) and stock option activity for the nine months ended September 30, 2022:
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Schedule of Stock-based Compensation Expense | Stock-based compensation expense was classified in the unaudited condensed consolidated statements of operations and comprehensive loss as follows:
|
Net Loss Per Share Attributable to Common Stockholders (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Loss Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock as of:
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Schedule of Antidilutive Outstanding Common Stock Excluded from Computation of Diluted Net Loss Per Share | The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented due to their anti-dilutive effect as of:
|
Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities at Fair Value on a Recurring Basis | The following table presents information about the Company's financial assets and liabilities measured at fair value on a recurring basis as of:
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Schedule of Reconciliation of Opening and Closing Balances for Contingent Consideration | The following is a reconciliation of the opening and closing balance for contingent consideration measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2022 (in thousands):
|
Geographic Areas (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Lived Assets by Geographic Areas | The following table sets forth long-lived assets by geographic area as of:
|
Nature of the Business (Details) customer in Thousands |
Sep. 30, 2022
core_vertical
customer
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of customers | customer | 600 |
Number of core verticals | core_vertical | 3 |
Acquisitions - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Business Combination and Asset Acquisition [Abstract] | ||||
Total revenue | $ 158,126 | $ 140,362 | $ 458,948 | $ 395,273 |
Net loss | (15,853) | (40,775) | (42,043) | (94,003) |
Adjustments to net loss per share (see Note 10) | 0 | 0 | 0 | (15,105) |
Net loss attributable to common stockholders | $ (15,853) | $ (40,775) | $ (42,043) | $ (109,108) |
Basic net loss per share attributable to common stockholders (in dollars per share) | $ (0.08) | $ (0.22) | $ (0.22) | $ (1.19) |
Diluted net loss per share attributable to common stockholders (in dollars per share) | $ (0.08) | $ (0.22) | $ (0.22) | $ (1.19) |
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 158,126 | $ 128,534 | $ 458,948 | $ 354,490 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 146,492 | 118,721 | 418,510 | 325,179 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 11,634 | 9,813 | 40,438 | 29,311 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 14,496 | 13,743 | 40,112 | 37,324 |
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 143,630 | $ 114,791 | $ 418,836 | $ 317,166 |
Revenue - Contract Balances (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 49,762 | $ 40,514 |
Contract assets | 13,782 | 11,039 |
Deferred revenue | 25,300 | 22,992 |
Customer deposits | 10,176 | 9,828 |
Long-term deferred revenue | $ 2,596 | $ 2,803 |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Capitalized Contract Cost [Line Items] | |||||
Revenue recognized | $ 20.9 | ||||
Cost to obtain contracts amortization period | 5 years | 5 years | |||
Short-term assets | $ 6.2 | $ 6.2 | $ 4.8 | ||
Long-term assets | 14.3 | 14.3 | $ 11.9 | ||
Sales and marketing expense | |||||
Capitalized Contract Cost [Line Items] | |||||
Amortization expense | 1.1 | $ 0.7 | 3.1 | $ 2.0 | |
Cost of revenues | |||||
Capitalized Contract Cost [Line Items] | |||||
Amortization expense | $ 0.4 | $ 0.3 | $ 1.2 | $ 0.7 |
Goodwill (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 921,416 | |
Measurement period adjustments | (573) | |
Effect of foreign currency exchange rate changes | (13,600) | |
Ending balance | 907,243 | $ 921,416 |
2021 Acquisitions | ||
Goodwill [Roll Forward] | ||
Beginning balance | $ 255,723 | |
Measurement period adjustments | (600) | |
Ending balance | $ 255,723 |
Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 25.2 | $ 24.2 | $ 75.7 | $ 68.7 |
Property and Equipment - Summary (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 25,406 | $ 23,890 |
Less accumulated depreciation | (12,899) | (10,381) |
Property and equipment, net | 12,507 | 13,509 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,918 | 8,191 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,560 | 3,667 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 11,928 | $ 12,032 |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 1.0 | $ 1.0 | $ 3.1 | $ 2.8 |
Capitalized Software - Summary (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Research and Development [Abstract] | ||
Capitalized software | $ 42,746 | $ 31,960 |
Less: accumulated amortization | (11,646) | (7,960) |
Capitalized software, net | $ 31,100 | $ 24,000 |
Capitalized Software - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Research and Development [Abstract] | ||||
Amortization | $ 1,400 | $ 900 | $ 3,700 | $ 2,400 |
Capitalized software abandonment | $ 100 | $ 580 | $ 0 |
Long-Term Debt - Maturities (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2022 (remaining three months) | $ 4,211 |
2023 | 5,500 |
2024 | 5,500 |
2025 | 5,500 |
2026 | 5,500 |
Thereafter | 521,125 |
Total debt | $ 547,336 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions |
Jan. 01, 2022 |
Jul. 06, 2021 |
Sep. 30, 2022 |
---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, RSUs | $ 22.2 | ||
Unrecognized compensation expense, stock options | $ 28.7 | ||
2021 Incentive Award Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | 22,000,000 | ||
Percentage of stock outstanding | 3.00% | ||
Additional shares reserved for issuance (in shares) | 5,900,000 |
Stock-Based Compensation - RSU and Stock Option Activity (Details) - shares shares in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
|
Options | |||
Beginning balance (in shares) | 17,279 | 17,638 | 16,444 |
Granted (in shares) | 54 | 146 | 1,480 |
Vested or exercised (in shares) | (95) | (96) | (126) |
Cancelled or forfeited (in shares) | (143) | (409) | (160) |
Ending balance (in shares) | 17,095 | 17,279 | 17,638 |
RSUs | |||
RSUs | |||
Beginning balance (in shares) | 2,100 | 2,052 | 541 |
Granted (in shares) | 95 | 211 | 1,521 |
Vested or exercised (in shares) | (116) | 0 | 0 |
Cancelled or forfeited (in shares) | (56) | (163) | (10) |
Ending balance (in shares) | 2,023 | 2,100 | 2,052 |
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 7,133 | $ 4,745 | $ 19,776 | $ 16,849 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 109 | 173 | 278 | 178 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 380 | 160 | 1,127 | 298 |
Product development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 501 | 295 | 1,389 | 437 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 6,143 | $ 4,117 | $ 16,982 | $ 15,936 |
Net Loss Per Share Attributable to Common Stockholders - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Numerator: | ||||||||
Net loss | $ (15,853) | $ (12,881) | $ (13,309) | $ (36,906) | $ (24,334) | $ (15,995) | $ (42,043) | $ (77,235) |
Accretion of Series B to redemption value | 0 | 0 | 0 | (15,105) | ||||
Net loss attributable to common stockholders, basic | (15,853) | (36,906) | (42,043) | (92,340) | ||||
Net loss attributable to common stockholders, diluted | $ (15,853) | $ (36,906) | $ (42,043) | $ (92,340) | ||||
Denominator: | ||||||||
Denominator for basic EPS - weighted-average shares of common stock outstanding used in computing net loss per share (in shares) | 194,542,764 | 187,994,437 | 195,205,260 | 91,655,461 | ||||
Denominator for diluted EPS - weighted-average shares of common stock outstanding used in computing net loss per share (in shares) | 194,542,764 | 187,994,437 | 195,205,260 | 91,655,461 | ||||
Basic net loss per share attributable to common stockholders (in dollars per share) | $ (0.08) | $ (0.20) | $ (0.22) | $ (1.01) | ||||
Diluted net loss per share attributable to common stockholders (in dollars per share) | $ (0.08) | $ (0.20) | $ (0.22) | $ (1.01) |
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Common Stock Excluded from Computation of Diluted Net Loss Per Share (Details) - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive outstanding potential common stock | 19,118,295 | 16,967,629 |
Outstanding options to purchase common stock and unvested RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive outstanding potential common stock | 19,118,295 | 16,967,629 |
Fair Value of Financial Instruments - Financial Assets and Liabilities at Fair Value On a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Liability | ||
Contingent consideration | $ 675 | |
Level 1 | ||
Liability | ||
Contingent consideration | 0 | |
Level 2 | ||
Liability | ||
Contingent consideration | 0 | |
Level 3 | ||
Liability | ||
Contingent consideration | 675 | |
Money market | ||
Asset | ||
Money market | $ 13,674 | 14,855 |
Money market | Level 1 | ||
Asset | ||
Money market | 13,674 | 14,855 |
Money market | Level 2 | ||
Asset | ||
Money market | 0 | 0 |
Money market | Level 3 | ||
Asset | ||
Money market | $ 0 | $ 0 |
Fair Value of Financial Instruments - Schedule of Reconciliation of Contingent Consideration Measured at Fair Value (Details) - Level 3 - Fair Value, Recurring $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Opening balance | $ 675 |
Amounts settled through payment | (657) |
Fair value adjustments | (18) |
Ending balance | $ 0 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax benefit | $ 291 | $ 1,022 | $ 5,953 | $ 4,182 |
Effective income tax rate | 1.80% | 2.70% | 12.40% | 5.10% |
Geographic Areas (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
United States | ||
Finite-Lived Intangible Assets [Line Items] | ||
Long-lived assets | $ 36,015 | $ 34,906 |
International | ||
Finite-Lived Intangible Assets [Line Items] | ||
Long-lived assets | $ 7,592 | $ 2,603 |
Subsequent Events (Details) - Subsequent Event - Interest rate swap |
Oct. 31, 2022
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Notional amount | $ 200,000,000 |
Agreement term | 5 years |
Fixed interest rate | 4.2295% |
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