Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | BRIGHTCOVE INC | ||
Entity Central Index Key | 0001313275 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Trading Symbol | BCOV | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, City or Town | Boston | ||
Entity Address, State or Province | MA | ||
Entity Address, Address Line One | 281 Summer Street | ||
Entity Address, Postal Zip Code | 02210 | ||
City Area Code | 888 | ||
Local Phone Number | 882-1880 | ||
Entity Tax Identification Number | 20-1579162 | ||
Entity Public Float | $ 170,229,500 | ||
Entity File Number | 001-35429 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 43,705,444 | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement relating to its 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Boston, Massachusetts | ||
Document Financial Statement Error Correction [Flag] | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 18,615 | $ 31,894 |
Accounts receivable, net of allowance of $210 and $294 at December 31, 2023 and December 31, 2022, respectively | 33,451 | 26,004 |
Prepaid expenses | 6,569 | 8,700 |
Other current assets | 11,764 | 10,722 |
Total current assets | 70,399 | 77,320 |
Property and equipment, net | 42,476 | 39,677 |
Operating lease right-of-use asset | 16,233 | 18,671 |
Intangible assets, net | 6,368 | 10,279 |
Goodwill | 74,859 | 74,859 |
Other assets | 5,772 | 7,007 |
Total assets | 216,107 | 227,813 |
Current liabilities: | ||
Accounts payable | 14,422 | 11,326 |
Accrued expenses | 17,566 | 26,877 |
Operating lease liability | 4,486 | 4,157 |
Deferred revenue | 68,155 | 61,597 |
Total current liabilities | 104,629 | 103,957 |
Operating lease liability, net of current portion | 17,358 | 20,528 |
Other liabilities | 207 | 981 |
Total liabilities | 122,194 | 125,466 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 43,833,919 and 42,449,677 shares issued at December 31, 2023 and 2022, respectively | 44 | 42 |
Additional paid-in capital | 328,918 | 314,825 |
Treasury stock, at cost; 135,000 shares | (871) | (871) |
Accumulated other comprehensive loss | (1,236) | (1,593) |
Accumulated deficit | (232,942) | (210,056) |
Total stockholders' equity | 93,913 | 102,347 |
Total liabilities and stockholders' equity | $ 216,107 | $ 227,813 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 210 | $ 294 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 43,833,919 | 42,449,677 |
Treasury stock, shares | 135,000 | 135,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Revenue | $ 201,187 | $ 211,008 | $ 211,093 |
Cost of revenue: | |||
Cost of revenue | 77,353 | 77,073 | 73,028 |
Gross profit | 123,834 | 133,935 | 138,065 |
Operating expenses: | |||
Research and development | 37,202 | 33,524 | 31,718 |
Sales and marketing | 72,410 | 73,997 | 71,177 |
General and administrative | 35,556 | 32,550 | 29,261 |
Merger-related | 307 | 747 | 300 |
Other expense (benefit) | 0 | 1,149 | (1,965) |
Total operating expenses | 145,475 | 141,967 | 130,491 |
(Loss) income from operations | (21,641) | (8,032) | 7,574 |
Other (expense) income, net | |||
Interest income | 176 | 103 | 5 |
Interest expense | (26) | 0 | 0 |
Other expense, net | (230) | (1,138) | (1,380) |
Total other (expense) income, net | (80) | (1,035) | (1,375) |
(Loss) income before income taxes | (21,721) | (9,067) | 6,199 |
Provision (benefit) for income taxes | 1,165 | (52) | 802 |
Net (loss) income | $ (22,886) | $ (9,015) | $ 5,397 |
Net (loss) income per share | |||
Basic | $ (0.53) | $ (0.22) | $ 0.13 |
Diluted | $ (0.53) | $ (0.22) | $ 0.13 |
Weighted-average number of common shares used in computing net (loss) income per share | |||
Basic | 43,128 | 41,831 | 40,717 |
Diluted | 43,128 | 41,831 | 42,200 |
Subscription and Support Revenue [Member] | |||
Revenue: | |||
Revenue | $ 192,461 | $ 204,091 | $ 198,929 |
Cost of revenue: | |||
Cost of revenue | 68,244 | 69,935 | 62,773 |
Professional Services and Other Revenue [Member] | |||
Revenue: | |||
Revenue | 8,726 | 6,917 | 12,164 |
Cost of revenue: | |||
Cost of revenue | $ 9,109 | $ 7,138 | $ 10,255 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (22,886) | $ (9,015) | $ 5,397 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | 357 | (931) | (474) |
Comprehensive (loss) income | $ (22,529) | $ (9,946) | $ 4,923 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance, beginning of period at Dec. 31, 2020 | $ 40 | $ (871) | $ 287,059 | $ (206,438) | $ (188) | |
Balance, beginning of period, Shares at Dec. 31, 2020 | 40,152,021 | |||||
Treasury shares, beginning Balance at Dec. 31, 2020 | (135,000) | |||||
Common stock issued upon acquisition | $ 0 | 0 | ||||
Common stock issued upon acquisition. shares | 0 | |||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, net of tax | $ 1 | 1,175 | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, shares | 1,232,622 | |||||
Stock-based compensation expense | 10,559 | |||||
Withholding tax on restricted stock | 0 | |||||
Foreign currency translation adjustment | $ (474) | (474) | ||||
Net (loss) income | 5,397 | |||||
Ending Balance at Dec. 31, 2021 | 96,260 | $ 41 | $ (871) | 298,793 | (201,041) | (662) |
Ending Balance, shares at Dec. 31, 2021 | 41,384,643 | |||||
Treasury stock, Ending Balance at Dec. 31, 2021 | (135,000) | |||||
Common stock issued upon acquisition | $ 0 | 1,987 | ||||
Common stock issued upon acquisition. shares | 212,507 | |||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, net of tax | $ 1 | (84) | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, shares | 852,527 | |||||
Stock-based compensation expense | 14,129 | |||||
Withholding tax on restricted stock | 0 | |||||
Foreign currency translation adjustment | (931) | (931) | ||||
Net (loss) income | (9,015) | |||||
Ending Balance at Dec. 31, 2022 | $ 102,347 | $ 42 | $ (871) | 314,825 | (210,056) | (1,593) |
Ending Balance, shares at Dec. 31, 2022 | 42,449,677 | |||||
Treasury stock, Ending Balance at Dec. 31, 2022 | (135,000) | (135,000) | ||||
Common stock issued upon acquisition | $ 0 | 0 | ||||
Common stock issued upon acquisition. shares | 0 | |||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, net of tax | $ 2 | (1) | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, shares | 1,384,242 | |||||
Stock-based compensation expense | 14,425 | |||||
Withholding tax on restricted stock | (331) | |||||
Foreign currency translation adjustment | $ 357 | 357 | ||||
Net (loss) income | (22,886) | |||||
Ending Balance at Dec. 31, 2023 | $ 93,913 | $ 44 | $ (871) | $ 328,918 | $ (232,942) | $ (1,236) |
Ending Balance, shares at Dec. 31, 2023 | 43,833,919 | |||||
Treasury stock, Ending Balance at Dec. 31, 2023 | (135,000) | (135,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net Income (Loss) | $ (22,886) | $ (9,015) | $ 5,397 |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 16,536 | 10,696 | 8,322 |
Stock-based compensation | 13,899 | 13,548 | 9,968 |
Provision for reserves on accounts receivable | 162 | 118 | 159 |
Changes in assets and liabilities: | |||
Accounts receivable | (7,707) | 4,227 | (846) |
Prepaid expenses and other current assets | 1,565 | (1,216) | 1,281 |
Other assets | 1,328 | (348) | (1,437) |
Accounts payable | 3,294 | 120 | (683) |
Accrued expenses | (7,950) | 2,397 | (5,209) |
Operating leases | (409) | 5,503 | (634) |
Deferred revenue | 6,673 | (609) | 3,245 |
Net cash provided by operating activities | 4,505 | 25,421 | 19,563 |
Investing activities | |||
Cash paid for acquisition, net of cash acquired | 0 | (13,215) | (2,000) |
Purchases of property and equipment | (3,120) | (10,727) | (2,205) |
Capitalized internal-use software costs | (12,530) | (13,825) | (6,637) |
Net cash used in investing activities | (15,650) | (37,767) | (10,842) |
Financing activities | |||
Proceeds from exercise of stock options | 0 | 177 | 2,846 |
Deferred acquisitions payments | (1,700) | 0 | (475) |
Other financing activities | (330) | (260) | (1,669) |
Net cash (used in) provided by financing activities | (2,030) | (83) | 702 |
Effect of exchange rate changes on cash and cash equivalents | (104) | (1,416) | (1,156) |
Net decrease in cash and cash equivalents | (13,279) | (13,845) | 8,267 |
Cash and cash equivalents at beginning of period | 31,894 | 45,739 | 37,472 |
Cash and cash equivalents at end of period | 18,615 | 31,894 | 45,739 |
Supplemental disclosure of cash flow information | |||
Cash paid for operating lease liabilities | 3,686 | 1,842 | 4,277 |
Cash paid for income taxes | 1,372 | 671 | 737 |
Cash paid for interest | 23 | 0 | 0 |
Supplemental disclosure of non-cash operating activities | |||
Capitalization of stock-based compensation related to internal use software | 527 | 580 | 593 |
Supplemental disclosure of non-cash investing and financing activities | |||
Unpaid internal-use software costs | 210 | 1,213 | 446 |
Fair value of shares issued for acquisition of a business | 0 | 1,987 | 0 |
Unpaid purchases of property and equipment | $ 714 | $ 267 | $ 25 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (22,886) | $ (9,015) | $ 5,397 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Business Description
Business Description | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | 1. Business Description Brightcove Inc. (the Company) is a global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the consolidated financial statements. The Company believes that a significant accounting policy is one that is both important to the portrayal of the Company’s financial condition and results, and requires management’s most difficult, subjective, or complex judgments, often as the result of the need to make estimates about the effect of matters that are inherently uncertain. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). Use of Estimates and Uncertainties The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts expensed during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition and variable consideration, contingent liabilities, intangible asset valuations, and the realizability of the Company’s deferred tax assets. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. The Company is subject to a number of risks and uncertainties common to companies in similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, customers switching to in-house solutions, customer concentration, management of international activities, protection of proprietary rights, patent litigation, and dependence on key individuals. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (1) asset and liability accounts at period-end rates, (2) income statement accounts at weighted-average exchange rates for the period, and (3) stockholders’ equity accounts at historical exchange rates. The resulting translation adjustments are excluded from income (loss) and reflected as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are included in net loss for the period. The Company may periodically have certain intercompany foreign currency transactions that are deemed to be of a long-term investment nature; exchange adjustments related to those transactions are made directly to other comprehensive loss, a separate component of stockholders’ equity. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Management determines the appropriate classification of investments at the time of purchase, and re-evaluates such determination at each balance sheet date. The Company did no t have any short-term or long-term investments at December 31, 2023 or 2022. Cash and cash equivalents primarily consist of cash on deposit with banks and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net income or loss in the period of retirement. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements are capitalized as additions to property and equipment. The Company estimates the useful life of property and equipment as follows: Estimated Useful Life Computer equipment 3 Software 3 - 6 Furniture and fixtures 5 Leasehold improvements Shorter of lease term or the estimated useful life Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures , establishes a three-level valuation hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. ASC 820 identifies fair value as an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: • Level 1: Observable inputs, such as quoted prices for identical assets or liabilities in active markets; • Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly, such as quoted prices for similar assets or liabilities, or market-corroborated inputs; and • Level 3: Unobservable inputs for which there is little or no market data which require the reporting entity to develop its own assumptions about how market participants would price the assets or liabilities. The valuation techniques that may be used to measure fair value are as follows: A. Market approach — Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. B. Income approach — Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option-pricing models, and excess earnings method. C. Cost approach — Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities, and did not elect the fair value option for any financial assets and liabilities transacted in the years ended December 31, 2023 or 2022. Realized gains and losses from sales of the Company’s investments are included in “Other (expense) income, net”. The carrying amounts of the Company’s financial instruments, which include cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximated their fair values at December 31, 2023 and 2022, due to the short-term nature of these instruments. The Company has evaluated the estimated fair value of financial instruments using available market information and management’s estimates. The use of different market assumptions and/or estimation methodologies could have a significant impact on the estimated fair value amounts. The Company’s financial instruments carried at fair value were less than $ 0.1 million as of December 31, 2023 and 2022 . Revenue ASC 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. The transaction price is the total amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company has elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (e.g. sales and use tax). Disaggregation of Revenue Subscription and Support The Company’s subscription arrangements provide customers the right to access its hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. Contracts for premium customers generally have a term of one year and are non-cancellable. These contracts generally provide the customer with a maximum contractual level of entitlement, and provide the rate at which the customer pays for actual usage above the contractual entitlement allowance. These subscription arrangements are considered stand ready obligations that are providing a series of distinct services that are substantially the same and are transferred with the same pattern to the customer. As such, these subscription arrangements are treated as a single performance obligation and the related fees are recognized as revenue ratably over the term of the underlying arrangement. When the transaction price includes a variable amount of consideration, an entity is required to estimate the consideration that is expected to be received for a particular customer arrangement. The Company evaluates variable consideration for usage-based fees at contract inception and re-evaluates quarterly over the course of the contract. Specifically, the Company estimates the revenue pertaining to a customer’s usage that is expected to exceed the contractual entitlement allowance and allocates such revenue to the distinct service within the related contract that gives rise to the variable payment. Estimates of variable consideration include analyzing customer usage against the applicable entitlement limit at the end of each reporting period and estimating the amount and timing of additional amounts to be invoiced in connection with projected usage. Estimates of variable consideration relating to customer usage do not include amounts for which it is probable that a significant reversal will occur. Determining the amount of variable consideration to recognize as revenue involves significant judgment on the part of management and it is possible that actual revenue will deviate from estimates over the course of a customer’s committed contract term. Contracts with customers that are month-to-month arrangements (volume customers) have a maximum monthly level of usage and provide the rate at which the customer must pay for actual usage above the monthly allowable usage. The monthly volume subscription and support and usage fees are recognized as revenue during the related period of performance. Contracts with customers that are invoiced on a pay-as-you-go basis, where there is no monthly or annual commitment for usage, provide the rate at which the customer must pay for actual usage for a particular period. Fees that are invoiced on a pay-as-you-go basis are recognized as revenue during the period of performance. Professional Services and Other Revenue Professional services and other revenue consist of services such as implementation, software customizations and project management for customers who subscribe to our premium editions. These arrangements are priced either on a fixed fee basis with a portion due upon contract signing and the remainder due when the related services have been completed, or on a time and materials basis. Professional services and other revenue is recognized on a percent complete basis based on the input method. Professional services and other revenue sold on a stand-alone basis are recognized as the services are performed, subject to any refund or other obligation. Contracts with Multiple Performance Obligations The Company periodically enters into multiple-element service arrangements that include platform subscription fees, support fees, and, in certain cases, other professional services. These contracts include multiple promises that the Company evaluates to determine if the promises are separate performance obligations. Performance obligations are identified based on services to be transferred to a customer that are both capable of being distinct and are distinct within the context of the contract. Once the Company determines the performance obligations, the Company determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. The Company then allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method. The transaction price post allocation is recognized as revenue as the related performance obligation is satisfied. Costs to Obtain a Contract Commissions are paid to internal sales representatives as compensation for obtaining contracts. Under ASC 606, Revenue from Contracts with Customers , the Company capitalizes commissions that are incremental, as a result of costs incurred to obtain a customer contract, if those costs are not within the scope of another topic within the accounting literature and meet the specified criteria. Assets recognized for costs to obtain a contract are amortized over the period of performance for the underlying customer contracts. The commission expense on contracts with new customers is recorded over the average life of a customer given the commission amount associated with sales to new customers is not commensurate with the commission amount associated with the contract renewal for those same customers. The commission amount associated with the renewal of a contract in addition to any commission amount related to incremental sales are recorded as expense over the term of the renewed contract. These assets are periodically assessed for impairment. Cost of Revenue Cost of revenue primarily consists of costs related to supporting and hosting the Company’s product offerings and delivering professional services. These costs include salaries, benefits, incentive compensation and stock-based compensation expense related to the management of the Company’s data centers, customer support team and the Company’s professional services staff, in addition to third-party service provider costs such as data center and networking expenses, allocated overhead, amortization of capitalized internal-use software development costs and intangible assets and depreciation expense. Allowance for Doubtful Accounts The Company offsets gross trade accounts receivable with an allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with specific accounts. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions for allowances for doubtful accounts are recorded in general and administrative expense. Effective January 1, 2020, the Company adopted ASC 326, which requires measurement and recognition of expected credit losses for financial assets held. Estimating credit losses based on risk characteristics requires significant judgment by the Company. Significant judgments include, but are not limited to: assessing current economic conditions and the extent to which they would be relevant to the existing characteristics of the Company’s financial assets, the estimated life of financial assets, and the level of reliance on historical experience in light of economic conditions. The Company reviews and updates, when necessary, its historical risk characteristics that are meaningful to estimating credit losses, any new risk characteristics that arise in the natural course of business, and the estimated life of its financial assets. The Company uses the aging method to estimate its expected credit losses on trade accounts receivable (“AR”) and unbilled trade accounts receivable (“UAR”). As of December 31, 2023, the financial assets of the Company within the scope of the assessment comprised AR and UAR. UAR is reflected in Other current assets on the Company’s Consolidated Balance Sheets and was $ 1.8 million and $ 1.8 million as of December 31, 2023 and December 31, 2022, respectively. Estimated credit losses for UAR were not material. The information obtained from assessing historical experience, current economic conditions and reasonable and supportable forecasts were used to identify risk characteristics that can affect future credit loss experience. The historical analysis yielded one material risk factor, the geographical location of the customer. Specifically, historical experience showed that AR that was due from customers in the Asia Pacific region had experienced more credit losses than the other geographic areas listed in Note 15. Europe and Japan had significantly less credit loss experience when compared to Asia Pacific while North America’s credit loss experience was commensurate with the proportion of total AR that North America’s AR comprised. There were no other significant risk characteristics identified in the review of historical experience. Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2023, 2022 and 2021: Balance at Beginning of Period Provision Write-offs Balance at End of Period Year ended December 31, 2023 $ 294 $ 162 $ ( 246 ) $ 210 Year ended December 31, 2022 353 118 ( 177 ) 294 Year ended December 31, 2021 648 159 ( 454 ) 353 Off-Balance Sheet Risk and Concentration of Credit Risk The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents and trade accounts receivable. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high credit standing. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed federally insured limits. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. For the years ended December 31, 2023, 2022 and 2021, no individual customer accounted for more than 10 % of total revenue. As of December 31, 2023 and 2022 , no individual customer accounted for more than 10% of accounts receivable, net. Concentration of Other Risks The Company is dependent on certain content delivery network providers who provide digital media delivery functionality enabling the Company’s on-demand application service to function as intended for the Company’s customers and ultimate end-users. The disruption of these services could have a material adverse effect on the Company’s business, financial position, and results of operations. Software Development Costs Costs incurred to develop software applications used in the Company’s on-demand application services consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software, and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding, and testing activities. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs are expensed as incurred. Capitalization begins when the preliminary project stage is complete, management, with the relevant authority, authorizes and commits to the funding of the software project, it is probable the project will be completed, the software will be used to perform the functions intended and certain functional and quality standards have been met. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs that cannot be separated between maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. These capitalized costs are amortized on a straight-line basis over the expected useful life of the software, which is estimated to be three years . Capitalized internal-use software development costs are classified as “Software” within “Property and Equipment, net” in the accompanying consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, the Company capitalized $ 11.7 million, $ 15.5 million, and $ 7.7 million, respectively, of internal-use software development costs. The Company recorded amortization expense associated with its capitalized internal-use software development costs of $ 9.9 million, $ 5.2 million and $ 3.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Leases Under ASC 842, a right-of-use asset and lease liability is recorded for all leases and the statement of operations reflects the lease expense for operating leases and amortization/interest expense for financing leases. The Company does not apply the recognition requirements in the standard to a lease that at commencement date has a lease term of twelve months or less and does not contain a purchase option that it is reasonably certain to exercise and to not separate lease and related non-lease components. The Company leases its facilities under non-cancelable operating leases. Right-of-use assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Many of the Company’s lessee agreements include options to extend the lease, which are not included in the minimum lease terms unless they are reasonably certain to be exercised. Long-Lived Assets The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During this review, the Company re-evaluates the significant assumptions used in determining the original cost and estimated lives of long-lived assets. Although the assumptions may vary from asset to asset, they generally include operating results, changes in the use of the asset, cash flows, and other indicators of value. Management then determines whether the remaining useful life continues to be appropriate, or whether there has been an impairment of long-lived assets based primarily upon whether expected future undiscounted cash flows are sufficient to support the assets’ recovery. If impairment exists, the Company adjusts the carrying value of the asset to fair value, generally determined by a discounted cash flow analysis. For the years ended December 31, 2023, 2022 and 2021, the Company has not identified any impairment of its long-lived assets. Business Combinations The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the purchase method of accounting. Amounts paid for each acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. The Company then allocates the purchase price in excess of net tangible assets acquired to identifiable intangible assets based on detailed valuations that use information and assumptions provided by management. Any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed is allocated to goodwill. If the fair value of the assets acquired exceeds the purchase price, the excess is recognized as a gain. Significant management judgments and assumptions are required in determining the fair value of acquired assets and liabilities, particularly acquired intangible assets. The valuation of purchased intangible assets is based upon estimates of the future performance and cash flows from the acquired business. Each asset is measured at fair value from the perspective of a market participant. If different assumptions are used, it could materially impact the purchase price allocation and adversely affect our results of operations, financial condition and cash flows. For further discussion of the Company’s accounting policies related to business comb inations, see Note 3. Intangible Assets and Goodwill Intangible assets that have finite lives are amortized over their estimated useful lives based on the pattern of consumption of the economic benefit or, if that pattern cannot be readily determined, on a straight-line basis and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, as discussed above. Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that could trigger a more frequent impairment assessment include, but are not limited to, a significant adverse change in certain agreements, significant underperformance relative to historical or projected future operating results, an economic downturn in customers’ industries, increased competition, a significant reduction in our stock price for a sustained period or a reduction of our market capitalization relative to net book value. If there is an impairment, the amount of the impairment is on the excess of a reporting unit’s carrying amount over its fair value. The Company has determined, based on its organizational structure, that it had one reporting unit as of December 31, 2023 and 2022 . The Company evaluates impairment by comparing the estimated fair value of its reporting unit to its carrying value. Please see Note 7 for a discussion of the Company's evaluation of impairment as of December 31, 2023 Comprehensive (Loss) Income Comprehensive (loss) income is defined as the change in equity of a business enterprise during a period from transactions, other events, and circumstances from non-owner sources. Accumulated other comprehensive loss is presented separately on the consolidated balance sheets and consists entirely of cumulative foreign translation adjustments as of December 31, 2023 and 2022 . Net (Loss) Income per Share The Company calculates basic and diluted (loss) earnings per common share by dividing the (loss) earnings amount by the number of common shares outstanding during the period. The calculation of diluted earnings per common share includes the effects of the assumed exercise of any outstanding stock options and the assumed vesting of shares of restricted stock awards, where dilutive. The following table set forth the computations of basic and diluted (loss) earnings per share: Year Ended December 31, (in thousands, except per share data) 2023 2022 2021 Net (loss) income $ ( 22,886 ) $ ( 9,015 ) $ 5,397 Weighted average shares used in computing basic earnings per share 43,128 41,831 40,717 Effect of weighted average dilutive stock-based awards - - 1,483 Weighted average shares used in computing diluted earnings per share 43,128 41,831 42,200 Net (loss) income per share—basic and diluted Basic $ ( 0.53 ) $ ( 0.22 ) $ 0.13 Diluted $ ( 0.53 ) $ ( 0.22 ) $ 0.13 The following outstanding common shares have been excluded from the computation of dilutive (loss) earnings per share as of the periods indicated because such securities are anti-dilutive: Year Ended December 31, 2023 2022 2021 Options outstanding 2,248 1,420 1,681 Restricted stock units outstanding 5,620 5,212 3,937 Total options and restricted stock units outstanding 7,868 6,632 5,618 Income Taxes The Company accounts for income taxes in accordance with the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates. In addition, this method requires a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions recognized in the consolidated financial statements by prescribing a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Interest and penalties, if applicable, related to uncertain tax positions would be recognized as a component of income tax expense. The Company has no recorded liabilities for uncertain tax positions as of December 31, 2023 or 2022 . Stock-Based Compensation At December 31, 2023 , the Company had seven stock-based compensation plans, which are more fully descri bed in Note 11. The Company values its shares of common stock in connection with the issuance of stock-based equity awards using the closing price of the Company’s shares of common stock on the NASDAQ Global Market on the date of the grant. Accounting guidance requires stock-based payments |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combinations On February 1, 2022, the Company acquired 100 % of the outstanding shares of Wicket Labs, Inc. (“Wicket Labs”) a provider of subscriber and content insights, in exchange for common stock of the Company and cash, (“Wicket Acquisition”). At the closing, the Company issued 212,507 unregistered shares of common stock of the Company valued at approximately $ 2.0 million and approximately $ 15.0 million in cash, of which approximately $ 1.8 million of the cash consideration was held back to secure payment of any claims of indemnification for breaches or inaccuracies in the sellers’ representations and warranties, covenants and agreements. During the year ended December 31, 2022, the Company paid $ 0.1 million of cash consideration held back to the sellers for the satisfaction of certain representations and warranties. The remaining cash consideration held back was included in Accrued Expenses at December 31, 2022 and released in full on February 8, 2023. The Wicket Acquisition was accounted for using the purchase method of accounting in accordance with Accounting Standards Codification 805 — Business Combinations. Accordingly, the results of operations of the acquired company have been included in the accompanying condensed consolidated financial statements since the date of acquisition. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the Wicket Acquisition, and using assumptions that the Company’s management believes are reasonable given the information currently available. The Company completed its valuation of its intangible assets, accounts receivable, deferred revenue and the valuation of the acquired deferred tax assets and liabilities during the year ended December 31, 2022. The final allocations of the purchase price to intangible assets, accounts receivable, deferred revenue, goodwill and any deferred tax assets and liabilities are included in these consolidated financial statements. During the year ended December 31, 2022, the Company incurred $ 0.7 million of merger-related costs related to the Wicket Acquisition. The excess of the purchase price over the estimated amounts of net assets as of the effective date of the acquisition was allocated to goodwill in accordance with the accounting guidance. The factors contributing to the recognition of the amount of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the Wicket Acquisition. These benefits include the acquired workforce and opportunities to expand the Company’s offerings in target market segments that use subscriber and content insights to make decisions. The goodwill is non-deductible for tax purposes. The total purchase price for the Wicket Acquisition has been allocated as follows: Cash $ 53 Accounts receivable and other assets 782 Identifiable intangible assets 4,382 Goodwill 13,957 Deferred revenue ( 1,033 ) Deferred tax liabilities ( 1,009 ) Other liabilities ( 95 ) Total estimated purchase price $ 17,037 The following are the identifiable intangible assets acquired and their respective useful lives, as determined based on valuations: Amount Useful Life Developed technology $ 4,200 6 Customer relationships 182 5 Total $ 4,382 The fair value of the intangible assets has been estimated using the income approach in which the after-tax cash flows are discounted to present value. The cash flows are based on estimates used to price the transaction, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model as well as the weighted average cost of capital. Pro forma results of operations for the Wicket Acquisition have not been presented because the effect of the acquisition is not material to the Company's consolidated financial results. Revenue and earnings attributable to acquired operations since the date of the acquisition are included in the Company's consolidated statements of operations. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 4. Cash and Cash Equivalents Cash and cash equivalents as of December 31, 2023 and 2022 consist of the following: December 31, 2023 Description Contracted Amortized Cost Fair Market Cash Demand $ 18,571 $ 18,571 Money market funds Demand 44 44 Total cash and cash equivalents $ 18,615 $ 18,615 December 31, 2022 Description Contracted Amortized Cost Fair Market Cash Demand $ 31,852 $ 31,852 Money market funds Demand 42 42 Total cash and cash equivalents $ 31,894 $ 31,894 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consist of the following: December 31, 2023 2022 Computer equipment $ 16,027 $ 15,516 Software 75,311 60,534 Furniture and fixtures 4,895 4,775 Leasehold improvements 9,001 8,839 105,234 89,664 Less accumulated depreciation and amortization 62,758 49,987 $ 42,476 $ 39,677 Depreciation and amortization expense, which includes amortization expense associated with capitalized internal-use software development costs, for the years ended December 31, 2023, 2022 and 2021 was $ 12.6 million, $ 7.3 million and $ 5.3 million , respectively. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 6. Revenue from Contracts with Customers The Company primarily derives revenue from the sale of its online video platform, which enables its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. Revenue is derived from three primary sources: (1) the subscription to its technology and related support; (2) hosting, bandwidth and encoding services; and (3) professional services, which include initiation, set-up and customization services. The following summarizes the opening and closing balances of receivables, contract assets and contract liabilities from contracts with customers. Accounts Receivable, net Contract Assets (current) Deferred Revenue (current) Deferred Revenue (non-current) Total Deferred Revenue Balance at December 31, 2023 33,451 1,785 68,155 185 68,340 Balance at December 31, 2022 26,004 1,786 61,597 360 61,957 Balance at December 31, 2021 29,866 2,375 62,057 114 62,171 Balance at December 31, 2020 29,305 2,078 58,741 811 59,552 Revenue recognized during the year ended December 31, 2023 from amounts included in deferred revenue at the beginning of the period was approximately $ 61.0 million. During the year ended December 31, 2023, the Company did not recognize any material revenue from performance obligations satisfied or partially satisfied in previous periods. The assets recognized for costs to obtain a contract were $ 13.1 million and $ 12.4 million as of December 31, 2023 and December 31, 2022, respectively. Amortization expense recognized for costs to obtain a contract was $ 10.9 million, $ 10.4 million and $ 12.7 million during the years ended December 31, 2023, 2022 and 2021, respectively. Transaction Price Allocated to Future Performance Obligations As of December 31, 2023, the total aggregate transaction price allocated to the unsatisfied performance obligations for subscription and support contracts was approximately $ 183.0 million, of which approximately $ 127.3 million is expected to be recognized over the next 12 months. The Company expects to recognize substantially all of the remaining unsatisfied performance obligations by December 2028 . |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 7. Intangible Assets and Goodwill Finite-lived intangible assets consist of the following as of December 31, 2023: Description Weighted Average Estimated Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Developed technology 6 $ 22,278 $ 19,663 $ 2,615 Customer relationships 9 15,669 11,916 3,753 Non-compete agreements 3 1,912 1,912 — Tradename 3 368 368 — Total $ 40,227 $ 33,859 $ 6,368 Finite-lived intangible assets consist of the following as of December 31, 2022: Description Weighted Average Estimated Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Developed technology 6 $ 22,278 $ 17,393 $ 4,885 Customer relationships 9 15,669 10,275 5,394 Non-compete agreements 3 1,912 1,912 — Tradename 3 368 368 — Total $ 40,227 $ 29,948 $ 10,279 In the fourth quarter of 2022 the Company assessed the useful life of the acquired Wicket-developed technology and changed its estimate of the expected useful life to 3 years . This change was applied prospectively as of the beginning of the fourth quarter 2022. The following table summarizes amortization expense related to intangible assets for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, 2023 2022 2021 Cost of subscription and support revenue $ 2,270 $ 1,757 $ 1,420 Sales and marketing 1,641 1,662 1,652 $ 3,911 $ 3,419 $ 3,072 The estimated remaining amortization expense for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2024 $ 3,688 2025 2,141 2026 536 2027 3 2028 — 2029 and thereafter — Total $ 6,368 Goodwill was $ 74,859 at December 31, 2023 and 2022. There were no changes in the carrying amount of goodwill for the year ended December 31, 2023. The Company views its operations and manages its business as one reporting unit and tests goodwill and its definite-lived intangible assets annually on October 31. As of October 31, 2023, the Company did not identify an impairment triggering event and assessed impairment for goodwill and other definite-lived intangible assets using a qualitative approach and quantitative approach, respectively. During the two months ended December 31, 2023 the Company identified a triggering event, the decrease in its stock price as of December 31, 2023 (the interim testing date), that may indicate impairment. The Company reviewed its quantitative analysis for its definite-lived intangible assets as of October 31, 2023, that used undiscounted cash flow models, and determined that the assumptions used in the undiscounted cash flow model were still applicable as of December 31, 2023 and that there was no impairment on our definite-lived intangible assets. The Company's significant assumptions in the undiscounted cash flow models include, but are not limited to, its revenue growth rates assumption. As the Company has one reporting unit all of its goodwill was allocated to that unit for the purpose of testing for impairment. To determine fair value of its one reporting unit, the Company engaged a third-party valuation expert and provided the valuation expert with projected financial information prepared by management. The Company took the income approach and used a discounted cash flow model as its valuation technique to measure the fair value of its reporting unit. The discounted cash flow model used forecasted cash flows plus a terminal value based on capitalizing the last period's cash flows using a perpetual growth rate. The Company's significant assumptions in the discounted cash flow model include, but are not limited to: the weighted average cost of capital ("WACC", the rate at which future cash flows are discounted to present value), revenue growth rates, including the perpetual growth rate for the terminal year, and operating margins of the reporting unit. Lastly, the Company reconciled the aggregate of the discounted cash flows to its market capitalization, which included a reasonable control premium based on observed market conditions. The result of the goodwill impairment test performed indicated that estimated fair value exceeded the carrying value of the reporting unit. As such, the Company feels the reporting unit was not at risk of impairment as of the interim testing date. Conditions that could trigger future impairment assessment include, but are not limited to, a significant adverse change in certain agreements, significant underperformance relative to historical or projected future operating results, an economic downturn in customers’ industries, increased competition, a significant reduction in our stock price for a sustained period or a reduction of our market capitalization relative to net book value. These factors could have a negative material impact to the fair value of the Company's reporting unit and could result in a future impairment charge. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 8. Leases The Company’s corporate headquarters are located in Boston, Massachusetts, pursuant to a lease of approximately 40,000 square feet that terminates on September 30, 2032 . The initial term of the lease is for ten years . The Company has the option to extend the lease for two successive five-year terms which were not recognized in the initial liability and right-of-use asset, as the Company does not expect to exercise the extension. The Company has a right of first offer to lease additional office space that becomes available within the 281 Summer Street premises. In connection with the office lease, the Company provided a security deposit, in the form of a letter of credit, in the amount of $ 0.8 million in January 2022. This letter of credit will be auto-renewed annually, unless a 60 day notice is received from the landlord. An automatic extension can only be implemented through November 30, 2032 . This letter of credit is irrevocable and does not have a cash requirement other than the amount already set forth. In the event of a default, the landlord must provide written notice of default before drawing from the letter of credit as a security deposit, or to remedy the amount owed. The Company leases offices in Tokyo, Japan; Sydney, Australia; Chennai, India; Seoul, South Korea; London, England; Guadalajara, Mexico; Funchal, Portugal and Covilha, Portugal. The Company’s rent expense was $ 4.1 million, $ 5.1 million, $ 4.3 million for the years ended December 31, 2023, 2022 and 2023, respectively. The Company entered into one operating lease agreement in the current year, resulting in the recording of an initial liability and corresponding right-of-use asset of $ 0.3 million. The weighted average remaining lease terms and discount rates were as follows: December 31, 2023 2022 2021 Weighted average remaining lease term (years) 7.77 8.27 8.81 Weighted average discount rate 5.9 % 5.8 % 5.7 % The weighted-average remaining non-cancelable lease term for the Company’s operating leases was 7.77 years at December 31, 2023. The weighted-average discount rate was 5.9 % at December 31, 2023. The Company’s operating leases expire at various dates through 2032. The following shows the undiscounted cash flows for the remaining years under operating leases at December 31, 2023: Year Ending December 31, Operating Lease Commitments 2024 $ 4,774 2025 4,235 2026 3,981 2027 4,010 2028 3,802 2029 and thereafter 10,779 Total operating lease commitments 31,581 Less imputed interest ( 9,737 ) Total lease liabilities $ 21,844 The Company’s discounted current operating lease liability and discounted non-current lease liability at December 31, 2023 were $ 4.5 million and $ 17.4 million, respectively. In the fourth quarter of 2020 the Company subleased 100 % of one of its London offices through the remaining lease term. For the years ended December 31, 2023, 2022 and 2021 the Company recognized rent income of $ 0.8 million, $ 0.8 million and $ 0.9 million, respectively, within operating expenses. Lease income relating to variable lease payments was immaterial. The Company’s London sublease expires in December of 2024. The undiscounted cash inflows from the London sublease for the remaining year at December 31, 2023 was $ 0.9 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Legal Matters The Company, from time to time, is party to litigation arising in the ordinary course of business. Management does not believe that the outcome of these claims will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company based on the status of proceedings at this time. Guarantees and Indemnification Obligations The Company typically enters into indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses and costs incurred by the indemnified party, generally the Company’s customers, in connection with patent, copyright, trade secret, or other intellectual property or personal right infringement claims by third parties with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual after execution of the agreement. The Company has typically limited the maximum potential value of such potential future payments in relation to the value of the contract. The Company has received requests for indemnification from customers in connection with patent infringement suits brought against the customer by a third party. Based on historical experience and information known as of December 31, 2023, the Company has incurred minimal costs for the above guarantees and indemnities. In certain circumstances, the Company warrants that its products and services will perform in all material respects in accordance with its standard published specification documentation in effect at the time of delivery of the licensed products and services to the customer for the warranty period of the product or service. To date, the Company has not incurred significant expense under its warranties and, as a result, the Company believes the estimated fair value of these agreements is immaterial. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Common Stock Common stockholders are entitled to one vote per share. Holders of common stock are entitled to receive dividends, when and if declared by the Board. Common Stock Reserved for Future Issuance At December 31, 2023, the Company has reserved the following shares of common stock for future issuance: December 31, 2023 Common stock options outstanding 2,247,951 Restricted stock unit awards outstanding 5,619,438 Shares available for issuance under all stock-based compensation plans 7,768,241 Total shares of authorized common stock reserved for future issuance 15,635,630 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | 11. Stock-Based Compensation Stock-Based Compensation Plans At December 31, 2023, the Company had seven stock-based compensation plans: • On February 8, 2022, the Company adopted the Brightcove Inc. 2022 Inducement Plan (the 2022 Plan). The 2022 Plan provides for the issuance of employment inducement awards to the Company’s Chief Executive Officer (CEO). • On March 25, 2021, the Board adopted, the Brightcove Inc. 2021 Stock Incentive Plan (the 2021 Plan) which was approved by the shareholders on May 11, 2021. On March 15, 2023, the Board adopted an amendment to the 2021 plan to increase the aggregate number of shares of Stock reserved for issuance under the Plan by 7,000,000 , which was approved by the shareholders on May 10, 2023. The maximum number of shares of stock reserved and available for issuance under the 2021 Plan, as amended, is 13,200,000 shares. • The 2018 Inducement Plan (the 2018 plan). Effective April 11, 2018, the Company adopted the 2018 Plan. The 2018 Plan provides for the issuance of stock options and restricted stock units to the Company’s CEO. • The Brightcove Inc. 2014 Stock Option Inducement Plan (the 2014 Stock Inducement Plan). In 2014, the Company adopted the 2014 Stock Inducement Plan in connection with the Unicorn asset purchase agreement. • The 2012 RSU Inducement Plan (the 2012 RSU Plan). In 2012, the Company adopted the 2012 RSU Plan in connection with the acquisition of Zencoder. The restricted stock units were settled in shares of the Company’s common stock upon vesting. • The 2012 Stock Incentive Plan (the 2012 Plan). The 2012 Plan provided for the issuance of incentive and non-qualified stock options, restricted stock, and other equity awards to the Company’s employees, officers, directors, consultants and advisors. In conjunction with the effectiveness of the 2021 Plan, the Board voted that no further stock options or other equity-based awards may be granted under the 2012 Plan. • The Amended and Restated 2004 Stock Option and Incentive Plan (the 2004 Plan). The 2004 Plan, like the 2012 Plan, provided for the issuance of incentive and non-qualified stock options, restricted stock, and other equity awards to the Company’s employees, officers, directors, consultants and advisors. In conjunction with the effectiveness of the 2012 Plan, the Board voted that no further stock options or other equity-based awards may be granted under the 2004 Plan. The following table summarizes stock-based compensation expense as included in the consolidated statement of operations for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, 2023 2022 2021 Cost of subscription and support revenue $ 506 $ 508 $ 627 Cost of professional services and other revenue 375 433 401 Research and development 2,453 2,746 1,677 Sales and marketing 4,197 3,990 2,957 General and administrative 6,368 5,622 4,306 Other (expense) benefit — 249 — $ 13,899 $ 13,548 $ 9,968 As of December 31, 2023, there was $ 25.4 million of total unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.3 years. Stock Options The following is a summary of the stock option activity for all stock option plans during the years ended December 31, 2023, 2022 and 2021: Number of Weighted-Average Weighted-Average (In Years) Aggregate Outstanding at December 31, 2020 2,110,486 $ 9.19 $ — Granted 114,973 14.88 Exercised ( 333,190 ) 8.53 $ 2,999 Cancelled ( 210,792 ) 10.26 Outstanding at December 31, 2021 1,681,477 $ 9.59 $ 1,938 Granted — — Exercised ( 28,400 ) 6.24 $ 40 Cancelled ( 233,310 ) 11.11 Outstanding at December 31, 2022 1,419,767 $ 9.39 $ 4 Granted 1,563,688 7.00 Exercised — — $ — Cancelled ( 735,504 ) 9.39 Outstanding at December 31, 2023 2,247,951 $ 7.73 7.11 $ — Exercisable at December 31, 2023 815,986 $ 8.74 3.50 $ — (1) The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on December 31, 2023, December 31, 2022, and December 31, 2021 of $ 2.59 , $ 5.23 , and $ 10.22 per share, respectively, or the date of exercise, as appropriate, and the exercise price of the underlying options. On March 20, 2023, the Company granted 1,563,688 premium-priced options to some of its employees under its 2021 Stock Incentive Plan. The options have a strike price of $ 7.00 and vest in equal installments over three years following March 10, 2023. The binomial lattice model is used to estimate the fair value of the premium-priced options. The binomial lattice model calculates multiple potential outcomes for option exercises and establishes a fair value based on the most likely outcome. Key assumptions for the binomial lattice model include share price, volatility, the early exercise multiple, risk-free rate, expected dividends, and number of time steps. Prior to 2023, the Company had only granted service-based options under its stock compensation plans. The fair value of each option grant issued under the Company’s stock-based compensation plans prior to 2023 was estimated using the Black-Scholes option-pricing model. The weighted-average fair value of options granted and assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2023 2022 2021 Weighted-average fair value of options granted during the year $ 1.75 $ — $ 6.98 Risk-free interest rate 3.4 - 4.8 % — 1.22 % Expected volatility 47.9 - 55.5 % — 48 % Expected life (in years) — — 6.2 Expected dividend yield — — — Restricted Stock Units The Company has entered into restricted stock unit (RSU) agreements with certain of its employees pursuant to the 2012 Plan, the 2021 Plan, and the 2022 Plan. Vesting occurs periodically at specified time intervals, ranging from three months to four years , and in specified percentages. Upon vesting, the holder will receive one share of the Company’s common stock for each unit vested. Under the 2012 Plan, the Company granted restricted stock units to certain key executives, which contain both performance-based (“P-RSU”) and service-based vesting conditions (“S-RSU”). The Company measures compensation expense for these performance-based awards based upon a review of the Company’s expected achievement against specified financial performance targets. Compensation cost is recognized on a ratable basis over the requisite service period for each series of grants to the extent management has deemed that such awards are probable of vesting based upon the expected achievement against the specified targets. On a periodic basis, management reviews the Company’s expected performance and adjusts the compensation cost, if needed, at such time. The Company determined that the conditions for a portion of the performance-based restricted stock units were achieved in the first quarter of 2020. As such, the Company recognized $ 0.2 million of stock-based compensation expense relating to performance-based awards for the year ended December 31, 2021. The Company did not recognize stock-based compensation expense relating to the aforementioned performance-based awards in the years ended December 31, 2022, and 2023, respectively, as the Company determined that the conditions for further portions of the performance-based restricted stock units to vest were not achieved. Under the 2022 Plan, the Company granted 800,000 restricted stock units to the Company's CEO, in connection with the commencement of his employment on March 28, 2022. Of the total restricted stock units granted, 300,000 are subject solely to service-based vesting conditions (the “RSUs”) and 500,000 are subject to both market-based and service-based vesting conditions (the “PSUs”). The RSUs vest in equal annual installments over three years following March 28, 2022. The market-based vesting conditions applicable to the PSUs are achieved only if the volume weighted average price of the Company’s common stock during any 20 consecutive trading day period in the four year performance period following the CEO’s start date, March 28, 2022, equals or exceeds stock price hurdles ranging from $ 12.50 to $ 30.00 , increasing in seven increments of $ 2.50 . The percentage of the award that is earned upon achievement of each stock price hurdle is 10 % of the PSUs for each of the first two achievement tiers, 12.5 % for each of the next four achievement tiers and 15 % for each of the final two achievement tiers. The PSUs vest 50 % upon achievement of a stock price hurdle and 50 % upon the earlier of the one-year anniversary of such achievement date or March 28, 2025, subject to the CEO’s continued employment through the applicable vesting date. For restricted stock units with market-based performance conditions, the cost of the awards is recognized as the requisite service is rendered by the employee, regardless of when, if ever, the market-based performance conditions are satisfied. The Monte-Carlo simulation model is used to estimate fair value of market-based performance restricted stock units. The Monte-Carlo simulation model calculates multiple potential outcomes for an award and establishes a fair value based on the most likely outcome. Key assumptions for the Monte-Carlo simulation model include the risk-free rate, expected volatility, expected dividends and the correlation coefficient. The following table summarizes the P-RSU and S-RSU activity during the year ended December 31, 2023, 2022, and 2021: S-RSU Shares Weighted Grant Fair Value P-RSU Shares Weighted Grant Fair Value Total RSU Shares Weighted Grant Fair Value Unvested by December 31, 2020 2,000,416 $ 10.30 1,587,801 $ 10.40 3,588,217 $ 10.35 Granted 2,269,341 12.24 64,011 12.65 2,333,352 12.25 Vested and issued ( 680,769 ) 9.85 ( 181,910 ) 8.74 ( 862,679 ) 9.62 Cancelled ( 673,268 ) 11.67 ( 448,730 ) 9.59 ( 1,121,998 ) 10.84 Unvested by December 31, 2021 2,915,720 $ 11.66 1,021,172 $ 11.04 3,936,892 $ 11.50 S-RSU Shares Weighted Grant Fair Value P-RSU Shares Weighted Grant Fair Value Total RSU Shares Weighted Grant Fair Value Unvested by December 31, 2021 2,915,720 $ 11.66 1,021,172 $ 11.04 3,936,892 $ 11.50 Granted 3,803,691 6.94 500,000 4.06 4,303,691 6.61 Vested and issued ( 824,127 ) 11.63 — 0.00 ( 824,127 ) 11.63 Cancelled ( 1,356,935 ) 10.09 ( 848,314 ) 11.06 ( 2,205,249 ) 10.47 Unvested by December 31, 2022 4,538,349 $ 8.19 672,858 $ 6.54 5,211,207 $ 7.88 S-RSU Shares Weighted Grant Fair Value P-RSU Shares Weighted Grant Fair Value Total RSU Shares Weighted Grant Fair Value Unvested by December 31, 2022 4,538,349 $ 8.19 672,858 $ 6.54 5,211,207 $ 7.88 Granted 3,102,058 4.51 — 0.00 3,102,058 4.51 Vested and issued ( 1,384,242 ) 8.35 — 0.00 ( 1,384,242 ) 8.35 Cancelled ( 1,153,897 ) 7.61 ( 155,688 ) 10.14 ( 1,309,585 ) 7.91 Unvested by December 31, 2023 5,102,268 $ 6.04 517,170 $ 4.54 5,619,438 $ 5.90 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Loss before the provision (benefit) for income taxes consists of the following jurisdictional (loss) income: Year Ended December 31, 2023 2022 2021 Domestic $ ( 24,613 ) $ ( 11,391 ) $ 4,136 Foreign 2,892 2,324 2,063 Total $ ( 21,721 ) $ ( 9,067 ) $ 6,199 The provision (benefit) for income taxes in the accompanying consolidated financial statements consists of the following: Year Ended December 31, 2023 2022 2021 Current provision: Federal $ ( 4 ) $ - $ - State 117 66 7 Foreign 1,122 880 801 Total current 1,235 946 808 Deferred (benefit): Federal ( 5 ) ( 834 ) 1 State 2 ( 168 ) 2 Foreign ( 67 ) 4 ( 9 ) Total deferred ( 70 ) ( 998 ) ( 6 ) Total (benefit) provision $ 1,165 $ ( 52 ) $ 802 A reconciliation of the U.S. federal statutory rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2023 2022 2021 Tax at statutory rates ( 21.0 %) ( 21.0 %) ( 21.0 %) State income taxes ( 3.7 %) ( 8.8 %) 3.4 % Change in tax rate 1.4 % ( 0.8 %) ( 0.2 %) Permanent differences 11.4 % 18.6 % 4.4 % Global intangible low-taxed income 0 % 19.9 % 0 % Foreign rate differential 1.0 % 2.8 % ( 2.6 %) Research and development credits ( 4.2 %) ( 9.1 %) 7.6 % Change in valuation allowance 19.8 % ( 1.4 %) ( 3.4 %) Other, net 0.7 % ( 0.7 %) ( 1.1 %) Effective tax rate 5.4 % ( 0.5 %) ( 12.9 %) The income tax effect of each type of temporary difference and carryforward as of December 31, 2023 and 2022 is as follows: As of December 31, 2023 2022 Deferred tax assets: Net operating loss carry-forwards $ 36,936 $ 41,239 Tax credit carry-forwards 15,691 14,588 Stock-based compensation 1,853 2,127 Fixed Assets - 134 Account receivable reserves 140 340 Accrued compensation 602 1,050 Lease Liability 4,955 5,524 Capitalized research expenditures 13,234 6,733 Other temporary differences 1,159 829 Total deferred tax assets 74,570 72,564 Deferred tax liabilities: Other deferred tax liabilities ( 4,196 ) ( 4,046 ) ROU Asset ( 4,101 ) ( 4,578 ) Intangible assets ( 1,215 ) ( 3,305 ) Total deferred tax liabilities ( 9,512 ) ( 11,929 ) Valuation allowance ( 65,070 ) ( 60,717 ) Net deferred tax asset (liability) $ ( 12 ) $ ( 82 ) The Company is required to compute income tax expense in each jurisdiction in which it operates. This process requires the Company to project its current tax liability and estimate its deferred tax assets and liabilities, including net operating loss (NOL) and tax credit carry-forwards. In assessing the ability to realize the net deferred tax assets, management considers whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The Company has provided a valuation allowance against substantially all of its remaining U.S. net deferred tax assets as of December 31, 2023 and December 31, 2022, as based upon the level of historical U.S. losses and future projections over the period in which the net deferred tax assets are deductible, at this time, management believes it is more likely than not that the Company will not realize the benefits of these deductible differences. The Company has provided a valuation allowance against the net deferred tax assets of its foreign subsidiaries as of December 31, 2023 and December 31, 2022 largely based on the significant weight of negative evidence given to the consolidated worldwide cumulative loss position for the current year and the prior two years. The increase in the valuation allowance from 2022 to 2023 of $ 4.4 million principally relates to the current year U.S. losses and generation of federal and state research and development tax credits. As of December 31, 2023 , the Company had federal net operating losses of approximately $ 154.0 million, of which $ 108.3 million are available to offset future taxable income, if any, through 2037 and $ 45.7 million which are available to offset future taxable income indefinitely. As of December 31, 2023 , the Company had state net operating losses of approximately $ 76.5 million, of which $ 73.4 million are available to offset future taxable income, if any, through 2041 and $ 3.1 million which are available to offset future taxable income indefinitely. The Company also had federal and state research and development tax credits of $ 10.7 million and $ 6.3 million, respectively, which expire in various amounts through 2043 . The net operating loss and tax credit amounts are subject to annual limitations under Section 382 change of ownership rules under the U.S. Internal Revenue Code of 1986, as amended. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company completed an analysis covering the tax periods from inception through December 31, 2022 and performed a high level assessment of the period January 1, 2023 through December 31, 2023 to determine whether there may have been a Section 382 ownership change and determined that it is more-likely-than-not that the Company’s net operating and tax credit amounts as disclosed are not subject to any material Section 382 limitations. Effective January 1, 2022, the Tax Cuts and Jobs Act of 2017 requires the Company to capitalize, and subsequently amortize R&D expenses over five years for research activities conducted in the U.S. and over fifteen years for research activities conducted outside of the U.S. As of December 31, 2023, the Company has recorded a deferred tax asset of $ 13.2 million related to the capitalized R&D expenditures which is offset by a decrease in its net operating loss carryforward. At December 31, 2023 and 2022 , the Company had no recorded liabilities for uncertain tax positions, nor any accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal tax jurisdiction, various state and various foreign jurisdictions. The Company is currently open to examination under the statute of limitations by the Internal Revenue Service and state jurisdictions for the tax years ended 2020 through 2023. Since the Company is in a U.S. loss carryforward position, carryforward tax attributes generated in prior years may still be adjusted upon future examination if they have or will be used in a future period. Additionally, certain non-U.S. jurisdictions are no longer subject for income tax examinations by authorities for tax years before 2018. No additional U.S. income taxes or foreign withholding taxes have been provided for any additional outside basis differences inherent in the Company’s foreign entities as these amounts continue to be indefinitely reinvested in foreign operations based on management’s current intentions. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 13. Debt On November 1, 2023 , the Company entered into a loan modification agreement to an existing amended and restated loan and security agreement with a lender (collectively, the “Loan Agreement”). The Loan Agreement provides for up to a $ 30.0 million asset-backed line of credit (the “Line of Credit”). Borrowings under the Line of Credit are secured by substantially all of the Company’s assets, excluding its intellectual property. Outstanding amounts under the Line of Credit accrue interest at a rate as follows: (i) for prime rate advances, the prime rate plus 225 basis points and (ii) for Secured Overnight Financing Rate ('SOFR") advances, the greater of (A) the SOFR rate plus 225 basis points and (B) 4 %. Under the Loan Agreement, the Company must comply with certain financial covenants, including maintaining a minimum asset coverage ratio. If there is outstanding principal during any month, the Company must also maintain a minimum net income threshold based on non-GAAP operating measures . Failure to comply with these covenants, or the occurrence of an event of default, could permit the lenders under the Line of Credit to declare all amounts borrowed under the Line of Credit, together with accrued interest and fees, to be immediately due and payable. The Line of Credit agreement will expire on November 1, 2026 . The Company was in compliance with all applicable covenants under the Line of Credit as of December 31, 2023 and there were no borrowings outstanding as of December 31, 2023 . |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 14. Accrued Expenses Accrued expenses consist of the following: December 31, 2023 2022 Accrued payroll and related benefits $ 6,499 $ 10,082 Accrued sales and other taxes 2,601 3,098 Accrued professional fees and outside contractors 2,163 3,057 Accrued content delivery 3,528 5,684 Accrued other liabilities 2,775 4,956 Total $ 17,566 $ 26,877 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 15. Segment Information Disclosure requirements about segments of an enterprise and related information establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in interim financial reports issued to stockholders. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief decision maker is its chief executive officer. The Company and the chief decision maker view the Company’s operations and manage its business as one operating segment. Geographic Data Total revenue to unaffiliated customers by geographic area, based on the location of the customer, was as follows: Year Ended December 31, 2023 2022 2021 Revenue: North America $ 120,378 $ 118,755 $ 119,079 Europe 32,922 36,177 37,947 Japan 20,080 21,988 25,272 Asia Pacific 27,421 33,645 28,261 Other 386 443 534 Total revenue $ 201,187 $ 211,008 $ 211,093 North America is comprised of revenue from the United States, Canada and Mexico. Revenue from customers located in the United States was $ 111.7 million, $ 111.8 million and $ 111.5 million during the years ended December 31, 2023, 2022 and 2021, respectively. Other than the United States and Japan, no country contributed more than 10 % of the Company’s total revenue during the years ended December 31, 2023 , 2022, and 2021, respectively. |
401(k) Savings Plan
401(k) Savings Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Savings Plan | 16. 401(k) Savings Plan The Company maintains a defined contribution savings plan covering all eligible U.S. employees under Section 401(k) of the Internal Revenue Code. Company contributions to the plan may be made at the discretion of the Board. During the years ended December 31, 2023, 2022 and 2021, the Company has made contributions to the plan of $ 1.4 million, $ 0.8 million and $ 0.4 million, respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 17. Restructuring In March 2023, the Company took an action to restructure certain parts of the Company with the intent of aligning skills with the Company’s strategy and facilitating cost efficiencies and savings. As a result certain headcount reductions were necessary. The Company incurred approximately $ 0.4 million in restructuring charges during the year ended December 31, 2023 in connection with this action. The restructuring charges reflect post-employment benefits, and the Company does not expect to incur any additional restructuring charges related to this action. The restructuring charges are reflected in the Condensed Consolidated Statements of Operations as follows: $ 0.2 million - General and Administrative; $ 0.1 million – Research and Development; and $ 0.1 million – Sales and Marketing. The Company paid the entire amount by March 31, 2023. On April 28, 2023, the Company authorized a restructuring that is designed to reduce operating costs, improve operating margins and focus on key growth and strategic priorities (the "Plan"). The Plan includes a reduction of the Company's then-current workforce by approximately 10 %. The Company incurred approximately $ 2.4 million in restructuring charges during the year ended December 31, 2023 in connection with the Plan. The restructuring charges reflect post-employment benefits. The restructuring charges are reflected in the Condensed Consolidated Statements of Operations as follows: $ 1.2 million in Sales and Marketing; $ 0.9 million in Research and Development; $ 0.2 million in General and administrative and $ 0.1 million in Cost of Revenue. The Company paid all $ 2.4 million of the restructuring charges by September 30, 2023. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events On January 11, 2024, the Company took an action to restructure certain parts of the Company with the intent of aligning skills with the Company’s strategy and facilitating cost efficiencies and savings. As a result certain headcount reductions were necessary. The Company estimates it will incur between $ 1.6 million and $ 1.8 million in restructuring charges in the three months ended March 31, 2024 in connection with this action. The restructuring charges will primarily reflect post-employment benefits and will be reflected in the Condensed Consolidated Statements of Operations. The Company expects to pay the amounts due as a result of the restructuring action by June 30, 2024, with the majority expected to be paid before March 31, 2024. On February 21, 2024, Robert Noreck, the Company’s Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer (collectively, “CFO”), notified the Company of his intention to resign. The Company and Mr. Noreck entered into a Transition and Resignation Agreement dated February 21, 2024 , pursuant to which Mr. Noreck will step down as CFO effective as of the earlier of May 31, 2024 and the appointment of a successor CFO (the “Transition Date”). Beginning on the Transition Date, Mr. Noreck will transition into the role of a consultant through September 30, 2024, at which time Mr. Noreck’s services to the Company will terminate. The Company has agreed that Mr. Noreck’s employment need not be exclusive to the Company after June 1, 2024. |
Business Description (Policies)
Business Description (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Business Description | Brightcove Inc. (the Company) is a global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). |
Use of Estimates and Uncertainties | Use of Estimates and Uncertainties The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts expensed during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition and variable consideration, contingent liabilities, intangible asset valuations, and the realizability of the Company’s deferred tax assets. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. The Company is subject to a number of risks and uncertainties common to companies in similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, customers switching to in-house solutions, customer concentration, management of international activities, protection of proprietary rights, patent litigation, and dependence on key individuals. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (1) asset and liability accounts at period-end rates, (2) income statement accounts at weighted-average exchange rates for the period, and (3) stockholders’ equity accounts at historical exchange rates. The resulting translation adjustments are excluded from income (loss) and reflected as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are included in net loss for the period. The Company may periodically have certain intercompany foreign currency transactions that are deemed to be of a long-term investment nature; exchange adjustments related to those transactions are made directly to other comprehensive loss, a separate component of stockholders’ equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Management determines the appropriate classification of investments at the time of purchase, and re-evaluates such determination at each balance sheet date. The Company did no t have any short-term or long-term investments at December 31, 2023 or 2022. Cash and cash equivalents primarily consist of cash on deposit with banks and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net income or loss in the period of retirement. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements are capitalized as additions to property and equipment. The Company estimates the useful life of property and equipment as follows: Estimated Useful Life Computer equipment 3 Software 3 - 6 Furniture and fixtures 5 Leasehold improvements Shorter of lease term or the estimated useful life |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures , establishes a three-level valuation hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. ASC 820 identifies fair value as an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: • Level 1: Observable inputs, such as quoted prices for identical assets or liabilities in active markets; • Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly, such as quoted prices for similar assets or liabilities, or market-corroborated inputs; and • Level 3: Unobservable inputs for which there is little or no market data which require the reporting entity to develop its own assumptions about how market participants would price the assets or liabilities. The valuation techniques that may be used to measure fair value are as follows: A. Market approach — Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. B. Income approach — Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option-pricing models, and excess earnings method. C. Cost approach — Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities, and did not elect the fair value option for any financial assets and liabilities transacted in the years ended December 31, 2023 or 2022. Realized gains and losses from sales of the Company’s investments are included in “Other (expense) income, net”. The carrying amounts of the Company’s financial instruments, which include cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximated their fair values at December 31, 2023 and 2022, due to the short-term nature of these instruments. The Company has evaluated the estimated fair value of financial instruments using available market information and management’s estimates. The use of different market assumptions and/or estimation methodologies could have a significant impact on the estimated fair value amounts. The Company’s financial instruments carried at fair value were less than $ 0.1 million as of December 31, 2023 and 2022 . |
Revenue | Revenue ASC 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. The transaction price is the total amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company has elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (e.g. sales and use tax). Disaggregation of Revenue Subscription and Support The Company’s subscription arrangements provide customers the right to access its hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. Contracts for premium customers generally have a term of one year and are non-cancellable. These contracts generally provide the customer with a maximum contractual level of entitlement, and provide the rate at which the customer pays for actual usage above the contractual entitlement allowance. These subscription arrangements are considered stand ready obligations that are providing a series of distinct services that are substantially the same and are transferred with the same pattern to the customer. As such, these subscription arrangements are treated as a single performance obligation and the related fees are recognized as revenue ratably over the term of the underlying arrangement. When the transaction price includes a variable amount of consideration, an entity is required to estimate the consideration that is expected to be received for a particular customer arrangement. The Company evaluates variable consideration for usage-based fees at contract inception and re-evaluates quarterly over the course of the contract. Specifically, the Company estimates the revenue pertaining to a customer’s usage that is expected to exceed the contractual entitlement allowance and allocates such revenue to the distinct service within the related contract that gives rise to the variable payment. Estimates of variable consideration include analyzing customer usage against the applicable entitlement limit at the end of each reporting period and estimating the amount and timing of additional amounts to be invoiced in connection with projected usage. Estimates of variable consideration relating to customer usage do not include amounts for which it is probable that a significant reversal will occur. Determining the amount of variable consideration to recognize as revenue involves significant judgment on the part of management and it is possible that actual revenue will deviate from estimates over the course of a customer’s committed contract term. Contracts with customers that are month-to-month arrangements (volume customers) have a maximum monthly level of usage and provide the rate at which the customer must pay for actual usage above the monthly allowable usage. The monthly volume subscription and support and usage fees are recognized as revenue during the related period of performance. Contracts with customers that are invoiced on a pay-as-you-go basis, where there is no monthly or annual commitment for usage, provide the rate at which the customer must pay for actual usage for a particular period. Fees that are invoiced on a pay-as-you-go basis are recognized as revenue during the period of performance. Professional Services and Other Revenue Professional services and other revenue consist of services such as implementation, software customizations and project management for customers who subscribe to our premium editions. These arrangements are priced either on a fixed fee basis with a portion due upon contract signing and the remainder due when the related services have been completed, or on a time and materials basis. Professional services and other revenue is recognized on a percent complete basis based on the input method. Professional services and other revenue sold on a stand-alone basis are recognized as the services are performed, subject to any refund or other obligation. Contracts with Multiple Performance Obligations The Company periodically enters into multiple-element service arrangements that include platform subscription fees, support fees, and, in certain cases, other professional services. These contracts include multiple promises that the Company evaluates to determine if the promises are separate performance obligations. Performance obligations are identified based on services to be transferred to a customer that are both capable of being distinct and are distinct within the context of the contract. Once the Company determines the performance obligations, the Company determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. The Company then allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method. The transaction price post allocation is recognized as revenue as the related performance obligation is satisfied. Costs to Obtain a Contract Commissions are paid to internal sales representatives as compensation for obtaining contracts. Under ASC 606, Revenue from Contracts with Customers , the Company capitalizes commissions that are incremental, as a result of costs incurred to obtain a customer contract, if those costs are not within the scope of another topic within the accounting literature and meet the specified criteria. Assets recognized for costs to obtain a contract are amortized over the period of performance for the underlying customer contracts. The commission expense on contracts with new customers is recorded over the average life of a customer given the commission amount associated with sales to new customers is not commensurate with the commission amount associated with the contract renewal for those same customers. The commission amount associated with the renewal of a contract in addition to any commission amount related to incremental sales are recorded as expense over the term of the renewed contract. These assets are periodically assessed for impairment. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of costs related to supporting and hosting the Company’s product offerings and delivering professional services. These costs include salaries, benefits, incentive compensation and stock-based compensation expense related to the management of the Company’s data centers, customer support team and the Company’s professional services staff, in addition to third-party service provider costs such as data center and networking expenses, allocated overhead, amortization of capitalized internal-use software development costs and intangible assets and depreciation expense. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company offsets gross trade accounts receivable with an allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with specific accounts. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions for allowances for doubtful accounts are recorded in general and administrative expense. Effective January 1, 2020, the Company adopted ASC 326, which requires measurement and recognition of expected credit losses for financial assets held. Estimating credit losses based on risk characteristics requires significant judgment by the Company. Significant judgments include, but are not limited to: assessing current economic conditions and the extent to which they would be relevant to the existing characteristics of the Company’s financial assets, the estimated life of financial assets, and the level of reliance on historical experience in light of economic conditions. The Company reviews and updates, when necessary, its historical risk characteristics that are meaningful to estimating credit losses, any new risk characteristics that arise in the natural course of business, and the estimated life of its financial assets. The Company uses the aging method to estimate its expected credit losses on trade accounts receivable (“AR”) and unbilled trade accounts receivable (“UAR”). As of December 31, 2023, the financial assets of the Company within the scope of the assessment comprised AR and UAR. UAR is reflected in Other current assets on the Company’s Consolidated Balance Sheets and was $ 1.8 million and $ 1.8 million as of December 31, 2023 and December 31, 2022, respectively. Estimated credit losses for UAR were not material. The information obtained from assessing historical experience, current economic conditions and reasonable and supportable forecasts were used to identify risk characteristics that can affect future credit loss experience. The historical analysis yielded one material risk factor, the geographical location of the customer. Specifically, historical experience showed that AR that was due from customers in the Asia Pacific region had experienced more credit losses than the other geographic areas listed in Note 15. Europe and Japan had significantly less credit loss experience when compared to Asia Pacific while North America’s credit loss experience was commensurate with the proportion of total AR that North America’s AR comprised. There were no other significant risk characteristics identified in the review of historical experience. Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2023, 2022 and 2021: Balance at Beginning of Period Provision Write-offs Balance at End of Period Year ended December 31, 2023 $ 294 $ 162 $ ( 246 ) $ 210 Year ended December 31, 2022 353 118 ( 177 ) 294 Year ended December 31, 2021 648 159 ( 454 ) 353 |
Off-Balance Sheet Risk and Concentration of Credit Risk | Off-Balance Sheet Risk and Concentration of Credit Risk The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents and trade accounts receivable. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high credit standing. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed federally insured limits. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. For the years ended December 31, 2023, 2022 and 2021, no individual customer accounted for more than 10 % of total revenue. As of December 31, 2023 and 2022 , no individual customer accounted for more than 10% of accounts receivable, net. |
Concentration of Other Risks | Concentration of Other Risks The Company is dependent on certain content delivery network providers who provide digital media delivery functionality enabling the Company’s on-demand application service to function as intended for the Company’s customers and ultimate end-users. The disruption of these services could have a material adverse effect on the Company’s business, financial position, and results of operations. |
Software Development Costs | Software Development Costs Costs incurred to develop software applications used in the Company’s on-demand application services consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software, and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding, and testing activities. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs are expensed as incurred. Capitalization begins when the preliminary project stage is complete, management, with the relevant authority, authorizes and commits to the funding of the software project, it is probable the project will be completed, the software will be used to perform the functions intended and certain functional and quality standards have been met. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs that cannot be separated between maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. These capitalized costs are amortized on a straight-line basis over the expected useful life of the software, which is estimated to be three years . Capitalized internal-use software development costs are classified as “Software” within “Property and Equipment, net” in the accompanying consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, the Company capitalized $ 11.7 million, $ 15.5 million, and $ 7.7 million, respectively, of internal-use software development costs. The Company recorded amortization expense associated with its capitalized internal-use software development costs of $ 9.9 million, $ 5.2 million and $ 3.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Leases | Leases Under ASC 842, a right-of-use asset and lease liability is recorded for all leases and the statement of operations reflects the lease expense for operating leases and amortization/interest expense for financing leases. The Company does not apply the recognition requirements in the standard to a lease that at commencement date has a lease term of twelve months or less and does not contain a purchase option that it is reasonably certain to exercise and to not separate lease and related non-lease components. The Company leases its facilities under non-cancelable operating leases. Right-of-use assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Many of the Company’s lessee agreements include options to extend the lease, which are not included in the minimum lease terms unless they are reasonably certain to be exercised. |
Long-Lived Assets | Long-Lived Assets The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During this review, the Company re-evaluates the significant assumptions used in determining the original cost and estimated lives of long-lived assets. Although the assumptions may vary from asset to asset, they generally include operating results, changes in the use of the asset, cash flows, and other indicators of value. Management then determines whether the remaining useful life continues to be appropriate, or whether there has been an impairment of long-lived assets based primarily upon whether expected future undiscounted cash flows are sufficient to support the assets’ recovery. If impairment exists, the Company adjusts the carrying value of the asset to fair value, generally determined by a discounted cash flow analysis. For the years ended December 31, 2023, 2022 and 2021, the Company has not identified any impairment of its long-lived assets. |
Business Combinations | Business Combinations The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the purchase method of accounting. Amounts paid for each acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. The Company then allocates the purchase price in excess of net tangible assets acquired to identifiable intangible assets based on detailed valuations that use information and assumptions provided by management. Any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed is allocated to goodwill. If the fair value of the assets acquired exceeds the purchase price, the excess is recognized as a gain. Significant management judgments and assumptions are required in determining the fair value of acquired assets and liabilities, particularly acquired intangible assets. The valuation of purchased intangible assets is based upon estimates of the future performance and cash flows from the acquired business. Each asset is measured at fair value from the perspective of a market participant. If different assumptions are used, it could materially impact the purchase price allocation and adversely affect our results of operations, financial condition and cash flows. For further discussion of the Company’s accounting policies related to business comb inations, see Note 3. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets that have finite lives are amortized over their estimated useful lives based on the pattern of consumption of the economic benefit or, if that pattern cannot be readily determined, on a straight-line basis and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, as discussed above. Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that could trigger a more frequent impairment assessment include, but are not limited to, a significant adverse change in certain agreements, significant underperformance relative to historical or projected future operating results, an economic downturn in customers’ industries, increased competition, a significant reduction in our stock price for a sustained period or a reduction of our market capitalization relative to net book value. If there is an impairment, the amount of the impairment is on the excess of a reporting unit’s carrying amount over its fair value. The Company has determined, based on its organizational structure, that it had one reporting unit as of December 31, 2023 and 2022 . The Company evaluates impairment by comparing the estimated fair value of its reporting unit to its carrying value. Please see Note 7 for a discussion of the Company's evaluation of impairment as of December 31, 2023 |
Comprehensive (Loss) Income | Comprehensive (Loss) Income Comprehensive (loss) income is defined as the change in equity of a business enterprise during a period from transactions, other events, and circumstances from non-owner sources. Accumulated other comprehensive loss is presented separately on the consolidated balance sheets and consists entirely of cumulative foreign translation adjustments as of December 31, 2023 and 2022 . |
Net (Loss) Income per Share | Net (Loss) Income per Share The Company calculates basic and diluted (loss) earnings per common share by dividing the (loss) earnings amount by the number of common shares outstanding during the period. The calculation of diluted earnings per common share includes the effects of the assumed exercise of any outstanding stock options and the assumed vesting of shares of restricted stock awards, where dilutive. The following table set forth the computations of basic and diluted (loss) earnings per share: Year Ended December 31, (in thousands, except per share data) 2023 2022 2021 Net (loss) income $ ( 22,886 ) $ ( 9,015 ) $ 5,397 Weighted average shares used in computing basic earnings per share 43,128 41,831 40,717 Effect of weighted average dilutive stock-based awards - - 1,483 Weighted average shares used in computing diluted earnings per share 43,128 41,831 42,200 Net (loss) income per share—basic and diluted Basic $ ( 0.53 ) $ ( 0.22 ) $ 0.13 Diluted $ ( 0.53 ) $ ( 0.22 ) $ 0.13 The following outstanding common shares have been excluded from the computation of dilutive (loss) earnings per share as of the periods indicated because such securities are anti-dilutive: Year Ended December 31, 2023 2022 2021 Options outstanding 2,248 1,420 1,681 Restricted stock units outstanding 5,620 5,212 3,937 Total options and restricted stock units outstanding 7,868 6,632 5,618 |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates. In addition, this method requires a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions recognized in the consolidated financial statements by prescribing a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Interest and penalties, if applicable, related to uncertain tax positions would be recognized as a component of income tax expense. The Company has no recorded liabilities for uncertain tax positions as of December 31, 2023 or 2022 . |
Stock-Based Compensation | Stock-Based Compensation At December 31, 2023 , the Company had seven stock-based compensation plans, which are more fully descri bed in Note 11. The Company values its shares of common stock in connection with the issuance of stock-based equity awards using the closing price of the Company’s shares of common stock on the NASDAQ Global Market on the date of the grant. Accounting guidance requires stock-based payments to be accounted for under the fair value method. Under this method, the Company is required to record compensation cost based on the estimated fair value for stock-based awards granted over the requisite service periods for the individual awards, which generally equals the vesting periods. For stock options issued under the Company’s stock-based compensation plans, the fair value of each option grant is estimated on the date of grant. For service-based options, the Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. The fair value of each service-based option grant issued under the Company’s stock-based compensation plans was estimated using the Black-Scholes option-pricing model. The expected volatility of options granted has been determined using the historical volatility of the Company’s own common stock. The expected life of options has been determined utilizing the “simplified method”. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options. The Company has not paid, and does not anticipate paying, cash dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. For premium-priced options issued under the Company's stock-based compensation plans, the fair value of each option issued is determined using the binomial lattice model, which calculates multiple potential outcomes for option exercises and establishes a fair value based on the most likely outcome. Key assumptions for the binomial lattice model include share price, volatility, the early exercise multiple, risk-free rate, expected dividends, and number of time steps. For restricted stock units issued under the Company’s stock-based compensation plans, the fair value of each grant is calculated based on the Company’s stock price on the date of grant. For performance-based awards with service-based vesting conditions, the Company recognizes compensation expense based upon a review of the Company’s expected achievement against the specified targets. For performance-based awards with market-based vesting, the Company recognizes compensation expense as the requisite service is rendered by the employee, regardless of when, if ever, the market-based performance conditions are satisfied. The Monte-Carlo simulation model is used to estimate fair value of market-based performance restricted stock units. The Monte-Carlo simulation model calculates multiple potential outcomes for an award and establishes a fair value based on the most likely outcome. Key assumptions for the Monte-Carlo simulation model include the risk-free rate, expected volatility, expected dividends and the correlation coefficient. Forfeitures are recognized as they occur. |
Advertising Costs | Advertising Costs Advertising costs are charged to operations as incurred. The Company incurred advertising costs of $ 2.7 million, $ 4.8 million and $ 6.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Merger-related Costs | Merger-related Costs Merger-related costs consist of expenses related to mergers and acquisitions, integration costs and general corporate development activities. In 2022, merger-related costs incurred were primarily related to the acquisition of Wicket Labs and, to a lesser extent, general merger and related activities. In 2023 and 2021, merger-related costs incurred were primarily related to general merger and related activities. |
Recent Accounting Pronouncements and Standards | Recent Accounting Pronouncements and Standards Recently Adopted Accounting Pronouncements ASU No. 2023-09 In December 2023, the FASB issued ASU No. 2023-09, which improves the transparency and decision usefulness of income tax disclosures, specifically to enhance investors's ability to: (1) understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. This guidance will be effective for the Company on January 1, 2025. The Company does not expect application of this guidance to have a material impact on its consolidated financial statements. |
Accounting Standards Update 2014-09 [Member] | |
Revenue | Revenue ASC 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. The transaction price is the total amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company has elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (e.g. sales and use tax). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Property and equipment Useful Life | The Company estimates the useful life of property and equipment as follows: Estimated Useful Life Computer equipment 3 Software 3 - 6 Furniture and fixtures 5 Leasehold improvements Shorter of lease term or the estimated useful life |
Schedule of Allowance for Doubtful Accounts | Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2023, 2022 and 2021: Balance at Beginning of Period Provision Write-offs Balance at End of Period Year ended December 31, 2023 $ 294 $ 162 $ ( 246 ) $ 210 Year ended December 31, 2022 353 118 ( 177 ) 294 Year ended December 31, 2021 648 159 ( 454 ) 353 |
Schedule of Computations of Basic and Diluted (Loss) Earnings Per Share | The following table set forth the computations of basic and diluted (loss) earnings per share: Year Ended December 31, (in thousands, except per share data) 2023 2022 2021 Net (loss) income $ ( 22,886 ) $ ( 9,015 ) $ 5,397 Weighted average shares used in computing basic earnings per share 43,128 41,831 40,717 Effect of weighted average dilutive stock-based awards - - 1,483 Weighted average shares used in computing diluted earnings per share 43,128 41,831 42,200 Net (loss) income per share—basic and diluted Basic $ ( 0.53 ) $ ( 0.22 ) $ 0.13 Diluted $ ( 0.53 ) $ ( 0.22 ) $ 0.13 |
Summary of Outstanding Common Shares Excluded from Computation of Dilutive (Loss) Earnings per Share | The following outstanding common shares have been excluded from the computation of dilutive (loss) earnings per share as of the periods indicated because such securities are anti-dilutive: Year Ended December 31, 2023 2022 2021 Options outstanding 2,248 1,420 1,681 Restricted stock units outstanding 5,620 5,212 3,937 Total options and restricted stock units outstanding 7,868 6,632 5,618 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Total Purchase Price | The total purchase price for the Wicket Acquisition has been allocated as follows: Cash $ 53 Accounts receivable and other assets 782 Identifiable intangible assets 4,382 Goodwill 13,957 Deferred revenue ( 1,033 ) Deferred tax liabilities ( 1,009 ) Other liabilities ( 95 ) Total estimated purchase price $ 17,037 |
Schedule of Identifiable Intangible Assets Acquired and Their respective Useful Lives | The following are the identifiable intangible assets acquired and their respective useful lives, as determined based on valuations: Amount Useful Life Developed technology $ 4,200 6 Customer relationships 182 5 Total $ 4,382 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents as of December 31, 2023 and 2022 consist of the following: December 31, 2023 Description Contracted Amortized Cost Fair Market Cash Demand $ 18,571 $ 18,571 Money market funds Demand 44 44 Total cash and cash equivalents $ 18,615 $ 18,615 December 31, 2022 Description Contracted Amortized Cost Fair Market Cash Demand $ 31,852 $ 31,852 Money market funds Demand 42 42 Total cash and cash equivalents $ 31,894 $ 31,894 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and equipment | Property and equipment consist of the following: December 31, 2023 2022 Computer equipment $ 16,027 $ 15,516 Software 75,311 60,534 Furniture and fixtures 4,895 4,775 Leasehold improvements 9,001 8,839 105,234 89,664 Less accumulated depreciation and amortization 62,758 49,987 $ 42,476 $ 39,677 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following summarizes the opening and closing balances of receivables, contract assets and contract liabilities from contracts with customers. Accounts Receivable, net Contract Assets (current) Deferred Revenue (current) Deferred Revenue (non-current) Total Deferred Revenue Balance at December 31, 2023 33,451 1,785 68,155 185 68,340 Balance at December 31, 2022 26,004 1,786 61,597 360 61,957 Balance at December 31, 2021 29,866 2,375 62,057 114 62,171 Balance at December 31, 2020 29,305 2,078 58,741 811 59,552 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | Finite-lived intangible assets consist of the following as of December 31, 2023: Description Weighted Average Estimated Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Developed technology 6 $ 22,278 $ 19,663 $ 2,615 Customer relationships 9 15,669 11,916 3,753 Non-compete agreements 3 1,912 1,912 — Tradename 3 368 368 — Total $ 40,227 $ 33,859 $ 6,368 Finite-lived intangible assets consist of the following as of December 31, 2022: Description Weighted Average Estimated Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Developed technology 6 $ 22,278 $ 17,393 $ 4,885 Customer relationships 9 15,669 10,275 5,394 Non-compete agreements 3 1,912 1,912 — Tradename 3 368 368 — Total $ 40,227 $ 29,948 $ 10,279 |
Amortization Expense Related to Intangible Assets | The following table summarizes amortization expense related to intangible assets for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, 2023 2022 2021 Cost of subscription and support revenue $ 2,270 $ 1,757 $ 1,420 Sales and marketing 1,641 1,662 1,652 $ 3,911 $ 3,419 $ 3,072 |
Estimated Remaining Amortization Expense | The estimated remaining amortization expense for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2024 $ 3,688 2025 2,141 2026 536 2027 3 2028 — 2029 and thereafter — Total $ 6,368 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | The weighted average remaining lease terms and discount rates were as follows: December 31, 2023 2022 2021 Weighted average remaining lease term (years) 7.77 8.27 8.81 Weighted average discount rate 5.9 % 5.8 % 5.7 % |
Schedule of Maturity Analysis of Undiscounted Cash Flows of Operating Lease | The Company’s operating leases expire at various dates through 2032. The following shows the undiscounted cash flows for the remaining years under operating leases at December 31, 2023: Year Ending December 31, Operating Lease Commitments 2024 $ 4,774 2025 4,235 2026 3,981 2027 4,010 2028 3,802 2029 and thereafter 10,779 Total operating lease commitments 31,581 Less imputed interest ( 9,737 ) Total lease liabilities $ 21,844 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Reserved for Future Issuance | At December 31, 2023, the Company has reserved the following shares of common stock for future issuance: December 31, 2023 Common stock options outstanding 2,247,951 Restricted stock unit awards outstanding 5,619,438 Shares available for issuance under all stock-based compensation plans 7,768,241 Total shares of authorized common stock reserved for future issuance 15,635,630 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense as included in the consolidated statement of operations for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, 2023 2022 2021 Cost of subscription and support revenue $ 506 $ 508 $ 627 Cost of professional services and other revenue 375 433 401 Research and development 2,453 2,746 1,677 Sales and marketing 4,197 3,990 2,957 General and administrative 6,368 5,622 4,306 Other (expense) benefit — 249 — $ 13,899 $ 13,548 $ 9,968 |
Summary of Stock Option Activity | The following is a summary of the stock option activity for all stock option plans during the years ended December 31, 2023, 2022 and 2021: Number of Weighted-Average Weighted-Average (In Years) Aggregate Outstanding at December 31, 2020 2,110,486 $ 9.19 $ — Granted 114,973 14.88 Exercised ( 333,190 ) 8.53 $ 2,999 Cancelled ( 210,792 ) 10.26 Outstanding at December 31, 2021 1,681,477 $ 9.59 $ 1,938 Granted — — Exercised ( 28,400 ) 6.24 $ 40 Cancelled ( 233,310 ) 11.11 Outstanding at December 31, 2022 1,419,767 $ 9.39 $ 4 Granted 1,563,688 7.00 Exercised — — $ — Cancelled ( 735,504 ) 9.39 Outstanding at December 31, 2023 2,247,951 $ 7.73 7.11 $ — Exercisable at December 31, 2023 815,986 $ 8.74 3.50 $ — (1) The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on December 31, 2023, December 31, 2022, and December 31, 2021 of $ 2.59 , $ 5.23 , and $ 10.22 per share, respectively, or the date of exercise, as appropriate, and the exercise price of the underlying options. |
Weighted Average Fair Value of Options Granted and Assumptions Utilized | The weighted-average fair value of options granted and assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2023 2022 2021 Weighted-average fair value of options granted during the year $ 1.75 $ — $ 6.98 Risk-free interest rate 3.4 - 4.8 % — 1.22 % Expected volatility 47.9 - 55.5 % — 48 % Expected life (in years) — — 6.2 Expected dividend yield — — — |
Restricted Stock Units Activity | The following table summarizes the P-RSU and S-RSU activity during the year ended December 31, 2023, 2022, and 2021: S-RSU Shares Weighted Grant Fair Value P-RSU Shares Weighted Grant Fair Value Total RSU Shares Weighted Grant Fair Value Unvested by December 31, 2020 2,000,416 $ 10.30 1,587,801 $ 10.40 3,588,217 $ 10.35 Granted 2,269,341 12.24 64,011 12.65 2,333,352 12.25 Vested and issued ( 680,769 ) 9.85 ( 181,910 ) 8.74 ( 862,679 ) 9.62 Cancelled ( 673,268 ) 11.67 ( 448,730 ) 9.59 ( 1,121,998 ) 10.84 Unvested by December 31, 2021 2,915,720 $ 11.66 1,021,172 $ 11.04 3,936,892 $ 11.50 S-RSU Shares Weighted Grant Fair Value P-RSU Shares Weighted Grant Fair Value Total RSU Shares Weighted Grant Fair Value Unvested by December 31, 2021 2,915,720 $ 11.66 1,021,172 $ 11.04 3,936,892 $ 11.50 Granted 3,803,691 6.94 500,000 4.06 4,303,691 6.61 Vested and issued ( 824,127 ) 11.63 — 0.00 ( 824,127 ) 11.63 Cancelled ( 1,356,935 ) 10.09 ( 848,314 ) 11.06 ( 2,205,249 ) 10.47 Unvested by December 31, 2022 4,538,349 $ 8.19 672,858 $ 6.54 5,211,207 $ 7.88 S-RSU Shares Weighted Grant Fair Value P-RSU Shares Weighted Grant Fair Value Total RSU Shares Weighted Grant Fair Value Unvested by December 31, 2022 4,538,349 $ 8.19 672,858 $ 6.54 5,211,207 $ 7.88 Granted 3,102,058 4.51 — 0.00 3,102,058 4.51 Vested and issued ( 1,384,242 ) 8.35 — 0.00 ( 1,384,242 ) 8.35 Cancelled ( 1,153,897 ) 7.61 ( 155,688 ) 10.14 ( 1,309,585 ) 7.91 Unvested by December 31, 2023 5,102,268 $ 6.04 517,170 $ 4.54 5,619,438 $ 5.90 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss before Provision (Benefit) for Income Taxes | Loss before the provision (benefit) for income taxes consists of the following jurisdictional (loss) income: Year Ended December 31, 2023 2022 2021 Domestic $ ( 24,613 ) $ ( 11,391 ) $ 4,136 Foreign 2,892 2,324 2,063 Total $ ( 21,721 ) $ ( 9,067 ) $ 6,199 |
Schedule of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes in the accompanying consolidated financial statements consists of the following: Year Ended December 31, 2023 2022 2021 Current provision: Federal $ ( 4 ) $ - $ - State 117 66 7 Foreign 1,122 880 801 Total current 1,235 946 808 Deferred (benefit): Federal ( 5 ) ( 834 ) 1 State 2 ( 168 ) 2 Foreign ( 67 ) 4 ( 9 ) Total deferred ( 70 ) ( 998 ) ( 6 ) Total (benefit) provision $ 1,165 $ ( 52 ) $ 802 |
Schedule of Reconciliation of U.S. Federal Statutory Rate to Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2023 2022 2021 Tax at statutory rates ( 21.0 %) ( 21.0 %) ( 21.0 %) State income taxes ( 3.7 %) ( 8.8 %) 3.4 % Change in tax rate 1.4 % ( 0.8 %) ( 0.2 %) Permanent differences 11.4 % 18.6 % 4.4 % Global intangible low-taxed income 0 % 19.9 % 0 % Foreign rate differential 1.0 % 2.8 % ( 2.6 %) Research and development credits ( 4.2 %) ( 9.1 %) 7.6 % Change in valuation allowance 19.8 % ( 1.4 %) ( 3.4 %) Other, net 0.7 % ( 0.7 %) ( 1.1 %) Effective tax rate 5.4 % ( 0.5 %) ( 12.9 %) |
Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward | The income tax effect of each type of temporary difference and carryforward as of December 31, 2023 and 2022 is as follows: As of December 31, 2023 2022 Deferred tax assets: Net operating loss carry-forwards $ 36,936 $ 41,239 Tax credit carry-forwards 15,691 14,588 Stock-based compensation 1,853 2,127 Fixed Assets - 134 Account receivable reserves 140 340 Accrued compensation 602 1,050 Lease Liability 4,955 5,524 Capitalized research expenditures 13,234 6,733 Other temporary differences 1,159 829 Total deferred tax assets 74,570 72,564 Deferred tax liabilities: Other deferred tax liabilities ( 4,196 ) ( 4,046 ) ROU Asset ( 4,101 ) ( 4,578 ) Intangible assets ( 1,215 ) ( 3,305 ) Total deferred tax liabilities ( 9,512 ) ( 11,929 ) Valuation allowance ( 65,070 ) ( 60,717 ) Net deferred tax asset (liability) $ ( 12 ) $ ( 82 ) |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | Accrued expenses consist of the following: December 31, 2023 2022 Accrued payroll and related benefits $ 6,499 $ 10,082 Accrued sales and other taxes 2,601 3,098 Accrued professional fees and outside contractors 2,163 3,057 Accrued content delivery 3,528 5,684 Accrued other liabilities 2,775 4,956 Total $ 17,566 $ 26,877 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Total Revenue to Unaffiliated Customers by Geographic Area, Based on Location of Customer | Total revenue to unaffiliated customers by geographic area, based on the location of the customer, was as follows: Year Ended December 31, 2023 2022 2021 Revenue: North America $ 120,378 $ 118,755 $ 119,079 Europe 32,922 36,177 37,947 Japan 20,080 21,988 25,272 Asia Pacific 27,421 33,645 28,261 Other 386 443 534 Total revenue $ 201,187 $ 211,008 $ 211,093 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment Customer Plans | Dec. 31, 2022 USD ($) Customer Segment | Dec. 31, 2021 USD ($) Customer | |
Accounting Policies [Line Items] | |||
Short-term investments | $ 0 | $ 0 | |
Long-term investments | $ 0 | $ 0 | |
Number of customers accounted for more than 10% of total revenue | Customer | 0 | 0 | 0 |
Threshold percentage of total revenues required for major customer classification | 10% | 10% | 10% |
Number of customers accounted for more than 10% of net accounts receivable | Customer | 0 | 0 | |
Capitalized software development costs | $ 11,700,000 | $ 15,500,000 | $ 7,700,000 |
Amortization of capitalized internal-use software development costs | 9,900,000 | 5,200,000 | 3,600,000 |
Recorded liabilities for uncertain tax position | $ 0 | 0 | |
Number of stock-based compensation plans | Plans | 7 | ||
Advertising costs | $ 2,700,000 | 4,800,000 | $ 6,000,000 |
Financial instruments carried at fair value | 100,000 | 100,000 | |
Reversed deferred rent liability | $ 1,800,000 | $ 1,800,000 | |
Number of Reporting Units | Segment | 1 | 1 | |
Software [Member] | |||
Accounting Policies [Line Items] | |||
Estimated Useful Life (in Years) | 3 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Property and Equipment Useful Life (Detail) | Dec. 31, 2023 |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life (in Years) | 3 years |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life (in Years) | 3 years |
Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life (in Years) | 3 years |
Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life (in Years) | 6 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life (in Years) | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Changes in Company's Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Credit Loss [Abstract] | |||
Balance at Beginning of Period | $ 294 | $ 353 | $ 648 |
Provision | 162 | 118 | 159 |
Write-offs | (246) | (177) | (454) |
Balance at End of Period | $ 210 | $ 294 | $ 353 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Computations of Basic and Diluted (Loss) Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Earnings Per Share Basic And Diluted [Abstract] | |||
Net Income (Loss) | $ (22,886) | $ (9,015) | $ 5,397 |
Weighted average shares used in computing basic earnings per share | 43,128 | 41,831 | 40,717 |
Effect of weighted average dilutive stock-based awards | 0 | 0 | 1,483 |
Weighted average shares used in computing diluted earnings per share | 43,128 | 41,831 | 42,200 |
Net (loss) income per share-basic and diluted | |||
Basic | $ (0.53) | $ (0.22) | $ 0.13 |
Diluted | $ (0.53) | $ (0.22) | $ 0.13 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Outstanding Common Shares Excluded from Computation of Dilutive Earnings (Loss) per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total options and restricted stock units outstanding | 7,868 | 6,632 | 5,618 |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total options and restricted stock units outstanding | 2,248 | 1,420 | 1,681 |
RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total options and restricted stock units outstanding | 5,620 | 5,212 | 3,937 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Business combination acquisition related costs | $ 307 | $ 747 | $ 300 | |
Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock ,Shares | 0 | 212,507 | 0 | |
Common stock issued upon acquisition | $ 0 | $ 0 | $ 0 | |
Wicket Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 15,000 | |||
Held back for secure payment of claims | $ 1,800 | |||
cash consideration paid | 100 | |||
Percentage Of Outstanding Shares | 100% | |||
Wicket Acquisition [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock ,Shares | 212,507 | |||
Common stock issued upon acquisition | $ 2,000 | |||
Wicket Labs, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination acquisition related costs | $ 700 |
Business Combinations - Schedul
Business Combinations - Schedule of Total Purchase Price (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Goodwill | $ 74,859 | $ 74,859 |
Wicket Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Cash | 53 | |
Accounts receivable and other assets | 782 | |
Identifiable intangible assets | 4,382 | |
Goodwill | 13,957 | |
Deferred revenue | (1,033) | |
Deferred tax liabilities | (1,009) | |
Other liabilities | (95) | |
Total estimated purchase price | $ 17,037 |
Business Combinations - Sched_2
Business Combinations - Schedule of Identifiable Intangible Assets Acquired and Their respective Useful Lives (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Wicket Acquisition [Member] | ||
Total | $ 4,382 | |
Developed Technology [Member] | ||
Useful Life | 6 years | 6 years |
Developed Technology [Member] | Wicket Acquisition [Member] | ||
Total | $ 4,200 | |
Useful Life | 6 years | |
Customer Relationships [Member] | ||
Useful Life | 9 years | 9 years |
Customer Relationships [Member] | Wicket Acquisition [Member] | ||
Total | $ 182 | |
Useful Life | 5 years |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Cost | $ 18,615 | $ 31,894 |
Fair Market Value | 18,615 | 31,894 |
Cash [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Cost | 18,571 | 31,852 |
Fair Market Value | 18,571 | 31,852 |
Money Market Funds [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Cost | 44 | 42 |
Fair Market Value | $ 44 | $ 42 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 105,234 | $ 89,664 |
Less accumulated depreciation and amortization | 62,758 | 49,987 |
Property and equipment, net | 42,476 | 39,677 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,027 | 15,516 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 75,311 | 60,534 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,895 | 4,775 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,001 | $ 8,839 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization, expense | $ 12.6 | $ 7.3 | $ 5.3 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||||
Accounts Receivable, net | $ 33,451 | $ 26,004 | ||
Deferred Revenue (current) | 68,155 | 61,597 | ||
Accounting Standards Update 2014-09 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Accounts Receivable, net | 33,451 | 26,004 | $ 29,866 | $ 29,305 |
Contract Assets (current) | 1,785 | 1,786 | 2,375 | 2,078 |
Deferred Revenue (current) | 68,155 | 61,597 | 62,057 | 58,741 |
Deferred Revenue (non- current) | 185 | 360 | 114 | 811 |
Total Deferred Revenue | $ 68,340 | $ 61,957 | $ 62,171 | $ 59,552 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue recognized | $ 61 | ||
Assets recognized to obtain a contract | 13.1 | $ 12.4 | |
Amortization expense recognized to obtain a contract | 10.9 | $ 10.4 | $ 12.7 |
Subscription and Support Revenue [Member] | |||
Unsatisfied performance obligations | $ 183 | ||
Revenue, performance obligation, description of timing | 2028 | ||
Subscription and Support Revenue [Member] | Next Twelve Months [Member] | |||
Unsatisfied performance obligations | $ 127.3 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Finite Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Gross Carrying Value | $ 40,227 | $ 40,227 |
Finite Lived Intangible Assets Accumulated Amortization | 33,859 | 29,948 |
Finite Lived Intangible Assets Net Carrying Value | $ 6,368 | $ 10,279 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 6 years | 6 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 22,278 | $ 22,278 |
Finite Lived Intangible Assets Accumulated Amortization | 19,663 | 17,393 |
Finite Lived Intangible Assets Net Carrying Value | $ 2,615 | $ 4,885 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 9 years | 9 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 15,669 | $ 15,669 |
Finite Lived Intangible Assets Accumulated Amortization | 11,916 | 10,275 |
Finite Lived Intangible Assets Net Carrying Value | $ 3,753 | $ 5,394 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 3 years | 3 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 1,912 | $ 1,912 |
Finite Lived Intangible Assets Accumulated Amortization | $ 1,912 | $ 1,912 |
Tradename [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 3 years | 3 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 368 | $ 368 |
Finite Lived Intangible Assets Accumulated Amortization | $ 368 | $ 368 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 74,859 | $ 74,859 |
Wicket Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 3 years |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Summarizes Amortization Expense Related Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 3,911 | $ 3,419 | $ 3,072 |
Cost of Subscription and Support Revenue [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | 2,270 | 1,757 | 1,420 |
Sales and Marketing [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 1,641 | $ 1,662 | $ 1,652 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Estimated Remaining Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 3,688 | |
2025 | 2,141 | |
2026 | 536 | |
2027 | 3 | |
2028 | 0 | |
2029 and thereafter | 0 | |
Finite Lived Intangible Assets Net Carrying Value | $ 6,368 | $ 10,279 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) SquareFeet Leases | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease rent expense | $ 4,100 | $ 5,100 | $ 4,300 | |
Weighted-average remaining non-cancelable lease term | 7 years 9 months 7 days | 8 years 3 months 7 days | 8 years 9 months 21 days | |
Weighted-average discount rate | 5.90% | 5.80% | 5.70% | |
Percentage of property subleased | 100% | |||
Number of operating lease agreement entered in the current year | Leases | 1 | |||
Operating lease right-of-use asset | $ 16,233 | $ 18,671 | ||
Operating lease liability current | 4,486 | 4,157 | ||
Operating lease liability noncurrent | 17,358 | 20,528 | ||
Undiscounted cash inflows from the london sublease | 900 | |||
New Office Lease Agreement [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease liability current | 4,500 | |||
Operating lease liability noncurrent | 17,400 | |||
Property Available for Operating Lease [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use asset | $ 300 | |||
Office Building [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Leases square feet | SquareFeet | 40,000 | |||
Operating lease expiry date | Sep. 30, 2032 | |||
Operating leases obligations under leasing arrangements value | $ 800 | |||
Operating lease, Term of contract | 10 years | |||
Operating lease, Option to extend | option to extend the lease for two successive five-year terms | |||
Lessee, Operating lease, Option to extend, Term | two successive five-year | |||
Notice period | 60 days | |||
Operating leases obligations under leasing arrangements, Date through which an automatic extension can be implemented | Nov. 30, 2032 | |||
Operating Expense [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Rent income from sublease recognised | $ 800 | $ 800 | $ 900 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Lease, Cost [Abstract] | |||
Weighted average remaining lease term (years) | 7 years 9 months 7 days | 8 years 3 months 7 days | 8 years 9 months 21 days |
Weighted average discount rate | 5.90% | 5.80% | 5.70% |
Leases - Undiscounted Cash Flow
Leases - Undiscounted Cash Flows Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 4,774 |
2025 | 4,235 |
2026 | 3,981 |
2027 | 4,010 |
2028 | 3,802 |
2029 and thereafter | 10,779 |
Total operating lease commitments | 31,581 |
Less imputed interest | (9,737) |
Total lease liabilities | $ 21,844 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Common stock voting rights | Common stockholders are entitled to one vote per share. |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2023 shares |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Common stock options outstanding | 2,247,951 |
Restricted stock unit awards outstanding | 5,619,438 |
Shares available for issuance under all stock-based compensation plans | 7,768,241 |
Total shares of authorized common stock reserved for future issuance | 15,635,630 |
Stock based Compensation - Addi
Stock based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Mar. 20, 2023 $ / shares shares | Mar. 28, 2022 $ / shares shares | Dec. 31, 2023 USD ($) $ / shares Plans shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Mar. 15, 2023 shares | Mar. 25, 2021 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Stock based compensation expense | $ | $ 13,899 | $ 13,548 | $ 9,968 | ||||
Unrecognized stock-based compensation expense | $ | $ 25,400 | ||||||
Weighted average period | 2 years 3 months 18 days | ||||||
Number of stock-based compensation plans | Plans | 7 | ||||||
RSUs [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Awards, granted | 3,102,058 | 4,303,691 | 2,333,352 | ||||
RSUs [Member] | Service Based Restricted Stock Units [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Awards, granted | 3,102,058 | 3,803,691 | 2,269,341 | ||||
Stock Option [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Options granted | 1,563,688 | 0 | 114,973 | ||||
Share based compensation arrangement by share based payment award options strike price | $ / shares | $ 7 | $ 0 | $ 14.88 | ||||
Two Thousand and Twenty Plan [Member] | RSUs [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Stock based compensation expense | $ | $ 200 | ||||||
2021 Plan [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Maximum number of shares of stock reserved and available for issuance | 7,000,000 | 13,200,000 | |||||
2021 Plan [Member] | Stock Option [Member] | Premium Priced Options [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Options granted | 1,563,688 | ||||||
Share based compensation arrangement by share based payment award options strike price | $ / shares | $ 7 | ||||||
Vesting period | 3 years | ||||||
2022 Inducement Plan [Member] | RSUs [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
2022 Inducement Plan [Member] | RSUs [Member] | Chief Executive Officer [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Awards, granted | 800,000 | ||||||
2022 Inducement Plan [Member] | RSUs [Member] | Service Based Restricted Stock Units [Member] | Chief Executive Officer [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Awards, granted | 300,000 | ||||||
2022 Inducement Plan [Member] | RSUs [Member] | Market-Based and Service-Based Performance Stock Units [Member] | Chief Executive Officer [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Awards, granted | 500,000 | ||||||
2022 Inducement Plan [Member] | PSUs [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Percentage of award earned upon each of first two achievement tiers | 10% | ||||||
Percentage of award earned upon each of next four achievement tiers | 12.50% | ||||||
Percentage of award earned upon each of final two achievement tiers | 15% | ||||||
2022 Inducement Plan [Member] | PSUs [Member] | Chief Executive Officer [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Number of consecutive trading day | 20 days | ||||||
Increments of share price | $ / shares | $ 2.50 | ||||||
Percentage of award vest upon achievement of stock price | 50% | ||||||
Percentage of award vest upon earlier of one year anniversary of achievement | 50% | ||||||
2022 Inducement Plan [Member] | Minimum [Member] | RSUs [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Vesting period | 3 months | ||||||
2022 Inducement Plan [Member] | Minimum [Member] | PSUs [Member] | Chief Executive Officer [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Stock price | $ / shares | $ 12.50 | ||||||
2022 Inducement Plan [Member] | Maximum [Member] | RSUs [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
2022 Inducement Plan [Member] | Maximum [Member] | PSUs [Member] | Chief Executive Officer [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Stock price | $ / shares | $ 30 |
Stock Based Compensation - Summ
Stock Based Compensation - Summarizes Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 13,899 | $ 13,548 | $ 9,968 |
Subscription and Support Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 506 | 508 | 627 |
Professional Services and Other Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 375 | 433 | 401 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 2,453 | 2,746 | 1,677 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 4,197 | 3,990 | 2,957 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 6,368 | 5,622 | 4,306 |
Other (Expense) Benefit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 0 | $ 249 | $ 0 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares, Outstanding Ending Balance | 2,247,951 | |||
Employee Stock Option | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares, Outstanding Beginning Balance | 1,419,767 | 1,681,477 | 2,110,486 | |
Shares, Granted | 1,563,688 | 0 | 114,973 | |
Shares, Exercised | 0 | (28,400) | (333,190) | |
Shares, Cancelled | (735,504) | (233,310) | (210,792) | |
Shares, Outstanding Ending Balance | 2,247,951 | 1,419,767 | 1,681,477 | |
Shares, Exercisable | 815,986 | |||
Weighted-Average Exercise Price, Outstanding Beginning Balance | $ 9.39 | $ 9.59 | $ 9.19 | |
Weighted-Average Exercise Price, Granted | 7 | 0 | 14.88 | |
Weighted-Average Exercise Price, Exercised | 0 | 6.24 | 8.53 | |
Weighted-Average Exercise Price, Cancelled | 9.39 | 11.11 | 10.26 | |
Weighted-Average Exercise Price, Outstanding Ending Balance | 7.73 | $ 9.39 | $ 9.59 | |
Weighted-Average Exercise Price, Exercisable | $ 8.74 | |||
Weighted-Average Remaining Contractual Term, Outstanding | 7 years 1 month 9 days | |||
Weighted-Average Remaining Contractual Term, Exercisable | 3 years 6 months | |||
Aggregate Intrinsic Value, Exercised | $ 0 | $ 40 | $ 2,999 | |
Aggregate Intrinsic Value, Outstanding | 0 | $ 4 | $ 1,938 | $ 0 |
Aggregate Intrinsic Value, Exercisable | $ 0 |
Stock Based Compensation - Su_3
Stock Based Compensation - Summary of Stock Option Activity (Parenthetical) (Detail) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Employee Stock Option | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Aggregate Intrinsic Value, Estimated per share fair value of common stock | $ 2.59 | $ 5.23 | $ 10.22 |
Stock Based Compensation - Weig
Stock Based Compensation - Weighted Average Fair Value of Options Granted and Assumptions Utilized (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value of options granted during the year | $ 1.75 | $ 0 | $ 6.98 |
Risk-free interest rate minimum | 3.40% | ||
Risk-free interest rate maximum | 4.80% | ||
Risk-free interest rate | 0% | 1.22% | |
Expected volatility minimum | 47.90% | ||
Expected volatility maximum | 55.50% | ||
Expected volatility | 0% | 48% | |
Expected life (in years) | 6 years 2 months 12 days | ||
Expected dividend yield | 0% | 0% | 0% |
Stock Based Compensation - Su_4
Stock Based Compensation - Summary of RSU Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Unvested Shares, Ending Balance | 5,619,438 | ||
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Unvested Shares, Beginning Balance | 5,211,207 | 3,936,892 | 3,588,217 |
Granted | 3,102,058 | 4,303,691 | 2,333,352 |
Vested and issued | (1,384,242) | (824,127) | (862,679) |
Cancelled | (1,309,585) | (2,205,249) | (1,121,998) |
Unvested Shares, Ending Balance | 5,619,438 | 5,211,207 | 3,936,892 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 7.88 | $ 11.50 | $ 10.35 |
Weighted Average Grant Date Fair Value, Granted | 4.51 | 6.61 | 12.25 |
Weighted Average Grant Date Fair Value, Vested and issued | 8.35 | 11.63 | 9.62 |
Weighted Average Grant Date Fair Value, Cancelled | 7.91 | 10.47 | 10.84 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 5.90 | $ 7.88 | $ 11.50 |
RSUs [Member] | Service Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Unvested Shares, Beginning Balance | 4,538,349 | 2,915,720 | 2,000,416 |
Granted | 3,102,058 | 3,803,691 | 2,269,341 |
Vested and issued | (1,384,242) | (824,127) | (680,769) |
Cancelled | (1,153,897) | (1,356,935) | (673,268) |
Unvested Shares, Ending Balance | 5,102,268 | 4,538,349 | 2,915,720 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 8.19 | $ 11.66 | $ 10.30 |
Weighted Average Grant Date Fair Value, Granted | 4.51 | 6.94 | 12.24 |
Weighted Average Grant Date Fair Value, Vested and issued | 8.35 | 11.63 | 9.85 |
Weighted Average Grant Date Fair Value, Cancelled | 7.61 | 10.09 | 11.67 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 6.04 | $ 8.19 | $ 11.66 |
RSUs [Member] | Performance Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Unvested Shares, Beginning Balance | 672,858 | 1,021,172 | 1,587,801 |
Granted | 0 | 500,000 | 64,011 |
Vested and issued | 0 | 0 | (181,910) |
Cancelled | (155,688) | (848,314) | (448,730) |
Unvested Shares, Ending Balance | 517,170 | 672,858 | 1,021,172 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 6.54 | $ 11.04 | $ 10.40 |
Weighted Average Grant Date Fair Value, Granted | 0 | 4.06 | 12.65 |
Weighted Average Grant Date Fair Value, Vested and issued | 0 | 0 | 8.74 |
Weighted Average Grant Date Fair Value, Cancelled | 10.14 | 11.06 | 9.59 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 4.54 | $ 6.54 | $ 11.04 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss before Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure By Jurisdiction [Abstract] | |||
Domestic | $ (24,613) | $ (11,391) | $ 4,136 |
Foreign | 2,892 | 2,324 | 2,063 |
(Loss) income before income taxes | $ (21,721) | $ (9,067) | $ 6,199 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision: | |||
Federal | $ (4) | $ 0 | $ 0 |
State | 117 | 66 | 7 |
Foreign | 1,122 | 880 | 801 |
Total current | 1,235 | 946 | 808 |
Deferred (benefit): | |||
Federal | (5) | (834) | 1 |
State | 2 | (168) | 2 |
Foreign | (67) | 4 | (9) |
Total deferred | (70) | (998) | (6) |
Total (benefit) provision | $ 1,165 | $ (52) | $ 802 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of U.S. Federal Statutory Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at statutory rates | (21.00%) | (21.00%) | (21.00%) |
State income taxes | (3.70%) | (8.80%) | 3.40% |
Change in tax rate | 1.40% | (0.80%) | (0.20%) |
Permanent differences | 11.40% | 18.60% | 4.40% |
Global intangible low-taxed income | 0% | 19.90% | 0% |
Foreign rate differential | 1% | 2.80% | (2.60%) |
Research and development credits | (4.20%) | (9.10%) | 7.60% |
Change in valuation allowance | 19.80% | (1.40%) | (3.40%) |
Other, net | 0.70% | (0.70%) | (1.10%) |
Effective tax rate | 5.40% | (0.50%) | (12.90%) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carry-forwards | $ 36,936 | $ 41,239 |
Tax credit carry-forwards | 15,691 | 14,588 |
Stock-based compensation | 1,853 | 2,127 |
Fixed Assets | 0 | 134 |
Account receivable reserves | 140 | 340 |
Accrued compensation | 602 | 1,050 |
Lease Liability | 4,955 | 5,524 |
Capitalized research expenditures | 13,234 | 6,733 |
Other temporary differences | 1,159 | 829 |
Total deferred tax assets | 74,570 | 72,564 |
Deferred tax liabilities: | ||
Other deferred tax liabilities | (4,196) | (4,046) |
ROU Asset | (4,101) | (4,578) |
Intangible assets | (1,215) | (3,305) |
Total deferred tax liabilities | (9,512) | (11,929) |
Valuation allowance | (65,070) | (60,717) |
Net deferred tax asset (liability) | $ (12) | $ (82) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Line Items] | |||
Increase in valuation allowance | $ 4,400 | ||
Net operating losses carried forward, expiration date | Dec. 31, 2041 | ||
Research and development tax credit, expiration date | Dec. 31, 2043 | ||
Recorded liabilities for uncertain tax position | $ 0 | $ 0 | |
Loss from operations | (21,641) | (8,032) | $ 7,574 |
Capitalized research expenditures | $ 13,234 | $ 6,733 | |
U.S | |||
Income Taxes [Line Items] | |||
Capitalized R & D expenses | 5 years | ||
Non U.S | |||
Income Taxes [Line Items] | |||
Capitalized R & D expenses | 15 years | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses | $ 108,300 | ||
Research and development tax credits | 10,700 | ||
Loss from operations | 154,000 | ||
Operating Loss Carryforwards Indefinate Carryforward | 45,700 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses | 76,500 | ||
Research and development tax credits | 6,300 | ||
State [Member] | Tax Year 2019 [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses | 3,100 | ||
State [Member] | Tax Year 2039 [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses | $ 73,400 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Secured Line of Credit [Member] - USD ($) | 12 Months Ended | |
Nov. 01, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Line of credit, agreement start date | Nov. 01, 2023 | |
Line of credit maximum borrowing capacity | $ 30,000,000 | |
Percentage points added to prime rate or LIBOR | 4% | |
Line of Credit maturity date | Nov. 01, 2026 | |
Debt instrument term | If there is outstanding principal during any month, the Company must also maintain a minimum net income threshold based on non-GAAP operating measures | |
Borrowings outstanding | $ 0 | |
Prime Rate [Member] | ||
Debt Instrument [Line Items] | ||
Percentage points added to prime rate or LIBOR | 225% | |
Minimum [Member] | SOFR [Member] | ||
Debt Instrument [Line Items] | ||
Percentage points added to prime rate or LIBOR | 225% |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll and related benefits | $ 6,499 | $ 10,082 |
Accrued sales and other taxes | 2,601 | 3,098 |
Accrued professional fees and outside contractors | 2,163 | 3,057 |
Accrued content delivery | 3,528 | 5,684 |
Accrued other liabilities | 2,775 | 4,956 |
Total | $ 17,566 | $ 26,877 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues from customers | $ 201,187 | $ 211,008 | $ 211,093 |
Number of operating segment | Segment | 1 | ||
Revenue percentage from other country to the company's total revenue | 10% | 10% | 10% |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues from customers | $ 111,700 | $ 111,800 | $ 111,500 |
Segment Information - Total Rev
Segment Information - Total Revenue to Unaffiliated Customers by Geographic Area, Based on Location of Customer (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 201,187 | $ 211,008 | $ 211,093 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 120,378 | 118,755 | 119,079 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 32,922 | 36,177 | 37,947 |
Japan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 20,080 | 21,988 | 25,272 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 27,421 | 33,645 | 28,261 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 386 | $ 443 | $ 534 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Contribution made under the plan | $ 1.4 | $ 0.8 | $ 0.4 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Apr. 28, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 0.4 | |||
Amount paid for restructuring charges | $ 2.4 | |||
Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2.4 | |||
Percentage of reduction in workforce | 10% | |||
General and Administrative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 0.2 | 0.2 | ||
Research and Development [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0.1 | 0.9 | ||
Sales and Marketing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 0.1 | 1.2 | ||
Cost of revenue [member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 0.1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 21, 2024 | Jan. 11, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | ||||
Restructuring Charges | $ 0.4 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Restructuring Charges | $ 1.6 | $ 1.8 | ||
Transition and resignation agreement date | Feb. 21, 2024 | |||
Transition date | May 31, 2024 |