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 | ☐ | ☒ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Page | ||||||||
Part I | FINANCIAL INFORMATION | |||||||
Financial Statements | ||||||||
Condensed Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022 | ||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) for the three months ended March 31, 2023 and 2022 | ||||||||
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (unaudited) for the three months ended March 31, 2023 and 2022 | ||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2023 and 2022 | ||||||||
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowance for expected credit losses of $ | |||||||||||
Contract assets | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Capitalized software, net | |||||||||||
Other non-current assets | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Total assets | |||||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | |||||||||||
Accrued expenses and other | |||||||||||
Deferred revenue | |||||||||||
Customer deposits | |||||||||||
Current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current maturities and deferred financing costs | |||||||||||
Other 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 and stockholders’ equity | $ | $ |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
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 | ( | ( | |||||||||
Net loss attributable to common stockholders before income tax benefit (expense) | ( | ( | |||||||||
Income tax benefit (expense) | ( | ||||||||||
Net loss attributable to common stockholders | ( | ( | |||||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation losses, net | ( | ( | |||||||||
Comprehensive 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, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||
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 March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | 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 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows provided by operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred taxes | ( | ( | |||||||||
Amortization of deferred financing costs and non-cash interest | |||||||||||
Bad debt expense | |||||||||||
Other non-cash items | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Other non-current assets | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Accrued expenses and other | ( | ||||||||||
Deferred revenue | |||||||||||
Other non-current liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows used in investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Capitalization of software costs | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows used in financing activities: | |||||||||||
Payments on debt | ( | ( | |||||||||
Exercise of stock options | |||||||||||
Repurchase and retirement of common stock | ( | ||||||||||
Net cash 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 | $ | $ | |||||||||
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
By pattern of recognition (timing of transfer of services): | |||||||||||
Point in time | $ | $ | |||||||||
Over time | |||||||||||
Total | $ | $ | |||||||||
By geographical market: | |||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total | $ | $ |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Accounts receivable, net | $ | $ | |||||||||
Contract assets | $ | $ | |||||||||
Deferred revenue | $ | $ | |||||||||
Customer deposits | $ | $ | |||||||||
Long-term deferred revenue | $ | $ | |||||||||
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
Balance at December 31, 2022 | $ | ||||
Effect of foreign currency exchange rate changes | ( | ||||
Balance at March 31, 2023 | $ |
March 31, 2023 | |||||||||||||||||||||||
Useful Life | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Customer relationships | $ | $ | $ | ||||||||||||||||||||
Developed technology | |||||||||||||||||||||||
Trade name | |||||||||||||||||||||||
Non-compete agreements | |||||||||||||||||||||||
Total | $ | $ | $ |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
December 31, 2022 | |||||||||||||||||||||||
Useful Life | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Customer relationships | $ | $ | $ | ||||||||||||||||||||
Developed technology | |||||||||||||||||||||||
Trade name | |||||||||||||||||||||||
Non-compete agreements | |||||||||||||||||||||||
Total | $ | $ | $ |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Computer equipment and software | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Total property and equipment | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Capitalized software | $ | $ | |||||||||
Less: accumulated amortization | ( | ( | |||||||||
Capitalized software, net | $ | $ |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Operating lease cost | $ | $ | |||||||||
Variable lease cost | |||||||||||
Short-term lease cost | |||||||||||
Total lease cost | $ | $ |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Cash paid for amounts included in measurement of lease liabilities: | |||||||||||
Operating cash outflows - payments on operating leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new lease obligations: | |||||||||||
Operating leases | $ | $ |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Current operating lease liabilities | |||||||||||
Long-term operating lease liabilities | |||||||||||
Total operating lease liabilities | $ | $ |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
Year ended December 31, | |||||
2023 (remainder of year) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: imputed interest | |||||
Total present value of lease liabilities | $ |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(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 | |||||||||||
Principal debt | |||||||||||
Deferred financing costs on long-term debt | ( | ( | |||||||||
Discount on long-term debt | ( | ( | |||||||||
Total debt | |||||||||||
Less current maturities | |||||||||||
Long-term portion | $ | $ |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
Years ending December 31: | |||||
2023 (remainder of year) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total aggregate maturities of the Company’s debt | $ |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
RSUs | Options | ||||||||||
(in thousands) | |||||||||||
Outstanding as of January 1, 2023 | |||||||||||
Granted | |||||||||||
Vested or exercised | ( | ( | |||||||||
Cancelled or forfeited | ( | ( | |||||||||
Outstanding as of March 31, 2023 | |||||||||||
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Cost of revenues | $ | $ | |||||||||
Sales and marketing | |||||||||||
Product development | |||||||||||
General and administrative | |||||||||||
Total stock-based compensation expense | $ | $ |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands except share and per share amounts) | |||||||||||
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 | $ | ( | $ | ( |
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Outstanding options to purchase common stock and unvested RSUs | |||||||||||
Total anti-dilutive outstanding potential common stock |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
March 31, 2023 | Balance Sheet Classification | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Asset: | |||||||||||||||||||||||||||||
Money market | $ | $ | $ | $ | Cash equivalents | ||||||||||||||||||||||||
Liability: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | Other non-current liabilities |
December 31, 2022 | Balance Sheet Classification | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Asset: | |||||||||||||||||||||||||||||
Money market | $ | $ | $ | $ | Cash equivalents | ||||||||||||||||||||||||
Liability: | |||||||||||||||||||||||||||||
Interest rate swap | $ | $ | $ | $ | Other non-current liabilities |
EverCommerce Inc. | ||
March 31, 2023 | ||
Notes to Condensed Consolidated Financial Statements |
Year ended December 31, | |||||
2023 (remainder of year) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total future minimum payments due | $ |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
United States | $ | $ | |||||||||
International | $ | $ |
Three months ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
(in thousands) | ||||||||||||||
Gross profit (1) | $ | 99,281 | (2) | $ | 87,278 | (3) | ||||||||
Depreciation and amortization | 5,909 | 5,553 | ||||||||||||
Adjusted gross profit | $ | 105,190 | $ | 92,831 |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Net loss | $ | (20,775) | $ | (13,309) | |||||||
Adjusted to exclude the following: | |||||||||||
Interest and other expense, net | 15,188 | 5,478 | |||||||||
Income tax expense (benefit) | 299 | (5,737) | |||||||||
Depreciation and amortization | 25,950 | 27,391 | |||||||||
Other amortization | 1,309 | 942 | |||||||||
Acquisition related costs | 606 | 597 | |||||||||
Stock-based compensation expense | 7,514 | 6,135 | |||||||||
Other non-recurring costs | 1,847 | 1,465 | |||||||||
Adjusted EBITDA | $ | 31,938 | $ | 22,962 |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Subscription and transaction fees | $ | 123,820 | $ | 108,001 | |||||||
Marketing technology solutions | 31,788 | 29,904 | |||||||||
Other | 5,528 | 5,671 | |||||||||
Total revenues | 161,136 | 143,576 | |||||||||
Operating expenses: | |||||||||||
Cost of revenues (1) (exclusive of depreciation and amortization presented separately below) | 55,946 | 50,745 | |||||||||
Sales and marketing (1) | 30,899 | 30,145 | |||||||||
Product development (1) | 18,703 | 17,637 | |||||||||
General and administrative (1) | 34,926 | 31,226 | |||||||||
Depreciation and amortization | 25,950 | 27,391 | |||||||||
Total operating expenses | 166,424 | 157,144 | |||||||||
Operating loss | (5,288) | (13,568) | |||||||||
Interest and other expense, net | (15,188) | (5,478) | |||||||||
Net loss attributable to common stockholders before income tax benefit (expense) | (20,476) | (19,046) | |||||||||
Income tax benefit (expense) | (299) | 5,737 | |||||||||
Net loss attributable to common stockholders | $ | (20,775) | $ | (13,309) |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Cost of revenues | $ | 108 | $ | 82 | |||||||
Sales and marketing | 402 | 328 | |||||||||
Product development | 562 | 392 | |||||||||
General and administrative | 6,442 | 5,333 | |||||||||
Total stock-based compensation expense | $ | 7,514 | $ | 6,135 |
Three months ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Subscription and transaction fees | $ | 123,820 | $ | 108,001 | $ | 15,819 | 14.6 | % | |||||||||||||||
Marketing technology solutions | 31,788 | 29,904 | 1,884 | 6.3 | % | ||||||||||||||||||
Other | 5,528 | 5,671 | (143) | (2.5) | % | ||||||||||||||||||
Total revenues | $ | 161,136 | $ | 143,576 | $ | 17,560 | 12.2 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization presented separately below) | $ | 55,946 | $ | 50,745 | $ | 5,201 | 10.2 | % | |||||||||||||||
Percentage of revenues | 34.7 | % | 35.3 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Sales and marketing | $ | 30,899 | $ | 30,145 | $ | 754 | 2.5 | % | |||||||||||||||
Percentage of revenues | 19.2 | % | 21.0 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Product development | $ | 18,703 | $ | 17,637 | $ | 1,066 | 6.0 | % | |||||||||||||||
Percentage of revenues | 11.6 | % | 12.3 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
General and administrative | $ | 34,926 | $ | 31,226 | $ | 3,700 | 11.8 | % | |||||||||||||||
Percentage of revenues | 21.7 | % | 21.7 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Depreciation and amortization | $ | 25,950 | $ | 27,391 | $ | (1,441) | (5.3) | % | |||||||||||||||
Percentage of revenues | 16.1 | % | 19.1 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest and other expense, net | $ | 15,188 | $ | 5,478 | $ | 9,710 | 177.3 | % | |||||||||||||||
Percentage of revenues | 9.4 | % | 3.8 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Income tax benefit (expense) | $ | (299) | $ | 5,737 | $ | (6,036) | (105.2 | %) | |||||||||||||||
Percentage of revenues | (0.2 | %) | 4.0 | % |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 12,700 | $ | 12,854 | |||||||
Net cash used in investing activities | (4,857) | (4,392) | |||||||||
Net cash used in financing activities | (30,409) | (652) | |||||||||
Effect of foreign currency exchange rate changes on cash | 50 | (370) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | (22,516) | $ | 7,440 |
Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (1) | Approximate dollar value of shares that may yet be purchased under the plans or programs | ||||||||||||||||||||
(in thousands, except per share and share amounts) | |||||||||||||||||||||||
January 1, 2023 - January 31, 2023 | 1,157,697 | $ | 8.47 | 1,157,697 | $ | 47,336 | |||||||||||||||||
February 1, 2023 - February 28, 2023 | 817,748 | $ | 10.38 | 817,748 | $ | 38,845 | |||||||||||||||||
March 1, 2023 - March 31, 2023 | 1,148,252 | $ | 9.82 | 1,148,252 | $ | 27,565 | |||||||||||||||||
Total | 3,123,697 | 3,123,697 |
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: May 9, 2023 | By: | /s/ Eric Remer | |||||||||
Eric Remer | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: May 9, 2023 | By: | /s/ Marc Thompson | |||||||||
Marc Thompson | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
Date: May 9, 2023 | By: | /s/ Eric Remer | |||||||||
Eric Remer | |||||||||||
Chief Executive Officer and Director (principal executive officer) |
Date: May 9, 2023 | By: | /s/ Marc Thompson | |||||||||
Marc Thompson | |||||||||||
Chief Financial Officer (principal financial officer) |
Date: May 9, 2023 | By: | /s/ Eric Remer | |||||||||
Eric Remer | |||||||||||
Chief Executive Officer and Director (principal executive officer) |
Date: May 9, 2023 | By: | /s/ Marc Thompson | |||||||||
Marc Thompson | |||||||||||
Chief Financial Officer (principal financial officer) |
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for expected credit losses | $ 5.7 | $ 4.7 |
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) | 188,773,974 | 191,447,237 |
Common stock, shares outstanding (in shares) | 188,773,974 | 191,447,237 |
Nature of the Business |
3 Months Ended |
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Mar. 31, 2023 | |
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 (“service SMBs”). Our platform spans across the full lifecycle of interactions between consumers and service professionals with vertical-specific applications. Today, the Company serves more than 685,000 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 is headquartered in Denver, Colorado, and has operations across the United States, Canada, Jordan, United Kingdom, Australia and New Zealand. |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2023 | |
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, 2022 and the related notes (“Annual Report on Form 10-K”). The December 31, 2022 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 three months ended March 31, 2023 from those disclosed in the annual consolidated financial statements for the year ended December 31, 2022 and the related notes. The operating results for the three months ended March 31, 2023 are not necessarily indicative of the results expected for the full year ending December 31, 2023. 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 Accounting pronouncements issued and adopted 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 is effective for annual reporting periods beginning after December 15, 2022. The Company adopted this ASU for the year ending December 31, 2023 and it did not have a material impact on the 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 is effective for annual reporting periods beginning after December 15, 2022. The Company adopted this ASU for the year ending December 31, 2023 and it had no impact on the financial statements, but will have an impact on any future acquisitions.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, net of allowance for expected credit losses, 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, 2022 was $16.0 million for the three months ended March 31, 2023. 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 March 31, 2023, was $20.5 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 60% of its remaining performance obligations as revenue within the next year, 28% of its remaining performance obligations as revenue the subsequent year, 9% 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 five years, which corresponds with the useful life of the related capitalized software. Short-term assets were $7.1 million and $6.6 million at March 31, 2023 and December 31, 2022, respectively, and long-term assets were $15.8 million and $15.1 million at March 31, 2023 and December 31, 2022, respectively. The Company recorded amortization expense within sales and marketing on the condensed consolidated statements of operations and comprehensive loss of $1.3 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively. The Company recorded amortization expense within cost of revenues on the condensed consolidated statements of operations and comprehensive loss of $0.5 million and $0.4 million for the three months ended March 31, 2023 and 2022, 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”).
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Goodwill |
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Mar. 31, 2023 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill | Goodwill Goodwill activity consisted of the following for the three months ended March 31, 2023 (in thousands):
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Intangible Assets |
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Intangible Assets | Intangible Assets Intangible assets consisted of the following as of:
Amortization expense was $23.2 million and $25.2 million for the three months ended March 31, 2023 and 2022, respectively.
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Property and Equipment |
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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 March 31, 2023 and 2022.
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Capitalized Software |
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Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Software | Capitalized Software Capitalized software consisted of the following as of:
Amortization expense was $1.8 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively. During the ordinary course of business, the Company may determine that certain capitalized features of its software will no longer be used either internally or to deliver value to its customers. During the three months ended March 31, 2023 the Company recorded a charge to general and administrative on the accompanying condensed consolidated statements of operations and comprehensive loss for $0.3 million, related to capitalized features no longer expected to be used.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases real estate from unrelated parties under operating lease agreements that have initial terms ranging from one year to 11 years. Some leases include one or more options to renew, generally at our sole discretion, of additional years each. The components of lease expense are as follows:
Supplemental cash flow information related to leases is as follows:
Supplemental balance sheet information, included in , and on the consolidated balance sheet, related to leases is as follows:
At March 31, 2023 and December 31, 2022, the weighted average remaining lease term for operating leases was 6.19 years and 6.34 years, respectively, and the weighted average discount rate was 4.8%. Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the balance sheet as of March 31, 2023 is as follows (in thousands):
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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:
In 2021, the Company agreed to two term loans for an aggregate principal amount of $550.0 million (“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. These debt arrangements 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 March 31, 2023, 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 $535.0 million and $531.6 million as of March 31, 2023 and December 31, 2022, respectively. Effective 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 Loans from a floating rate to a fixed rate. The swap agreement has a term of five years with a fixed rate in the agreement of 4.2295%. Additionally, effective March 31, 2023, the Company entered into a second interest rate swap agreement in connection with the Company’s Credit Facilities for a notional amount of $100.0 million to convert a portion of the Term Loans from a floating rate to a fixed rate. This swap agreement has a term of approximately 4.5 years with a fixed rate in the agreement of 3.9690% (the “Swap Agreements”). The Swap Agreements are accounted for as derivatives whereby the fair value of the contracts are reported in other non-current assets or other non-current liabilities on the consolidated balance sheet, and gains and losses resulting from changes in the fair value are reported in interest and other expense, net, in the statement of operations and comprehensive loss. As of March 31, 2023 the fair value of the Swap Agreements was a liability of $7.1 million and reported in other non-current liabilities on the condensed consolidated balance sheet. 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 March 31, 2023, 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 March 31, 2023 (in thousands):
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Equity |
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Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity On July 6, 2021, the Company filed an Amended and Restated Certificate of Incorporation 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. 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. 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. The Company repurchased and retired 3.1 million shares of common stock for $29.6 million, including transaction fees, during the three months ended March 31, 2023. As of March 31, 2023, $27.6 million remains available under the Repurchase Program.
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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, 2022, as of January 1, 2023 the number of shares reserved for issuance under the 2021 Plan increased by 5.7 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 12 in the Annual Report on Form 10-K. The following table summarizes our restricted stock unit (“RSU”) and stock option activity for the three months ended March 31, 2023:
As of March 31, 2023, total unrecognized compensation expense was $40.9 million and $18.1 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 InstrumentsFair 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. The Company has no assets or liabilities valued with Level 2 inputs. •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 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 months ended March 31, 2023 or 2022. 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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Income Taxes |
3 Months Ended |
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Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur 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 (expense) was ($0.3 million) and $5.7 million for the three months ended March 31, 2023 and 2022, respectively. Our effective income tax rate was (1.5%) and 30.1% for the three months ended March 31, 2023 and 2022, respectively. The difference in the effective income tax rate for the three months ended March 31, 2023 as compared to the corresponding period in 2022 was primarily driven by discrete items, including a California law change and an intercompany intellectual property sale, in the three months ended March 31, 2022.
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Commitment and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The Company has non-cancelable contractual purchase obligations incurred in the normal course of business to help deliver our services and products and provide support to our customers. These contracts with vendors primarily relate to software service, targeted mail costs, third party fulfillment costs and software hosting. Unrecognized future minimum payments due under these agreements are as follows (in thousands):
From 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. The Company assesses the applicability of nexus in jurisdictions in which the Company sells products and services. As of March 31, 2023 and December 31, 2022, the Company recorded a liability in the amount of $11.1 million and $11.2 million, respectively, within current liabilities and other long-term liabilities as a provision for sales and use, gross receipts and goods and services tax. In connection with the Company's accounting for acquisitions, the Company has recorded liabilities and corresponding provisional escrow or indemnity receivables within the purchase price allocations for instances in which the Company is indemnified for tax matters.
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Geographic Areas |
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Geographic Areas | Geographic Areas The following table sets forth long-lived assets by geographic area as of:
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Subsequent Events |
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Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events[OPEN] |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2023 | |
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, 2022 and the related notes (“Annual Report on Form 10-K”). The December 31, 2022 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 three months ended March 31, 2023 from those disclosed in the annual consolidated financial statements for the year ended December 31, 2022 and the related notes. The operating results for the three months ended March 31, 2023 are not necessarily indicative of the results expected for the full year ending December 31, 2023.
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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 | Recently Issued Accounting Pronouncements Accounting pronouncements issued and adopted 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 is effective for annual reporting periods beginning after December 15, 2022. The Company adopted this ASU for the year ending December 31, 2023 and it did not have a material impact on the 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 is effective for annual reporting periods beginning after December 15, 2022. The Company adopted this ASU for the year ending December 31, 2023 and it had no impact on the financial statements, but will have an impact on any future acquisitions.
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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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Schedule of Goodwill | Goodwill activity consisted of the following for the three months ended March 31, 2023 (in thousands):
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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:
|
Property and Equipment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment consisted of the following as of:
|
Capitalized Software (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capitalized Software | Capitalized software consisted of the following as of:
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost and Supplemental Cash Flow, Balance Sheet Information | The components of lease expense are as follows:
Supplemental cash flow information related to leases is as follows:
Supplemental balance sheet information, included in , and on the consolidated balance sheet, related to leases is as follows:
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Schedule of Future Undiscounted Cash Flows | Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the balance sheet as of March 31, 2023 is as follows (in thousands):
|
Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2023 (in thousands):
|
Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Unit and Stock Option Activity | The following table summarizes our restricted stock unit (“RSU”) and stock option activity for the three months ended March 31, 2023:
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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) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Commitment and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Payments | Unrecognized future minimum payments due under these agreements are as follows (in thousands):
|
Geographic Areas (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
Mar. 31, 2023
core_vertical
customer
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of customers | customer | 685 |
Number of core verticals | core_vertical | 3 |
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 161,136 | $ 143,576 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 148,965 | 130,286 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 12,171 | 13,290 |
Point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 14,738 | 12,106 |
Over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 146,398 | $ 131,470 |
Revenue - Contract Balances (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 48,038 | $ 48,032 |
Contract assets | 14,748 | 12,971 |
Deferred revenue | 24,205 | 22,885 |
Customer deposits | 10,435 | 11,360 |
Long-term deferred revenue | $ 2,394 | $ 2,496 |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Capitalized Contract Cost [Line Items] | |||
Revenue recognized | $ 16.0 | ||
Cost to obtain contracts amortization period | 5 years | ||
Short-term assets | $ 7.1 | $ 6.6 | |
Long-term assets | 15.8 | $ 15.1 | |
Sales and marketing expense | |||
Capitalized Contract Cost [Line Items] | |||
Amortization expense | 1.3 | $ 0.9 | |
Cost of revenues | |||
Capitalized Contract Cost [Line Items] | |||
Amortization expense | $ 0.5 | $ 0.4 |
Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 914,082 |
Effect of foreign currency exchange rate changes | (308) |
Ending balance | $ 913,774 |
Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization | $ 23.2 | $ 25.2 |
Property and Equipment - Summary (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 25,322 | $ 24,838 |
Less accumulated depreciation | (13,931) | (12,908) |
Property and equipment, net | 11,391 | 11,930 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,625 | 9,327 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,720 | 3,570 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 11,977 | $ 11,941 |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1.0 | $ 1.0 |
Capitalized Software - Summary (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Research and Development [Abstract] | ||
Capitalized software | $ 49,958 | $ 45,872 |
Less: accumulated amortization | (15,132) | (13,318) |
Capitalized software, net | $ 34,826 | $ 32,554 |
Capitalized Software - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Research and Development [Abstract] | ||
Amortization | $ 1.8 | $ 1.2 |
Capitalized software abandonment | $ 0.3 |
Leases - Narrative (Details) |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Lessee, Lease, Description [Line Items] | ||
Extended lease term (in years) | 5 years | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | |
Weighted average remaining lease term for operating leases (in years) | 6 years 2 months 8 days | 6 years 4 months 2 days |
Operating lease, weighted average discount rate | 4.80% | 4.80% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease initial terms (in years) | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease initial terms (in years) | 11 years |
Leases - Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Leases [Abstract] | |||
Operating lease cost | $ 1,624 | $ 2,117 | |
Variable lease cost | 495 | 374 | |
Short-term lease cost | 55 | 89 | |
Total lease cost | 2,174 | 2,580 | |
Cash paid for amounts included in measurement of lease liabilities: | |||
Operating cash outflows - payments on operating leases | 1,842 | 1,771 | |
Right-of-use assets obtained in exchange for new lease obligations: | |||
Operating leases | 0 | $ 540 | |
Operating lease right-of-use assets | 19,762 | $ 21,756 | |
Current operating lease liabilities | 4,789 | 5,239 | |
Long-term operating lease liabilities | 21,702 | 22,500 | |
Total operating lease liabilities | $ 26,491 | $ 27,739 |
Leases - Future Undiscounted Cash Flows and Reconciliation to the Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2023 (remainder of year) | $ 4,767 | |
2024 | 4,952 | |
2025 | 4,563 | |
2026 | 4,414 | |
2027 | 3,990 | |
Thereafter | 8,590 | |
Total lease payments | 31,276 | |
Less: imputed interest | 4,785 | |
Total present value of lease liabilities | $ 26,491 | $ 27,739 |
Long-Term Debt - Summary of Debt (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Debt Instrument [Line Items] | ||
Principal debt | $ 541,750 | $ 543,125 |
Deferred financing costs on long-term debt | (4,669) | (4,900) |
Discount on long-term debt | (1,695) | (1,779) |
Total debt | 535,386 | 536,446 |
Less current maturities | 5,500 | 5,500 |
Long-term portion | 529,886 | 530,946 |
New Term Loan | Term loan | ||
Debt Instrument [Line Items] | ||
Principal debt | $ 541,750 | 543,125 |
Effective interest rate | 7.88% | |
Principal payment as a percentage of original principal balance | 0.25% | |
New Term Loan | Base Rate Or London Interbank Offered Rate (LIBOR) | Term loan | ||
Debt Instrument [Line Items] | ||
Basis spread | 3.25% | |
New Revolver | Revolving loans | ||
Debt Instrument [Line Items] | ||
Principal debt | $ 0 | $ 0 |
Effective interest rate | 8.09% | |
New Revolver | Base Rate Or London Interbank Offered Rate (LIBOR) | Revolving loans | ||
Debt Instrument [Line Items] | ||
Basis spread | 3.25% |
Long-Term Debt - Narrative (Details) |
3 Months Ended | |||
---|---|---|---|---|
Oct. 31, 2022
USD ($)
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
loan
|
|
Interest rate swaps | ||||
Debt Instrument [Line Items] | ||||
Notional amount | $ 200,000,000 | $ 100,000,000 | ||
Agreement term | 5 years | 4 years 6 months | ||
Fixed interest rate | 4.2295% | 3.969% | ||
Fair value of liability | $ 7,100,000 | |||
Level 2 | Fair Value | ||||
Debt Instrument [Line Items] | ||||
Fair value | $ 535,000,000 | $ 531,600,000 | ||
New Term Loan | Term loan | ||||
Debt Instrument [Line Items] | ||||
Number of term loans | loan | 2 | |||
Maximum borrowing capacity | $ 550,000,000 | |||
New Revolver | Revolving loans | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 190,000,000 | |||
New Revolver | Letter of credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 |
Long-Term Debt - Maturities (Details) $ in Thousands |
Mar. 31, 2023
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2023 (remainder of year) | $ 4,125 |
2024 | 5,500 |
2025 | 5,500 |
2026 | 5,500 |
2027 | 5,500 |
Thereafter | 515,625 |
Total aggregate maturities of the Company’s debt | $ 541,750 |
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Nov. 07, 2022 |
Jun. 14, 2022 |
Jul. 06, 2021 |
|
Class of Stock [Line Items] | |||||
Shares authorized (in shares) | 2,050,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | ||
Stock repurchase program with authorization | $ 100,000 | ||||
Repurchase and retirement of common shares (in shares) | 3,100,000 | ||||
Repurchase and retirement of common stock | $ 29,643 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 27,600 | ||||
Maximum | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program with authorization | $ 50,000 | ||||
Repurchase program, additional authorized amount | $ 50,000 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions |
Jan. 01, 2023 |
Jul. 06, 2021 |
Mar. 31, 2023 |
---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, RSUs | $ 40.9 | ||
Unrecognized compensation expense, stock options | $ 18.1 | ||
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) | 5,700,000 |
Stock-Based Compensation - RSU and Stock Option Activity (Details) shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
shares
| |
Options | |
Beginning balance (in shares) | 16,937 |
Granted (in shares) | 0 |
Vested or exercised (in shares) | (103) |
Cancelled or forfeited (in shares) | (78) |
Ending balance (in shares) | 16,756 |
RSUs | |
RSUs | |
Beginning balance (in shares) | 2,022 |
Granted (in shares) | 2,839 |
Vested or exercised (in shares) | (347) |
Cancelled or forfeited (in shares) | (24) |
Ending balance (in shares) | 4,490 |
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 7,514 | $ 6,135 |
Cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 108 | 82 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 402 | 328 |
Product development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 562 | 392 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 6,442 | $ 5,333 |
Net Loss Per Share Attributable to Common Stockholders - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Earnings Per Share [Abstract] | ||
Numerator for basic EPS - net loss attributable to common stockholders | $ (20,775) | $ (13,309) |
Numerator for diluted EPS - net loss attributable to common stockholders | $ (20,775) | $ (13,309) |
Denominator: | ||
Denominator for basic EPS - weighted-average shares of common stock outstanding used in computing net loss per share (in shares) | 190,042,673 | 195,432,404 |
Denominator for diluted EPS - weighted-average shares of common stock outstanding used in computing net loss per share (in shares) | 190,042,673 | 195,432,404 |
Basic net loss per share attributable to common stockholders (in dollars per share) | $ (0.11) | $ (0.07) |
Diluted net loss per share attributable to common stockholders (in dollars per share) | $ (0.11) | $ (0.07) |
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Common Stock Excluded from Computation of Diluted Net Loss Per Share (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive outstanding potential common stock | 21,245,514 | 19,690,100 |
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 | 21,245,514 | 19,690,100 |
Fair Value of Financial Instruments - Financial Assets and Liabilities at Fair Value On a Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Interest rate swaps | ||
Liability: | ||
Interest rate swap | $ 7,100 | |
Fair Value, Recurring | Interest rate swaps | ||
Liability: | ||
Interest rate swap | 7,137 | $ 2,893 |
Fair Value, Recurring | Interest rate swaps | Level 1 | ||
Liability: | ||
Interest rate swap | 0 | 0 |
Fair Value, Recurring | Interest rate swaps | Level 2 | ||
Liability: | ||
Interest rate swap | 7,137 | 2,893 |
Fair Value, Recurring | Interest rate swaps | Level 3 | ||
Liability: | ||
Interest rate swap | 0 | 0 |
Fair Value, Recurring | Money market | ||
Asset: | ||
Money market | 1,550 | 6,568 |
Fair Value, Recurring | Money market | Level 1 | ||
Asset: | ||
Money market | 1,550 | 6,568 |
Fair Value, Recurring | Money market | Level 2 | ||
Asset: | ||
Money market | 0 | 0 |
Fair Value, Recurring | Money market | Level 3 | ||
Asset: | ||
Money market | $ 0 | $ 0 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Income tax benefit (expense) | $ (299) | $ 5,737 |
Effective income tax rate | (1.50%) | 30.10% |
Commitments and Contingencies - Future Minimum Payments (Details) $ in Thousands |
Mar. 31, 2023
USD ($)
|
---|---|
Contractual Obligation, Fiscal Year Maturity [Abstract] | |
2023 (remainder of year) | $ 9,515 |
2024 | 12,800 |
2025 | 10,279 |
2026 | 2,125 |
2027 | 2,625 |
Thereafter | 688 |
Total future minimum payments due | $ 38,032 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Sales and use tax liability | $ 11.1 | $ 11.2 |
Geographic Areas (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
United States | ||
Finite-Lived Intangible Assets [Line Items] | ||
Long-lived assets | $ 37,767 | $ 36,226 |
International | ||
Finite-Lived Intangible Assets [Line Items] | ||
Long-lived assets | $ 8,450 | $ 8,258 |
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