Cover
Cover - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-41026 | |
Entity Registrant Name | BACKBLAZE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8893125 | |
Entity Address, Address Line One | 500 Ben Franklin Ct | |
Entity Address, City or Town | San Mateo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94401 | |
City Area Code | 650 | |
Local Phone Number | 352-3738 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | BLZE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001462056 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21.4 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13.2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 4,047 | $ 6,690 |
Accounts receivable, net | 789 | 856 |
Short-term investments, net | 45,508 | 58,733 |
Prepaid expenses and other current assets | 7,628 | 8,120 |
Total current assets | 57,972 | 74,399 |
Restricted cash, non-current | 7,301 | 4,306 |
Property and equipment, net | 50,315 | 49,375 |
Operating lease right-of-use assets | 6,318 | 6,881 |
Capitalized internal-use software, net | 20,424 | 16,704 |
Other assets | 595 | 793 |
Total assets | 142,925 | 152,458 |
Current liabilities: | ||
Accounts payable | 3,352 | 3,283 |
Accrued expenses and other current liabilities | 7,014 | 9,418 |
Finance lease liabilities and lease financing obligations, current | 17,446 | 18,531 |
Operating lease liabilities, current | 1,763 | 2,130 |
Deferred revenue, non-current | 23,793 | 22,912 |
Total current liabilities | 53,368 | 56,274 |
Finance lease liabilities and lease financing obligations, non-current | 14,246 | 15,487 |
Operating lease liabilities, non-current | 4,754 | 5,032 |
Deferred revenue, non-current | 2,687 | 2,611 |
Debt facility, non-current | 7,301 | 4,306 |
Total liabilities | 82,356 | 83,710 |
Commitments and contingencies (Note 10) | ||
Stockholders’ Equity | ||
Additional paid-in capital | 165,419 | 156,485 |
Accumulated deficit | (104,854) | (87,741) |
Total stockholders’ equity | 60,569 | 68,748 |
Total liabilities and stockholders’ equity | 142,925 | 152,458 |
Common Class A | ||
Stockholders’ Equity | ||
Common stock, value, issued | 2 | 2 |
Common Class B | ||
Stockholders’ Equity | ||
Common stock, value, issued | $ 2 | $ 2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Common Class A | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 113,000,000 | 113,000,000 |
Common stock, shares issued (in shares) | 21,340,109 | 16,198,333 |
Common stock, shares outstanding (in shares) | 21,340,109 | 16,198,333 |
Common Class B | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 37,000,000 | 37,000,000 |
Common stock, shares issued (in shares) | 13,177,305 | 17,195,404 |
Common stock, shares outstanding (in shares) | 13,177,305 | 17,195,404 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 23,394,000 | $ 19,490,000 |
Cost of revenue | 12,425,000 | 9,681,000 |
Gross profit | 10,969,000 | 9,809,000 |
Operating expenses: | ||
Research and development | 10,533,000 | 7,941,000 |
Sales and marketing | 10,559,000 | 8,029,000 |
General and administrative | 6,677,000 | 5,528,000 |
Total operating expenses | 27,769,000 | 21,498,000 |
Loss from operations | (16,800,000) | (11,689,000) |
Investment income | 610,000 | 75,000 |
Interest expense | (923,000) | (948,000) |
Loss before provision for income taxes | (17,113,000) | (12,562,000) |
Income tax provision (benefit) | 0 | (32,000) |
Net loss | $ (17,113,000) | $ (12,530,000) |
Net loss per share, basic (USD per share) | $ (0.50) | $ (0.41) |
Net loss per share, diluted (USD per share) | $ (0.50) | $ (0.41) |
Weighted average shares used in computing net loss per share, basic (in shares) | 33,922,683 | 30,541,942 |
Weighted average shares used in computing net loss per share, diluted (in shares) | 33,922,683 | 30,541,942 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | 2022 Employee Bonus Plan | Class A and Class B Common Stock | Class A and Class B Common Stock 2022 Employee Bonus Plan | Additional Paid-in Capital | Additional Paid-in Capital 2022 Employee Bonus Plan | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 30,384,834 | ||||||
Beginning balance at Dec. 31, 2021 | $ 95,486 | $ 3 | $ 131,826 | $ (36,343) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (12,530) | (12,530) | |||||
Issuance of common stock upon exercise of stock options (in shares) | 429,639 | ||||||
Issuance of Class A and Class B common stock upon exercise of stock options | 887 | 887 | |||||
Stock-based compensation | 3,725 | 3,725 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 30,814,473 | ||||||
Ending balance at Mar. 31, 2022 | 87,568 | $ 3 | 136,438 | (48,873) | |||
Beginning balance (in shares) at Dec. 31, 2022 | 33,393,737 | ||||||
Beginning balance at Dec. 31, 2022 | 68,748 | $ 4 | 156,485 | (87,741) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | $ (17,113) | (17,113) | |||||
Issuance of common stock upon exercise of stock options (in shares) | 496,905 | 496,905 | |||||
Issuance of Class A and Class B common stock upon exercise of stock options | $ 840 | 840 | |||||
Issuance of common stock under equity incentive plan (in shares) | 338,864 | ||||||
Stock-based compensation | 6,246 | $ 1,848 | 6,246 | $ 1,848 | |||
Number of shares purchased (in shares) | 287,908 | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 34,517,414 | ||||||
Ending balance at Mar. 31, 2023 | $ 60,569 | $ 4 | $ 165,419 | $ (104,854) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (17,113) | $ (12,530) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Net accretion of discount on investment securities | (540) | (61) |
Noncash lease expense on operating leases | 647 | 541 |
Depreciation and amortization | 5,733 | 4,863 |
Stock-based compensation | 5,828 | 3,835 |
Loss (gain) on disposal of assets and other adjustments | 0 | (1) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 67 | 68 |
Prepaid expenses and other current assets | 474 | (153) |
Other assets | 22 | 91 |
Accounts payable | (48) | 462 |
Accrued expenses and other current liabilities | (565) | 1,633 |
Deferred revenue | 957 | 912 |
Operating lease liabilities | (653) | (528) |
Other long-term liabilities | 0 | (32) |
Net cash used in operating activities | (5,191) | (900) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of marketable securities | (9,734) | (79,782) |
Maturities of marketable securities | 23,500 | 0 |
Purchases of property and equipment, net | (3,023) | (515) |
Capitalized internal-use software costs | (3,434) | (1,180) |
Net cash provided by (used in) investing activities | 7,309 | (81,477) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on finance leases and lease financing obligations | (5,112) | (3,405) |
Payments of deferred offering costs | 0 | (658) |
Proceeds from debt facility | 2,996 | 0 |
Principal payments on insurance premium financing | (509) | 0 |
Proceeds from exercises of stock options | 859 | 887 |
Net cash used in financing activities | (1,766) | (3,176) |
Net increase (decrease) in cash, restricted cash and restricted cash, non-current | 352 | (85,553) |
Cash and restricted cash at beginning of period | 11,165 | 105,012 |
Cash, restricted cash and restricted cash, non-current at end of period | 11,517 | 19,459 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 918 | 948 |
Cash paid for income taxes | 2 | 26 |
Cash paid for operating lease liabilities | 724 | 598 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Stock-based compensation included in capitalized internal-use software | 1,008 | 383 |
Accrued bonus settled in restricted stock units | 1,848 | 0 |
Accrued bonus classified as stock-based compensation | 590 | 493 |
Equipment acquired through finance lease and lease financing obligations | 3,023 | 4,451 |
Accruals related to purchases of property and equipment | 886 | 124 |
Lease liabilities arising from right-of-use assets upon adoption of ASC 842 | 0 | 5,220 |
Assets obtained in exchange for operating lease obligations | 183 | 0 |
Receivable recorded due to stock option exercises pending settlement | 154 | 0 |
RECONCILIATION OF CASH AND RESTRICTED CASH | ||
Cash and cash equivalents | 4,047 | 19,290 |
Restricted cash - included in prepaid expenses and other current assets | 169 | 169 |
Restricted cash, non-current | 7,301 | 0 |
Total cash, restricted cash and restricted cash, non-current | $ 11,517 | $ 19,459 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Description of Business Backblaze , Inc. and its subsidiaries (collectively, “Ba ckblaze” or the “Company”) is a storage cloud platform, providing businesses and consumers with solutions to store and use their data. Backblaze provides these cloud services through purpose-built, web-scale software built on commodity hardware. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 , which was filed with the SEC on March 31, 2023 . In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as its annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of March 31, 2023, results of operations for the three months ended March 31, 2023 and 2022, cash flows for the three months ended March 31, 2023 and 2022, and stockholders' equity for the three months ended March 31, 2023 and 2022. The results of operations for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. Emerging Growth Company The Company is an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an EGC or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The Company expects to use the extended transition period for any other new or revised accounting standards during the period in which it remains an EGC. Segment Information The Company has a single operating and reportable segment. In reaching this conclusion, management considers the definition of the chief operating decision maker (“CODM”), how the business is defined by the CODM, the nature of the information provided to the CODM and how that information is used to make operating decisions, allocate resources, and assess performance. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on an aggregated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Significant accounting policies The Company’s significant accounting policies are disclosed in the Company’s audited financial statements and related notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022 , which was filed with the SEC on March 31, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Such estimates and assumptions include the costs to be capitalized as internal-use software, which include determining (i) whether projects will result in new or additional functionality, (ii) the start and end date of the application development phase of projects, and (iii) their useful life, the useful lives of other long-lived assets, impairment considerations for long-lived assets, the incremental borrowing rate for lease agreements, expected lease term, lease and non-lease component allocation, estim ates related to variable consideration, valuation of the Company’s (i) stock options, and (ii) Employee Stock Purchase Plan (“ESPP”) expense, and accounting for taxes, including estimates for sales tax and VAT liability, deferred tax assets, valuation allowance and uncertain tax positions. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Future actual results could differ materially from these estimates. Foreign Currency The reporting currency of the Company is the United States dollar (“USD”). The functional currency of the Company and its subsidiaries is USD. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative on the condensed consolidated statements of operations when realized. Concentrations Credit risk. Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents, accounts receivable, and unbilled accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. In the event of a failure of any financial institutions where the Company maintains deposits, it may lose timely access to its funds at such institutions and incur significant losses to the extent its funds exceed the $250,000 limit insured by the Federal Deposit Insurance Corporation. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amount recorded on the balance sheets. In addition, the Company uses City National Bank, a subsidiary of Royal Bank of Canada (“RBC”), for its banking needs. While the Company and its bank has not been directly affected by the recent failures of certain banks, the banking industry overall has experienced disruption and uncertainty, which could put additional pressures on the Company’s bank and other banks, and may negatively impact the availability and costs for various banking and investment offerings. Vendors. The Company acquires infrastructure equipment from third-party vendors. Vendors may have limited sources of equipment and supplies, which may expose the Company to potential supply and service disruptions that could harm the Company’s busine ss. Three Months Ended March 31, 2023 2022 Cash disbursement concentration Number of vendors Two Two Total cash disbursements represented by vendors listed above 22% 23% March 31, December 31, Accounts payable concentration Number of vendors Two Two Total accounts payable balance represented by vendors listed above 12% 26% Revenue. The Company derives substantially all of its revenue from the services operating on its Backblaze Storage Cloud platform: its Backblaze B2 Cloud Storage (“Backblaze B2”) and Backblaze Computer Backup (“Computer Backup”) offerings. The potential for severe impact to the Company’s business could result if the Company was unable to operate its platform or serve customers through its platform for an extended period of time. Restructuring Restructuring costs are comprised of severance costs related to workforce reductions. The Company recognizes restructuring charges when the liability is incurred. For involuntary terminations, employee termination benefits are accrued at the date management has committed to a plan of termination and employees have been notified of their termination dates and expected severance payments. For voluntary terminations, the Company recognizes a liability when the termination benefit has been irrevocably accepted by the employee. Investments The Company holds all investments on a held-to-maturity basis, and they are reported at amortized cost with realized gains or losses reported in earnings. The Company determines the appropriate classification of its investment in debt securities at the time of purchase and re-evaluates such determination at each balance sheet date. The Company’s short-term investments include investment grade commercial paper with original maturities of 365 days or less at the date of purchase. Short-term investments are recorded at amortized cost on the balance sheet. Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires a financial asset measured at an amortized cost basis to be presented at the net amount expected to be collected, with further clarifications made more recently. For trade receivables, unbilled receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The Company adopted the guidance effective January 1, 2023 using the modified retrospective transition method with comparative periods continuing to be reported using the previous applicable guidance and determined that it did not have a material impact on its condensed consolidated financial statements. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Deferred Contract Costs The Company’s amortization of deferred contract costs was $0.3 million and $0.2 million for the three months ended March 31, 2023 and 2022, respectively. The amount of capitalized contract costs was $0.4 million as of March 31, 2023 and December 31, 2022, respectively. Deferred Revenue Deferred revenue was $26.5 million and $25.5 million as of March 31, 2023 and December 31, 2022, respectively. Revenue recognized for the three months ended March 31, 2023 and 2022 was $9.3 million and $8.5 million, respectively, which was included in each deferred revenue balance at the beginning of each respective period. The Company’s deferred revenue as stated on its condensed consolidated balance sheets presented approximates its contract liability balance as of March 31, 2023 and December 31, 2022. The Company’s deferred revenue balance as of March 31, 2023, approximates the aggregate amount of the transaction price allocated to remaining performance obligations (“RPOs”) as of that date. Further, as of March 31, 2023, the Company’s deferred revenue, current, balance on its condensed consolidated balance sheet of $23.8 million approximates the expected amount to be recognized from its RPOs as revenue over the next 12 months. Disaggregation of Revenue The following table presents the Company’s revenue disaggregated by product (in thousands): Three Months Ended March 31, 2023 2022 B2 Cloud Storage $ 9,977 $ 7,036 Computer Backup 13,417 12,454 Total revenue (1) $ 23,394 $ 19,490 ________________ (1) For the periods presented, Physical Media revenue has been consolidated into B2 Cloud Storage or Computer Backup Revenue based on the underlying offering from which it originates. The following table presents the Company’s revenue disaggregated by timing of revenue recognition (in thousands): Three Months Ended March 31, 2023 2022 Consumption-based arrangements $ 9,905 $ 6,987 Subscription-based arrangements 13,339 12,309 Physical Media 150 194 Total revenue $ 23,394 $ 19,490 Revenue by geographic area, based on the location of the Company’s customers, was as follows (in thousands): Three Months Ended March 31, 2023 2022 United States $ 16,716 $ 13,982 United Kingdom 1,250 1,084 Canada 1,218 955 Other 4,210 3,469 Total revenue $ 23,394 $ 19,490 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Fair Values and Gross Unrealized Gains and Losses on Investments The following table summarizes adjusted cost, gross unrealized losses, and fair value by significant investment category. The Company’s commercial paper investments are classified as held-to-maturity on its balance sheets as of March 31, 2023 and December 31, 2022, respectively. Amortized Cost Gross Unrealized Fair Value Net Carrying Value Gains Losses As of March 31, 2023 (In Thousands) Investments Commercial paper $ 45,508 $ — $ (80) $ 45,428 $ 45,508 Total investments $ 45,508 $ — $ (80) $ 45,428 $ 45,508 Amortized Cost Gross Unrealized Fair Value Net Carrying Value Gains Losses As of December 31, 2022 (In Thousands) Investments Commercial Paper $ 58,733 $ — $ (144) $ 58,589 $ 58,733 Total investments $ 58,733 $ — $ (144) $ 58,589 $ 58,733 Scheduled Maturities The amortized cost and fair value of held-to-maturity securities as of March 31, 2023 and December 31, 2022, by contractual maturity, are shown below. As of March 31, 2023 Amortized Cost Fair Value (In Thousands) Within one year $ 45,508 $ 45,428 After one year through five years — — After 5 years through 10 years — — After 10 years — — Total investments $ 45,508 $ 45,428 As of December 31, 2022 Amortized Cost Fair Value (In Thousands) Within one year $ 58,733 $ 58,589 After one year through five years — — After 5 years through 10 years — — After 10 years — — Total investments $ 58,733 $ 58,589 Aging of Unrealized Losses The Company’s investments had an aggregate gross unrealized loss of $0.1 million as of March 31, 2023 and December 31, 2022, respectively, all of which had been in an unrealized loss position of less than twelve months and are recorded at amortized cost on the Company’s condensed consolidated balance sheet. As of March 31, 2023 and December 31, 2022, the investment portfolio did not have any securities that had been in an unrealized loss position for a period of twelve months or longer. For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows: Less than 12 Months Total # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses As of March 31, 2023 (Dollars In Thousands) Investments Commercial paper 10 $ 45,428 $ (80) 10 $ 45,428 $ (80) Total 10 $ 45,428 $ (80) 10 $ 45,428 $ (80) Less than 12 Months Total # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses As of December 31, 2022 (Dollars In Thousands) Investments Commercial paper 11 $ 58,589 $ (144) 11 $ 58,589 $ (144) Total 11 $ 58,589 $ (144) 11 $ 58,589 $ (144) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company classifies its held-to-maturity investments, which are comprised of investment grade commercial paper, within Level 2 of the fair value hierarchy because the fair value of these securities are priced by using inputs based on non-binding market consensus that are primarily corroborated by observable market data or quoted market prices for similar instruments. There were no transfers between levels of the fair value hierarchy for the three months ended March 31, 2023 and the year ended December 31, 2022 respectively. The Company held no assets or liabilities that were measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 , respectively. A s of March 31, 2023 and December 31, 2022, the Compa ny had $169 thousand in restricted cash related to the letter of credit established according to requirements under a lease agreement, reported as a component of other current assets on the condensed consolidated balance sheets. Additionally, the Company had $7.3 million and $4.3 million in restricted cash as of March 31, 2023 and December 31, 2022, respectively, related to the line of credit agreement with City National Bank. See Note 11 for further details. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, Unbilled accounts receivable, net $ 1,751 $ 1,637 Prepaid expenses 1,147 1,288 Prepaid subscriptions 1,606 1,312 Prepaid Physical Media hardware 228 246 Capitalized commissions 383 365 Receivable from payment processor 369 644 Financed prepaid insurance 1,209 1,545 Other 935 1,083 Total prepaid expenses and other current assets $ 7,628 $ 8,120 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): March 31, December 31, Data center equipment $ 32,205 $ 28,531 Leased and financed data center equipment 62,972 62,300 Machinery and equipment 14,416 11,613 Computer equipment 2,503 2,503 Leasehold improvements 1,122 1,268 Construction-in-progress 2,386 3,636 Total property and equipment 115,604 109,851 Less: accumulated depreciation (65,289) (60,476) Total property and equipment, net $ 50,315 $ 49,375 Depreciation expense was $5.0 million and $4.4 million for the three months ended March 31, 2023 and 2022, respectively . For the Company’s equipment under finance leases and lease financing obligations, accumulated depreciation was $26.7 million and $24.5 million as of March 31, 2023 and December 31, 2022 , respectively. The carrying value of the Company’s equipment under finance lease agreements and lease financing obligations was $36.3 million and $37.8 million as of March 31, 2023 and December 31, 2022 , respectively. As of March 31, 2023, the Company had long-lived assets of $56.6 million, comprising of property and equipment, net and operating lease right-of-use assets, with $51.1 million located in the United States and $5.5 million located in the Netherlands. December 31, 2022 , the Company had long-lived assets of $56.3 million, comprising of property and equipment, net and operating lease right-of-use assets, with $50.2 million located in the United States and $6.1 million located in the Netherlands. |
Capitalized Internal-Use_Softwa
Capitalized Internal-Use Software, Net | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Capitalized Internal-Use Software, Net | Capitalized Internal-Use Software, Net Capitalized internal-use software, net consisted of the following (in thousands): March 31, December 31, Developed software $ 28,220 $ 23,777 General and administrative software 144 144 Total capitalized internal-use software 28,364 23,921 Less: accumulated amortization (7,940) (7,217) Total capitalized internal-use software, net $ 20,424 $ 16,704 Amortization expense of capitalized internal-use so ftware was $0.7 million and $0.5 million for the three months ended March 31, 2023 and 2022, respectively. Amortization of developed software and software purchased for internal use are included in cost of revenue and general and administrative expense, respectively, in the Company’s condensed consolidated statements of operations. As of March 31, 2023, future amortization expense is expected to be as follows (in thousands): Year Ending December 31, Remainder of 2023 $ 2,846 2024 4,772 2025 4,317 2026 3,864 2027 3,138 Thereafter 1,487 Total $ 20,424 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, December 31, Accrued compensation $ 1,561 $ 2,728 ESPP withholding 1,182 415 Accrued expenses 1,693 2,881 Accrued sales taxes 226 208 Accrued value-added tax ("VAT") liability 1,020 1,220 Financed insurance premiums (see Note 11) 1,036 1,545 Other 296 421 Accrued expenses and other current liabilities $ 7,014 $ 9,418 |
Commitments and Contingencies
Commitments and Contingencies | Jul. 15, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Finance Leases and Lease Financing Obligations The Company enters into finance lease arrangements to obtain hard drives and related equipment for its data center operations. The term of these agreements primarily range from three 2026 . Finance leases are included in property and equipment, net on the Company’s condensed consolidated balance sheet. A s of March 31, 2023, the weighted average remaining lease term for finance lease and lease financing obligation agreements was approximately 1.74 years and the weighted average discount rate for finance leases was approximately 9.9%. For th e Company’s assets acquired through finance lease and lease financing obligation agreements, which are related to sale-leaseback agreements, depreciation expense was $3.6 million and $2.9 million for the three months ended March 31, 2023 and 2022, respectively. Depreciation expense on assets acquired through the Company’s finance leases and lease financing obligations is included in cost of revenue in its statements of operations. There have been no material changes to the Company’s finance lease obligation and lease financing commitments during the three months ended March 31, 2023. During the three months ended March 31, 2023, total finance lease costs were $4.0 million, of which interest expense was approximately $0.7 million, and total lease financing obligation costs were $0.3 million, of which interest expense was approximately $0.1 million. During the three months ended March 31, 2022, total finance lease costs were $3.5 million, of which interest expense was approximately $0.8 million, and total lease financing obligation costs were $0.4 million, of which interest expense was approximately $0.1 million. The cash paid on interest on finance lease and lease financing obligations was $0.8 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively. Operating Leases The Company leases its facilities for data centers and office space under non-cancelable operating leases with various expiration dates. Certain lease agreements include renewal options to extend the lease term at a price to be determined upon exercise. These options are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. Contingent rental payments are generally not included in the Company’s lease agreements. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Th e Company's leases have original lease periods expiring between 2023 and 2031. The Company did not have a material amount of short-term leases as of March 31, 2023. As of March 31, 2023 , the weighted average remaining lease term for operating leases was approximately 5.7 years and the weighted average discount rate for operating leases was approximately 6.0%. There have been no material changes to the Company’s operating lease commitments, which excludes amounts allocated to services under operating lease agreements that are considered non-lease components during the three months ended March 31, 2023. Non-lease components included in the Company’s colocation lease agreements are related to non-tangible utilities and services used in its data center operations. The Company used judgment and third-party data in determining the stand-alone price for allocating consideration to lease and non-lease components under these colocation lease agreements, such as, the price of utilities as compared to its tangible data center footprint within each colocation facility. There have been no material changes to the Company’s non-cancellable contractual obligations for non-lease components during the three months ended March 31, 2023. Rental expense related to the Company’s operating leases was $2.0 million and $1.4 million for the three months ended March 31, 2023 and 2022, of which $1.5 million and $1.1 million is included in cost of revenue in its statement of operations, respectively. Total operating lease cost was $2.7 million and $1.7 million for the three months ended March 31, 2023 and 2022 , respectively, which does not include costs related to services. Other Contractual Commitments Other non-cancellable commitments relate mainly to service agreements used to facilitate the Company’s infrastructure operations. As of March 31, 2023, the Company had non-cancelable purchase commitments of $7.5 million and $0.5 million payable during the years ending December 31, 2023 and 2024, respectively. 401(k) Plan The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. The Company contributed $0.5 million and $0.4 million to the 401(k) plan during the three months ended March 31, 2023 and 2022 , respectively . Legal Matters The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current legal proceedings are likely to have a material adverse effect on its financial position, results of operations or cash flows. However, the results of legal proceedings are inherently unpredictable and litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. On July 15, 2022, the Company received a demand letter from the investors that entered into the Simple Agreement for Future Equity (“SAFE”) agreements with the Company in August 2021, which related to a contractual dispute in connection with the SAFE transaction. In February 2023, the Company settled with the SAFE holders for a full release of all claims related to the SAFE transaction for a one-time payment in the amount of $1.5 million in aggregate. One of the SAFE holders, TMT Investments PLC, a beneficial owner of more than 5% of the Company’s capital stock, was a party to the settlement and received a pro-rata payment of $0.3 million as part of the SAFE settlement. Sales Tax The Company undertook an analysis of its sales tax exposure based on the South Dakota vs. Wayfair case whereby the U.S. Supreme Court determined that physical presence was not required to determine the potential exposure a company has for sales tax purposes. Based on the Company’s analysis, its total accrual for sales tax payable was $0.2 million as of March 31, 2023 and December 31, 2022, respectively, which includes estimated amounts for penalties and interest. Accrued VAT Liability The Company has calculated a liability for uncollected and unpaid VAT, which is generally assessed by various taxing authorities on services the Company provides to its customers. The Company accrues an amount that it considers probable to be collected and can be reasonably estimated. Based on the Company’s analysis, its total accrual for VAT tax payable was $1.0 million and $1.2 million as of March 31, 2023 and December 31, 2022, respectively, which includes estimated amounts for penalties and interest. Indemnification The Company enters into indemnification provisions under agreements with other parties from time to time in the ordinary course of business. The Company has agreed in certain circumstances to indemnify and defend the indemnified party for claims and related losses suffered or incurred by the indemnified party from third-party claims due to the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. No losses have been recorded in the condensed consolidated statements of operations in connection with the indemnification provisions. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility During April 2022, the Company entered into a second amendment to its revolving credit agreement (as amended, the “RCA”) with City National Bank (“Lender”). Under this amendment, the amount available to be borrowed was increased to $30.0 million from $9.5 million. During January 2023, the Company entered into a third amendment to the RCA. Under this amendment, advances on the line of credit will bear monthly interest at a variable rate equal to, at the Company’s discretion, (a) the average Secured Overnight Financing Rate (“SOFR”) plus 2.00%, or (b) the base rate, as originally defined in the RCA. There were no other material changes to the agreement as a result of the amendment. As of March 31, 2023, the Company had an outstanding balance of $7.3 million and the total amount available to the Company to be borrowed was $22.7 million. Under the RCA, the outstanding balance of $7.3 million as of March 31, 2023 was collateralized by an equal amount of cash held by the Company. As such, the Company held $7.3 million in cash that it deemed to be restricted and is included in restricted cash, non-current on the Company’s condensed consolidated balance sheet as of March 31, 2023 . With prior written notice to the Lender, the Company has the right, at any time prior to the maturity date, to terminate the RCA. In the event of such termination, the aggregate principal of the then outstanding amounts, including any accrued interest to date, shall be repaid and the restrictions on the associated collateralized cash would be released. As of March 31, 2023, the interest rate associated with the outstanding balance under the RCA was 6.6%, which is a per annum rate. Interest payments on outstanding borrowing are due on the last day of each monthly interest period and payments for the commitment fee are due at the end of each calendar quarter. Total interest expense related to the RCA was $0.1 million for the three months ended March 31, 2023. The Company recorded no interest expense related to the RCA during the three months ended March 31, 2022. Advances under the RCA are due in full in September 2024. As the RCA is a multi-year revolving credit agreement, the Company classifies the facility as long-term debt on its condensed consolidated balance sheet as it has the intent and ability to maintain the facility outstanding for longer than 12 months. Insurance Premium Financing Agreement Effective November 2022, the Company entered into an insurance policy with annual premiums totaling $2.1 million. The Company has executed a Finance Agreement with AFCO Premium Credit LLC over a term of twelve months, with an annual interest rate of 4.5%, that finances the payment of the total premiums owed. The agreement requires a $0.5 million down payment, with the remaining $1.5 million plus interest paid over three quarterly installments. These quarterly payments started February 10, 2023. As of March 31, 2023, the unpaid balance is approximately $1.0 million , reported as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock. The Company has two classes of common stock, Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except for voting, transfer, and conversion rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes and is convertible at any time into one share of Class A common stock. The Company had reserved shares of common stock for future issuance as follows: March 31, December 31, 2011 Equity Incentive Plan Options outstanding 10,299,897 10,862,094 Shares available for future grants — — 2021 Equity Incentive Plan Options outstanding 1,464,030 1,509,187 Restricted stock units outstanding 3,986,997 3,716,061 Shares available for future grants 1,859,223 1,836,566 2021 Employee Stock Purchase Plan Shares available for future purchases 1,658,006 990,132 Total 19,268,153 18,914,040 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plan Share Reserve. The number of shares of common stock available for issuance under the 2021 Equity Incentive Plan (“2021 Plan”) equals the sum of 5,262,500 shares plus up to approximately 13,719,000 shares subject to awards granted under the 2011 Plan that expire, forfeit or are repurchased following the effective date of the 2021 Plan. The number of shares reserved for issuance under the 2021 Plan will be increased automatically on the first business day of each of the Company’s fiscal years, commencing in 2022 and ending in 2031, by a number equal to the lowest of (i) 4,784,100 shares, (ii) 5% of the shares of common stock outstanding on the last business day of the prior fiscal year; or (iii) the number of shares determined by the Board of Directors. Pursuant to this evergreen provision, the Company increased the number of shares reserved under the 2021 Plan by 809,916 and 1,519,241 during the three months ended March 31, 2023 and 2022, respectively. In general, to the extent that any awards under the 2021 Plan are forfeited, terminate, expire or lapse without the issuance of shares, or if the Company reacquires the shares subject to awards granted under the 2021 Plan, those shares will again become available for issuance under the 2021 Plan, as will shares applied to pay the exercise or purchase price of an award or to satisfy tax withholding obligations related to any award. Restricted Stock Units (“RSUs”) RSUs granted under the 2021 Equity Incentive Plan generally vest based on continued service over a three four Bonus Plan below. RSU activity for the three months ended March 31, 2023 was as follows: Shares Weighted-average grant date fair value per share Unvested balance as of December 31, 2022 3,716,061 $ 6.60 Granted 989,283 $ 5.97 Vested (626,772) $ 6.87 Forfeited (91,575) $ 5.61 Unvested balance as of March 31, 2023 3,986,997 $ 6.42 Stock Options Stock Options. Stock options granted under the Company’s equity plans generally vest based on continued service over four years and expire ten years from the date of grant. The following table summarizes the Black-Scholes option pricing model weighted-average assumptions used in estimating the fair value of stock options granted to employees during the three months ended March 31, 2022. No stock options were granted during the three months ended March 31, 2023. Three Months Ended March 31, 2023 2022 Expected term (in years) - 6.0 Expected volatility — % 49.0 % Risk-free interest rate — % 1.20 % Expected dividend yield — % — % Expected term. For stock options considered to be “plain vanilla” options, the Company estimates the expected term based on the simplified method, which is essentially the weighted average of the vesting period and contractual term, as the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. Expected volatility. The Company performed an analysis using the average volatility of a peer group of representative public companies with sufficient trading history over the expected term to develop an expected volatility assumption. Risk-free interest rate. Based upon quoted market yields for the United States Treasury debt securities for a term consistent with the expected life of the awards in effect at the time of grant. Expected dividend yield. Because the Company has never paid and has no intention to pay cash dividends on common stock, the expected dividend yield is zero. A summary of equity award activity under the Company’s equity plans and related information is as follows (in thousands, except share, price and year data): Shares Outstanding Weighted- Weighted- Aggregate Balance as of December 31, 2022 1,836,566 12,371,281 $ 5.74 6.07 $ 32,385 Shares authorized 809,916 Options granted — — — Options exercised — (496,905) 1.69 Options cancelled 110,449 (110,449) 12.90 RSU award activity (897,708) — Balance as of March 31, 2023 1,859,223 11,763,927 $ 5.84 5.85 $ 20,684 Vested and exercisable as of March 31, 2023 8,755,570 $ 4.15 5.08 $ 19,219 No stock options were granted during the three months ended March 31, 2023. The weighted-average grant-date fair value of options granted w as $13.29 during the three months ended March 31, 2022. The intrinsic value of options exercised for the three months ended March 31, 2023 and 2022 was $2.1 million and $4.1 million, respectively. Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of the Company’s common stock at the time of exercise. The aggregate grant-date fair value of options vested was $2.3 million and $1.8 million during the three months ended March 31, 2023 and 2022, respectively. ESPP In October 2021, the Company’s Board of Directors adopted the 2021 Employee Stock Purchase Plan (“ESPP”), which became effective on the date of the IPO. As of December 31, 2022, the ESPP reserved and authorized the issuance of up to a total of 1,564,496 shares of Class A common stock to participating employees. Pursuant to its evergreen provision, the Company increased the number of shares reserved under the ESPP by 667,874 and 607,696 during the three months ended March 31, 2023 and 2022, respectively. There were no shares purchased during the three months ended March 31, 2023, as the first purchase date in 2023 will occur in May 2023. The fair value of the purchase rights under the ESPP was estima ted using the Black-Scholes option pricing model with a similar methodology for determining inputs as the Company’s stock options, as described above. The Company recorded stock-based compensation expense under this plan of $1.0 million and $0.8 million f or the three months ended March 31, 2023 and 2022 , respectively , of which the Company capitalize d $0.2 million and less than $0.1 million, respectively, of stock-based compensation expense under this plan for the development of internal-use software. As of March 31, 2023, the total unrecognized stock-based compensation expense related to the ESPP was $3.7 million and is expected to be recognized over a weighted average period of one year. As of March 31, 2023, $1.2 million had been withheld on behalf of employees, respectively. The following table summarizes the Black-Scholes option pricing model assumptions used in estimating the fair value of the stock purchase rights under the ESPP during the three months ended March 31, 2023 and 2022, respectively. Three Months Ended March 31, 2023 2022 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Expected volatility 45% - 68% 45% - 57% Risk-free interest rate 0.10% - 4.75% 0.10% - 0.51% Expected dividend yield — % — % Stock-Based Compensation Expense Stock-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 416 $ 276 Research and development 2,133 1,555 Sales and marketing 2,152 1,134 General and administrative 1,127 870 Total stock-based compensation expense $ 5,828 $ 3,835 During the three months ended March 31, 2023 and 2022, the Company capitalize d $1.0 million and $0.4 million, respectively, of stock-based compensation for the development of internal-use software. As of March 31, 2023, total compensation cost related to stock options and RSUs not yet vested was $18.2 million and $23.4 million, respectively , which will be recognized over a weighted-average period of two Bonus Plan During March 2022, the Company’s Compensation Committee approved a new bonus structure (“Bonus Plan”) for its employees. The Bonus Plan is contingent upon the achievement of 2022 corporate performance targets. Pursuant to the Bonus Plan, during February 2023 the Company’s Compensation Committee approved the issuance of approximately 288,000 RSUs that immediately vested. The Company recognized $0.5 million in respective stock-based compensation during the three months ended March 31, 2022. During February 2023, the Company’s Board of Directors approved 2023 corporate performance targets under its Bonus Plan for its employees. If these performance targets are met during 2023, employees will be paid out under the plan in RSUs in 2024. As a result, the Company recognized $0.6 million in stock-based compensation during the three months ended March 31, 2023 based on progress made towards these performance targets. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders The Company computes net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights of the holders of the Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net losses. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The diluted net loss per share attributable to commo n stockholders is computed by giving effect to all potentially dilutive common stock equivalents during the period. For purposes of this calculation, the Company’s stock options, share purchase rights pursuant to the Company’s ESPP, and unv ested restricted stock are considered to be potential common stock equivalents, but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive. The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended March 31, 2023 2022 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ (9,302) $ (7,811) $ (3,488) $ (9,042) Denominator for basic and diluted net loss per share: Weighted-average shares used in computing net loss per share attributable to common stockholders – basic and diluted 18,439,152 15,483,531 8,502,657 22,039,285 Net loss per share attributable to common stockholders – basic and diluted $ (0.50) $ (0.50) $ (0.41) $ (0.41) Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been antidilutive. The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented are as follows: March 31, 2023 2022 RSUs 3,986,997 908,449 Stock options 11,763,927 14,399,126 Shares issuable pursuant to the ESPP 295,879 172,777 Total 16,046,803 15,480,352 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringDuring the three months ended March 31, 2023, the Company initiated measures to reduce headcount to pursue greater cost efficiency and align strategic initiatives. These measures are expected to be completed during the first six months of 2023, and the total cost is estimated to be between $3.6 million to $4.0 million. During the three months ended March 31, 2023, approximately 1% and 4% of the Company’s workforce terminated employment, which were voluntary and involuntary terminations, respectively. As a result, the Company incurred employee termination expenses and other associated costs. A summary of the restructuring charges as reported on the condensed consolidated statements of operations for the three months ended March 31, 2023, of which $0.7 million were related to involuntary terminations, is as follows (in thousands): Three Months Ended March 31, 2023 Severance and other Personnel Costs Research and development $ 1,152 Sales and marketing $ 1,025 General and administrative $ 280 Total $ 2,457 The following table is a summary of the charges in the severance and other personnel liabilities, included within accrued expenses and other current liabilities on the condensed consolidated balance sheets, related to the workforce reduction (in thousands): Balance as of January 1, 2023 $ — Severance and other personnel costs $ 2,457 Cash payments during the period $ (2,393) Balance as of March 31, 2023 (1) $ 64 (1) The company expects the remaining severance and termination related liabilities to be substantially paid out in cash during the first half of 2023. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to U.S. federal and state income taxes as a corporation. The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The effective tax rate for the three months ended March 31, 2023 and 2022 was zero as the Company has incurred continuous operating losses. The Company recorded no income tax provision or benefit during the three months ended March 31, 2023. The Company recorded an income tax benefit of less than $0.1 million during the three months ended March 31, 2022. On August 16, 2022, the Inflation Reduction Act was enacted in the U.S. and introduced a 15% alternative minimum tax based on the financial statement income of certain large corporations (“CAMT”), effective January 1, 2023. There was no impact on the Company’s provision for income taxes from the CAMT for the three months ended March 31, 2023. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 , which was filed with the SEC on March 31, 2023 . In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as its annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of March 31, 2023, results of operations for the three months ended March 31, 2023 and 2022, cash flows for the three months ended March 31, 2023 and 2022, and stockholders' equity for the three months ended March 31, 2023 and 2022. The results of operations for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. |
Segment Information | Segment Information The Company has a single operating and reportable segment. In reaching this conclusion, management considers the definition of the chief operating decision maker (“CODM”), how the business is defined by the CODM, the nature of the information provided to the CODM and how that information is used to make operating decisions, allocate resources, and assess performance. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on an aggregated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Such estimates and assumptions include the costs to be capitalized as internal-use software, which include determining (i) whether projects will result in new or additional functionality, (ii) the start and end date of the application development phase of projects, and (iii) their useful life, the useful lives of other long-lived assets, impairment considerations for long-lived assets, the incremental borrowing rate for lease agreements, expected lease term, lease and non-lease component allocation, estim ates related to variable consideration, valuation of the Company’s (i) stock options, and (ii) Employee Stock Purchase Plan (“ESPP”) expense, and accounting for taxes, including estimates for sales tax and VAT liability, deferred tax assets, valuation allowance and uncertain tax positions. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Future actual results could differ materially from these estimates. |
Foreign Currency | Foreign Currency The reporting currency of the Company is the United States dollar (“USD”). The functional currency of the Company and its subsidiaries is USD. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative on the condensed consolidated statements of operations when realized. |
Concentrations | Concentrations Credit risk. Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents, accounts receivable, and unbilled accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. In the event of a failure of any financial institutions where the Company maintains deposits, it may lose timely access to its funds at such institutions and incur significant losses to the extent its funds exceed the $250,000 limit insured by the Federal Deposit Insurance Corporation. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amount recorded on the balance sheets. In addition, the Company uses City National Bank, a subsidiary of Royal Bank of Canada (“RBC”), for its banking needs. While the Company and its bank has not been directly affected by the recent failures of certain banks, the banking industry overall has experienced disruption and uncertainty, which could put additional pressures on the Company’s bank and other banks, and may negatively impact the availability and costs for various banking and investment offerings. Vendors. The Company acquires infrastructure equipment from third-party vendors. Vendors may have limited sources of equipment and supplies, which may expose the Company to potential supply and service disruptions that could harm the Company’s busine ss. Three Months Ended March 31, 2023 2022 Cash disbursement concentration Number of vendors Two Two Total cash disbursements represented by vendors listed above 22% 23% March 31, December 31, Accounts payable concentration Number of vendors Two Two Total accounts payable balance represented by vendors listed above 12% 26% Revenue. The Company derives substantially all of its revenue from the services operating on its Backblaze Storage Cloud platform: its Backblaze B2 Cloud Storage (“Backblaze B2”) and Backblaze Computer Backup (“Computer Backup”) offerings. The potential for severe impact to the Company’s business could result if the Company was unable to operate its platform or serve customers through its platform for an extended period of time. |
Restructuring | Restructuring Restructuring costs are comprised of severance costs related to workforce reductions. The Company recognizes restructuring charges when the liability is incurred. For involuntary terminations, employee termination benefits are accrued at the date management has committed to a plan of termination and employees have been notified of their termination dates and expected severance payments. For voluntary terminations, the Company recognizes a liability when the termination benefit has been irrevocably accepted by the employee. |
Investments | Investments The Company holds all investments on a held-to-maturity basis, and they are reported at amortized cost with realized gains or losses reported in earnings. The Company determines the appropriate classification of its investment in debt securities at the time of purchase and re-evaluates such determination at each balance sheet date. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires a financial asset measured at an amortized cost basis to be presented at the net amount expected to be collected, with further clarifications made more recently. For trade receivables, unbilled receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The Company adopted the guidance effective January 1, 2023 using the modified retrospective transition method with comparative periods continuing to be reported using the previous applicable guidance and determined that it did not have a material impact on its condensed consolidated financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Three Months Ended March 31, 2023 2022 Cash disbursement concentration Number of vendors Two Two Total cash disbursements represented by vendors listed above 22% 23% March 31, December 31, Accounts payable concentration Number of vendors Two Two Total accounts payable balance represented by vendors listed above 12% 26% |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenue disaggregated by product (in thousands): Three Months Ended March 31, 2023 2022 B2 Cloud Storage $ 9,977 $ 7,036 Computer Backup 13,417 12,454 Total revenue (1) $ 23,394 $ 19,490 ________________ (1) For the periods presented, Physical Media revenue has been consolidated into B2 Cloud Storage or Computer Backup Revenue based on the underlying offering from which it originates. The following table presents the Company’s revenue disaggregated by timing of revenue recognition (in thousands): Three Months Ended March 31, 2023 2022 Consumption-based arrangements $ 9,905 $ 6,987 Subscription-based arrangements 13,339 12,309 Physical Media 150 194 Total revenue $ 23,394 $ 19,490 |
Revenue by Geographic Area | Revenue by geographic area, based on the location of the Company’s customers, was as follows (in thousands): Three Months Ended March 31, 2023 2022 United States $ 16,716 $ 13,982 United Kingdom 1,250 1,084 Canada 1,218 955 Other 4,210 3,469 Total revenue $ 23,394 $ 19,490 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Held-to-maturity | The Company’s commercial paper investments are classified as held-to-maturity on its balance sheets as of March 31, 2023 and December 31, 2022, respectively. Amortized Cost Gross Unrealized Fair Value Net Carrying Value Gains Losses As of March 31, 2023 (In Thousands) Investments Commercial paper $ 45,508 $ — $ (80) $ 45,428 $ 45,508 Total investments $ 45,508 $ — $ (80) $ 45,428 $ 45,508 Amortized Cost Gross Unrealized Fair Value Net Carrying Value Gains Losses As of December 31, 2022 (In Thousands) Investments Commercial Paper $ 58,733 $ — $ (144) $ 58,589 $ 58,733 Total investments $ 58,733 $ — $ (144) $ 58,589 $ 58,733 The amortized cost and fair value of held-to-maturity securities as of March 31, 2023 and December 31, 2022, by contractual maturity, are shown below. As of March 31, 2023 Amortized Cost Fair Value (In Thousands) Within one year $ 45,508 $ 45,428 After one year through five years — — After 5 years through 10 years — — After 10 years — — Total investments $ 45,508 $ 45,428 As of December 31, 2022 Amortized Cost Fair Value (In Thousands) Within one year $ 58,733 $ 58,589 After one year through five years — — After 5 years through 10 years — — After 10 years — — Total investments $ 58,733 $ 58,589 |
Unrealized Gain (Loss) on Investments | For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows: Less than 12 Months Total # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses As of March 31, 2023 (Dollars In Thousands) Investments Commercial paper 10 $ 45,428 $ (80) 10 $ 45,428 $ (80) Total 10 $ 45,428 $ (80) 10 $ 45,428 $ (80) Less than 12 Months Total # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses As of December 31, 2022 (Dollars In Thousands) Investments Commercial paper 11 $ 58,589 $ (144) 11 $ 58,589 $ (144) Total 11 $ 58,589 $ (144) 11 $ 58,589 $ (144) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, Unbilled accounts receivable, net $ 1,751 $ 1,637 Prepaid expenses 1,147 1,288 Prepaid subscriptions 1,606 1,312 Prepaid Physical Media hardware 228 246 Capitalized commissions 383 365 Receivable from payment processor 369 644 Financed prepaid insurance 1,209 1,545 Other 935 1,083 Total prepaid expenses and other current assets $ 7,628 $ 8,120 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, net consisted of the following (in thousands): March 31, December 31, Data center equipment $ 32,205 $ 28,531 Leased and financed data center equipment 62,972 62,300 Machinery and equipment 14,416 11,613 Computer equipment 2,503 2,503 Leasehold improvements 1,122 1,268 Construction-in-progress 2,386 3,636 Total property and equipment 115,604 109,851 Less: accumulated depreciation (65,289) (60,476) Total property and equipment, net $ 50,315 $ 49,375 |
Capitalized Internal-Use_Soft_2
Capitalized Internal-Use Software, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Capitalized internal-use software, net consisted of the following (in thousands): March 31, December 31, Developed software $ 28,220 $ 23,777 General and administrative software 144 144 Total capitalized internal-use software 28,364 23,921 Less: accumulated amortization (7,940) (7,217) Total capitalized internal-use software, net $ 20,424 $ 16,704 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 31, 2023, future amortization expense is expected to be as follows (in thousands): Year Ending December 31, Remainder of 2023 $ 2,846 2024 4,772 2025 4,317 2026 3,864 2027 3,138 Thereafter 1,487 Total $ 20,424 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, December 31, Accrued compensation $ 1,561 $ 2,728 ESPP withholding 1,182 415 Accrued expenses 1,693 2,881 Accrued sales taxes 226 208 Accrued value-added tax ("VAT") liability 1,020 1,220 Financed insurance premiums (see Note 11) 1,036 1,545 Other 296 421 Accrued expenses and other current liabilities $ 7,014 $ 9,418 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Shares Reserved for Future Issuance | The Company had reserved shares of common stock for future issuance as follows: March 31, December 31, 2011 Equity Incentive Plan Options outstanding 10,299,897 10,862,094 Shares available for future grants — — 2021 Equity Incentive Plan Options outstanding 1,464,030 1,509,187 Restricted stock units outstanding 3,986,997 3,716,061 Shares available for future grants 1,859,223 1,836,566 2021 Employee Stock Purchase Plan Shares available for future purchases 1,658,006 990,132 Total 19,268,153 18,914,040 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | RSU activity for the three months ended March 31, 2023 was as follows: Shares Weighted-average grant date fair value per share Unvested balance as of December 31, 2022 3,716,061 $ 6.60 Granted 989,283 $ 5.97 Vested (626,772) $ 6.87 Forfeited (91,575) $ 5.61 Unvested balance as of March 31, 2023 3,986,997 $ 6.42 |
Summary of Stock Option Activity | The following table summarizes the Black-Scholes option pricing model weighted-average assumptions used in estimating the fair value of stock options granted to employees during the three months ended March 31, 2022. No stock options were granted during the three months ended March 31, 2023. Three Months Ended March 31, 2023 2022 Expected term (in years) - 6.0 Expected volatility — % 49.0 % Risk-free interest rate — % 1.20 % Expected dividend yield — % — % Shares Outstanding Weighted- Weighted- Aggregate Balance as of December 31, 2022 1,836,566 12,371,281 $ 5.74 6.07 $ 32,385 Shares authorized 809,916 Options granted — — — Options exercised — (496,905) 1.69 Options cancelled 110,449 (110,449) 12.90 RSU award activity (897,708) — Balance as of March 31, 2023 1,859,223 11,763,927 $ 5.84 5.85 $ 20,684 Vested and exercisable as of March 31, 2023 8,755,570 $ 4.15 5.08 $ 19,219 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Three Months Ended March 31, 2023 2022 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Expected volatility 45% - 68% 45% - 57% Risk-free interest rate 0.10% - 4.75% 0.10% - 0.51% Expected dividend yield — % — % |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Stock-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 416 $ 276 Research and development 2,133 1,555 Sales and marketing 2,152 1,134 General and administrative 1,127 870 Total stock-based compensation expense $ 5,828 $ 3,835 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended March 31, 2023 2022 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ (9,302) $ (7,811) $ (3,488) $ (9,042) Denominator for basic and diluted net loss per share: Weighted-average shares used in computing net loss per share attributable to common stockholders – basic and diluted 18,439,152 15,483,531 8,502,657 22,039,285 Net loss per share attributable to common stockholders – basic and diluted $ (0.50) $ (0.50) $ (0.41) $ (0.41) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented are as follows: March 31, 2023 2022 RSUs 3,986,997 908,449 Stock options 11,763,927 14,399,126 Shares issuable pursuant to the ESPP 295,879 172,777 Total 16,046,803 15,480,352 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | A summary of the restructuring charges as reported on the condensed consolidated statements of operations for the three months ended March 31, 2023, of which $0.7 million were related to involuntary terminations, is as follows (in thousands): Three Months Ended March 31, 2023 Severance and other Personnel Costs Research and development $ 1,152 Sales and marketing $ 1,025 General and administrative $ 280 Total $ 2,457 |
Schedule of Restructuring Reserve by Type of Cost | The following table is a summary of the charges in the severance and other personnel liabilities, included within accrued expenses and other current liabilities on the condensed consolidated balance sheets, related to the workforce reduction (in thousands): Balance as of January 1, 2023 $ — Severance and other personnel costs $ 2,457 Cash payments during the period $ (2,393) Balance as of March 31, 2023 (1) $ 64 (1) The company expects the remaining severance and termination related liabilities to be substantially paid out in cash during the first half of 2023. |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Concentration Risk (Details) - Supplier Concentration Risk - Two Vendors | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Disbursements | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 22% | 23% |
Accounts Payable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12% | 26% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reporting units | 1 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Amortization of deferred contract costs | $ 300 | $ 200 | |
Capitalized contract cost | 400 | $ 400 | |
Deferred revenue | 26,500 | 25,500 | |
Contract with customer, liability, revenue recognized | 9,300 | $ 8,500 | |
Deferred revenue, non-current | $ 23,793 | $ 22,912 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 23,394 | $ 19,490 |
B2 Cloud Storage | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,977 | 7,036 |
Computer Backup | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,417 | 12,454 |
Consumption-based arrangements | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,905 | 6,987 |
Subscription-based arrangements | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,339 | 12,309 |
Physical Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 150 | $ 194 |
Revenues - Revenue by Geographi
Revenues - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 23,394 | $ 19,490 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 16,716 | 13,982 |
United Kingdom | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,250 | 1,084 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,218 | 955 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,210 | $ 3,469 |
Investments - Fair Values and G
Investments - Fair Values and Gross Unrealized Gains and Losses on Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Investments, amortized cost | $ 45,508 | $ 58,733 |
Investments, gross unrealized gains | 0 | 0 |
Investments, gross unrealized losses | (80) | (144) |
Total investments | 45,428 | 58,589 |
Investments, net carrying value | 45,508 | 58,733 |
Commercial paper | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Investments, amortized cost | 45,508 | 58,733 |
Investments, gross unrealized gains | 0 | 0 |
Investments, gross unrealized losses | (80) | (144) |
Total investments | 45,428 | 58,589 |
Investments, net carrying value | $ 45,508 | $ 58,733 |
Investments - Scheduled Maturit
Investments - Scheduled Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Within one year | $ 45,508 | $ 58,733 |
After one year through five years | 0 | 0 |
After 5 years through 10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total investments | 45,508 | 58,733 |
Fair Value | ||
Within one year | 45,428 | 58,589 |
After one year through five years | 0 | 0 |
After 5 years through 10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total investments | $ 45,428 | $ 58,589 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Investments, gross unrealized losses | $ 80 | $ 144 |
Investments - Aging of Unrealiz
Investments - Aging of Unrealized Losses (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, number of securities | security | 10 | 11 |
Less than 12 months, fair value | $ 45,428 | $ 58,589 |
Less than 12 months, unrealized losses | $ (80) | $ (144) |
Total number of securities | security | 10 | 11 |
Total fair value | $ 45,428 | $ 58,589 |
Total unrealized losses | $ (80) | $ (144) |
Commercial paper | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, number of securities | security | 10 | 11 |
Less than 12 months, fair value | $ 45,428 | $ 58,589 |
Less than 12 months, unrealized losses | $ (80) | $ (144) |
Total number of securities | security | 10 | 11 |
Total fair value | $ 45,428 | $ 58,589 |
Total unrealized losses | $ (80) | $ (144) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Fair Value Disclosures [Abstract] | |||
Restricted cash - included in prepaid expenses and other current assets | $ 169 | $ 169 | |
Restricted cash, non-current | $ 7,301 | $ 4,306 | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Unbilled accounts receivable, net | $ 1,751 | $ 1,637 |
Prepaid expenses | 1,147 | 1,288 |
Prepaid subscriptions | 1,606 | 1,312 |
Prepaid Physical Media hardware | 228 | 246 |
Capitalized commissions | 383 | 365 |
Receivable from payment processor | 369 | 644 |
Financed prepaid insurance | 1,209 | 1,545 |
Other | 935 | 1,083 |
Prepaid expenses and other current assets | $ 7,628 | $ 8,120 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 115,604 | $ 109,851 |
Less: accumulated depreciation | (65,289) | (60,476) |
Property and equipment, net | 50,315 | 49,375 |
Data center equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 32,205 | 28,531 |
Leased and financed data center equipment | ||
Property, Plant and Equipment [Line Items] | ||
Leased and financed data center equipment | 62,972 | 62,300 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,416 | 11,613 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,503 | 2,503 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,122 | 1,268 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,386 | $ 3,636 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 5 | $ 4.4 | |
Long-lived assets | 56.6 | $ 56.3 | |
United States | |||
Property, Plant and Equipment [Line Items] | |||
Long-lived assets | 51.1 | 50.2 | |
Netherlands | |||
Property, Plant and Equipment [Line Items] | |||
Long-lived assets | 5.5 | 6.1 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated amortization | 26.7 | 24.5 | |
Carrying value of equipment under capital lease agreements and collateralized financing obligations | $ 36.3 | ||
Finance lease, liability | $ 37.8 |
Capitalized Internal-Use_Soft_3
Capitalized Internal-Use Software, Net - Capitalized Internal Use Software (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total capitalized internal-use software | $ 28,364 | $ 23,921 |
Less: accumulated amortization | (7,940) | (7,217) |
Total capitalized internal-use software, net | 20,424 | 16,704 |
Developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total capitalized internal-use software | 28,220 | 23,777 |
General and administrative software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total capitalized internal-use software | $ 144 | $ 144 |
Capitalized Internal-Use_Soft_4
Capitalized Internal-Use Software, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Capitalized computer software, amortization | $ 0.7 | $ 0.5 |
Capitalized Internal-Use_Soft_5
Capitalized Internal-Use Software, Net - Future Amortization Expense (Details) - Capitalized Computer Software $ in Thousands | Mar. 31, 2023 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2023 | $ 2,846 |
2024 | 4,772 |
2025 | 4,317 |
2026 | 3,864 |
2027 | 3,138 |
Thereafter | 1,487 |
Total | $ 20,424 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 1,561 | $ 2,728 |
ESPP withholding | 1,182 | 415 |
Accrued expenses | 1,693 | 2,881 |
Accrued sales taxes | 226 | 208 |
Accrued value-added tax (“VAT”) liability | 1,020 | 1,220 |
Financed insurance premiums (see Note 11) | 1,036 | 1,545 |
Other | 296 | 421 |
Accrued expenses and other current liabilities | $ 7,014 | $ 9,418 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Other Commitments [Line Items] | ||||
Finance lease, weighted average remaining lease term | 1 year 8 months 26 days | |||
Finance lease, weighted average discount rate (in percent) | 9.90% | |||
Depreciation expense | $ 3,600 | $ 2,900 | ||
Finance lease cost | 4,000 | 3,500 | ||
Finance Lease, cost, interest expense | 700 | 800 | ||
Lease financing obligation | 300 | 400 | ||
Lease financing obligation, interest expense | 100 | 100 | ||
Interest paid on finance lease and lease financing obligations | $ 800 | 900 | ||
Operating lease, weighted average remaining lease term | 5 years 8 months 12 days | |||
Operating lease, weighted average discount rate (in percent) | 6% | |||
Rental expense | $ 2,000 | 1,400 | ||
Operating Lease cost | 2,700 | 1,700 | ||
Purchase obligation, to be paid, remainder of fiscal year | 7,500 | |||
Purchase obligation, to be paid, year one | 500 | |||
Plan contributions | 500 | 400 | ||
Accrual for sales tax payable | 200 | $ 200 | ||
Accrued value-added tax (“VAT”) liability | 1,020 | $ 1,220 | ||
SAFE Agreement Investors | ||||
Other Commitments [Line Items] | ||||
Refund paid to SAFE Agreement investors | $ 1,500 | |||
TMT Investments PLC | SAFE Agreement Settlement | ||||
Other Commitments [Line Items] | ||||
Pro-rata payment | $ 300 | |||
Cost of revenue | ||||
Other Commitments [Line Items] | ||||
Rental expense | $ 1,500 | $ 1,100 | ||
Minimum | ||||
Other Commitments [Line Items] | ||||
Capital leases, agreement term | 3 years | |||
Maximum | ||||
Other Commitments [Line Items] | ||||
Capital leases, agreement term | 4 years |
Debt (Details)
Debt (Details) | 1 Months Ended | 3 Months Ended | |||||
Jan. 31, 2023 | Nov. 30, 2022 USD ($) installment | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||
Restricted cash, non-current | $ 7,301,000 | $ 0 | $ 4,306,000 | ||||
Interest expense | 923,000 | 948,000 | |||||
AFCO Premium Credit LLC Insurance Premium Financing Agreement | Notes Payable, Other Payables | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 2,100,000 | ||||||
Debt instrument, term | 12 months | ||||||
Interest rate, stated percentage (in percent) | 4.50% | ||||||
Down payment | $ 500,000 | ||||||
Long-term debt | $ 1,500,000 | 1,000,000 | |||||
Periodic payment, number of quarterly installments | installment | 3 | ||||||
Revolving Credit Facility | City National Bank Revolving Credit Agreement | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 30,000,000 | $ 9,500,000 | |||||
Outstanding balance | 7,300,000 | ||||||
Outstanding amount available to be borrowed | $ 22,700,000 | ||||||
Weighted average interest rate (in percent) | 6.60% | ||||||
Interest expense | $ 100,000 | $ 0 | |||||
Revolving Credit Facility | City National Bank Revolving Credit Agreement | Line of Credit | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Mar. 31, 2023 vote |
Class of Stock [Line Items] | |
Conversion ratio | 1 |
Common Class B | |
Class of Stock [Line Items] | |
Votes per share of common stock | 1 |
Common Class A | |
Class of Stock [Line Items] | |
Votes per share of common stock | 10 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 19,268,153 | 18,914,040 |
2011 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 0 | 0 |
2011 Equity Incentive Plan | Options outstanding | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 10,299,897 | 10,862,094 |
2021 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 1,859,223 | 1,836,566 |
2021 Equity Incentive Plan | Options outstanding | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 1,464,030 | 1,509,187 |
2021 Equity Incentive Plan | Restricted stock units outstanding | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 3,986,997 | 3,716,061 |
2021 Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 1,658,006 | 990,132 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2023 | Dec. 31, 2022 | Oct. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Number of shares authorized (in shares) | 809,916 | |||||
Options granted (in shares) | 0 | |||||
Expected dividend yield (in percent) | 0% | |||||
Weighted-average grant-date fair value of options granted (USD per share) | $ 13.29 | |||||
Intrinsic value of options exercised | $ 2,100 | $ 4,100 | ||||
Aggregate grant-date fair value of options vested | 2,300 | 1,800 | ||||
Stock-based compensation expense | 5,828 | 3,835 | ||||
Stock-based compensation included in capitalized internal-use software | 1,008 | $ 383 | ||||
Cost not yet recognized for stock options, amount | $ 18,200 | |||||
Cost not yet recognized, period for recognition | 1 year 11 months 1 day | |||||
ESPP withholding | $ 1,182 | $ 415 | ||||
Restricted stock units outstanding | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Cost not yet recognized, period for recognition | 3 years | |||||
Cost not yet recognized for restricted stock units, amount | $ 23,400 | |||||
Options outstanding | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Expected dividend yield (in percent) | 0% | 0% | ||||
Employee Stock | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Expected dividend yield (in percent) | 0% | 0% | ||||
2021 Equity Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Number of shares authorized (in shares) | 5,262,500 | |||||
Number of additional shares authorized (in shares) | 809,916 | 1,519,241 | 13,719,000 | |||
Minimum annual additional number of shares authorized (in shares) | 4,784,100 | |||||
Minimum annual additional number of shares authorized, common stock outstanding (in percent) | 5% | |||||
2021 Equity Incentive Plan | Restricted stock units outstanding | Share-Based Payment Arrangement, Nonemployee | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Award vesting period | 1 year | |||||
2021 Equity Incentive Plan | Employee Stock | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Number of shares authorized (in shares) | 1,564,496 | |||||
Number of additional shares authorized (in shares) | 667,874 | 607,696 | ||||
Number of shares purchased (in shares) | 0 | |||||
Stock-based compensation expense | $ 1,000 | $ 800 | ||||
Stock-based compensation included in capitalized internal-use software | 200 | 100 | ||||
Cost not yet recognized for stock options, amount | $ 3,700 | |||||
Cost not yet recognized, period for recognition | 1 year | |||||
2021 Equity Incentive Plan | Minimum | Restricted stock units outstanding | Share-Based Payment Arrangement, Employee | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Award vesting period | 3 years | |||||
2021 Equity Incentive Plan | Maximum | Restricted stock units outstanding | Share-Based Payment Arrangement, Employee | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Award vesting period | 4 years | |||||
2011 Equity Incentive Plan | Options outstanding | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Award vesting period | 4 years | |||||
Award expiration period | 10 years | |||||
2022 Employee Bonus Plan | Restricted stock units outstanding | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Number of shares authorized (in shares) | 288,000 | |||||
2022 Employee Bonus Plan | Employee Stock | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Stock-based compensation expense | $ 600 | $ 500 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units outstanding | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Shares | |
Balance, beginning of period (in shares) | shares | 3,716,061 |
Awards granted (in shares) | shares | 989,283 |
Vested (in shares) | shares | (626,772) |
Forfeited (in shares) | shares | (91,575) |
Balance, end of period (in shares) | shares | 3,986,997 |
Weighted-average grant date fair value per share | |
Balance, beginning of period (in dollars per share) | $ / shares | $ 6.60 |
Granted (in dollars per share) | $ / shares | 5.97 |
Vested (in dollars per share) | $ / shares | 6.87 |
Forfeited (in dollars per share) | $ / shares | 5.61 |
Balance, end of period (in dollars per share) | $ / shares | $ 6.42 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield (in percent) | 0% | |
Options outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years | |
Volatility (in percent) | 0% | 49% |
Risk free interest rate (in percent) | 0% | 1.20% |
Expected dividend yield (in percent) | 0% | 0% |
Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield (in percent) | 0% | 0% |
Minimum | Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | 6 months |
Volatility (in percent) | 45% | 45% |
Risk free interest rate (in percent) | 0.10% | 0.10% |
Maximum | Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 2 years | 2 years |
Volatility (in percent) | 68% | 57% |
Risk free interest rate (in percent) | 4.75% | 0.51% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Equity Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Shares available for grant | ||
Beginning balance (in shares) | 1,836,566 | |
Number of shares authorized (in shares) | 809,916 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Cancelled (in shares) | 110,449 | |
Ending balance (in shares) | 1,859,223 | 1,836,566 |
Outstanding Stock Options | ||
Beginning balance (in shares) | 12,371,281 | |
Options granted (in shares) | 0 | |
Exercised (in shares) | (496,905) | |
Cancelled (in shares) | (110,449) | |
Ending balance (in shares) | 11,763,927 | 12,371,281 |
Vested and exercisable (in shares) | 8,755,570 | |
Weighted-average exercise Price | ||
Beginning balance (USD per share) | $ 5.74 | |
Granted (USD per share) | 0 | |
Exercised (USD per share) | 1.69 | |
Cancelled (USD per share) | 12.90 | |
Ending balance (USD per share) | 5.84 | $ 5.74 |
Vested and exercisable (USD per share) | $ 4.15 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options outstanding, Weighted-average remaining contractual life (years) | 5 years 10 months 6 days | 6 years 25 days |
Vested and exercisable, Weighted-average remaining contractual life (years) | 5 years 29 days | |
Options outstanding, Aggregate intrinsic value | $ 20,684 | $ 32,385 |
Vested and exercisable, Aggregate intrinsic value | $ 19,219 | |
Restricted stock units outstanding | ||
Shares available for grant | ||
RSU award activity, net of shares withheld for taxes (in shares) | (897,708) |
Stock-Based Compensation - Clas
Stock-Based Compensation - Classification of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 5,828 | $ 3,835 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 416 | 276 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 2,133 | 1,555 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 2,152 | 1,134 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,127 | $ 870 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net loss attributable to common stockholders | $ (17,113) | $ (12,530) |
Denominator for basic and diluted net loss per share: | ||
Weighted average shares used in computing net loss per share, basic (in shares) | 33,922,683 | 30,541,942 |
Weighted average shares used in computing net loss per share, diluted (in shares) | 33,922,683 | 30,541,942 |
Net loss per share, basic (USD per share) | $ (0.50) | $ (0.41) |
Net loss per share, diluted (USD per share) | $ (0.50) | $ (0.41) |
Common Class A | ||
Numerator: | ||
Net loss attributable to common stockholders | $ (9,302) | $ (3,488) |
Denominator for basic and diluted net loss per share: | ||
Weighted average shares used in computing net loss per share, basic (in shares) | 18,439,152 | 8,502,657 |
Weighted average shares used in computing net loss per share, diluted (in shares) | 18,439,152 | 8,502,657 |
Net loss per share, basic (USD per share) | $ (0.50) | $ (0.41) |
Net loss per share, diluted (USD per share) | $ (0.50) | $ (0.41) |
Common Class B | ||
Numerator: | ||
Net loss attributable to common stockholders | $ (7,811) | $ (9,042) |
Denominator for basic and diluted net loss per share: | ||
Weighted average shares used in computing net loss per share, basic (in shares) | 15,483,531 | 22,039,285 |
Weighted average shares used in computing net loss per share, diluted (in shares) | 15,483,531 | 22,039,285 |
Net loss per share, basic (USD per share) | $ (0.50) | $ (0.41) |
Net loss per share, diluted (USD per share) | $ (0.50) | $ (0.41) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Common Share [Line Items] | ||
Antidilutive securities (in shares) | 16,046,803 | 15,480,352 |
RSUs | ||
Earnings Per Common Share [Line Items] | ||
Antidilutive securities (in shares) | 3,986,997 | 908,449 |
Stock options | ||
Earnings Per Common Share [Line Items] | ||
Antidilutive securities (in shares) | 11,763,927 | 14,399,126 |
Shares issuable pursuant to the ESPP | ||
Earnings Per Common Share [Line Items] | ||
Antidilutive securities (in shares) | 295,879 | 172,777 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2023 | Jun. 30, 2023 | |
Voluntary Terminations | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce terminated (in percent) | 1% | |
Involuntary Terminations | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce terminated (in percent) | 4% | |
Minimum | Forecast | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 3.6 | |
Maximum | Forecast | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 4 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Severance and other Personnel Costs | $ 2,457 |
Involuntary Terminations | |
Restructuring Cost and Reserve [Line Items] | |
Severance and other Personnel Costs | 700 |
Research and development | |
Restructuring Cost and Reserve [Line Items] | |
Severance and other Personnel Costs | 1,152 |
Sales and marketing | |
Restructuring Cost and Reserve [Line Items] | |
Severance and other Personnel Costs | 1,025 |
General and administrative | |
Restructuring Cost and Reserve [Line Items] | |
Severance and other Personnel Costs | $ 280 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning of period | $ 0 |
Severance and other Personnel Costs | 2,457 |
Cash payments during the period | (2,393) |
End of period | $ 64 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 0% | 0% |
Income tax provision (benefit) | $ 0 | $ (32,000) |