Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39156 | |
Entity Registrant Name | SPROUT SOCIAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-2404165 | |
Entity Address, Address Line One | 131 South Dearborn St. | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60603 | |
City Area Code | (866) | |
Local Phone Number | 878-3231 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | SPT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001517375 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 43,440,204 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,494,249 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 117,778 | $ 135,310 |
Marketable securities | 49,494 | 0 |
Accounts receivable, net of allowances of $1,687 and $706 at September 30, 2020 and December 31, 2019, respectively | 14,406 | 11,099 |
Deferred commissions | 7,456 | 5,574 |
Prepaid expenses and other assets | 4,565 | 5,050 |
Total current assets | 193,699 | 157,033 |
Property and equipment, net | 14,243 | 13,529 |
Deferred commissions, net of current portion | 7,199 | 5,505 |
Operating lease, right-of-use assets | 10,274 | 5,618 |
Goodwill | 2,299 | 2,299 |
Intangible assets, net | 4,413 | 5,482 |
Other assets, net | 125 | 125 |
Total assets | 232,252 | 189,591 |
Current liabilities | ||
Accounts payable | 2,037 | 2,049 |
Deferred revenue | 37,258 | 29,566 |
Operating lease liabilities | 1,904 | 2,331 |
Accrued wages and payroll related benefits | 4,900 | 4,053 |
Accrued expenses and other | 5,555 | 5,057 |
Total current liabilities | 51,654 | 43,056 |
Deferred revenue, net of current portion | 239 | 209 |
Operating lease liabilities, net of current portion | 23,744 | 18,196 |
Total liabilities | 75,637 | 61,461 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity | ||
Additional paid-in capital | 324,682 | 263,943 |
Treasury stock, at cost | (26,905) | (20,430) |
Accumulated deficit | (141,167) | (115,388) |
Total stockholders’ equity | 156,615 | 128,130 |
Total liabilities and stockholders’ equity | 232,252 | 189,591 |
Class A common stock | ||
Stockholders’ equity | ||
Common stock | 4 | 4 |
Class B common stock | ||
Stockholders’ equity | ||
Common stock | $ 1 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts | $ 1,687 | $ 706 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 46,122,094 | 41,714,870 |
Common stock, shares outstanding | 43,322,590 | 39,041,065 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 9,721,627 | 9,803,933 |
Common stock, shares outstanding | 9,568,249 | 9,803,933 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Total revenue | $ 33,666 | $ 26,421 | $ 95,603 | $ 74,563 |
Cost of revenue | ||||
Total cost of revenue | 8,774 | 7,229 | 25,302 | 19,288 |
Gross profit | 24,892 | 19,192 | 70,301 | 55,275 |
Operating expenses | ||||
Research and development | 7,693 | 6,361 | 22,686 | 19,137 |
Sales and marketing | 14,774 | 11,894 | 42,852 | 34,074 |
General and administrative | 9,346 | 6,056 | 30,970 | 23,417 |
Total operating expenses | 31,813 | 24,311 | 96,508 | 76,628 |
Loss from operations | (6,921) | (5,119) | (26,207) | (21,353) |
Interest expense | (94) | (70) | (285) | (199) |
Interest income | 50 | 61 | 563 | 256 |
Other income | 19 | 108 | 222 | 388 |
Loss before income taxes | (6,946) | (5,020) | (25,707) | (20,908) |
Income tax expense | 51 | 19 | 72 | 49 |
Net loss | (6,997) | (5,039) | (25,779) | (20,957) |
Comprehensive loss | $ (6,997) | $ (5,039) | $ (25,779) | $ (20,957) |
Net loss per share attributable to common shareholders, basic and diluted (in dollars per share) | $ (0.13) | $ (0.30) | $ (0.51) | $ (1.25) |
Weighted-average shares outstanding used to compute net loss per share, basic and diluted (in shares) | 51,910,517 | 16,948,809 | 50,777,222 | 16,829,622 |
Subscription | ||||
Revenue | ||||
Total revenue | $ 33,370 | $ 26,284 | $ 94,889 | $ 74,285 |
Cost of revenue | ||||
Total cost of revenue | 8,588 | 7,144 | 24,852 | 19,113 |
Professional services and other | ||||
Revenue | ||||
Total revenue | 296 | 137 | 714 | 278 |
Cost of revenue | ||||
Total cost of revenue | $ 186 | $ 85 | $ 450 | $ 175 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Over-Allotment Option | Follow-On Public Offering | Voting Common Stock | Voting Common StockOver-Allotment Option | Voting Common StockFollow-On Public Offering | Additional Paid-in Capital | Additional Paid-in CapitalOver-Allotment Option | Additional Paid-in CapitalFollow-On Public Offering | Series A, A-1, B, B-1, C and D Convertible Preferred Stock (in equity) | Treasury Stock | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 16,679,109 | 22,014,263 | 1,973,851 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 25,733 | $ 1 | $ 1,844 | $ 102,976 | $ (10,507) | $ (68,581) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 125,342 | |||||||||||
Exercise of stock options | 62 | 62 | ||||||||||
Stock-based compensation expense | 5,363 | 5,363 | ||||||||||
Net issuance of RSA grant (in shares) | 242,155 | 192,281 | ||||||||||
Net issuance of RSA grant | (2,345) | $ (2,345) | ||||||||||
Net loss | (20,957) | (20,957) | ||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 17,046,606 | 22,014,263 | 2,166,132 | |||||||||
Ending balance at Sep. 30, 2019 | 7,856 | $ 1 | 7,269 | $ 102,976 | $ (12,852) | (89,538) | ||||||
Beginning balance (in shares) at Jun. 30, 2019 | 17,016,607 | 22,014,263 | 2,166,132 | |||||||||
Beginning balance at Jun. 30, 2019 | 12,813 | $ 1 | 7,187 | $ 102,976 | $ (12,852) | (84,499) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 29,999 | |||||||||||
Exercise of stock options | 17 | 17 | ||||||||||
Stock-based compensation expense | 65 | 65 | ||||||||||
Net loss | (5,039) | (5,039) | ||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 17,046,606 | 22,014,263 | 2,166,132 | |||||||||
Ending balance at Sep. 30, 2019 | 7,856 | $ 1 | 7,269 | $ 102,976 | $ (12,852) | (89,538) | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 48,844,998 | 2,673,805 | ||||||||||
Beginning balance at Dec. 31, 2019 | 128,130 | $ 5 | 263,943 | $ (20,430) | (115,388) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 950,167 | |||||||||||
Exercise of stock options | 362 | 362 | ||||||||||
Stock-based compensation expense | 8,563 | 8,563 | ||||||||||
Issuance of common stock from equity award settlement (in shares) | 826,611 | |||||||||||
Issuance of common stock from equity award settlement | 0 | |||||||||||
Taxes paid related to net share settlement of equity awards (in shares) | 270,732 | |||||||||||
Taxes paid related to net share settlement of equity awards | (6,335) | $ (6,335) | ||||||||||
Issuance of common stock, net of underwriters' discounts, commissions and offering costs (in shares) | 629,603 | 1,612,500 | ||||||||||
Issuance of common stock, net of underwriters' discounts, commissions and offering costs | $ 9,738 | $ 41,936 | $ 9,738 | $ 41,936 | ||||||||
Exercise of warrants (in shares) | 26,960 | 8,345 | ||||||||||
Exercise of warrants | 0 | 140 | $ (140) | |||||||||
Net loss | (25,779) | (25,779) | ||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 52,890,839 | 2,952,882 | ||||||||||
Ending balance at Sep. 30, 2020 | 156,615 | $ 5 | 324,682 | $ (26,905) | (141,167) | |||||||
Beginning balance (in shares) at Jun. 30, 2020 | 50,889,557 | 2,952,882 | ||||||||||
Beginning balance at Jun. 30, 2020 | 119,034 | $ 5 | 280,104 | $ (26,905) | (134,170) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 242,081 | |||||||||||
Exercise of stock options | 82 | 82 | ||||||||||
Stock-based compensation expense | 2,560 | 2,560 | ||||||||||
Issuance of common stock from equity award settlement (in shares) | 146,701 | |||||||||||
Issuance of common stock from equity award settlement | 0 | |||||||||||
Issuance of common stock, net of underwriters' discounts, commissions and offering costs (in shares) | 1,612,500 | |||||||||||
Issuance of common stock, net of underwriters' discounts, commissions and offering costs | $ 41,936 | $ 41,936 | ||||||||||
Net loss | (6,997) | (6,997) | ||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 52,890,839 | 2,952,882 | ||||||||||
Ending balance at Sep. 30, 2020 | $ 156,615 | $ 5 | $ 324,682 | $ (26,905) | $ (141,167) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (25,779) | $ (20,957) |
Adjustments to reconcile net loss to net cash (used in) operating activities | ||
Depreciation of property and equipment | 2,120 | 2,031 |
Amortization of line of credit issuance costs | 171 | 149 |
Amortization of premium on investments | 228 | 0 |
Amortization of acquired intangible assets | 1,070 | 1,156 |
Amortization of deferred commissions | 5,412 | 3,380 |
Amortization of right-of-use operating lease asset | 911 | 811 |
Stock-based compensation expense | 8,563 | 5,363 |
Provision for accounts receivable allowances | 1,882 | 1,175 |
Changes in operating assets and liabilities | ||
Accounts receivable | (5,190) | (912) |
Prepaid expenses and other current assets | 339 | (840) |
Deferred commissions | (8,988) | (4,922) |
Accounts payable and accrued expenses | 713 | (333) |
Deferred revenue | 7,721 | 5,097 |
Lease liabilities | (351) | (910) |
Net cash (used in) operating activities | (11,178) | (9,712) |
Cash flows from investing activities | ||
Purchases of property and equipment | (2,216) | (544) |
Purchases of marketable securities | (49,722) | 0 |
Net cash (used in) investing activities | (51,938) | (544) |
Cash flows from financing activities | ||
Proceeds from underwriters' purchase of over-allotment shares, related to the Company's initial public offering, net of underwriters’ discounts and commissions | 9,954 | 0 |
Proceeds from follow-on offering of common stock, net of underwriters' discounts and commissions | 42,127 | 0 |
Payments for line of credit issuance costs | (118) | (47) |
Proceeds from exercise of stock options | 362 | 62 |
Employee taxes paid related to the net share settlement of stock-based awards | (6,335) | (1,798) |
Payments of deferred offering costs | (406) | (1,551) |
Net cash provided by (used in) financing activities | 45,584 | (3,334) |
Net (decrease) in cash and cash equivalents | (17,532) | (13,590) |
Cash and cash equivalents | ||
Beginning of period | 135,310 | 26,190 |
End of period | 117,778 | 12,600 |
Supplemental noncash disclosures | ||
Operating lease liability arising from operating ROU asset obtained | 5,472 | 0 |
Noncash exercise of stock warrants | 140 | 0 |
Deferred offering costs, accrued but not yet paid | 0 | 1,123 |
Employee taxes related to the net share settlement of stock-based awards, accrued but not yet paid | 0 | 547 |
Balance of property and equipment in accounts payable | $ 765 | $ 0 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Sprout Social, Inc. (“Sprout Social” or the “Company”), a Delaware corporation, began operating on April 21, 2010 to design, develop and operate a web-based comprehensive social media management tool enabling companies to manage and measure their online presence. Customers access their accounts online via a web-based interface or a mobile application. Some customers also purchase the Company’s professional services, which primarily consist of consulting and training services. The Company’s fiscal year end is December 31. The Company’s customers are primarily located throughout the United States, and a portion of customers are located in foreign countries. The Company is headquartered in Chicago, Illinois. Follow-on Offering On August 17, 2020, the Company completed an equity offering in which it issued and sold 1,612,500 shares of Class A common stock, inclusive of the exercised over-allotment option, at a public offering price of $27.50 per share. In addition, 5,287,500 shares of the Company’s common stock were sold by selling shareholders of the Company, inclusive of the over-allotment, as part of this offering. The Company received net proceeds of $42.1 million after deducting underwriting discounts and commissions. The Company did not receive any proceeds from the sale of common stock by selling shareholders. Initial Public Offering Over-allotment On January 15, 2020, the Company issued and sold 629,603 shares of Class A common stock for total net proceeds of $10.0 million after deducting underwriting discounts and commissions, as a result of the over-allotment option exercise by the underwriters of the Company’s initial public offering. Principles of Consolidation and Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Company has prepared the unaudited condensed consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2019, and these unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full year or any future period. The consolidated balance sheet as of December 31, 2019 included herein was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain disclosures required by GAAP on an annual basis. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 28, 2020. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances, including but not limited to the potential impacts arising from the COVID-19 pandemic. As the extent and duration of the impact of the COVID-19 pandemic remains uncertain, the Company’s estimates and judgments may evolve as conditions change. The Company is not aware of any events or circumstances that would require an update to its estimates and judgments or a revision of the carrying value of its assets or liabilities as of November 10, 2020, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. The Company’s most significant estimates and judgments are those related to the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for doubtful accounts, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 1, “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 28, 2020. There have been no significant changes to these policies during the nine months ended September 30, 2020, except as noted below. Marketable Securities Marketable securities consist of corporate bonds, commercial paper, and U.S. Treasury securities. The Company classifies marketable securities as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All marketable securities are recorded at their estimated fair values. Unrealized gains and losses for the available-for-sale debt securities that are unrelated to credit loss factors are recorded in accumulated other comprehensive income (loss), or AOCI. As of September 30, 2020 and December 31, 2019, the Company’s AOCI balance was insignificant. Unrealized losses determined to be credit-related are recorded as Other income in the consolidated statements of operations and comprehensive loss and as an allowance for credit losses on Marketable securities on the consolidated balance sheet. As of September 30, 2020, the gross unrealized loss on available-for-sale debt securities was immaterial and there were no expected credit losses related to the Company's available-for-sale debt securities. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, including subsequent amendments, Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”), which modifies the accounting methodology for most financial instruments by establishing a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments, including trade accounts receivable, by using all practical and relevant information. This guidance is effective for interim and annual periods beginning after December 15, 2019. The Company adopted the ASU as of January 1, 2020, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region in Note 7 and based on the subscription versus professional services and other classification on the condensed consolidated statements of operations and comprehensive loss, as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Deferred Revenue Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancelable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size. The amount of revenue recognized during the three months ended September 30, 2020 and 2019 that was included in deferred revenue at the beginning of each period was $17.5 million and $11.3 million, respectively. The amount of revenue recognized during the nine months ended September 30, 2020 and 2019 that was included in deferred revenue at the beginning of each period was $27.0 million and $19.7 million, respectively. |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company entered into operating lease agreements for offices in Chicago, Illinois, San Francisco, California, and Seattle, Washington. The operating leases require escalating monthly rental payments ranging from $17,000 to $280,000. Under the terms of the lease agreements, the Company is also responsible for its proportionate share of taxes and operating costs, which are treated as variable lease costs. The Chicago lease expires in January 2028 and the Seattle lease expired in July 2020. The San Francisco lease expired in June 2019. The Company’s operating leases typically contain options to extend or terminate the term of the lease. The Company currently does not include any options to extend leases in its lease terms as it is not reasonably certain to exercise them. As such, it has recorded lease obligations only through the initial optional termination dates above. On January 21, 2020, the Company entered into a new lease agreement for an office in Seattle, Washington with an expected total future commitment of $7.9 million. The lease commenced in September 2020 and is expected to expire in January 2031. For accounting purposes under ASC 842, the lease commenced on January 23, 2020, resulting in the recording of a $5.4 million right-of-use operating lease asset and operating lease liability. The following table provides a summary of operating lease assets and liabilities as of September 30, 2020 (in thousands): Assets Operating lease right-of-use assets $ 10,274 Liabilities Operating lease liabilities 1,904 Operating lease liabilities, non-current 23,744 Total operating lease liabilities $ 25,648 The following table provides information about leases on the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease expense $ 580 $ 541 $ 1,987 $ 1,743 Variable lease expense 875 926 2,457 2,607 Sublease income 20 108 223 388 Within the condensed consolidated statements of operations and comprehensive loss, operating and variable lease expense are recorded in General and administrative expenses and sublease income is recorded in Other income. Cash payments related to operating leases for the nine months ended September 30, 2020 and September 30, 2019 were $3.5 million and $4.0 million, respectively. As of September 30, 2020, the weighted-average remaining lease term is 8.2 years and the weighted-average discount rate is 5.6%. Remaining maturities of operating lease liabilities as of September 30, 2020 are as follows (in thousands): Years ending December 31, 2020 $ 729 2021 3,768 2022 3,930 2023 4,021 2024 4,112 Thereafter 16,498 Total future minimum lease payments $ 33,058 Less: imputed interest (6,670) Less: lease incentives (1) (740) Total operating lease liabilities $ 25,648 _________________ (1) Includes lease incentives that will be realized in 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for interim periods is generally determined using an estimate of the Company’s annual effective tax rate, excluding jurisdictions for which no tax benefit can be recognized due to valuation allowances. The Company’s effective tax rate generally differs from the U.S. federal statutory rate primarily due to a valuation allowance related to the Company’s federal and state deferred tax assets. The Company accounts for Global Intangible Low–Taxed Income (“GILTI”) as a current-period expense when incurred. Therefore, the Company has not recorded deferred taxes for basis differences expected to reverse in the future periods. There has historically been no federal or state provision for income taxes because the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. For the nine months ended September 30, 2020, the Company recognized an immaterial provision related to foreign income taxes. |
Incentive Stock Plan
Incentive Stock Plan | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Stock Plan | Incentive Stock Plan Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Cost of revenue $ 153 $ — $ 617 $ — Research and development 509 — 1,443 — Sales and marketing 667 — 1,833 — General and administrative 1,231 65 4,670 5,363 Total stock-based compensation $ 2,560 $ 65 $ 8,563 $ 5,363 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations The Company has non-cancellable minimum guaranteed purchase commitments for data and services. Contractual commitments as of September 30, 2020 are as follows (in thousands): Years ending December 31, 2020 $ 3,393 2021 20,486 2022 27,495 2023 15,222 2024 — Thereafter — Total contract commitments $ 66,596 Legal Matters From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. There were no material such matters as of and for the period ended September 30, 2020. Indemnification In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with third parties, including vendors, customers, investors and the Company’s directors and officers. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. There were no material obligations under such indemnification agreements as of and for the period ended September 30, 2020. |
Segment and Geographic Data
Segment and Geographic Data | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | Segment and Geographic Data The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information for purposes of making operating decisions, assessing financial performance and allocating resources. The Company’s CODM evaluates financial information on a consolidated basis. As the Company operates as one operating segment, all required segment financial information is found in the condensed consolidated financial statements. Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of September 30, 2020 and December 31, 2019, there were no significant long-lived assets held by entities outside of the United States. Revenue by geographical region is determined by location of the Company’s customers. Revenue from customers outside of the United States was approximately 28% for each of the nine months ended September 30, 2020 and 2019, respectively. Revenue by geographical region is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 26,455 $ 20,780 $ 74,847 $ 58,561 EMEA 5,304 4,075 15,363 11,690 Asia Pacific 1,907 1,566 5,393 4,312 Total $ 33,666 $ 26,421 $ 95,603 $ 74,563 |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of outstanding shares of common stock each period. Diluted net loss per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options, restricted stock units, restricted stock awards, preferred stock and warrants. Because the Company incurred net losses each period, the basic and diluted calculations are the same. Basic and diluted net loss per share are the same for each class of common stock, as both Class A and Class B stockholders are entitled to the same liquidation and dividend rights. The following table presents the calculation for 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, 2020 2019 2020 2019 Net loss attributable to common shareholders $ (6,997) $ (5,039) $ (25,779) $ (20,957) Weighted average common shares outstanding 51,910,517 16,948,809 50,777,222 16,829,622 Net loss per share, basic and diluted $ (0.13) $ (0.30) $ (0.51) $ (1.25) The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive. The Company’s RSUs included a triggering liquidation performance condition prior to vesting. As such, these are treated as contingently issuable shares and were excluded from potential dilutive impact until the triggering liquidation performance condition was satisfied upon completion of the IPO on December 17, 2019. September 30, 2020 2019 Stock options outstanding 174,000 1,178,705 RSUs 2,142,801 — Convertible preferred stock — 22,014,263 Warrants — 35,305 Total potentially dilutive shares 2,316,801 23,228,273 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity. The following tables present information about the Company’s financial assets that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands): September 30, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 115,222 $ — $ — $ 115,222 Marketable Securities: Corporate bonds — 22,908 — 22,908 Commercial paper — 16,461 — 16,461 U.S. Treasury securities — 10,125 — 10,125 Total assets $ 115,222 $ 49,494 $ — $ 164,716 December 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 129,280 $ — $ — $ 129,280 Total assets $ 129,280 $ — $ — $ 129,280 The Company classifies its money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted prices on active markets. Marketable securities are classified within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market. The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short-term maturities and are excluded from the fair value tables above. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn October 8, 2020, the Company's President and CEO became eligible to receive 120,916 RSUs pursuant to his employment agreement as the Company achieved a market capitalization threshold of $2 billion. Stock-based compensation expense of $0.2 million was recognized in relation to this award. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Company has prepared the unaudited condensed consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2019, and these unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full year or any future period. The consolidated balance sheet as of December 31, 2019 included herein was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain disclosures required by GAAP on an annual basis. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. |
Principles of Consolidation | All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances, including but not limited to the potential impacts arising from the COVID-19 pandemic. As the extent and duration of the impact of the COVID-19 pandemic remains uncertain, the Company’s estimates and judgments may evolve as conditions change. The Company is not aware of any events or circumstances that would require an update to its estimates and judgments or a revision of the carrying value of its assets or liabilities as of November 10, 2020, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. The Company’s most significant estimates and judgments are those related to the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for doubtful accounts, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. |
Marketable Securities | Marketable securities consist of corporate bonds, commercial paper, and U.S. Treasury securities. The Company classifies marketable securities as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All marketable securities are recorded at their estimated fair values. Unrealized gains and losses for the available-for-sale debt securities that are unrelated to credit loss factors are recorded in accumulated other comprehensive income (loss), or AOCI. As of September 30, 2020 and December 31, 2019, the Company’s AOCI balance was insignificant. Unrealized losses determined to be credit-related are recorded as Other income in the consolidated statements of operations and comprehensive loss and as an allowance for credit losses on Marketable securities on the consolidated balance sheet. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, including subsequent amendments, Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”), which modifies the accounting methodology for most financial instruments by establishing a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments, including trade accounts receivable, by using all practical and relevant information. This guidance is effective for interim and annual periods beginning after December 15, 2019. The Company adopted the ASU as of January 1, 2020, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software |
Deferred Revenue | Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancelable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size. |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of operating lease assets and liabilities | The following table provides a summary of operating lease assets and liabilities as of September 30, 2020 (in thousands): Assets Operating lease right-of-use assets $ 10,274 Liabilities Operating lease liabilities 1,904 Operating lease liabilities, non-current 23,744 Total operating lease liabilities $ 25,648 |
Schedule of lease cost | The following table provides information about leases on the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease expense $ 580 $ 541 $ 1,987 $ 1,743 Variable lease expense 875 926 2,457 2,607 Sublease income 20 108 223 388 |
Schedule of remaining maturities of operating lease liabilities | Remaining maturities of operating lease liabilities as of September 30, 2020 are as follows (in thousands): Years ending December 31, 2020 $ 729 2021 3,768 2022 3,930 2023 4,021 2024 4,112 Thereafter 16,498 Total future minimum lease payments $ 33,058 Less: imputed interest (6,670) Less: lease incentives (1) (740) Total operating lease liabilities $ 25,648 _________________ (1) Includes lease incentives that will be realized in 2020. |
Incentive Stock Plan (Tables)
Incentive Stock Plan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Cost of revenue $ 153 $ — $ 617 $ — Research and development 509 — 1,443 — Sales and marketing 667 — 1,833 — General and administrative 1,231 65 4,670 5,363 Total stock-based compensation $ 2,560 $ 65 $ 8,563 $ 5,363 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contractual commitments | Contractual commitments as of September 30, 2020 are as follows (in thousands): Years ending December 31, 2020 $ 3,393 2021 20,486 2022 27,495 2023 15,222 2024 — Thereafter — Total contract commitments $ 66,596 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenue by geographical region | Revenue by geographical region is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 26,455 $ 20,780 $ 74,847 $ 58,561 EMEA 5,304 4,075 15,363 11,690 Asia Pacific 1,907 1,566 5,393 4,312 Total $ 33,666 $ 26,421 $ 95,603 $ 74,563 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per share | The following table presents the calculation for 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, 2020 2019 2020 2019 Net loss attributable to common shareholders $ (6,997) $ (5,039) $ (25,779) $ (20,957) Weighted average common shares outstanding 51,910,517 16,948,809 50,777,222 16,829,622 Net loss per share, basic and diluted $ (0.13) $ (0.30) $ (0.51) $ (1.25) |
Schedule of shares excluded from the calculation of diluted net loss per share | The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive. The Company’s RSUs included a triggering liquidation performance condition prior to vesting. As such, these are treated as contingently issuable shares and were excluded from potential dilutive impact until the triggering liquidation performance condition was satisfied upon completion of the IPO on December 17, 2019. September 30, 2020 2019 Stock options outstanding 174,000 1,178,705 RSUs 2,142,801 — Convertible preferred stock — 22,014,263 Warrants — 35,305 Total potentially dilutive shares 2,316,801 23,228,273 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value | The following tables present information about the Company’s financial assets that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands): September 30, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 115,222 $ — $ — $ 115,222 Marketable Securities: Corporate bonds — 22,908 — 22,908 Commercial paper — 16,461 — 16,461 U.S. Treasury securities — 10,125 — 10,125 Total assets $ 115,222 $ 49,494 $ — $ 164,716 December 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 129,280 $ — $ — $ 129,280 Total assets $ 129,280 $ — $ — $ 129,280 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Details) - Class A common stock - USD ($) $ / shares in Units, $ in Millions | Aug. 17, 2020 | Jan. 15, 2020 |
Follow-On Public Offering | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Shares issued and sold in offering (in shares) | 1,612,500 | |
Offering price (in dollars per share) | $ 27.50 | |
Total proceeds from offering | $ 42.1 | |
Selling Shareholders | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Shares issued and sold in offering (in shares) | 5,287,500 | |
Over-Allotment Option | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Shares issued and sold in offering (in shares) | 629,603 | |
Total proceeds from offering | $ 10 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue recognized previously deferred | $ 17.5 | $ 11.3 | $ 27 | $ 19.7 | |
Revenue expected to be recognized | $ 53.9 | $ 53.9 | $ 42.1 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue expected to be recognized, percentage | 91.00% | ||||
Revenue, remaining performance obligation, period | 12 months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue expected to be recognized, percentage | 87.00% | 87.00% | |||
Revenue, remaining performance obligation, period | 12 months | 12 months |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Jan. 23, 2020 | Jan. 21, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Expected total future commitment | $ 7,900 | ||||
Operating lease, right-of-use assets | $ 10,274 | $ 5,618 | |||
Operating lease liability | 25,648 | ||||
Payments related to operating leases | $ 3,500 | $ 4,000 | |||
Weighted-average remaining lease term | 8 years 2 months 12 days | ||||
Weighted-average discount rate | 5.60% | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Monthly rental payments | $ 17 | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Monthly rental payments | $ 280 | ||||
Lease Commenced on January 23, 2020 | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease, right-of-use assets | $ 5,400 | ||||
Operating lease liability | $ 5,400 |
Operating Leases - Summary of o
Operating Leases - Summary of operating lease assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease, right-of-use assets | $ 10,274 | $ 5,618 |
Operating lease liabilities | 1,904 | 2,331 |
Operating lease liabilities, net of current portion | 23,744 | $ 18,196 |
Total operating lease liabilities | $ 25,648 |
Operating Leases - Lease cost (
Operating Leases - Lease cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease expense | $ 580 | $ 541 | $ 1,987 | $ 1,743 |
Variable lease expense | 875 | 926 | 2,457 | 2,607 |
Sublease income | $ 20 | $ 108 | $ 223 | $ 388 |
Operating Leases - Remaining ma
Operating Leases - Remaining maturities of operating lease liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 729 |
2021 | 3,768 |
2022 | 3,930 |
2023 | 4,021 |
2024 | 4,112 |
Thereafter | 16,498 |
Total future minimum lease payments | 33,058 |
Less: imputed interest | (6,670) |
Less: lease incentives | (740) |
Total operating lease liabilities | $ 25,648 |
Incentive Stock Plan (Details)
Incentive Stock Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 2,560 | $ 65 | $ 8,563 | $ 5,363 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 153 | 0 | 617 | 0 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 509 | 0 | 1,443 | 0 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 667 | 0 | 1,833 | 0 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 1,231 | $ 65 | $ 4,670 | $ 5,363 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 3,393 |
2021 | 20,486 |
2022 | 27,495 |
2023 | 15,222 |
2024 | 0 |
Thereafter | 0 |
Total contract commitments | $ 66,596 |
Segment and Geographic Data (De
Segment and Geographic Data (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 33,666 | $ 26,421 | $ 95,603 | $ 74,563 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 26,455 | 20,780 | 74,847 | 58,561 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,304 | 4,075 | 15,363 | 11,690 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,907 | $ 1,566 | $ 5,393 | $ 4,312 |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Outside of the United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 28.00% | 28.00% |
Net Loss per Share - Basic and
Net Loss per Share - Basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to common shareholders | $ (6,997) | $ (5,039) | $ (25,779) | $ (20,957) |
Weighted average common shares outstanding (in shares) | 51,910,517 | 16,948,809 | 50,777,222 | 16,829,622 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.13) | $ (0.30) | $ (0.51) | $ (1.25) |
Net Loss per Share - Shares exc
Net Loss per Share - Shares excluded from the calculation of diluted net loss per share (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 2,316,801 | 23,228,273 |
Stock options outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 174,000 | 1,178,705 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 2,142,801 | 0 |
Convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 0 | 22,014,263 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 0 | 35,305 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 164,716 | $ 129,280 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 115,222 | 129,280 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 49,494 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 22,908 | |
Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 22,908 | |
Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 16,461 | |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 16,461 | |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,125 | |
U.S. Treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
U.S. Treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,125 | |
U.S. Treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 115,222 | 129,280 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 115,222 | 129,280 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Oct. 08, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Subsequent Event [Line Items] | |||||
Stock-based compensation expense | $ 2,560,000 | $ 65,000 | $ 8,563,000 | $ 5,363,000 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Market capitalization threshold | $ 2,000,000,000 | ||||
RSUs | Subsequent Event | Chief Executive Officer | |||||
Subsequent Event [Line Items] | |||||
Share-based award grant (in shares) | 120,916 | ||||
Stock-based compensation expense | $ 200,000 |