Cover
Cover - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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 | 201 Baldwin Ave. | |
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, $0.0001 par value per share | |
Trading Symbol | BLZE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37.6 | |
Entity Central Index Key | 0001462056 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 9,016 | $ 6,690 |
Accounts receivable, net | 1,991 | 856 |
Restricted cash, current | 6,078 | 0 |
Short-term investments, net | 20,732 | 58,733 |
Prepaid expenses and other current assets | 7,066 | 8,120 |
Total current assets | 44,883 | 74,399 |
Restricted cash, non-current | 0 | 4,306 |
Property and equipment, net | 49,573 | 49,375 |
Operating lease right-of-use assets | 10,482 | 6,881 |
Capitalized internal-use software, net | 28,943 | 16,704 |
Other assets | 868 | 793 |
Total assets | 134,749 | 152,458 |
Current liabilities: | ||
Accounts payable | 1,985 | 3,283 |
Accrued expenses and other current liabilities | 8,248 | 9,418 |
Debt facility, current | 6,078 | 0 |
Finance lease liabilities and lease financing obligations, current | 19,077 | 18,531 |
Operating lease liabilities, current | 1,998 | 2,130 |
Deferred revenue, current | 23,589 | 22,912 |
Total current liabilities | 60,975 | 56,274 |
Finance lease liabilities and lease financing obligations, non-current | 14,265 | 15,487 |
Operating lease liabilities, non-current | 8,518 | 5,032 |
Deferred revenue, non-current | 3,633 | 2,611 |
Debt facility, non-current | 0 | 4,306 |
Total liabilities | 87,391 | 83,710 |
Commitments and contingencies (Note 10) | ||
Stockholders’ Equity | ||
Additional paid-in capital | 182,600 | 156,485 |
Accumulated deficit | (135,246) | (87,741) |
Total stockholders’ equity | 47,358 | 68,748 |
Total liabilities and stockholders’ equity | 134,749 | 152,458 |
Common Class A | ||
Stockholders’ Equity | ||
Common stock, value, issued | 4 | 2 |
Common Class B | ||
Stockholders’ Equity | ||
Common stock, value, issued | $ 0 | $ 2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 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) | 37,464,639 | 16,198,333 |
Common stock, shares outstanding (in shares) | 37,464,639 | 16,198,333 |
Common Class B | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 295,986 | 37,000,000 |
Common stock, shares issued (in shares) | 0 | 17,195,404 |
Common stock, shares outstanding (in shares) | 0 | 17,195,404 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Income Statement [Abstract] | |||||
Revenue | $ 25,299,000 | $ 22,051,000 | $ 73,282,000 | $ 62,229,000 | |
Cost of revenue | 13,546,000 | 10,836,000 | 38,509,000 | 30,073,000 | |
Gross profit | 11,753,000 | 11,215,000 | 34,773,000 | 32,156,000 | |
Operating expenses: | |||||
Research and development | 9,639,000 | 8,152,000 | 30,097,000 | 24,493,000 | |
Sales and marketing | 10,736,000 | 9,727,000 | 31,170,000 | 26,125,000 | |
General and administrative | 6,944,000 | 5,396,000 | 19,786,000 | 16,106,000 | |
Total operating expenses | 27,319,000 | 23,275,000 | 81,053,000 | 66,724,000 | |
Loss from operations | (15,566,000) | (12,060,000) | (46,280,000) | (34,568,000) | |
Investment income | 447,000 | 210,000 | 1,576,000 | 405,000 | |
Interest expense | (936,000) | (950,000) | (2,801,000) | (2,811,000) | |
Loss before provision for income taxes | (16,055,000) | (12,800,000) | (47,505,000) | (36,974,000) | |
Income tax benefit | 0 | 0 | 0 | (69,000) | |
Net loss | $ (16,055,000) | $ (12,800,000) | $ (47,505,000) | $ (36,905,000) | |
Net loss per share, basic (USD per share) | $ (0.44) | $ (0.40) | $ (1.35) | $ (1.18) | |
Net loss per share, diluted (USD per share) | $ (0.44) | $ (0.40) | $ (1.35) | $ (1.18) | |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | [1] | 36,665,195 | 31,994,391 | 35,255,672 | 31,245,069 |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | [1] | 36,665,195 | 31,994,391 | 35,255,672 | 31,245,069 |
[1] (1) On July 6, 2023, all shares of the Company’s then outstanding Class B common stock were automatically converted into the same number of shares of Class A common stock, pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion. See Note 12 for further details. |
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 | (36,905) | (36,905) | |||||||
Issuance of Class A common stock upon exercise of stock options (in shares) | 1,609,789 | ||||||||
Issuance of Class A common stock upon exercise of stock options | 3,439 | 3,439 | |||||||
Issuance of Class A common stock under the 2021 Plan (in shares) | 153,195 | ||||||||
Issuance of Class A common stock under the 2021 Plan | (130) | (130) | |||||||
Issuance of Class A common stock related to employee stock purchase plan ("ESPP") (in shares) | 288,571 | ||||||||
Issuance of Class A common stock related to the 2021 Employee Stock Purchase Plan ("ESPP") | 1,529 | 1,529 | |||||||
Stock-based compensation | 13,103 | 13,103 | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 32,436,389 | ||||||||
Ending balance at Sep. 30, 2022 | 76,522 | $ 3 | 149,767 | (73,248) | |||||
Beginning balance (in shares) at Jun. 30, 2022 | 31,631,532 | ||||||||
Beginning balance at Jun. 30, 2022 | 82,986 | $ 3 | 143,431 | (60,448) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (12,800) | (12,800) | |||||||
Issuance of Class A common stock upon exercise of stock options (in shares) | 694,260 | ||||||||
Issuance of Class A common stock upon exercise of stock options | 1,376 | 1,376 | |||||||
Issuance of Class A common stock under the 2021 Plan (in shares) | 110,597 | ||||||||
Issuance of Class A common stock under the 2021 Plan | 0 | ||||||||
Stock-based compensation | 4,960 | 4,960 | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 32,436,389 | ||||||||
Ending balance at Sep. 30, 2022 | 76,522 | $ 3 | 149,767 | (73,248) | |||||
Beginning balance (in shares) at Dec. 31, 2022 | [1] | 33,393,737 | |||||||
Beginning balance at Dec. 31, 2022 | 68,748 | $ 4 | [1] | 156,485 | (87,741) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | $ (47,505) | (47,505) | |||||||
Issuance of Class A common stock upon exercise of stock options (in shares) | 1,844,602 | 1,844,602 | [1] | ||||||
Issuance of Class A common stock upon exercise of stock options | $ 3,309 | 3,309 | |||||||
Issuance of Class A common stock under the 2021 Plan (in shares) | [1] | 1,589,837 | |||||||
Issuance of Class A common stock related to employee stock purchase plan ("ESPP") (in shares) | [1] | 348,555 | |||||||
Issuance of Class A common stock related to the 2021 Employee Stock Purchase Plan ("ESPP") | 1,171 | 1,171 | |||||||
Stock-based compensation | 19,787 | 19,787 | |||||||
Issuance of restricted stock units related to the 2022 Bonus Plan (see Note 13) (in shares) | [1] | 287,908 | |||||||
Issuance of restricted stock units related to the 2022 Bonus Plan (see Note 13) | $ 1,848 | $ 1,848 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | [1] | 37,464,639 | |||||||
Ending balance at Sep. 30, 2023 | 47,358 | $ 4 | [1] | 182,600 | (135,246) | ||||
Beginning balance (in shares) at Jun. 30, 2023 | [1] | 35,984,501 | |||||||
Beginning balance at Jun. 30, 2023 | 54,185 | $ 4 | [1] | 173,372 | (119,191) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (16,055) | (16,055) | |||||||
Issuance of Class A common stock upon exercise of stock options (in shares) | [1] | 659,837 | |||||||
Issuance of Class A common stock upon exercise of stock options | 1,254 | 1,254 | |||||||
Issuance of Class A common stock under the 2021 Plan (in shares) | [1] | 820,301 | |||||||
Stock-based compensation | 7,974 | 7,974 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | [1] | 37,464,639 | |||||||
Ending balance at Sep. 30, 2023 | $ 47,358 | $ 4 | [1] | $ 182,600 | $ (135,246) | ||||
[1] (1) On July 6, 2023, all shares of the Company’s then outstanding Class B common stock were automatically converted into the same number of Class A common stock, pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion. See Note 12 for further details. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (47,505) | $ (36,905) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accretion of discount on investment securities and investment income, net | 113 | (367) |
Noncash lease expense on operating leases | 1,839 | 1,820 |
Depreciation and amortization | 18,337 | 14,689 |
Stock-based compensation | 18,670 | 13,011 |
(Gain) loss on disposal of assets and other adjustments | (242) | 24 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,135) | (411) |
Prepaid expenses and other current assets | 867 | (234) |
Other assets | (313) | 56 |
Accounts payable | (592) | (137) |
Accrued expenses and other current liabilities | (366) | (901) |
Deferred revenue | 1,697 | 635 |
Operating lease liabilities | (1,968) | (1,853) |
Other long-term liabilities | 0 | (69) |
Net cash used in operating activities | (10,598) | (10,642) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of marketable securities | (19,492) | (113,259) |
Maturities of marketable securities | 57,380 | 61,000 |
Proceeds from disposal of property and equipment | 319 | 0 |
Purchases of property and equipment | (5,066) | (4,061) |
Capitalized internal-use software costs | (11,061) | (5,645) |
Net cash provided by (used in) investing activities | 22,080 | (61,965) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on finance leases and lease financing obligations | (14,878) | (11,602) |
Payments of deferred offering costs | 0 | (658) |
Proceeds from debt facility | 4,273 | 2,543 |
Repayment of debt facility | (2,500) | 0 |
Principal payments on insurance premium financing | (1,545) | 0 |
Proceeds from lease financing obligations | 2,500 | 0 |
Employee payroll taxes paid related to net settlement of equity awards | 0 | (130) |
Proceeds from exercises of stock options | 3,426 | 3,439 |
Proceeds from ESPP | 1,171 | 1,529 |
Net cash used in financing activities | (7,553) | (4,879) |
Net increase (decrease) in cash, restricted cash and restricted cash, non-current | 3,929 | (77,486) |
Cash, restricted cash, current and restricted cash, non-current at beginning of period | 11,165 | 105,012 |
Cash, cash equivalents, restricted cash, current and restricted cash, non-current at end of period | 15,094 | 27,526 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 2,752 | 2,838 |
Cash paid for income taxes | 58 | 26 |
Cash paid for operating lease liabilities | 2,174 | 1,948 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Stock-based compensation included in capitalized internal-use software | 3,703 | 1,808 |
Accrued bonus settled in restricted stock units | 1,848 | 0 |
Accrued bonus classified as stock-based compensation | 2,586 | 1,716 |
Equipment acquired through finance lease and lease financing obligations | 11,995 | 15,680 |
Accruals related to purchases of property and equipment | 131 | 337 |
Lease liabilities arising from right-of-use assets upon adoption of ASC 842 | 0 | 5,220 |
Assets obtained in exchange for operating lease obligations | 5,568 | 0 |
Receivable recorded due to stock option exercises pending settlement | 38 | 0 |
RECONCILIATION OF CASH AND RESTRICTED CASH | ||
Cash and cash equivalents | 9,016 | 24,813 |
Restricted cash - included in prepaid expenses and other current assets | 169 | |
Restricted cash, current | 6,078 | 0 |
Restricted cash, non-current | 0 | 2,544 |
Total cash, cash equivalents, restricted cash and restricted cash, non-current | $ 15,094 | $ 27,526 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business 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 | 9 Months Ended |
Sep. 30, 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 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 September 30, 2023, results of operations for the three and nine months ended September 30, 2023 and 2022, cash flows for the nine months ended September 30, 2023 and 2022, and stockholders' equity for the three and nine months ended September 30, 2023 and 2022. The results of operations for the three and nine months ended September 30, 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, certain of which have been updated below, 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, valuation of the Company’s ESPP expense, and accounting for taxes, including estimates for 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 monetary 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 and Risks and Uncertainties Liquidity. The Company believes that its existing cash, cash equivalents and short-term investments together with cash provided by operations, will be sufficient to support its working capital and capital expenditure requirements for at least the next 12 months. However, to achieve its continued growth and objectives, the Company will need to obtain additional sources of financing which may include entering into lease agreements, sale-leaseback arrangements, credit facilities, and other debt financing arrangements for the purpose of acquiring infrastructure equipment and to fund its operations. In the event that the Company requires additional financing, it may not be able to raise such financing on terms acceptable to us or at all. If the Company is unable to obtain additional sources of financing, raise additional capital or generate cash flows necessary to expand its operations and invest in continued innovation, it may not be able to compete successfully, which would harm its business, results of operations and financial condition. Credit risk. Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents, accounts receivable, short-term investments, and unbilled accounts receivable. The Company maintains its cash, restricted cash, and short-term investments 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cash disbursement concentration Number of vendors 2 2 2 2 Total cash disbursements represented by vendors listed above 21% 25% 21% 26% September 30, December 31, Accounts payable concentration Number of vendors 3 2 Total accounts payable balance represented by vendors listed above 28% 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 (i) management has committed to a plan of termination, which includes identification of employees to be terminated and related information, (ii) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn, and (iii) 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 accounts 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 | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Deferred Contract Costs The Company’s amortization of deferred contract costs was $0.2 million for each of the three months ended September 30, 2023 and 2022, and was $0.7 million for each of the nine months ended September 30, 2023 and 2022. The amount of capitalized contract costs was $0.4 million as of both September 30, 2023 and December 31, 2022. Deferred Revenue Total deferred revenue was $27.2 million and $25.5 million as of September 30, 2023 and December 31, 2022, respectively. Revenue recognized for the three months ended September 30, 2023 and 2022 was $9.7 million and $9.2 million, respectively, and was $20.5 million and $19.3 million for the nine months ended September 30, 2023 and 2022, 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 September 30, 2023 and December 31, 2022. The Company’s total deferred revenue balance as of September 30, 2023, approximates the aggregate amount of the transaction price allocated to remaining performance obligations (“RPOs”) as of that date. As of September 30, 2023, the Company's RPOs were $29.5 million. This amount includes deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied, as well as future committed revenue for periods within current contracts with customers. As of September 30, 2023, the Company expects to recognize approximately 84% of its RPOs over the next 12 months, and substantially all of its RPOs over the next 24 months. Disaggregation of Revenue The following table presents the Company’s revenue disaggregated by product (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 B2 Cloud Storage $ 11,608 $ 8,864 $ 32,384 $ 23,678 Computer Backup 13,691 13,187 40,898 38,551 Total revenue (1) $ 25,299 $ 22,051 $ 73,282 $ 62,229 ________________ (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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Consumption-based arrangements $ 11,393 $ 8,825 $ 31,986 $ 23,553 Subscription-based arrangements 13,774 13,065 40,878 38,168 Physical Media (point in time) 132 161 418 508 Total revenue $ 25,299 $ 22,051 $ 73,282 $ 62,229 Revenue by geographic area, based on the location of the Company’s customers, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 18,277 $ 15,802 $ 52,502 $ 44,636 United Kingdom 1,373 1,213 3,944 3,434 Canada 1,223 1,133 3,634 3,129 Other 4,426 3,903 13,202 11,030 Total revenue $ 25,299 $ 22,051 $ 73,282 $ 62,229 |
Investments
Investments | 9 Months Ended |
Sep. 30, 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 with original maturities greater than 90 days are classified as held-to-maturity investments on its balance sheets as of September 30, 2023 and December 31, 2022, respectively. The Company’s commercial paper investments with original maturities of 90 days or less are classified as cash equivalents on its balance sheets as of September 30, 2023 and December 31, 2022, respectively. Amortized Cost Gross Unrealized Fair Value Net Carrying Value Gains Losses As of September 30, 2023 (In Thousands) Cash equivalents Commercial paper $ 2,964 $ 2 $ — $ 2,966 $ 2,964 Total cash equivalents $ 2,964 $ 2 $ — $ 2,966 $ 2,964 Investments Commercial paper $ 20,732 $ — $ (16) $ 20,716 $ 20,732 Total investments $ 20,732 $ — $ (16) $ 20,716 $ 20,732 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 September 30, 2023 and December 31, 2022, by contractual maturity, are shown below. As of September 30, 2023 Amortized Cost Fair Value (In Thousands) Within one year $ 20,732 $ 20,716 After one year through five years — — After 5 years through 10 years — — After 10 years — — Total investments $ 20,732 $ 20,716 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 $16 thousand and $0.1 million as of September 30, 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 sheets. As of September 30, 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 September 30, 2023 (Dollars In Thousands) Investments Commercial paper 4 $ 20,716 $ (16) 4 $ 20,716 $ (16) Total 4 $ 20,716 $ (16) 4 $ 20,716 $ (16) 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 | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsThe 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. The Company’s cash equivalents on its condensed consolidated balance sheet included commercial paper with an amortized cost and estimated fair value of $3.0 million as of September 30, 2023. There were no transfers between levels of the fair value hierarchy for the three and nine months ended September 30, 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 September 30, 2023 and December 31, 2022 , respectively. A s of 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. As of September 30, 2023, this balance is no longer restricted as the lease agreement and associated letter of credit have been completed. Additionally, the Company had $6.1 million and $4.3 million in restricted cash as of September 30, 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 | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Unbilled accounts receivable, net $ 1,893 $ 1,637 Prepaid expenses 2,532 2,600 Receivable from payment processor 922 644 Financed prepaid insurance 196 1,545 Other 1,523 1,694 Total prepaid expenses and other current assets $ 7,066 $ 8,120 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): September 30, December 31, Data center equipment $ 35,244 $ 28,531 Leased and financed data center equipment 69,570 62,300 Machinery and equipment 14,728 11,613 Computer equipment 2,429 2,503 Leasehold improvements 1,110 1,268 Construction-in-progress 510 3,636 Total property and equipment 123,591 109,851 Less: accumulated depreciation (74,018) (60,476) Total property and equipment, net $ 49,573 $ 49,375 Depreciation expense was $5.5 million and $4.8 million for the three months ended September 30, 2023 and 2022, respectively, and was $15.8 million and $13.1 million for the nine months ended September 30, 2023 and 2022, respectively. For the Company’s equipment under finance leases and lease financing obligations, accumulated depreciation was $30.1 million and $24.5 million as of September 30, 2023 and December 31, 2022, respectively. The carrying value of the Company’s equipment under finance lease agreements and lease financing obligations was $39.4 million and $37.8 million as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, the Company had long-lived assets of $60.1 million, comprising of property and equipment, net and operating lease right-of-use assets, with $55.1 million located in the United States and $5.0 million located in the Netherlands. As of 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 | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Developed software $ 38,542 $ 23,777 General and administrative software 144 144 Total capitalized internal-use software 38,686 23,921 Less: accumulated amortization (9,743) (7,217) Total capitalized internal-use software, net $ 28,943 $ 16,704 Amortization expense of capitalized internal-use software was $1.0 million and $0.6 million for the three months ended September 30, 2023 and 2022, respectively, and was $2.5 million and $1.6 million for the nine months ended September 30, 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 September 30, 2023, future amortization expense is expected to be as follows (in thousands): Year Ending December 31, Remainder of 2023 $ 1,218 2024 6,582 2025 6,382 2026 5,929 2027 5,203 Thereafter 3,629 Total $ 28,943 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Accrued compensation $ 3,619 $ 2,728 ESPP withholding 1,185 415 Accrued expenses 1,615 2,881 Accrued value-added tax ("VAT") liability 1,048 1,220 Financed insurance premiums (see Note 11) — 1,545 Other 781 629 Accrued expenses and other current liabilities $ 8,248 $ 9,418 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023, the weighted average remaining lease term for finance lease and lease financing obligation agreements was 1.9 years and the weighted average discount rate for finance leases was 10.8%. For the Company’s assets acquired through finance lease and lease financing obligation agreements, which are related to sale-leaseback agreements, depreciation expense was $3.9 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively, and was $11.2 million and $9.7 million for the nine months ended September 30, 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 condensed consolidated statements of operations. During the three months ended September 30, 2023, total finance lease costs were $4.4 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 September 30, 2022, total finance lease costs were $4.1 million, of which interest expense was approximately $0.9 million, and total lease financing obligation costs were $0.3 million, of which interest expense was approximately $0.1 million. During the nine months ended September 30, 2023, total finance lease costs were $12.5 million, of which interest expense was approximately $2.2 million, and total lease financing obligation costs were $1.0 million, of which interest expense was approximately $0.2 million. During the nine months ended September 30, 2022, the total finance lease costs were $11.4 million, of which interest expense was approximately $2.5 million, and total lease financing obligation costs were $1.0 million, of which interest expense was approximately $0.3 million. The cash paid for interest on interest on finance lease and lease financing obligations was $2.4 million and $2.8 million for the nine months ended September 30, 2023 and 2022, respectively. During the nine months ended September 30, 2023, the Company entered into one sale-leaseback arrangement with a vendor to provide $2.5 million in cash proceeds for previously purchased hard drives and related equipment. The Company concluded the related lease arrangements would be classified as a lease financing obligation as the Company is reasonably certain to exercise the purchase option within the arrangement. Therefore, the transaction was deemed a failed sale-leaseback and was accounted for as a financing arrangement. The assets continue to be depreciated over their useful lives, and payments are allocated between interest expense and repayment of the financing liability. The Company did not enter into any sale-leaseback arrangements during the nine months ended September 30, 2022. The future minimum commitments for these finance leases and lease financing obligations as of September 30, 2023 were as follows (in thousands): Year Ending December 31, Finance leases Lease financing obligations Total Remainder of 2023 $ 5,609 $ 805 $ 6,414 2024 16,226 2,867 19,093 2025 7,714 1,709 9,423 2026 1,906 — 1,906 2027 — — — Thereafter — — — Total future minimum lease and financing commitments 31,455 5,381 36,836 Less imputed interest (2,808) (686) (3,494) Total liability $ 28,647 $ 4,695 $ 33,342 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 September 30, 2023. As of September 30, 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 7.5%. In July 2023, the Company entered into an operating lease agreement for purposes of consolidating and moving out of two offices into one, resulting in the recognition of $5.3 million of operating right-of-use assets and $5.2 million of operating lease liabilities, current and non-current, on its condensed consolidated balance sheet as of September 30, 2023. The future minimum commitments for these operating leases as of September 30, 2023 were as follows (in thousands), which excludes amounts allocated to services under operating lease agreements that are considered non-lease components: Year Ending December 31, Remaining of 2023 $ 640 2024 2,464 2025 2,026 2026 2,076 2027 2,131 Thereafter 3,558 Total future minimum operating lease commitments 12,895 Less imputed interest (2,379) Total liability $ 10,516 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. The future minimum commitments for the Company’s non-cancellable contractual obligations as of September 30, 2023 for non-lease components were as follows (in thousands): Year Ending December 31, Remaining of 2023 $ 1,307 2024 4,240 2025 2,623 2026 2,603 2027 2,679 Thereafter 6,330 Total future minimum commitments $ 19,782 Rental expense related to the Company’s operating leases for both lease and non-lease components was $2.1 million and $1.9 million for the three months ended September 30, 2023 and 2022, of which $1.8 million and $1.4 million is included in cost of revenue in its condensed consolidated statement of operations, respectively. Rental expense related to lease components was $0.7 million for each of the three months ended September 30, 2023 and 2022. Total operating lease cost was $2.6 million and $2.3 million for the three months ended September 30, 2023 and 2022, respectively, which does not include costs related to services. Rental expense related to the Company’s operating leases for both lease and non-lease components was $6.2 million and $4.7 million for the nine months ended September 30, 2023 and 2022, of which $5.1 million and $3.6 million is included in cost of revenue in its condensed consolidated statement of operations as of such dates, respectively. Rental expense related to lease components was $2.2 million and $2.0 million for the nine months ended September 30, 2023 and 2022, respectively. Total operating lease cost was $7.9 million and $5.8 million, for the nine months ended September 30, 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 September 30, 2023, the Company had non-cancelable purchase commitments of $2.5 million and $0.7 million payable during the remainder of the year ending December 31, 2023 and the year ending December 31, 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 contribut ed $0.5 million and $0.4 million to the 401(k) plan during the three months ended September 30, 2023 and 2022, respectively, and $1.4 million and $1.2 million for the nine months ended September 30, 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 there are not any current legal proceedings that 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. Accrued VAT Liability The Company has calculated a liability for uncollected and unpaid VAT, which is generally assessed by various taxing auth orities 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 payable was $1.0 million and $1.2 million as of September 30, 2023 and December 31, 2022, respectively. Indemnification |
Debt
Debt | 9 Months Ended |
Sep. 30, 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. The base rate under the RCA is a rate equal to the greater of (i) 3.00% or (ii) the prime rate most recently announced by the Lender. There were no other m aterial changes to the RCA as a result of the amendment. As of September 30, 2023, the Company had an outstanding balance of $6.1 million and the total amount available to the Company to be borrowed was $23.9 million. Under the RCA, the outstanding balance of $6.1 million as of September 30, 2023 was collateralized by cash held by the Company. As such, the Company held $6.1 million in cash that it deemed to be restricted and is included in restricted cash, current on the Company’s condensed consolidated balance sheet as of September 30, 2023. With prior written notice to the Lender, the Company has the right, at any time prior to the maturity date in September 2024, 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. The Company classifies the facility as debt facility, current on its condensed consolidated balance sheet as of September 30, 2023. As of September 30, 2023, the interest rate associated with the outstanding balance under the RCA was 7.4%, 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 $0.2 million and $0.4 million for the three and nine months ended September 30, 2023, respectively. Total interest expense related to the RCA was less than $0.1 million for the three and nine months ended September 30, 2022, respectively. Insurance Premium Financing Agreement Effective November 2022, the Company entered into an insurance policy with annual premiums totaling $2.1 million. The Company 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 finance agreement required a $0.5 million down payment, with the remaining $1.5 million plus interest paid over three quar |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock. From the time of its initial public offering through July 5, 2023, the Company had two outstanding 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 were identical, except for voting, transfer, and conversion rights. On July 6, 2023, all of the Company’s then-outstanding shares of the Company’s Class B common stock were automatically converted (the “Conversion”) into the same number of shares of Class A common stock pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following the Conversion. In addition, on July 7, 2023, the Company filed a Certificate of Retirement with the Secretary of State of the State of Delaware effecting the retirement of the shares of Class B common stock that were issued but no longer outstanding following the Conversion. As of September 30, 2023, the Company’s sole outstanding class of common stock was its Class A common stock. The Company had reserved shares of common stock for future issuance as follows: September 30, December 31, 2011 Equity Incentive Plan (“2011 Plan”) Options outstanding 8,743,758 10,862,094 Shares available for future grants — — 2021 Plan Options outstanding 1,354,732 1,509,187 Restricted stock units outstanding 5,813,510 3,716,061 Shares available for future grants 7,391,635 1,836,566 2021 Employee Stock Purchase Plan Shares available for future purchases 1,309,451 990,132 Total 24,613,086 18,914,040 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plan Share Reserve. As of September 30, 2023 , the number of shares of common stock available for issuance under the 2021 Equity Incentive Plan equaled the sum of 14,662,500 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. In addition, 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, by a number equal to the lowest of (i) 4,784,100 shares, (ii) 5% of the shares of Class A 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 411,399 shares of Class A common stock during January 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 Restricted stock units (“RSUs”) granted under the 2021 Plan generally vest based on continued service over a one RSU activity for the nine months ended September 30, 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 4,214,704 $ 5.04 Vested (1,877,745) $ 6.23 Forfeited (239,510) $ 5.44 Unvested balance as of September 30, 2023 5,813,510 $ 5.64 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 nine months ended September 30, 2022. No stock options were granted during the nine months ended September 30, 2023. Nine Months Ended September 30, 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 9,102,074 Options granted — — — Options exercised — (1,844,602) 1.79 Options canceled 428,189 (428,189) 11.31 RSU award activity (3,975,194) — Balance as of September 30, 2023 7,391,635 10,098,490 $ 6.22 5.74 $ 18,855 Vested and exercisable as of September 30, 2023 8,075,929 $ 4.89 5.27 $ 17,967 The weighted-averag e grant-date fair value of options granted during the nine months ended September 30, 2022 was $6.26. The intrinsic value of options exercised for the nine months ended September 30, 2023 and 2022 was $6.1 million and $9.1 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 $6.8 million and $8.0 million during the nine months ended September 30, 2023 and 2022, respectively. ESPP As of September 30, 2023 , the ESPP reserved and authorized the issuance of up to a total of 956,800 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 January 2023 and 2022, respectively. During the nine months ended September 30, 2023, 348,555 shares of Class A common stock have been purchased under the ESPP. 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 $0.9 million and $0.8 million for the three months ended September 30, 2023 and 2022, respectively, of which the Company capitalized $0.2 million and $0.2 million, respectively, of stock-based compensation expense under this plan for the development of internal-use software. The Company recorded stock-based compensation expense under this plan of $2.8 million and $2.4 million for the nine months ended September 30, 2023 and 2022, respectively, of which the Company capitalized $0.7 million and $0.3 million, respectively, of stock-based compensation expense under this plan for the development of internal-use software. As of September 30, 2023, the total unrecognized stock-based compensation expense related to the ESPP was $1.8 million and is expected to be recognized over a weighted average period of one year. As of September 30, 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 and nine months ended September 30, 2023 and 2022, respectively. Three Months Ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Expected term (in years) N/A 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility N/A 45% - 68% 45% - 68% 45% - 68% Risk-free interest rate N/A 0.10% - 2.60% 0.10% - 5.43% 0.10% - 2.60% Expected dividend yield N/A — % — % — % Stock-Based Compensation Expense Stock-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 653 $ 353 $ 1,456 $ 977 Research and development 2,865 1,828 6,786 5,066 Sales and marketing 2,747 1,539 6,616 3,906 General and administrative 1,693 1,110 3,812 3,062 Total stock-based compensation expense $ 7,958 $ 4,830 $ 18,670 $ 13,011 During the nine months ended September 30, 2023 and 2022, the Company capitalized $3.7 million and $1.8 million, respectively, of stock-based compensation for the development of internal-use software. As of September 30, 2023, total compensation cost related to stock options and RSUs not yet vested was $13.0 million and $30.4 million, respectively, which will be recognized over a weighted-average period of two years for stock options and RSUs . 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 annual corporate performance targets. In each respective calendar year, the Company accrues for the Bonus Plan. The actual payout amount is determined by the Company’s Compensation Committee based on the actual achievement with respect to the annual performance targets and paid in the subsequent year in the variable number of RSUs equal to the payout amount. These RSU’s are fully vested as they were earned (and expensed) prior to the payout. Participants must remain employed with the Company through the date of payout to maintain eligibility under the Bonus Plan. Pursuant to the Bonus Plan, during February 2023 the Company’s Compensation Committee approved the issuance of approximately 288,000 RSUs that immediately vested based on actual performance against the performance targets for 2022. The Company recognized $0.7 million and $1.7 million in stock-based compensation during the three and nine months ended September 30, 2022, respectively, of which the Company capitalized $0.1 million and $0.2 million, respectively, of stock-based compensation expense under this plan for the development of internal-use software. During February 2023, the Company’s Board of Directors approved annual corporate performance targets under its Bonus Plan for 2023 for its employees. If these performance targets are met during 2023, employees will be paid out under the Bonus Plan in RSUs in 2024. As a result, the Company recognized $1.7 million and $2.6 million in stock-based compensation during the three and nine months ended September 30, 2023, respectively, based on progress made towards these performance targets. During the three and nine months ended September 30, 2023, the Company capitalized $0.2 million and $0.4 million, respectively, of stock-based compensation expense under this plan for the development of internal-use software. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 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 for periods prior to the Conversion using the two-class method required for multiple classes of common stock and participating securities. Prior to the Conversion, shares of Class A and Class B were the only outstanding equity in the Company. The rights of the holders of the Class A common stock and Class B common stock were identical, except with respect to voting and conversion. Accordingly, the Class A common stock and Class B common stock shared 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. As discussed above in Note 12, on July 6, 2023, all of the Company’s then-outstanding shares of Class B common stock, par value $0.0001 per share, were automatically converted into the same number of shares of Class A common stock, par value $0.0001 per share, pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following the conversion. In addition, on July 7, 2023, the Company filed a Certificate of Retirement with the Secretary of State of the State of Delaware effecting the retirement of the shares of Class B common stock that were issued but no longer outstanding following the Conversion. Prior to the Conversion, the rights of the holders of the Class A common stock and Class B common stock were identical, except with respect to voting, transfer and conversion. As the liquidation and dividend rights were identical, the Company’s undistributed earnings or losses were allocated on a proportionate basis among the holders of Class A and Class B common stock. As a result, the net loss per share attributed to common stockholders was, therefore, the same for both Class A and Class B common stock on an individual or combined basis. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Class A Class B Class A Class B Class A Class B Class A Class B Net loss attributable to common stockholders $ (15,744) $ (311) $ (5,865) $ (6,935) $ (34,406) $ (13,099) (14,185) $ (22,720) Denominator for basic and diluted net loss per share: Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders – basic and diluted 35,953,930 711,265 14,659,262 17,335,129 25,534,082 9,721,590 12,009,620 19,235,449 Net loss per share attributable to common stockholders – basic and diluted $ (0.44) $ (0.44) $ (0.40) $ (0.40) $ (1.35) $ (1.35) $ (1.18) $ (1.18) 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: September 30, 2023 2022 RSUs 5,813,510 2,238,357 Stock options 10,098,490 12,982,199 Shares issuable pursuant to the ESPP 290,427 300,785 Total 16,202,427 15,521,341 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringIn January 2023, the Company initiated measures to reduce headcount to pursue greater cost efficiency and align strategic initiatives. These measures were substantially completed by June 30, 2023, and the total cost was $3.6 million. During this period, 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 and nine months ended September 30, 2023, of which $0.7 million were related to involuntary terminations, is as follows (in thousands): Severance and other Personnel Costs Three Months Ended September 30, 2023 Nine Months Ended Research and development $ 12 $ 2,311 Sales and marketing — 1,025 General and administrative — 280 Total $ 12 $ 3,616 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 $ 3,616 Cash payments during the period $ (3,604) Balance as of September 30, 2023 (1) $ 12 (1) The Company expects the remaining severance and termination related liabilities to be substantially paid out in cash during the fourth quarter of 2023. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 each of the three and nine months ended September 30, 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 and nine months ended September 30, 2023 and three months ended September 30, 2022. The Company recorded an income tax benefit of less than $0.1 million during the nine months ended September 30, 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”) and an excise tax of 1% of stock repurchases, effective January 1, 2023. There was no impact on the Company’s provision for income taxes from the Inflation Reduction Act for the three and nine months ended September 30, 2023. The Company is continuing to evaluate the various provisions of the Inflation Reduction Act and does not anticipate the impact, if any, will be material to the Company. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 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 September 30, 2023, results of operations for the three and nine months ended September 30, 2023 and 2022, cash flows for the nine months ended September 30, 2023 and 2022, and stockholders' equity for the three and nine months ended September 30, 2023 and 2022. The results of operations for the three and nine months ended September 30, 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, valuation of the Company’s ESPP expense, and accounting for taxes, including estimates for 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 monetary 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 and Risks and Uncertainties | Concentrations and Risks and Uncertainties Liquidity. The Company believes that its existing cash, cash equivalents and short-term investments together with cash provided by operations, will be sufficient to support its working capital and capital expenditure requirements for at least the next 12 months. However, to achieve its continued growth and objectives, the Company will need to obtain additional sources of financing which may include entering into lease agreements, sale-leaseback arrangements, credit facilities, and other debt financing arrangements for the purpose of acquiring infrastructure equipment and to fund its operations. In the event that the Company requires additional financing, it may not be able to raise such financing on terms acceptable to us or at all. If the Company is unable to obtain additional sources of financing, raise additional capital or generate cash flows necessary to expand its operations and invest in continued innovation, it may not be able to compete successfully, which would harm its business, results of operations and financial condition. Credit risk. Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents, accounts receivable, short-term investments, and unbilled accounts receivable. The Company maintains its cash, restricted cash, and short-term investments 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cash disbursement concentration Number of vendors 2 2 2 2 Total cash disbursements represented by vendors listed above 21% 25% 21% 26% September 30, December 31, Accounts payable concentration Number of vendors 3 2 Total accounts payable balance represented by vendors listed above 28% 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 (i) management has committed to a plan of termination, which includes identification of employees to be terminated and related information, (ii) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn, and (iii) 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 accounts 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) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cash disbursement concentration Number of vendors 2 2 2 2 Total cash disbursements represented by vendors listed above 21% 25% 21% 26% September 30, December 31, Accounts payable concentration Number of vendors 3 2 Total accounts payable balance represented by vendors listed above 28% 26% |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 B2 Cloud Storage $ 11,608 $ 8,864 $ 32,384 $ 23,678 Computer Backup 13,691 13,187 40,898 38,551 Total revenue (1) $ 25,299 $ 22,051 $ 73,282 $ 62,229 ________________ (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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Consumption-based arrangements $ 11,393 $ 8,825 $ 31,986 $ 23,553 Subscription-based arrangements 13,774 13,065 40,878 38,168 Physical Media (point in time) 132 161 418 508 Total revenue $ 25,299 $ 22,051 $ 73,282 $ 62,229 |
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 18,277 $ 15,802 $ 52,502 $ 44,636 United Kingdom 1,373 1,213 3,944 3,434 Canada 1,223 1,133 3,634 3,129 Other 4,426 3,903 13,202 11,030 Total revenue $ 25,299 $ 22,051 $ 73,282 $ 62,229 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Held-to-maturity | The following table summarizes adjusted cost, gross unrealized losses, and fair value by significant investment category. The Company’s commercial paper investments with original maturities greater than 90 days are classified as held-to-maturity investments on its balance sheets as of September 30, 2023 and December 31, 2022, respectively. The Company’s commercial paper investments with original maturities of 90 days or less are classified as cash equivalents on its balance sheets as of September 30, 2023 and December 31, 2022, respectively. Amortized Cost Gross Unrealized Fair Value Net Carrying Value Gains Losses As of September 30, 2023 (In Thousands) Cash equivalents Commercial paper $ 2,964 $ 2 $ — $ 2,966 $ 2,964 Total cash equivalents $ 2,964 $ 2 $ — $ 2,966 $ 2,964 Investments Commercial paper $ 20,732 $ — $ (16) $ 20,716 $ 20,732 Total investments $ 20,732 $ — $ (16) $ 20,716 $ 20,732 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 September 30, 2023 and December 31, 2022, by contractual maturity, are shown below. As of September 30, 2023 Amortized Cost Fair Value (In Thousands) Within one year $ 20,732 $ 20,716 After one year through five years — — After 5 years through 10 years — — After 10 years — — Total investments $ 20,732 $ 20,716 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 September 30, 2023 (Dollars In Thousands) Investments Commercial paper 4 $ 20,716 $ (16) 4 $ 20,716 $ (16) Total 4 $ 20,716 $ (16) 4 $ 20,716 $ (16) 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) | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Unbilled accounts receivable, net $ 1,893 $ 1,637 Prepaid expenses 2,532 2,600 Receivable from payment processor 922 644 Financed prepaid insurance 196 1,545 Other 1,523 1,694 Total prepaid expenses and other current assets $ 7,066 $ 8,120 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, net consisted of the following (in thousands): September 30, December 31, Data center equipment $ 35,244 $ 28,531 Leased and financed data center equipment 69,570 62,300 Machinery and equipment 14,728 11,613 Computer equipment 2,429 2,503 Leasehold improvements 1,110 1,268 Construction-in-progress 510 3,636 Total property and equipment 123,591 109,851 Less: accumulated depreciation (74,018) (60,476) Total property and equipment, net $ 49,573 $ 49,375 |
Capitalized Internal-Use_Soft_2
Capitalized Internal-Use Software, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Capitalized internal-use software, net consisted of the following (in thousands): September 30, December 31, Developed software $ 38,542 $ 23,777 General and administrative software 144 144 Total capitalized internal-use software 38,686 23,921 Less: accumulated amortization (9,743) (7,217) Total capitalized internal-use software, net $ 28,943 $ 16,704 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2023, future amortization expense is expected to be as follows (in thousands): Year Ending December 31, Remainder of 2023 $ 1,218 2024 6,582 2025 6,382 2026 5,929 2027 5,203 Thereafter 3,629 Total $ 28,943 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation $ 3,619 $ 2,728 ESPP withholding 1,185 415 Accrued expenses 1,615 2,881 Accrued value-added tax ("VAT") liability 1,048 1,220 Financed insurance premiums (see Note 11) — 1,545 Other 781 629 Accrued expenses and other current liabilities $ 8,248 $ 9,418 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The future minimum commitments for these operating leases as of September 30, 2023 were as follows (in thousands), which excludes amounts allocated to services under operating lease agreements that are considered non-lease components: Year Ending December 31, Remaining of 2023 $ 640 2024 2,464 2025 2,026 2026 2,076 2027 2,131 Thereafter 3,558 Total future minimum operating lease commitments 12,895 Less imputed interest (2,379) Total liability $ 10,516 |
Other Commitments | The future minimum commitments for the Company’s non-cancellable contractual obligations as of September 30, 2023 for non-lease components were as follows (in thousands): Year Ending December 31, Remaining of 2023 $ 1,307 2024 4,240 2025 2,623 2026 2,603 2027 2,679 Thereafter 6,330 Total future minimum commitments $ 19,782 |
Finance Lease, Liability, Fiscal Year Maturity | The future minimum commitments for these finance leases and lease financing obligations as of September 30, 2023 were as follows (in thousands): Year Ending December 31, Finance leases Lease financing obligations Total Remainder of 2023 $ 5,609 $ 805 $ 6,414 2024 16,226 2,867 19,093 2025 7,714 1,709 9,423 2026 1,906 — 1,906 2027 — — — Thereafter — — — Total future minimum lease and financing commitments 31,455 5,381 36,836 Less imputed interest (2,808) (686) (3,494) Total liability $ 28,647 $ 4,695 $ 33,342 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Shares Reserved for Future Issuance | The Company had reserved shares of common stock for future issuance as follows: September 30, December 31, 2011 Equity Incentive Plan (“2011 Plan”) Options outstanding 8,743,758 10,862,094 Shares available for future grants — — 2021 Plan Options outstanding 1,354,732 1,509,187 Restricted stock units outstanding 5,813,510 3,716,061 Shares available for future grants 7,391,635 1,836,566 2021 Employee Stock Purchase Plan Shares available for future purchases 1,309,451 990,132 Total 24,613,086 18,914,040 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | RSU activity for the nine months ended September 30, 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 4,214,704 $ 5.04 Vested (1,877,745) $ 6.23 Forfeited (239,510) $ 5.44 Unvested balance as of September 30, 2023 5,813,510 $ 5.64 |
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 nine months ended September 30, 2022. No stock options were granted during the nine months ended September 30, 2023. Nine Months Ended September 30, 2022 Expected term (in years) 6.0 Expected volatility 49.0 % Risk-free interest rate 1.20 % Expected dividend yield — % 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 9,102,074 Options granted — — — Options exercised — (1,844,602) 1.79 Options canceled 428,189 (428,189) 11.31 RSU award activity (3,975,194) — Balance as of September 30, 2023 7,391,635 10,098,490 $ 6.22 5.74 $ 18,855 Vested and exercisable as of September 30, 2023 8,075,929 $ 4.89 5.27 $ 17,967 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Three Months Ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Expected term (in years) N/A 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility N/A 45% - 68% 45% - 68% 45% - 68% Risk-free interest rate N/A 0.10% - 2.60% 0.10% - 5.43% 0.10% - 2.60% Expected dividend yield N/A — % — % — % |
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 653 $ 353 $ 1,456 $ 977 Research and development 2,865 1,828 6,786 5,066 Sales and marketing 2,747 1,539 6,616 3,906 General and administrative 1,693 1,110 3,812 3,062 Total stock-based compensation expense $ 7,958 $ 4,830 $ 18,670 $ 13,011 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Class A Class B Class A Class B Class A Class B Class A Class B Net loss attributable to common stockholders $ (15,744) $ (311) $ (5,865) $ (6,935) $ (34,406) $ (13,099) (14,185) $ (22,720) Denominator for basic and diluted net loss per share: Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders – basic and diluted 35,953,930 711,265 14,659,262 17,335,129 25,534,082 9,721,590 12,009,620 19,235,449 Net loss per share attributable to common stockholders – basic and diluted $ (0.44) $ (0.44) $ (0.40) $ (0.40) $ (1.35) $ (1.35) $ (1.18) $ (1.18) |
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: September 30, 2023 2022 RSUs 5,813,510 2,238,357 Stock options 10,098,490 12,982,199 Shares issuable pursuant to the ESPP 290,427 300,785 Total 16,202,427 15,521,341 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2023, of which $0.7 million were related to involuntary terminations, is as follows (in thousands): Severance and other Personnel Costs Three Months Ended September 30, 2023 Nine Months Ended Research and development $ 12 $ 2,311 Sales and marketing — 1,025 General and administrative — 280 Total $ 12 $ 3,616 |
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 $ 3,616 Cash payments during the period $ (3,604) Balance as of September 30, 2023 (1) $ 12 (1) The Company expects the remaining severance and termination related liabilities to be substantially paid out in cash during the fourth quarter 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Disbursements | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 21% | 25% | 21% | 26% |
Accounts Payable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 28% | 26% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reporting units | 1 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Amortization of deferred contract costs | $ 0.2 | $ 0.2 | $ 0.7 | $ 0.7 | |
Capitalized contract cost | 0.4 | 0.4 | $ 0.4 | ||
Deferred revenue | 27.2 | 27.2 | $ 25.5 | ||
Contract with customer, liability, revenue recognized | 9.7 | $ 9.2 | 20.5 | $ 19.3 | |
Remaining performance obligation | $ 29.5 | $ 29.5 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | 24 Months | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Performance obligation, expected timing of satisfaction (in years) | 24 months | 24 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | 12 Months | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligation percentage | 84% | 84% | |||
Performance obligation, expected timing of satisfaction (in years) | 12 months | 12 months |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 25,299 | $ 22,051 | $ 73,282 | $ 62,229 |
B2 Cloud Storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,608 | 8,864 | 32,384 | 23,678 |
Computer Backup | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,691 | 13,187 | 40,898 | 38,551 |
Consumption-based arrangements | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,393 | 8,825 | 31,986 | 23,553 |
Subscription-based arrangements | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,774 | 13,065 | 40,878 | 38,168 |
Physical Media (point in time) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 132 | $ 161 | $ 418 | $ 508 |
Revenues - Revenue by Geographi
Revenues - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 25,299 | $ 22,051 | $ 73,282 | $ 62,229 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18,277 | 15,802 | 52,502 | 44,636 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,373 | 1,213 | 3,944 | 3,434 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,223 | 1,133 | 3,634 | 3,129 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,426 | $ 3,903 | $ 13,202 | $ 11,030 |
Investments - Fair Values and G
Investments - Fair Values and Gross Unrealized Gains and Losses on Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents | $ 9,016 | $ 6,690 |
Investments, amortized cost | 20,732 | 58,733 |
Investments, gross unrealized gains | 0 | 0 |
Investments, gross unrealized losses | (16) | (144) |
Total investments | 20,716 | 58,589 |
Investments, net carrying value | 20,732 | 58,733 |
Commercial paper | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents | 2,964 | |
Cash equivalents, gross unrealized gains | 2 | |
Cash equivalents, gross unrealized losses | 0 | |
Cash equivalents, fair value | 2,966 | |
Commercial paper | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Investments, amortized cost | 20,732 | 58,733 |
Investments, gross unrealized gains | 0 | 0 |
Investments, gross unrealized losses | (16) | (144) |
Total investments | 20,716 | 58,589 |
Investments, net carrying value | $ 20,732 | $ 58,733 |
Investments - Scheduled Maturit
Investments - Scheduled Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Within one year | $ 20,732 | $ 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 | 20,732 | 58,733 |
Fair Value | ||
Within one year | 20,716 | 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 | $ 20,716 | $ 58,589 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Investments, gross unrealized losses | $ 16 | $ 144 |
Investments - Aging of Unrealiz
Investments - Aging of Unrealized Losses (Details) $ in Thousands | Sep. 30, 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 | 4 | 11 |
Less than 12 months, fair value | $ 20,716 | $ 58,589 |
Less than 12 months, unrealized losses | $ (16) | $ (144) |
Total number of securities | security | 4 | 11 |
Total fair value | $ 20,716 | $ 58,589 |
Total unrealized losses | $ (16) | $ (144) |
Commercial paper | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, number of securities | security | 4 | 11 |
Less than 12 months, fair value | $ 20,716 | $ 58,589 |
Less than 12 months, unrealized losses | $ (16) | $ (144) |
Total number of securities | security | 4 | 11 |
Total fair value | $ 20,716 | $ 58,589 |
Total unrealized losses | $ (16) | $ (144) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Restricted cash | $ 169 | ||
Restricted cash, current | $ 6,078 | 0 | $ 0 |
Restricted cash, non-current | 0 | $ 4,306 | $ 2,544 |
Commercial paper | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Cash equivalents, fair value | $ 2,966 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Unbilled accounts receivable, net | $ 1,893 | $ 1,637 |
Prepaid expenses | 2,532 | 2,600 |
Receivable from payment processor | 922 | 644 |
Financed prepaid insurance | 196 | 1,545 |
Other | 1,523 | 1,694 |
Prepaid expenses and other current assets | $ 7,066 | $ 8,120 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 123,591 | $ 109,851 |
Less: accumulated depreciation | (74,018) | (60,476) |
Property and equipment, net | 49,573 | 49,375 |
Data center equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 35,244 | 28,531 |
Leased and financed data center equipment | ||
Property, Plant and Equipment [Line Items] | ||
Leased and financed data center equipment | 69,570 | 62,300 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,728 | 11,613 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,429 | 2,503 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,110 | 1,268 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 510 | $ 3,636 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 5,500 | $ 4,800 | $ 15,800 | $ 13,100 | |
Total liability | 28,647 | 28,647 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | 60,100 | 60,100 | $ 56,300 | ||
Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated amortization | 30,100 | 30,100 | 24,500 | ||
Carrying value of equipment under capital lease agreements and collateralized financing obligations | 39,400 | 39,400 | |||
Total liability | 37,800 | ||||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | 55,100 | 55,100 | 50,200 | ||
Netherlands | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 5,000 | $ 5,000 | $ 6,100 |
Capitalized Internal-Use_Soft_3
Capitalized Internal-Use Software, Net - Capitalized Internal Use Software (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total capitalized internal-use software | $ 38,686 | $ 23,921 |
Less: accumulated amortization | (9,743) | (7,217) |
Total capitalized internal-use software, net | 28,943 | 16,704 |
Developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total capitalized internal-use software | 38,542 | 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Capitalized computer software, amortization | $ 1 | $ 0.6 | $ 2.5 | $ 1.6 |
Capitalized Internal-Use_Soft_5
Capitalized Internal-Use Software, Net - Future Amortization Expense (Details) - Capitalized Computer Software $ in Thousands | Sep. 30, 2023 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2023 | $ 1,218 |
2024 | 6,582 |
2025 | 6,382 |
2026 | 5,929 |
2027 | 5,203 |
Thereafter | 3,629 |
Total | $ 28,943 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 3,619 | $ 2,728 |
ESPP withholding | 1,185 | 415 |
Accrued expenses | 1,615 | 2,881 |
Accrued value-added tax (“VAT”) liability | 1,048 | 1,220 |
Financed insurance premiums (see Note 11) | 0 | 1,545 |
Other | 781 | 629 |
Accrued expenses and other current liabilities | $ 8,248 | $ 9,418 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) arrangement | Sep. 30, 2022 USD ($) | Jul. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Other Commitments [Line Items] | ||||||
Finance lease, weighted average remaining lease term | 1 year 10 months 24 days | 1 year 10 months 24 days | ||||
Finance lease, weighted average discount rate (in percent) | 10.80% | 10.80% | ||||
Depreciation expense | $ 3,900 | $ 3,500 | $ 11,200 | $ 9,700 | ||
Finance lease cost | 4,400 | 4,100 | 12,500 | 11,400 | ||
Finance Lease, cost, interest expense | 700 | 900 | 2,200 | 2,500 | ||
Lease financing obligation | 300 | 300 | 1,000 | 1,000 | ||
Lease financing obligation, interest expense | $ 100 | 100 | 200 | 300 | ||
Interest paid on finance lease and lease financing obligations | $ 2,400 | 2,800 | ||||
Number of sale-leaseback arrangements | arrangement | 1 | |||||
Proceeds from sale leaseback transaction | $ 2,500 | |||||
Operating lease, weighted average remaining lease term | 5 years 8 months 12 days | 5 years 8 months 12 days | ||||
Operating lease, weighted average discount rate (in percent) | 7.50% | 7.50% | ||||
Operating lease right-of-use assets | $ 10,482 | $ 10,482 | $ 5,300 | $ 6,881 | ||
Operating lease liabilities | 10,516 | 10,516 | $ 5,200 | |||
Operating lease cost | 2,600 | 2,300 | 7,900 | 5,800 | ||
Purchase obligation, to be paid, remainder of fiscal year | 2,500 | 2,500 | ||||
Purchase obligation, to be paid, year one | 700 | 700 | ||||
Plan contributions | 500 | 400 | 1,400 | 1,200 | ||
Accrued value-added tax (“VAT”) liability | 1,048 | 1,048 | $ 1,220 | |||
Lease And Non-Lease Components | ||||||
Other Commitments [Line Items] | ||||||
Rental expense | 2,100 | 1,900 | 6,200 | 4,700 | ||
Lease Components | ||||||
Other Commitments [Line Items] | ||||||
Rental expense | 700 | 700 | 2,200 | 2,000 | ||
Cost of revenue | Lease And Non-Lease Components | ||||||
Other Commitments [Line Items] | ||||||
Rental expense | $ 1,800 | $ 1,400 | $ 5,100 | $ 3,600 | ||
Minimum | ||||||
Other Commitments [Line Items] | ||||||
Capital leases, agreement term | 3 years | |||||
Maximum | ||||||
Other Commitments [Line Items] | ||||||
Capital leases, agreement term | 4 years |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Commitments for Finance Leases and Lease Financing Obligations (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Finance leases | |
Remainder of 2023 | $ 5,609 |
2024 | 16,226 |
2025 | 7,714 |
2026 | 1,906 |
2027 | 0 |
Thereafter | 0 |
Total future minimum lease and financing commitments | 31,455 |
Less imputed interest | (2,808) |
Total liability | $ 28,647 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Finance lease liabilities and lease financing obligations, current, Finance lease liabilities and lease financing obligations, non-current |
Lease financing obligations | |
Remainder of 2023 | $ 805 |
2024 | 2,867 |
2025 | 1,709 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total future minimum lease and financing commitments | 5,381 |
Less imputed interest | (686) |
Total liability | 4,695 |
Total | |
Remainder of 2023 | 6,414 |
2024 | 19,093 |
2025 | 9,423 |
2026 | 1,906 |
2027 | 0 |
Thereafter | 0 |
Total future minimum lease and financing commitments | 36,836 |
Less imputed interest | (3,494) |
Total liability | $ 33,342 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimum Commitments for Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jul. 31, 2023 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remaining of 2023 | $ 640 | |
2024 | 2,464 | |
2025 | 2,026 | |
2026 | 2,076 | |
2027 | 2,131 | |
Thereafter | 3,558 | |
Total future minimum operating lease commitments | 12,895 | |
Less imputed interest | (2,379) | |
Total liability | $ 10,516 | $ 5,200 |
Commitments and Contingencies_4
Commitments and Contingencies - Future Minimum Commitments for Non-Cancellable Contractual Obligations (Details) - Data Center Operations, Non-Tangible Utilities And Services $ in Thousands | Sep. 30, 2023 USD ($) |
Other Commitments [Line Items] | |
Remaining of 2023 | $ 1,307 |
2024 | 4,240 |
2025 | 2,623 |
2026 | 2,603 |
2027 | 2,679 |
Thereafter | 6,330 |
Total future minimum commitments | $ 19,782 |
Debt (Details)
Debt (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2023 | Nov. 30, 2022 USD ($) installment | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Restricted cash, current | $ 6,078,000 | $ 0 | $ 6,078,000 | $ 0 | $ 0 | ||||
Interest expense (less than for three and nine months ended September 30, 2022) | 936,000 | 950,000 | 2,801,000 | 2,811,000 | |||||
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 | ||||||||
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 | 6,100,000 | 6,100,000 | |||||||
Outstanding amount available to be borrowed | $ 23,900,000 | $ 23,900,000 | |||||||
Weighted average interest rate (in percent) | 7.40% | 7.40% | |||||||
Interest expense (less than for three and nine months ended September 30, 2022) | $ 200,000 | $ 100,000 | $ 400,000 | $ 100,000 | |||||
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% | ||||||||
Revolving Credit Facility | City National Bank Revolving Credit Agreement | Line of Credit | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 3% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - shares | Sep. 30, 2023 | Jul. 06, 2023 | Dec. 31, 2022 |
Common Class B | |||
Class of Stock [Line Items] | |||
Common stock, shares issued (in shares) | 0 | 0 | 17,195,404 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares | Sep. 30, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 24,613,086 | 18,914,040 |
2011 Equity Incentive Plan (“2011 Plan”) | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 0 | 0 |
2011 Equity Incentive Plan (“2011 Plan”) | Options outstanding | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 8,743,758 | 10,862,094 |
2021 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 7,391,635 | 1,836,566 |
2021 Plan | Options outstanding | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 1,354,732 | 1,509,187 |
2021 Plan | Restricted stock units outstanding | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 5,813,510 | 3,716,061 |
2021 Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 1,309,451 | 990,132 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 05, 2023 | Jan. 31, 2023 | Jan. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Number of shares authorized (in shares) | 9,102,074 | ||||||||||
Expected dividend yield (in percent) | 0% | 0% | |||||||||
Weighted-average grant-date fair value of options granted (USD per share) | $ 6.26 | ||||||||||
Intrinsic value of options exercised | $ 6,100 | $ 9,100 | |||||||||
Aggregate grant-date fair value of options vested | 6,800 | 8,000 | |||||||||
Stock-based compensation expense | $ 7,958 | $ 4,830 | 18,670 | 13,011 | |||||||
Stock-based compensation included in capitalized internal-use software | 3,703 | $ 1,808 | |||||||||
Cost not yet recognized for stock options, amount | 13,000 | $ 13,000 | |||||||||
Cost not yet recognized, period for recognition | 2 years | ||||||||||
ESPP withholding | 1,185 | $ 1,185 | $ 415 | ||||||||
Restricted stock units outstanding | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Cost not yet recognized for restricted stock units, amount | $ 30,400 | $ 30,400 | |||||||||
Employee Stock | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Expected dividend yield (in percent) | 0% | 0% | 0% | ||||||||
2021 Plan | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Number of shares authorized (in shares) | 14,662,500 | ||||||||||
Number of additional shares authorized (in shares) | 13,719,000 | 809,916 | 411,399 | ||||||||
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 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 Plan | Employee Stock | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Number of shares authorized (in shares) | 956,800 | 956,800 | |||||||||
Number of additional shares authorized (in shares) | 667,874 | 607,696 | |||||||||
Stock-based compensation (in shares) | 348,555 | ||||||||||
Stock-based compensation expense | $ 900 | $ 800 | $ 2,800 | $ 2,400 | |||||||
Stock-based compensation included in capitalized internal-use software | 200 | 200 | 700 | 300 | |||||||
Cost not yet recognized for stock options, amount | 1,800 | $ 1,800 | |||||||||
Cost not yet recognized, period for recognition | 1 year | ||||||||||
2021 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 | 1 year | ||||||||||
2021 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 (“2011 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 | ||||||||||
Stock-based compensation expense | 1,700 | 700 | $ 2,600 | 1,700 | |||||||
Stock-based compensation included in capitalized internal-use software | $ 200 | $ 100 | $ 400 | $ 200 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units outstanding | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Balance, beginning of period (in shares) | shares | 3,716,061 |
Granted (in shares) | shares | 4,214,704 |
Vested (in shares) | shares | (1,877,745) |
Forfeited (in shares) | shares | (239,510) |
Balance, end of period (in shares) | shares | 5,813,510 |
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 | 5.04 |
Vested (in dollars per share) | $ / shares | 6.23 |
Forfeited (in dollars per share) | $ / shares | 5.44 |
Balance, end of period (in dollars per share) | $ / shares | $ 5.64 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years | ||
Expected volatility (in percent) | 49% | ||
Risk free interest rate (in percent) | 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% | 0% |
Minimum | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Expected volatility (in percent) | 45% | 45% | 45% |
Risk free interest rate (in percent) | 0.10% | 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 | 2 years |
Expected volatility (in percent) | 68% | 68% | 68% |
Risk free interest rate (in percent) | 2.60% | 5.43% | 2.60% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Equity Award Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Shares available for grant | ||
Beginning balance (in shares) | 1,836,566 | |
Shares authorized (in shares) | 9,102,074 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Cancelled (in shares) | 428,189 | |
Ending balance (in shares) | 7,391,635 | 1,836,566 |
Outstanding Stock Options | ||
Beginning balance (in shares) | 12,371,281 | |
Options granted (in shares) | 0 | |
Exercised (in shares) | (1,844,602) | |
Cancelled (in shares) | (428,189) | |
Ending balance (in shares) | 10,098,490 | 12,371,281 |
Vested and exercisable (in shares) | 8,075,929 | |
Weighted-average exercise Price | ||
Beginning balance (USD per share) | $ / shares | $ 5.74 | |
Granted (USD per share) | $ / shares | 0 | |
Exercised (USD per share) | $ / shares | 1.79 | |
Cancelled (USD per share) | $ / shares | 11.31 | |
Ending balance (USD per share) | $ / shares | 6.22 | $ 5.74 |
Vested and exercisable (USD per share) | $ / shares | $ 4.89 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options outstanding, Weighted-average remaining contractual life (years) | 5 years 8 months 26 days | 6 years 25 days |
Vested and exercisable, Weighted-average remaining contractual life (years) | 5 years 3 months 7 days | |
Options outstanding, Aggregate intrinsic value | $ | $ 18,855 | $ 32,385 |
Vested and exercisable, Aggregate intrinsic value | $ | $ 17,967 | |
Restricted stock units outstanding | ||
Shares available for grant | ||
RSU award activity (in shares) | (3,975,194) |
Stock-Based Compensation - Clas
Stock-Based Compensation - Classification of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 7,958 | $ 4,830 | $ 18,670 | $ 13,011 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 653 | 353 | 1,456 | 977 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,865 | 1,828 | 6,786 | 5,066 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,747 | 1,539 | 6,616 | 3,906 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,693 | $ 1,110 | $ 3,812 | $ 3,062 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stockholders - Narrative (Details) - $ / shares | Sep. 30, 2023 | Jul. 06, 2023 | Dec. 31, 2022 |
Common Class B | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 0 | 0 | 17,195,404 |
Common Class A | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 37,464,639 | 16,198,333 |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stockholders - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Numerator: | |||||
Net loss attributable to common stockholders | $ (16,055) | $ (12,800) | $ (47,505) | $ (36,905) | |
Denominator for basic and diluted net loss per share: | |||||
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic (in shares) | [1] | 36,665,195 | 31,994,391 | 35,255,672 | 31,245,069 |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders - diluted (in shares) | [1] | 36,665,195 | 31,994,391 | 35,255,672 | 31,245,069 |
Net loss per share attributable to common stockholders - basic (USD per share) | $ (0.44) | $ (0.40) | $ (1.35) | $ (1.18) | |
Net loss per share attributable to common stockholders - diluted (USD per share) | $ (0.44) | $ (0.40) | $ (1.35) | $ (1.18) | |
Common Class A | |||||
Numerator: | |||||
Net loss attributable to common stockholders | $ (15,744) | $ (5,865) | $ (34,406) | $ (14,185) | |
Denominator for basic and diluted net loss per share: | |||||
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic (in shares) | 35,953,930 | 14,659,262 | 25,534,082 | 12,009,620 | |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders - diluted (in shares) | 35,953,930 | 14,659,262 | 25,534,082 | 12,009,620 | |
Net loss per share attributable to common stockholders - basic (USD per share) | $ (0.44) | $ (0.40) | $ (1.35) | $ (1.18) | |
Net loss per share attributable to common stockholders - diluted (USD per share) | $ (0.44) | $ (0.40) | $ (1.35) | $ (1.18) | |
Common Class B | |||||
Numerator: | |||||
Net loss attributable to common stockholders | $ (311) | $ (6,935) | $ (13,099) | $ (22,720) | |
Denominator for basic and diluted net loss per share: | |||||
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic (in shares) | 711,265 | 17,335,129 | 9,721,590 | 19,235,449 | |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders - diluted (in shares) | 711,265 | 17,335,129 | 9,721,590 | 19,235,449 | |
Net loss per share attributable to common stockholders - basic (USD per share) | $ (0.44) | $ (0.40) | $ (1.35) | $ (1.18) | |
Net loss per share attributable to common stockholders - diluted (USD per share) | $ (0.44) | $ (0.40) | $ (1.35) | $ (1.18) | |
[1] (1) On July 6, 2023, all shares of the Company’s then outstanding Class B common stock were automatically converted into the same number of shares of Class A common stock, pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation. No additional shares of Class B common stock will be issued following such conversion. See Note 12 for further details. |
Net Loss per Share Attributab_5
Net Loss per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Common Share [Line Items] | ||
Antidilutive securities (in shares) | 16,202,427 | 15,521,341 |
RSUs | ||
Earnings Per Common Share [Line Items] | ||
Antidilutive securities (in shares) | 5,813,510 | 2,238,357 |
Stock options | ||
Earnings Per Common Share [Line Items] | ||
Antidilutive securities (in shares) | 10,098,490 | 12,982,199 |
Shares issuable pursuant to the ESPP | ||
Earnings Per Common Share [Line Items] | ||
Antidilutive securities (in shares) | 290,427 | 300,785 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Sep. 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% | |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 3.6 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance and other Personnel Costs | $ 12 | $ 3,616 |
Involuntary Terminations | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and other Personnel Costs | 700 | 700 |
Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and other Personnel Costs | 12 | 2,311 |
Sales and marketing | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and other Personnel Costs | 0 | 1,025 |
General and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and other Personnel Costs | $ 0 | $ 280 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Beginning of period | $ 0 | |
Severance and other Personnel Costs | $ 12 | 3,616 |
Cash payments during the period | (3,604) | |
End of period | $ 12 | $ 12 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 0% | 0% | 0% | 0% |
Income tax benefit | $ 0 | $ 0 | $ 0 | $ (69,000) |