Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2020 | |
Cover [Abstract] | |
Document Type | S-1 |
Entity Registrant Name | SPROUT SOCIAL, INC. |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Central Index Key | 0001517375 |
Amendment Flag | false |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | |||
Cash and cash equivalents | $ 79,792 | $ 135,310 | $ 26,190 |
Marketable securities | 49,671 | 0 | |
Accounts receivable, net of allowances of $1,691, $706 and $374 at June 30, 2020, December 31, 2019 and 2018, respectively | 14,089 | 11,099 | 10,551 |
Deferred commissions | 6,715 | 5,574 | 3,634 |
Prepaid expenses and other assets | 4,157 | 5,050 | 2,507 |
Total current assets | 154,424 | 157,033 | 42,882 |
Property and equipment, net | 13,410 | 13,529 | 15,524 |
Deferred commissions, net of current portion | 6,367 | 5,505 | 4,087 |
Operating lease, right-of-use asset | 10,443 | 5,618 | |
Goodwill | 2,299 | 2,299 | 2,299 |
Intangible assets, net | 4,769 | 5,482 | 7,014 |
Other assets, net | 124 | 125 | 39 |
Total assets | 191,836 | 189,591 | 71,845 |
Current liabilities | |||
Accounts payable | 2,228 | 2,049 | 1,784 |
Deferred revenue | 35,264 | 29,566 | 21,150 |
Operating lease liability | 1,941 | 2,331 | |
Accrued wages and payroll related benefits | 4,456 | 4,053 | 3,735 |
Accrued expenses and other | 5,823 | 5,057 | 4,402 |
Total current liabilities | 49,712 | 43,056 | 31,071 |
Deferred rent, net of current portion | 14,651 | ||
Deferred revenue, net of current portion | 201 | 209 | 390 |
Operating lease liability, net of current portion | 22,889 | 18,196 | 0 |
Total liabilities | 72,802 | 61,461 | 46,112 |
Commitments and contingencies (Note 10) | |||
Stockholders’ (deficit)/equity | |||
Preferred stock | 0 | 0 | |
Common stock | 0 | 1 | |
Additional paid-in capital | 280,104 | 263,943 | 1,844 |
Treasury stock, at cost | (26,905) | (20,430) | (10,507) |
Accumulated deficit | (134,170) | (115,388) | (68,581) |
Total stockholders’ equity | 119,034 | 128,130 | 25,733 |
Total liabilities and stockholders’ equity | 191,836 | 189,591 | 71,845 |
Series A convertible preferred stock | |||
Stockholders’ (deficit)/equity | |||
Preferred stock | 0 | 448 | |
Series A-1 convertible preferred stock | |||
Stockholders’ (deficit)/equity | |||
Preferred stock | 0 | 800 | |
Series B convertible preferred stock | |||
Stockholders’ (deficit)/equity | |||
Preferred stock | 0 | 9,961 | |
Series B-1 convertible preferred stock | |||
Stockholders’ (deficit)/equity | |||
Preferred stock | 0 | 9,663 | |
Series C convertible preferred stock | |||
Stockholders’ (deficit)/equity | |||
Preferred stock | 0 | 41,799 | |
Series D convertible preferred stock | |||
Stockholders’ (deficit)/equity | |||
Preferred stock | 0 | 40,305 | |
Class A common stock | |||
Stockholders’ (deficit)/equity | |||
Common stock | 4 | 4 | 0 |
Class B common stock | |||
Stockholders’ (deficit)/equity | |||
Common stock | $ 1 | $ 1 | $ 0 |
Consolidated Balance Sheets C_2
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 1,691 | $ 706 | $ 374 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Preferred Stock, shares authorized (in shares) | 10,000,000 | ||
Preferred stock, shares issued (in shares) | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | ||
Common Stock, shares authorized (in shares) | 46,000,000 | ||
Common stock, shares issued (in shares) | 18,652,960 | ||
Common stock, shares outstanding (in shares) | 16,697,109 | ||
Series A convertible preferred stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Preferred Stock, shares authorized (in shares) | 2,690,403 | ||
Preferred stock, shares issued (in shares) | 2,690,403 | ||
Preferred stock, shares outstanding (in shares) | 2,690,403 | ||
Series A-1 convertible preferred stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Preferred Stock, shares authorized (in shares) | 1,600,000 | ||
Preferred stock, shares issued (in shares) | 1,600,000 | ||
Preferred stock, shares outstanding (in shares) | 1,600,000 | ||
Series B convertible preferred stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Preferred Stock, shares authorized (in shares) | 6,108,000 | ||
Preferred stock, shares issued (in shares) | 6,108,000 | ||
Preferred stock, shares outstanding (in shares) | 6,108,000 | ||
Series B-1 convertible preferred stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Preferred Stock, shares authorized (in shares) | 2,492,570 | ||
Preferred stock, shares issued (in shares) | 2,449,700 | ||
Preferred stock, shares outstanding (in shares) | 2,449,700 | ||
Series C convertible preferred stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Preferred Stock, shares authorized (in shares) | 6,989,863 | ||
Preferred stock, shares issued (in shares) | 6,989,863 | ||
Preferred stock, shares outstanding (in shares) | 6,989,863 | ||
Series D convertible preferred stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Preferred Stock, shares authorized (in shares) | 2,176,297 | ||
Preferred stock, shares issued (in shares) | 2,176,297 | ||
Preferred stock, shares outstanding (in shares) | 2,176,297 | ||
Class A common stock | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common Stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 43,761,312 | 41,714,870 | |
Common stock, shares outstanding (in shares) | 40,961,808 | 39,041,065 | |
Class B common stock | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | |
Common stock, shares issued (in shares) | 10,081,127 | 9,803,933 | |
Common stock, shares outstanding (in shares) | 9,927,749 | 9,803,933 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | |||||||
Total revenue | $ 31,402 | $ 24,763 | $ 61,937 | $ 48,142 | $ 102,707 | $ 78,813 | $ 44,815 |
Cost of revenue | |||||||
Total cost of revenue | 8,320 | 6,214 | 16,528 | 12,059 | 28,154 | 20,994 | 9,995 |
Gross profit | 23,082 | 18,549 | 45,409 | 36,083 | 74,553 | 57,819 | 34,820 |
Operating expenses | |||||||
Research and development | 7,712 | 6,424 | 14,993 | 12,776 | 28,059 | 25,426 | 16,664 |
Sales and marketing | 14,184 | 11,728 | 28,078 | 22,180 | 55,584 | 35,980 | 25,165 |
General and administrative | 9,528 | 11,277 | 21,624 | 17,361 | 38,178 | 17,185 | 14,994 |
Total operating expenses | 31,424 | 29,429 | 64,695 | 52,317 | 121,821 | 78,591 | 56,823 |
Loss from operations | (8,342) | (10,880) | (19,286) | (16,234) | (47,268) | (20,772) | (22,003) |
Interest expense | (96) | (77) | (191) | (129) | (270) | (617) | (24) |
Interest income | 53 | 90 | 513 | 195 | 307 | 35 | 117 |
Other income | 101 | 131 | 203 | 280 | 490 | 442 | 0 |
Loss before income taxes | (8,284) | (10,736) | (18,761) | (15,888) | (46,741) | (20,912) | (21,910) |
Income tax expense | 18 | 19 | 21 | 30 | 66 | 22 | 0 |
Net loss | (8,302) | (10,755) | (18,782) | (15,918) | (46,807) | (20,934) | (21,910) |
Comprehensive loss | $ (8,302) | $ (10,755) | $ (18,782) | $ (15,918) | $ (46,807) | $ (20,934) | $ (21,910) |
Net loss per share attributable to common shareholders, basic and diluted (in dollars per share) | $ (0.16) | $ (0.64) | $ (0.37) | $ (0.95) | $ (2.54) | $ (1.26) | $ (1.34) |
Weighted-average shares outstanding used to compute net loss per share, basic and diluted (in shares) | 50,527,432 | 16,753,014 | 50,263,061 | 16,832,105 | 18,438,695 | 16,593,258 | 16,400,767 |
Subscription | |||||||
Revenue | |||||||
Total revenue | $ 31,190 | $ 24,669 | $ 61,519 | $ 48,001 | $ 102,243 | $ 78,392 | $ 44,685 |
Cost of revenue | |||||||
Total cost of revenue | 8,178 | 6,154 | 16,264 | 11,969 | 27,862 | 20,726 | 9,964 |
Professional services and other | |||||||
Revenue | |||||||
Total revenue | 212 | 94 | 418 | 141 | 464 | 421 | 130 |
Cost of revenue | |||||||
Total cost of revenue | $ 142 | $ 60 | $ 264 | $ 90 | $ 292 | $ 268 | $ 31 |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders’ (Deficit)/Equity Statement - USD ($) $ in Thousands | Total | Voting Common Stock | Additional Paid-in Capital | Series A, A-1, B, B-1, C and D Convertible Preferred Stock (in equity) | Treasury Stock | Accumulated Deficit | Series A, A-1, B, B-1 and C Convertible Redeemable Preferred Stock |
Beginning balance (in shares) at Dec. 31, 2016 | 19,837,966 | ||||||
Beginning balance at Dec. 31, 2016 | $ 62,671 | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 19,837,966 | ||||||
Ending balance at Dec. 31, 2017 | $ 62,671 | ||||||
Beginning balance (in shares) at Dec. 31, 2016 | 16,371,202 | 0 | (1,973,851) | ||||
Beginning balance at Dec. 31, 2016 | $ (35,174) | $ 1 | $ 1,068 | $ 0 | $ (10,507) | $ (25,736) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 133,151 | ||||||
Exercise of stock options | 143 | 144 | (1) | ||||
Stock-based compensation expense | 473 | 473 | |||||
Net loss | (21,910) | (21,910) | |||||
Ending balance (in shares) at Dec. 31, 2017 | 16,504,353 | 0 | (1,973,851) | ||||
Ending balance at Dec. 31, 2017 | (56,468) | $ 1 | 1,685 | $ 0 | $ (10,507) | (47,647) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Reclassification of convertible preferred stock (in shares) | 19,837,966 | (19,837,966) | |||||
Reclassification of convertible preferred stock | 62,671 | $ 62,671 | $ (62,671) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 0 | ||||||
Ending balance at Dec. 31, 2018 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 174,756 | ||||||
Exercise of stock options | 106 | 106 | |||||
Stock-based compensation expense | 53 | 53 | |||||
Reclassification of convertible preferred stock (in shares) | 19,837,966 | (19,837,966) | |||||
Reclassification of convertible preferred stock | 62,671 | $ 62,671 | $ (62,671) | ||||
Issuance of stock (in shares) | 2,176,297 | ||||||
Issuance of stock | 40,305 | $ 40,305 | |||||
Net loss | (20,934) | (20,934) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 16,679,109 | 22,014,263 | (1,973,851) | ||||
Ending 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) | 95,343 | ||||||
Exercise of stock options | 45 | 45 | |||||
Stock-based compensation expense | 5,298 | 5,298 | |||||
Net issuance of RSA grant (in shares) | 242,155 | 192,281 | |||||
Net issuance of RSA grant | (2,345) | $ (2,345) | |||||
Net loss | (15,918) | (15,918) | |||||
Ending balance (in shares) at Jun. 30, 2019 | 17,016,607 | 22,014,263 | (2,166,132) | ||||
Ending balance at Jun. 30, 2019 | 12,813 | $ 1 | 7,187 | $ 102,976 | $ (12,852) | (84,499) | |
Beginning balance (in shares) at Dec. 31, 2018 | 0 | ||||||
Beginning balance at Dec. 31, 2018 | $ 0 | ||||||
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) | 163,962 | 163,962 | |||||
Exercise of stock options | $ 92 | 92 | |||||
Stock-based compensation expense | 25,333 | 25,333 | |||||
Net issuance of common stock from equity award settlement (in shares) | 1,164,134 | 699,954 | |||||
Net issuance of common stock from equity award settlement | (9,923) | $ (9,923) | |||||
Issuance of stock (in shares) | 8,823,530 | ||||||
Issuance of stock | 133,702 | $ 2 | 133,700 | ||||
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares) | 22,014,263 | (22,014,263) | |||||
Conversion of convertible preferred stock to common stock in connection with initial public offering | $ 2 | 102,974 | $ (102,976) | ||||
Net loss | (46,807) | (46,807) | |||||
Ending balance (in shares) at Dec. 31, 2019 | 48,844,998 | 0 | (2,673,805) | ||||
Ending balance at Dec. 31, 2019 | 128,130 | $ 5 | 263,943 | $ 0 | $ (20,430) | (115,388) | |
Beginning balance (in shares) at Mar. 31, 2019 | 16,686,504 | 22,014,263 | (1,973,851) | ||||
Beginning balance at Mar. 31, 2019 | 20,576 | $ 1 | 1,850 | $ 102,976 | $ (10,507) | (73,744) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 87,948 | ||||||
Exercise of stock options | 39 | 39 | |||||
Stock-based compensation expense | 5,298 | 5,298 | |||||
Net issuance of RSA grant (in shares) | 242,155 | 192,281 | |||||
Net issuance of RSA grant | (2,345) | $ (2,345) | |||||
Net loss | (10,755) | (10,755) | |||||
Ending balance (in shares) at Jun. 30, 2019 | 17,016,607 | 22,014,263 | (2,166,132) | ||||
Ending balance at Jun. 30, 2019 | 12,813 | $ 1 | 7,187 | $ 102,976 | $ (12,852) | (84,499) | |
Beginning balance (in shares) at Dec. 31, 2019 | 48,844,998 | 0 | (2,673,805) | ||||
Beginning balance at Dec. 31, 2019 | 128,130 | $ 5 | 263,943 | $ 0 | $ (20,430) | (115,388) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 708,086 | ||||||
Exercise of stock options | 280 | 280 | |||||
Stock-based compensation expense | 6,003 | 6,003 | |||||
Net issuance of common stock from equity award settlement (in shares) | 679,910 | ||||||
Net 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 stock (in shares) | 629,603 | ||||||
Issuance of stock | 9,738 | 9,738 | |||||
Exercise of warrants (in shares) | 26,960 | 8,345 | |||||
Exercise of warrants | 0 | 140 | $ (140) | ||||
Net loss | (18,782) | (18,782) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 50,889,557 | (2,952,882) | |||||
Ending balance at Jun. 30, 2020 | 119,034 | $ 5 | 280,104 | $ (26,905) | (134,170) | ||
Beginning balance (in shares) at Mar. 31, 2020 | 50,349,964 | (2,841,959) | |||||
Beginning balance at Mar. 31, 2020 | 127,970 | $ 5 | 277,485 | $ (23,652) | (125,868) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 364,404 | ||||||
Exercise of stock options | 138 | 138 | |||||
Stock-based compensation expense | 2,481 | 2,481 | |||||
Net issuance of common stock from equity award settlement (in shares) | 175,189 | ||||||
Net issuance of common stock from equity award settlement | 0 | ||||||
Taxes paid related to net share settlement of equity awards (in shares) | 110,923 | ||||||
Taxes paid related to net share settlement of equity awards | (3,253) | $ (3,253) | |||||
Net loss | (8,302) | (8,302) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 50,889,557 | (2,952,882) | |||||
Ending balance at Jun. 30, 2020 | $ 119,034 | $ 5 | $ 280,104 | $ (26,905) | $ (134,170) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||||
Net loss | $ (18,782,000) | $ (15,918,000) | $ (46,807,000) | $ (20,934,000) | $ (21,910,000) |
Adjustments to reconcile net loss to net cash (used in) operating activities | |||||
Depreciation of property and equipment | 1,434,000 | 1,335,000 | 2,736,000 | 2,441,000 | 1,233,000 |
Amortization of line of credit issuance costs | 118,000 | 98,000 | 194,000 | 128,000 | 11,000 |
Amortization of premium on investments | 51,000 | 0 | |||
Amortization of acquired intangible assets | 713,000 | 771,000 | 1,532,000 | 1,545,000 | 121,000 |
Amortization of deferred commissions | 3,414,000 | 2,126,000 | 4,812,000 | 2,795,000 | 1,358,000 |
Amortization of right-of-use operating lease asset | 687,000 | 587,000 | 1,056,000 | ||
Stock-based compensation expense | 6,003,000 | 5,298,000 | 25,333,000 | 53,000 | 473,000 |
Provision for accounts receivable allowances | 1,340,000 | 685,000 | 2,208,000 | 793,000 | 86,000 |
Changes in operating assets and liabilities | |||||
Accounts receivable | (4,330,000) | 643,000 | (2,756,000) | (4,940,000) | (2,514,000) |
Prepaid expenses and other current assets | 807,000 | (876,000) | (2,657,000) | (1,242,000) | (599,000) |
Deferred commissions | (5,417,000) | (2,748,000) | (8,170,000) | (6,964,000) | (3,063,000) |
Accounts payable and accrued expenses | 942,000 | (660,000) | 1,430,000 | 1,761,000 | 3,875,000 |
Deferred revenue | 5,690,000 | 2,848,000 | 8,235,000 | 7,162,000 | 5,404,000 |
Lease liabilities | (1,215,000) | (629,000) | (1,560,000) | 0 | 0 |
Deferred rent | 164,000 | 1,180,000 | |||
Net cash (used in) operating activities | (8,545,000) | (6,440,000) | (14,414,000) | (17,238,000) | (14,345,000) |
Cash flows from investing activities | |||||
Purchases of property and equipment | (808,000) | (375,000) | (760,000) | (2,097,000) | (673,000) |
Acquisition of businesses, net of cash acquired | 0 | 0 | (11,843,000) | ||
Purchases of marketable securities | (49,722,000) | 0 | |||
Net cash (used in) investing activities | (50,530,000) | (375,000) | (760,000) | (2,097,000) | (12,516,000) |
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 | 9,954,000 | 0 | 139,500,000 | 0 | 0 |
Proceeds from line of credit | 0 | 11,000,000 | 3,000,000 | ||
Repayments of line of credit | 0 | (14,000,000) | 0 | ||
Proceeds from Issuance of Convertible Preferred Stock | 0 | 40,305,000 | 0 | ||
Payments for line of credit issuance costs | (126,000) | (47,000) | (148,000) | (163,000) | (116,000) |
Proceeds from exercise of stock options | 280,000 | 45,000 | 92,000 | 106,000 | 143,000 |
Employee taxes paid related to the net share settlement of stock-based awards | (6,335,000) | 0 | (9,923,000) | 0 | 0 |
Payments of deferred offering costs | (216,000) | (529,000) | (5,227,000) | 0 | 0 |
Net cash provided by (used in) financing activities | 3,557,000 | (531,000) | 124,294,000 | 37,248,000 | 3,027,000 |
Net increase (decrease) in cash and cash equivalents | (55,518,000) | (7,346,000) | 109,120,000 | 17,913,000 | (23,834,000) |
Cash and cash equivalents | |||||
Beginning of period | 135,310,000 | 26,190,000 | 26,190,000 | 8,277,000 | 32,111,000 |
End of period | 79,792,000 | 18,844,000 | 135,310,000 | 26,190,000 | 8,277,000 |
Supplemental noncash disclosures | |||||
Cash paid for interest | 76,000 | 489,000 | 81,000 | ||
Cash paid for income taxes | 22,000 | 0 | 0 | ||
Operating lease liability arising from operating ROU asset obtained | 5,417,000 | 0 | |||
Property and equipment acquired under lease incentives | 101,000 | 0 | 0 | 927,000 | 5,394,000 |
Noncash exercise of stock warrants | 140,000 | 0 | |||
Deferred offering costs, accrued but not yet paid | 0 | 1,236,000 | $ 573,000 | $ 0 | $ 0 |
Employee taxes related to the net share settlement of stock-based awards, accrued but not yet paid | 0 | 2,345,000 | |||
Balance of property and equipment in accounts payable | $ 551,000 | $ 0 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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. Over-allotment Offering On January 15, 2020, the Company completed an equity offering in which it 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 August 6, 2020, the date of issuance of these financial statements. 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 six months ended June 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 June 30, 2020 and December 31, 2019, the Company’s AOCI bal ance 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 June 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 | 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. Initial Public Offering On December 17, 2019, the Company completed its initial public offering or “IPO” in which it issued and sold 8,823,530 shares of Class A common stock at a price to the public of $17.00 per share. The shares sold and issued in the IPO resulted in an aggregate gross offering price of $150.0 million . The Company received net proceeds of $134.3 million after deducting underwriting discounts and commissions of $10.5 million and offering expenses of $5.2 million . Immediately prior to the closing of the IPO, all shares of outstanding convertible preferred stock automatically converted into an aggregate of 22,014,263 shares of Class A common stock. In addition, the Company authorized 1,000,000,000 Class A common shares, 25,000,000 Class B common shares and 10,000,000 shares of preferred stock for future issuance. Principles of Consolidation and Basis of Presentation The 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 consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 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. 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, valuation of assets and liabilities acquired as part of business combinations, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. Segment Information 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 consolidated financial statements. Fair Value of Financial Instruments The Company has the following financial instruments: cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities. The carrying value of the Company’s cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to their short-term nature. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Interest earned on cash and cash equivalents is recorded as interest income in the consolidated statement of operations. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of amounts billed and currently due from customers, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of an unconditional right to payment under non-cancellable contracts. Our typical payment terms provide for customer payment within 30 days of the date of the contract. Accounts receivable are subject to collection risk. The Company performs evaluations of its customers’ financial positions and generally extends credit on account, without collateral. The Company determines the need for an allowance for doubtful accounts based upon various factors, including past collection experience, credit quality of the customer, age of the receivable balance and current economic conditions. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Amounts are charged against the allowance for doubtful accounts once collection efforts are unsuccessful. Bad debt expense was $2.2 million , $0.8 million and $0.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The allowance for doubtful accounts was $0.7 million and $0.4 million as of December 31, 2019 and 2018 , respectively. The activity related to the allowance for doubtful accounts for the year ended December 31, 2019 was as follows (in thousands): Balance at December 31, 2018 $ 374 Additions 1,920 Write-offs, net of recoveries (1,588 ) Balance at December 31, 2019 $ 706 The activity related to the allowance for doubtful accounts for the years ended December 31, 2018 and 2017 was immaterial. Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk are primarily cash and accounts receivable. The Company maintains cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on its deposits of cash. The Company has credit risk regarding trade accounts receivable as the Company generally does not require collateral. Allowances are maintained for potential credit losses. As of December 31, 2019 and 2018 , there were no individual customers that accounted for more than 10% of the Company’s total revenue or net accounts receivable. Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment and hardware 3-5 years Furniture and fixtures 3-7 years Leasehold improvements Lesser of useful life or remaining lease term Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost of assets disposed and the related accumulated depreciation are written off, and any resulting gain or loss is credited or charged to income. Goodwill Goodwill consists of the excess purchase price over the fair value of net assets acquired in purchase business combinations. The Company conducts a test for the impairment of goodwill on at least an annual basis as of October 1 st or sooner if indicators of impairment arise. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. As part of the qualitative assessment, the Company evaluates factors including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance of its reporting unit. If the Company concludes that it is more-likely-than-not that its single reporting unit is impaired or if the Company elects not to perform the optional qualitative assessment, a quantitative assessment is performed. For the quantitative assessment, the fair value of the Company’s reporting unit is compared with the carrying amount of net assets, including goodwill, related to the reporting unit. The Company recognizes an impairment charge for the amount, if any, by which the carrying amount of a reporting unit exceeds the fair value of the reporting unit. The Company recorded no impairment loss during the years ended December 31, 2019 and 2018 . Impairment of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets, which includes property and equipment and intangible assets, whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability of an asset is measured by comparison of its carrying amount to the anticipated future undiscounted cash flows that the asset is expected to generate. If that comparison indicates that the carrying amount is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset exceeds its fair value. The Company recorded no impairment loss during the years ended December 31, 2019 and 2018 . Revenue Recognition The Company generates revenues from subscriptions to the Company’s web-based social media management platform under a software-as-a-service model. Our subscriptions can range from monthly to one-year or multi-year arrangements and are generally non-cancellable. The Company’s customers do not have the right to take possession of the online software solution. The Company commences revenue recognition when control of these products is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for such products. The Company determines revenue recognition through the following steps: • identify the contract with a customer; • identify the performance obligations in a contract; • determination of the transaction price; • allocate the transaction price to the performance obligations identified in the contract; and • recognize revenue when (or as) performance obligations are satisfied. Identify the contract with a customer A customer contract is generally identified when the Company and a customer have executed an agreement or online acceptance that requires the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer. Identify the performance obligations in a contract A performance obligation is a promise to provide a distinct service or a series of distinct services. A service that is promised to a customer is distinct if the customer can benefit from the service either on its own or together with other readily available resources, and a company’s promise to transfer the service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are a distinct performance obligation, because no implementation work is required and the online software product is fully functional once a customer has access. In addition, the Company sells professional services consisting of, but not limited to, implementation fees, specialized training, one-time reporting services and recurring periodic reporting services. Professional services are distinct, as they are sold separately, and the customer can benefit from the services to make better use of the online product purchased. Determination of the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company estimates any variable consideration it will be entitled at contract inception and will reassess as circumstances change, when determining the transaction price. The transaction price for subscription and professional services is generally fixed at contract inception; therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods due to changes in the transaction price was not material. Allocate the transaction price to the performance obligations identified in the contract If the contract contains a single performance obligation, the Company allocates the entire transaction price to the single performance obligation. For contracts containing multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative standalone selling price (“SSP”) of the services provided to the customer. The Company determines the SSP based upon the prices at which the Company separately sells subscription and various professional services, and based on the Company’s overall pricing objectives, taking into consideration market conditions, value of the Company’s contracts, the types of offerings sold, customer demographics and other factors. Recognize revenue when (or as) performance obligations are satisfied Subscription revenues are recognized ratably over the contract terms beginning on the date the Company’s service is made available to customers, which typically begins on the commencement date of each contract as no implementation work is required. The Company’s customers do not have the right to take possession of the online software solution. The Company’s subscription service arrangements are generally non-cancellable and do not provide for refund of subscription fees. Professional services are typically provided for a fixed fee, and revenues are recognized over time for these contracts as services are provided to the customer. Professional services revenue represents less than 1% of revenue for the periods presented. Sales Commissions Sales force commissions are considered incremental costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts with new customers and for expansion of contracts with existing customers. No commissions are paid on customer renewals. Sales commissions are deferred and amortized on a straight-line basis over a period of benefit of three years, as determined by the Company. The Company determined the three-year period by taking into consideration the products sold, expected customer life, expected contract renewals, technology life cycle and other factors. Amortization expense is included as a component of sales and marketing expense. Deferred commissions during the year ended December 31, 2019 increased $3.3 million as a result of deferring incremental costs of obtaining contracts with customers of $8.1 million , which was offset by $4.8 million of amortization. Deferred commissions during the year ended December 31, 2018 increased $4.2 million as a result of deferring incremental costs of obtaining contracts with customers of $7.0 million , which was offset by $2.8 million of amortization. The Company periodically reviews the deferred sales commissions for impairment and noted no impairment loss for the years ended December 31, 2019 and 2018 . Cost of Revenues Cost of revenues primarily consist of expenses related to hosting the Company’s service and providing support to customers, depreciation associated with computers and hardware and amortization expense related to acquired developed technologies. These expenses are comprised of hosted data center global costs, fees paid to third-party data providers and personnel-related costs directly associated with cloud infrastructure and customer support, including salaries, benefits, bonuses and allocated overhead. Overhead associated with facilities and information technology is allocated to cost of revenue and operating expenses based on headcount. Advertising Costs Advertising costs primarily include online advertising on search engines. Advertising costs are expensed as incurred and included as a component of sales and marketing expenses. The Company incurred approximately $2.4 million , $1.5 million and $4.6 million in advertising costs during the years ended December 31, 2019 , 2018 and 2017 , respectively. Research and Development Costs Costs incurred in research and development are expensed as incurred and consist primarily of payroll, employee benefits, allocated overhead and other expenses associated with product development. Stock-Based Compensation The Company recognizes compensation expense for equity awards based on the grant‐date fair value over the remaining requisite service period for the award. For awards subject to graded vesting, the compensation expense recognized is at least equal to the vested portion of the award. The Company uses the Black‐Scholes option pricing model to measure the fair value of the option awards. The Company sets the exercise price at the estimated fair‐market value at the date of the grant. Management utilized third‐party valuations to assist with the determination of the Company’s estimated fair‐market value and common stock price prior to completion of its IPO on December 17, 2019. The exercise price affects the fair value of the option award in the Black‐Scholes option pricing model. The grant-date fair value of RSUs that contain a market condition is determined using a Monte Carlo valuation model. The Company recognizes forfeitures as they occur. Leases The Company determines if an arrangement is a lease at inception, and all significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and operating lease liabilities are recognized at commencement based on the present value of fixed payments not yet paid over the remaining lease term. ROU assets also include any initial indirect costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. For short-term leases of 12 months or less, no ROU asset or lease liability is recorded. The Company records rent expense in its condensed consolidated statement of operations and comprehensive loss on a straight-line basis over the term of the lease and records variable lease payments as incurred. Additionally, the Company has elected to combine lease and non-lease components and account for them as a single component. ROU assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent its obligations to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise the option. The Company uses its incremental borrowing rate in determining the lease liabilities, as its leases generally do not provide an implicit rate. The incremental borrowing rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term based on the information available at the commencement date. The Company does not have any finance leases. Commitments and Contingencies The Company evaluates all pending or threatened commitments and contingencies, if any, that are reasonably likely to have a material effect on its operations or financial position. The Company assesses the probability of an adverse outcome and records a provision for a liability when management believes that it is probable that a liability has been incurred and the amount can be reasonably estimated. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that these assets are believed to be more likely than not to be realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. Tax benefits for uncertain tax positions are based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more-likely-than-not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more-likely-than-not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of provision for income taxes. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheets, as applicable. The Company files income tax returns in the U.S. federal jurisdiction, Illinois and other state jurisdictions. It is difficult to predict the final timing and resolution of any particular uncertain tax position. Based on the Company’s assessment of many factors, including past experience and complex judgments about future events, the Company does not currently anticipate significant changes in its uncertain tax positions over the next 12 months. Deferred Offering Costs Deferred offering costs of $5.8 million , primarily consisting of certain legal, accounting and other third-party fees that were directly associated with the IPO, were recorded in stockholders’ equity as a reduction of additional paid-in capital generated upon closing of the IPO on December 17, 2019. Net Loss per Share The Company calculates basic net loss per share by dividing net loss attributable to common shareholders by the weighted-average number of the Company’s common stock shares outstanding during the respective period. Net loss attributable to common shareholders is net loss minus convertible preferred stock dividends declared, of which there were none during the periods presented. The Company calculates diluted net loss per share using the treasury stock and if-converted methods, which consider the potential impacts of outstanding stock options, RSUs, warrants and convertible preferred stock. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share. During the periods presented, the impact is to decrease net loss per share and therefore the Company is precluded from adjusting its calculation for these securities. As a result, diluted net loss per share is calculating using the same formula as basic net loss per share. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016 02”), including subsequent amendments. ASU 2016-02 requires lessees to record a ROU asset and lease liability for almost all leases. This ASU does not substantially impact lessor accounting. The Company adopted the standard on January 1, 2019 using a modified retrospective approach of applying the new standard at the adoption date. Under this approach, the Company will continue to report comparative periods presented in the period of adoption under ASC 840. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard, which does not require it to reassess 1) whether any expired or existing contracts contain leases, 2) the lease classification of any expired or existing leases or 3) any initial direct costs for any existing leases. Adoption of this standard resulted in recognition of ROU assets of $6.7 million , short-term lease liabilities of $1.8 million , long-term lease liabilities of $20.3 million , a decrease in accrued expenses and other of $0.7 million and a decrease in deferred rent, net of current portion of $14.7 million , with no impact on retained earnings as of January 1, 2019. The adoption of the standard is not expected to have a significant impact on the Company’s condensed consolidated statement of operations. See Note 5 for further details. |
Revenue Recognition
Revenue Recognition | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, 2020 and 2019 that was included in deferred revenue at the beginning of each period was $16.4 million and $11.4 million , respectively. The amount of revenue recognized during the six months ended June 30, 2020 and 2019 that was included in deferred revenue at the beginning of each period was $22.3 million and $16.6 million , respectively. As of December 31, 2019 , including amounts already invoiced and amounts contracted but not yet invoiced, $42.1 million of revenue was expected to be recognized from remaining performance obligations, of which 91% is expected to be recognized in the next 12 months , with the remainder expected to be recognized the following year. As of June 30, 2020 , including amounts already invoiced and amounts contracted but not yet invoiced, $50.9 million of revenue is expected to be recognized from remaining performance obligations, of which 86% is expected to be recognized in the next 12 months | Revenue Recognition Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region in Note 11 and based on the subscription versus professional services and other classification on the 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-cancellable contracts for subscription and professional services described above 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. Deferred revenue during the year ended December 31, 2019 , increased $8.3 million as a result of $111.0 million of additional invoicing which was offset by $102.7 million of revenue recognized during the same period. Deferred revenue during the year ended December 31, 2018 , increased $7.2 million as a result of $86.0 million of additional invoicing which was offset by $78.8 million of revenue recognized during the same period. The amount of revenue recognized during the years ended December 31, 2019 and 2018 that was included in deferred revenue at the beginning of each period was $20.9 million and $14.1 million , respectively. As of December 31, 2019 , including amounts already invoiced and amounts contracted but not yet invoiced, $42.1 million of revenue is expected to be recognized from remaining performance obligations, of which 91% is expected to be recognized in the next 12 months , with the remainder expected to be recognized the following year. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of the dates specified below, property and equipment consisted of the following (in thousands): As of December 31, 2019 2018 Leasehold improvements $ 15,075 $ 15,045 Furniture and fixtures 3,630 3,498 Computer equipment and hardware 1,926 1,590 Total property and equipment 20,631 20,133 Less: Accumulated depreciation (7,102 ) (4,609 ) Total property and equipment, net $ 13,529 $ 15,524 The Company recognized depreciation expense on property and equipment of $2.7 million , $2.4 million and $1.2 million for the years ended December 31, 2019 , 2018 and 2017 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets As of the dates specified below, intangible assets, net consisted of the following (in thousands): As of December 31, 2019 2018 Customer relationships $ 7,300 $ 7,300 Trademark 120 120 Technology platform 1,150 1,150 Noncompetition agreement 110 110 8,680 8,680 Less: Accumulated amortization Customer relationships (2,169 ) (1,126 ) Trademark (120 ) (65 ) Technology platform (799 ) (415 ) Noncompetition agreement (110 ) (60 ) (3,198 ) (1,666 ) Intangible assets, net $ 5,482 $ 7,014 Amortization of intangible assets totaled $1.5 million for each of the years ended December 31, 2019 and 2018 and $0.1 million for 2017 . The expected future amortization of intangible assets as of December 31, 2019 is summarized as follows (in thousands): Years Ending December 31, Amortization Expense 2020 $ 1,394 2021 1,043 2022 1,043 2023 1,043 2024 959 $ 5,482 Intangible assets are all amortizable and have weighted-average amortization periods as follows: Intangible assets Years Customer relationships 7 Trademark 2 Technology platform 3 Noncompetition agreement 2 |
Operating Leases
Operating Leases | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 , expected lease commencement date in August 2020 and is expected to expire in November 2030. 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 June 30, 2020 (in thousands): Assets Operating lease right-of-use assets $ 10,443 Liabilities Operating lease liabilities 1,941 Operating lease liabilities, non-current 22,889 Total operating lease liabilities $ 24,830 The following table provides information about leases on the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease expense $ 733 $ 592 $ 1,407 $ 1,202 Variable lease expense 806 858 1,582 1,681 Sublease income 102 131 203 280 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 six months ended June 30, 2020 and June 30, 2019 were $3.2 million and $2.7 million , respectively. A s of June 30, 2020 , the weighted-average remaining lease term is 8.2 years and the weighted-average discount rate is 5.7% . R emaining maturities of operating lease liabilities as of June 30, 2020 are as follows (in thousands): Years ending December 31, 2020 $ 1,536 2021 3,840 2022 3,930 2023 4,021 2024 4,117 Thereafter 16,353 Total future minimum lease payments $ 33,797 Less: imputed interest (6,971 ) Less: lease incentives (1) (1,996 ) Total operating lease liabilities $ 24,830 _________________ (1) Includes lease incentives that will be realized in 2020. | 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 and Seattle leases expire in January 2028 and July 2020, respectively. 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 $10.0 million , expected lease commencement date in August 2020 and is expected to expire in December 2030. The following table provides a summary of operating lease assets and liabilities as of December 31, 2019 (in thousands): Assets Operating lease right-of-use assets $ 5,618 Liabilities Operating lease liabilities 2,331 Operating lease liabilities, non-current 18,196 Total operating lease liabilities $ 20,527 Operating lease expense for the year ended December 31, 2019 was $2.3 million . Variable lease costs for the year ended December 31, 2019 was $2.8 million . Rent expense recorded under ASC 840 for the year ended December 31, 2018 and 2017 was $4.7 million and $2.2 million , respectively. Cash payments related to operating leases for the year ended December 31, 2019 were $5.6 million . The Company recognized $0.5 million and $0.4 million of sublease rental income in other income on the consolidated statement of operations in 2019 and 2018 , respectively. There was no sublease rental income recognized in 2017. As of December 31, 2019 , the weighted-average remaining lease term is 7.9 years and the weighted-average discount rate is 6.0% . Remaining maturities of operating lease liabilities as of December 31, 2019 are as follows (in thousands): Years ending December 31, 2020 $ 3,474 2021 2,969 2022 3,033 2023 3,097 2024 3,165 Thereafter 10,108 Total future minimum lease payments $ 25,846 Less: imputed interest $ (5,319 ) Total operating lease liabilities $ 20,527 Future minimum lease payments under ASC 840 for non-cancellable operating leases as of December 31, 2018 was as follows (in thousands): Years ending December 31, 2019 $ 2,889 2020 3,474 2021 2,969 2022 3,033 2023 3,097 Thereafter 13,424 Total future minimum lease payments $ 28,886 |
Income Taxes
Income Taxes | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 six months ended June 30, 2020 , the Company recognized an immaterial provision related to foreign income taxes. The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020 by the United States. We are continuing to analyze the CARES Act, but it did not have a material impact on our provision for income taxes for the quarter ended June 30, 2020 | Income Taxes The Company elected to account 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 provision for income taxes because the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. In 2019 and 2018 , the Company recognized an immaterial provision related to foreign income taxes. The components of loss before income taxes are as follows (in thousands): Year Ended December 31, 2019 2018 Domestic $ (45,106 ) $ (20,748 ) Foreign (1,635 ) (164 ) Loss before income taxes $ (46,741 ) $ (20,912 ) A reconciliation of the difference between the federal statutory rate and the effective income tax rate as a percentage of income before taxes for the years ended December 31, 2019 and 2018 is as follows (in thousands): Year Ended December 31, 2019 2018 Amount Tax Rate Amount Tax Rate Federal statutory income tax $ (9,801 ) 21.00 % $ (4,414 ) 21.00 % State income tax, net of federal tax benefit (1,577 ) 3.38 (618 ) 2.94 Foreign tax (25 ) 0.05 22 (0.10 ) Other 328 (0.72 ) 253 (1.20 ) Valuation allowance net of deferred tax assets 12,989 (27.83 ) 4,247 (20.21 ) Stock-based compensation (1,267 ) 2.71 11 (0.05 ) Return to provision (581 ) 1.25 (45 ) 0.21 Change of rate — — 566 (2.69 ) Effective income tax rate $ 66 (0.2 )% $ 22 (0.1 )% Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes at December 31, 2019 and 2018 are as follows (in thousands): As of December 31, 2019 2018 Deferred tax assets Net operating loss carryforwards $ 30,285 $ 17,228 Operating lease liability 4,915 — Deferred rent — 3,940 Other 1,522 678 Total deferred tax assets 36,722 21,846 Deferred tax liabilities Depreciation and amortization (3,598 ) (4,193 ) Deferred commissions and bonus (2,652 ) (1,848 ) Operating lease right-of-use asset (1,345 ) — Other (847 ) (514 ) Total deferred tax liabilities (8,442 ) (6,555 ) Less: Valuation allowance (28,280 ) (15,291 ) Net deferred tax asset (liability) $ — $ — Due to the Company’s history of net losses and the difficulty in predicting future results, the Company believes that it cannot rely on projections of future taxable income to realize the deferred tax assets. Accordingly, it has established a full valuation allowance against its net deferred tax assets. Significant management judgment is required in determining the Company’s deferred tax assets and liabilities and valuation allowances for purposes of assessing its ability to realize any future benefit from its net deferred tax assets. The Company intends to maintain this valuation allowance until sufficient positive evidence exists to support the reversal of the valuation allowance. Income tax expense recorded in the future will be reduced to the extent that sufficient positive evidence materializes to support a reversal of, or decrease in, the Company’s valuation allowance. The increase in the valuation allowance for deferred tax assets was approximately $13.0 million for the year ended December 31, 2019 . The Company has total net operating loss carryforwards for federal income tax purposes of approximately $25.9 million as of December 31, 2019 , which begin to expire in 2031. The Company has total net operating loss carryforwards for U.S. state income tax purposes of approximately $4.4 million as of December 31, 2019 , which begin to expire in 2031. The operating loss carryforwards may be limited due to a change in control in the Company’s ownership as defined by the Internal Revenue Code Sections 382. Any future changes in the Company’s ownership may limit the use of such carryforward benefits. The Company’s effective income tax rates for the periods presented differ from the statutory rate of 25% due primarily to the impact of the tax reform and the change in the deferred tax asset valuation allowance. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Due to its operating loss carryforwards, the U.S. federal statute of limitations remains open for tax year 2010 and onward and the Company continues to be subject to examination by the Internal Revenue Service for tax years 2010 and later. The resolutions of any examinations are not expected to be material to these financial statements. As of December 31, 2019 and 2018 , there are no penalties or accrued interest recorded in the consolidated financial statements. The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based upon its evaluation of the facts, circumstances and information available at each period end. For those tax positions where the Company has determined there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is determined there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized. The Company had no uncertain tax positions during the years ended December 31, 2019 and 2018 . The Company recognizes interest and, if applicable, penalties for any uncertain tax positions. Interest and penalties are recorded as a component of income tax expense. In the years ended December 31, 2019 and 2018 , the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits. The Company does not provide for U.S. income taxes on unremitted earnings of foreign subsidiaries. Unremitted earnings of foreign subsidiaries were immaterial at December 31, 2019 . |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | Revolving Line of Credit On December 1, 2017, the Company entered into a Loan and Security Agreement (the “Agreement”) with a financial institution, which was amended on February 26, 2018, July 26, 2018, January 31, 2019, November 26, 2019 and February 5, 2020. The Agreement includes a revolving line of credit facility under which the Company may borrow up to $40.0 million as of December 31, 2019 . The revolving line of credit facility has a maturity date of January 31, 2021, extendable to January 31, 2022 following the completion of the IPO. Borrowings under the Agreement are collateralized by substantially all assets of the Company. There was no outstanding balance under the Agreement as of December 31, 2019 and 2018 . The Agreement contains customary affirmative and negative covenants. The November 2019 amendment includes a “streamline period”, or Streamline Period, concept, which occurs when the Company maintains, for every consecutive day in the immediately preceding fiscal quarter, the sum of (i) unrestricted cash plus (ii) unused availability under the revolving line of credit in an amount equal to or greater than $75.0 million (the “Streamline Balance”). Any Streamline Period terminates on the earlier of the occurrence of an event of default and failure to maintain the Streamline Balance. Interest on borrowings accrues at an interest rate equal to the greater of (i) 4.75% and (ii) (x) at any time when the Streamline Period is not in effect, one and one-half of one percent ( 1.50% ) above the prime rate and (y) at any time when the Streamline Period is in effect, the prime rate. The Company is contingently liable under two standby letters of credit which are required as security for the Company’s current office leases (Note 5). The agreements allow for the Company to elect to secure the letters of credit with restricted cash or by reducing the revolving credit facility borrowing capacity. At December 31, 2019 and 2018 , the Company elected to reduce the revolving credit facility borrowing capacity by $3.2 million as security for future lease payments. On January 22, 2020, the Company entered into a third standby letter of credit for the Company’s office leases and further reduced the revolving credit facility borrowing capacity by $0.8 million . |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders’ Equity | Convertible Preferred Stock and Stockholders’ Equity Common Stock As of December 31, 2019 , the Company has authorized 1,000,000,000 shares of Class A common stock with a par value of $0.0001 per share and 25,000,000 shares of Class B common stock with a par value of $0.0001 per share. Each holder of Class A and Class B common stock shall be entitled to one and ten votes, respectively, for each share held as of the record date and shall be entitled to receive dividends, when, as and if declared by the Board of Directors. Each share of Class B common stock is convertible into one share of Class A common stock at any time and will convert automatically upon certain transfers and upon the earlier of (i) the first date on which the voting power of all then outstanding shares of Class B common stock represents less than 10% of the combined voting power of all then outstanding shares of Class A common stock and Class B common stock, (ii) the date that is seven ( 7 ) years from the closing of the IPO on December 17, 2019 and (iii) the date specified by a vote of the holders of a majority of the then outstanding shares of Class B common stock, voting as a separate class. Following such conversion, each share of Class A common stock will have one vote per share and the rights of the holders of all outstanding shares of common stock will be identical. The total Class A and Class B common stock outstanding as of December 31, 2019 is 39,041,065 and 9,803,933 shares, respectively. Convertible Preferred Stock As of December 31, 2018 , the Company had the following preferred stock outstanding (in thousands, except share and per share data): As of December 31, 2018 Series Issue Date Shares Authorized Shares Issued and Outstanding Carrying Amount Aggregate Liquidation Preference Issuance Price Per Share Series A convertible preferred stock (“Series A”) April and June 2010 2,690,403 2,690,403 $ 448 $ 448 $ 0.1667 Series A-1 convertible preferred stock (“Series A-1”) October 2010 1,600,000 1,600,000 800 800 0.5000 Series B convertible preferred stock (“Series B”) February 2011 6,108,000 6,108,000 9,961 9,999 1.6370 Series B-1 convertible preferred stock (“Series B-1”) June 2014 2,492,570 2,449,700 9,663 9,714 3.9655 Series C convertible preferred stock (“Series C”) February 2016 6,989,863 6,989,863 41,799 42,000 6.0087 Series D convertible preferred stock (“Series D”) December 2018 2,176,297 2,176,297 40,305 40,500 18.6096 Total all series 22,057,133 22,014,263 $ 102,976 $ 103,461 Immediately prior to the closing of the IPO on December 17, 2019, all shares of outstanding convertible preferred stock automatically converted into an aggregate of 22,014,263 shares of Class A common stock. There was no |
Incentive Stock Plan
Incentive Stock Plan | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Cost of revenue $ 169 $ — $ 464 $ — Research and development 450 — 934 — Sales and marketing 697 — 1,166 — General and administrative 1,165 5,298 3,439 5,298 Total stock-based compensation $ 2,481 $ 5,298 $ 6,003 $ 5,298 | Incentive Stock Plan On April 27, 2016, the Company established the Sprout Social, Inc. 2016 Stock Plan (the “2016 Plan”) as an amendment and restatement of the Sprout Social, Inc. 2010 Amended and Restated Stock Incentive Plan, under which awards, including options, restricted stock purchases rights, restricted stock bonus or restricted stock unit awards, for up to 5,467,862 shares of common stock may, at the discretion of the Board of Directors, be issued to employees, consultants, and directors of the Company. Under the 2016 Plan, any shares withheld upon settlement of RSUs, as elected by the employee to cover withholding taxes, will again be available for future grants under the plan. There were no changes to existing stock options outstanding as a result of the amendment and restatement. The exercise price for each award is determined by the Board of Directors. However, each option must have an exercise price of at least the fair market value of the option and no less than 110% of fair market value for options granted to a 10% owner optionee. Effective October 17, 2019, the Company established the Sprout Social, Inc. 2019 Incentive Award Plan (the “2019 Plan”), under which awards, including options, stock appreciation rights, restricted stock awards, restricted stock unit awards, other stock or cash based awards and dividend equivalent awards, for up to 5,293,497 shares of Class A common stock may, at the discretion of the Board of Directors, be issued to employees, consultants, and directors of the Company. Effective December 12, 2019, the Company established the Sprout Social, Inc. 2019 Class B Incentive Award Plan (the “Class B Plan”), under which cash and equity incentive awards, for up to 550,000 shares of Class B common stock may, at the discretion of the Board of Directors, be issued to employees, consultants, and directors of the Company, with the expectation that shares will only be issued to the Company’s CEO depending on the valuation of the Company in connection with the IPO and the achievement of market capitalization thresholds thereafter. The only awards granted as of December 31, 2019 are stock options, restricted stock units and restricted stock awards. Stock Options The options become fully vested at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria, and restrictions as shall be determined by the Board of Directors and set forth in each stock option notice; provided, however, that no exercise period shall exceed ten years from the grant date. The fair value of each option is estimated on the date of grant based on the Black-Scholes option pricing model. The annual rate of dividends is expressed as a dividend yield which is a constant percentage of the stock price, which is determined by the board of directors with input from a third-party valuation specialist. The expected life of an option represents the period of time that an option is expected to be outstanding. The risk‐free interest rate is based on the rate of U.S. Treasury securities with maturities consistent with the estimated expected term of the awards. The Company has not paid dividends and does not anticipate paying a cash dividend on common stock in the foreseeable future and, accordingly, uses an expected dividend yield of zero . As the Company was privately held during the life of the options, there is no historical basis of the stock volatility. Accordingly, the expected volatility is based primarily on the historical volatilities of similar entities’ common stock over the most recent period commensurate with the estimated expected term of the awards. The expected term of an award is determined using the simplified method for plain vanilla options, consistent with applicable accounting guidance. Total compensation expense included in the statement of operations for options was $0.1 million and $0.5 million for 2018 and 2017, respectively. There was no compensation expense included in the statement of operations for options in 2019. The table below summarizes the stock option activity for the year ended December 31, 2019 : Number of Options Weighted Average Exercise Price Weighted Average Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding at beginning of period 1,328,696 $ 0.54 3.67 $ 8,529 Granted at fair value — — Exercised (163,962 ) 0.56 Forfeited (5,157 ) 1.08 Outstanding at end of period 1,159,577 $ 0.54 2.67 $ 17,990 Options exercisable at December 31, 2019 1,159,577 $ 0.54 2.67 $ 17,990 The Company has computed the aggregate intrinsic value of amounts disclosed in the above table based on the difference between the original exercise price of the options and the estimated fair value of the Company’s common stock as of December 31, 2019 . The intrinsic value of options exercised for the years ended December 31, 2019 , 2018 and 2017 was $2.5 million , $1.1 million and $0.8 million , respectively. At the end of 2015, the Company ceased issuing stock options. The following summarizes information about the Company’s options outstanding as of December 31, 2019 : Options Outstanding Options Exercisable Exercise Price Shares Weighted- Average Remaining Contractual Term Shares Weighted- (in years) (in years) $0.31 - $0.69 952,867 2.1 952,867 2.1 $0.70 - $1.07 35,000 4.5 35,000 4.5 $1.08 - $1.10 101,405 5.1 101,405 5.1 $1.11 - $3.97 70,305 5.3 70,305 5.3 1,159,577 1,159,577 Restricted Stock Units At the end of 2015, the Company began issuing restricted stock units. The general terms of the restricted stock units issued under the 2016 Plan require both a service and performance condition to be satisfied prior to vesting. The service condition is satisfied upon the participant’s completion of a required period of continuous service from the vesting start date. The performance condition was satisfied upon the completion of the IPO. The general terms of the restricted stock units issued under the 2019 Plan require only a service condition to be satisfied prior to vesting. The restricted stock units issued under the Class B Plan require both a performance condition and a market condition to be satisfied prior to vesting. The performance condition was satisfied upon the completion of the IPO. The grant-date fair value of RSUs that contain a market condition is determined using a Monte Carlo valuation model in order to simulate a range of possible future stock prices. Key assumptions used include a risk‐free interest rate of 1.61% and expected volatility of 62.5% . The table below summarizes the activity regarding unvested restricted stock units for the year ended December 31, 2019 : Restricted Stock Units Weighted Average Grant Date Fair Value Unvested at December 31, 2018 2,477,569 $ 6.19 Granted 1,742,551 13.32 Vested (2,024,786 ) 7.52 Forfeited (183,986 ) 6.67 Unvested at December 31, 2019 2,011,348 $ 11.02 The weighted-average grant date fair value per share for restricted stock units granted during the years ended December 31, 2019 , 2018 and 2017 was $13.32 , $6.91 and $6.15 , respectively. The total unrecognized stock-based compensation expense relating to these awards as of December 31, 2019 was $17.4 million , which is expected to be recognized over a weighted-average period of 3 years . Restricted Stock Awards In June 2019, the Company recognized $5.3 million of stock-based compensation expense related to a restricted stock award (RSA) grant of 434,436 shares to its Chief Executive Officer, which vested in full on the grant date. In accordance with the RSA grant agreement, the award was net settled to satisfy the federal and state tax withholding obligations, resulting in the issuance of 242,155 shares of common stock. The net settlement was treated as a repurchase of treasury shares. All of the expense was recognized in general and administrative on the consolidated statement of operations and comprehensive loss. Stock-based Compensation Expense Stock-based compensation expense is included in the consolidated statement of operations and comprehensive loss as follows (in thousands): Years Ended December 31, 2019 2018 2017 Cost of revenue $ 1,126 $ 9 $ 20 Research and development 2,290 28 161 Sales and marketing 8,697 15 259 General and administrative 13,220 1 33 Total stock-based compensation expense $ 25,333 $ 53 $ 473 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, 2020 are as follows (in thousands): Years ending December 31, 2020 $ 6,786 2021 20,486 2022 27,495 2023 15,222 2024 — Thereafter — Total contract commitments $ 69,989 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 June 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 June 30, 2020 . | Commitments and Contingencies Contractual Obligations The Company has non-cancellable minimum guaranteed purchase commitments for data and services. Contractual commitments as of December 31, 2019 are as follows (in thousands): Years ending December 31, 2020 $ 13,572 2021 20,486 2022 27,495 2023 15,222 2024 — Thereafter — Total contractual obligations $ 76,775 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 year ended December 31, 2019 . 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 year ended December 31, 2019 . |
Segment and Geographic Data
Segment and Geographic Data | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 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 six months ended June 30, 2020 and 2019 , respectively. Revenue by geographical region is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Americas $ 24,592 $ 19,542 $ 48,392 $ 37,781 EMEA 5,048 3,882 10,059 7,615 Asia Pacific 1,762 1,339 3,486 2,746 Total $ 31,402 $ 24,763 $ 61,937 $ 48,142 | Geographic Data As described in the Summary of Significant Accounting Policies, the Company operates as one operating segment. Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of December 31, 2019 and 2018 , 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 29% , 30% and 32% for the year ended December 31, 2019 , 2018 and 2017 , respectively. Revenue by geographical region is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Americas $ 80,574 $ 61,501 $ 33,853 EMEA 16,220 12,674 7,914 Asia Pacific 5,913 4,638 3,048 Total $ 102,707 $ 78,813 $ 44,815 |
Net Loss per Share
Net Loss per Share | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss attributable to common shareholders $ (8,302 ) $ (10,755 ) $ (18,782 ) $ (15,918 ) Weighted average common shares outstanding 50,527,432 16,753,014 50,263,061 16,832,105 Net loss per share, basic and diluted $ (0.16 ) $ (0.64 ) $ (0.37 ) $ (0.95 ) 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. June 30, 2020 2019 Stock options outstanding 416,081 1,275,473 RSUs 2,155,006 — Convertible preferred stock — 22,014,263 Warrants — 35,305 Total potentially dilutive shares 2,571,087 23,325,041 | 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, RSUs, 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): Year Ended December 31, 2019 2018 2017 Net loss attributable to common shareholders $ (46,807 ) $ (20,934 ) $ (21,910 ) Weighted average common shares outstanding 18,438,695 16,593,258 16,400,767 Net loss per share, basic and diluted $ (2.54 ) $ (1.26 ) $ (1.34 ) 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 were 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. As of December 31, 2019 2018 2017 Stock options outstanding 1,159,577 1,313,121 1,523,328 RSUs outstanding 2,364,650 — Convertible preferred stock — 19,945,290 19,837,966 Warrants 35,305 35,305 35,305 Total potentially dilutive shares 3,559,532 21,293,716 21,396,599 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company sponsors a qualified 401(k) defined contribution plan for the benefit of its employees. The Company made matching contributions to the plan totaling $1.3 million , $1.0 million and $0.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions An employee of an affiliate of Goldman Sachs & Co. LLC, a member of the underwriting syndicate of the Company’s IPO, serves on the Company’s board of directors pursuant to the Sixth Amended and Restated Voting Agreement, which provides that holders of a majority of the Company’s common stock issued or issuable upon conversion of its Series C preferred stock have the right to appoint one member to the Company’s board of directors. Prior to the IPO, entities affiliated with Goldman Sachs & Co. LLC owned a majority of the Company’s Series C preferred stock, and these entities continue to hold a majority of the common stock issued upon conversion of the Company’s Series C preferred stock at the closing of the IPO. Upon closing of the IPO on December 17, 2019, the Company paid $4.2 million to Goldman Sachs & Co. LLC for underwriting discounts and commissions. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 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): June 30, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 75,147 $ — $ — $ 75,147 Marketable Securities: Corporate bonds — 23,061 — 23,061 Commercial paper — 16,444 — 16,444 U.S. Treasury securities — 10,166 — 10,166 Total assets $ 75,147 $ 49,671 $ — $ 124,818 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. As of June 30, 2020, the Company held investment-grade marketable securities that had maturities within one year and were accounted for as available-for-sale securities. There was not a significant difference between the amortized cost and fair value of these securities. |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Subsequent Events [Abstract] | ||
Subsequent Events | Subsequent Events The Company has evaluated subsequent events after the balance sheet date through August 6, 2020, the date the financial statements were issued. Management has determined that no events or transactions have occurred subsequent to the balance sheet date that require disclosure in the financial statements. | Subsequent Events On January 15, 2020, the underwriters of the Company’s IPO exercised their option to purchase additional shares of the Company’s Class A common stock to cover sales by the underwriters of a greater number of shares than the total set forth in the filed prospectus for the IPO. The underwriters purchased an additional 629,603 shares of Class A common stock from the Company. The gross proceeds to the Company of the issuance were $10.7 million , and the Company received net proceeds of $10.0 million after deducting underwriting discounts and commissions. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Principles of Consolidation | All significant intercompany transactions and balances have been eliminated in consolidation. | All significant intercompany transactions and balances have been eliminated in consolidation. |
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 | The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
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 August 6, 2020, the date of issuance of these financial statements. 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. | 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. 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, valuation of assets and liabilities acquired as part of business combinations, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. |
Segment Information | Segment Information 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 consolidated financial statements. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company has the following financial instruments: cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities. The carrying value of the Company’s cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to their short-term nature. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Interest earned on cash and cash equivalents is recorded as interest income in the consolidated statement of operations. | |
Accounts Receivable | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of amounts billed and currently due from customers, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of an unconditional right to payment under non-cancellable contracts. Our typical payment terms provide for customer payment within 30 days of the date of the contract. | |
Allowance for Doubtful Accounts | Accounts receivable are subject to collection risk. The Company performs evaluations of its customers’ financial positions and generally extends credit on account, without collateral. The Company determines the need for an allowance for doubtful accounts based upon various factors, including past collection experience, credit quality of the customer, age of the receivable balance and current economic conditions. | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk are primarily cash and accounts receivable. The Company maintains cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on its deposits of cash. | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment and hardware 3-5 years Furniture and fixtures 3-7 years Leasehold improvements Lesser of useful life or remaining lease term Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost of assets disposed and the related accumulated depreciation are written off, and any resulting gain or loss is credited or charged to income. | |
Goodwill | Goodwill Goodwill consists of the excess purchase price over the fair value of net assets acquired in purchase business combinations. The Company conducts a test for the impairment of goodwill on at least an annual basis as of October 1 st or sooner if indicators of impairment arise. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. As part of the qualitative assessment, the Company evaluates factors including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance of its reporting unit. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | |
Revenue Recognition | 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 | Revenue Recognition The Company generates revenues from subscriptions to the Company’s web-based social media management platform under a software-as-a-service model. Our subscriptions can range from monthly to one-year or multi-year arrangements and are generally non-cancellable. The Company’s customers do not have the right to take possession of the online software solution. The Company commences revenue recognition when control of these products is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for such products. The Company determines revenue recognition through the following steps: • identify the contract with a customer; • identify the performance obligations in a contract; • determination of the transaction price; • allocate the transaction price to the performance obligations identified in the contract; and • recognize revenue when (or as) performance obligations are satisfied. Identify the contract with a customer A customer contract is generally identified when the Company and a customer have executed an agreement or online acceptance that requires the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer. Identify the performance obligations in a contract A performance obligation is a promise to provide a distinct service or a series of distinct services. A service that is promised to a customer is distinct if the customer can benefit from the service either on its own or together with other readily available resources, and a company’s promise to transfer the service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are a distinct performance obligation, because no implementation work is required and the online software product is fully functional once a customer has access. In addition, the Company sells professional services consisting of, but not limited to, implementation fees, specialized training, one-time reporting services and recurring periodic reporting services. Professional services are distinct, as they are sold separately, and the customer can benefit from the services to make better use of the online product purchased. Determination of the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company estimates any variable consideration it will be entitled at contract inception and will reassess as circumstances change, when determining the transaction price. The transaction price for subscription and professional services is generally fixed at contract inception; therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods due to changes in the transaction price was not material. Allocate the transaction price to the performance obligations identified in the contract If the contract contains a single performance obligation, the Company allocates the entire transaction price to the single performance obligation. For contracts containing multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative standalone selling price (“SSP”) of the services provided to the customer. The Company determines the SSP based upon the prices at which the Company separately sells subscription and various professional services, and based on the Company’s overall pricing objectives, taking into consideration market conditions, value of the Company’s contracts, the types of offerings sold, customer demographics and other factors. Recognize revenue when (or as) performance obligations are satisfied Subscription revenues are recognized ratably over the contract terms beginning on the date the Company’s service is made available to customers, which typically begins on the commencement date of each contract as no implementation work is required. The Company’s customers do not have the right to take possession of the online software solution. The Company’s subscription service arrangements are generally non-cancellable and do not provide for refund of subscription fees. Professional services are typically provided for a fixed fee, and revenues are recognized over time for these contracts as services are provided to the customer. Professional services revenue represents less than 1% of revenue for the periods presented. |
Sales Commissions | Sales Commissions | |
Cost of Revenues | Cost of Revenues Cost of revenues primarily consist of expenses related to hosting the Company’s service and providing support to customers, depreciation associated with computers and hardware and amortization expense related to acquired developed technologies. These expenses are comprised of hosted data center global costs, fees paid to third-party data providers and personnel-related costs directly associated with cloud infrastructure and customer support, including salaries, benefits, bonuses and allocated overhead. Overhead associated with facilities and information technology is allocated to cost of revenue and operating expenses based on headcount. | |
Advertising Costs | Advertising Costs | |
Research and Development Costs | Research and Development Costs Costs incurred in research and development are expensed as incurred and consist primarily of payroll, employee benefits, allocated overhead and other expenses associated with product development. | |
Share-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for equity awards based on the grant‐date fair value over the remaining requisite service period for the award. For awards subject to graded vesting, the compensation expense recognized is at least equal to the vested portion of the award. The Company uses the Black‐Scholes option pricing model to measure the fair value of the option awards. The Company sets the exercise price at the estimated fair‐market value at the date of the grant. Management utilized third‐party valuations to assist with the determination of the Company’s estimated fair‐market value and common stock price prior to completion of its IPO on December 17, 2019. The exercise price affects the fair value of the option award in the Black‐Scholes option pricing model. The grant-date fair value of RSUs that contain a market condition is determined using a Monte Carlo valuation model. The Company recognizes forfeitures as they occur. | |
Leases | Leases The Company determines if an arrangement is a lease at inception, and all significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and operating lease liabilities are recognized at commencement based on the present value of fixed payments not yet paid over the remaining lease term. ROU assets also include any initial indirect costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. For short-term leases of 12 months or less, no ROU asset or lease liability is recorded. The Company records rent expense in its condensed consolidated statement of operations and comprehensive loss on a straight-line basis over the term of the lease and records variable lease payments as incurred. Additionally, the Company has elected to combine lease and non-lease components and account for them as a single component. ROU assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent its obligations to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise the option. The Company uses its incremental borrowing rate in determining the lease liabilities, as its leases generally do not provide an implicit rate. The incremental borrowing rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term based on the information available at the commencement date. The Company does not have any finance leases. | |
Commitments and Contingencies | Commitments and Contingencies The Company evaluates all pending or threatened commitments and contingencies, if any, that are reasonably likely to have a material effect on its operations or financial position. The Company assesses the probability of an adverse outcome and records a provision for a liability when management believes that it is probable that a liability has been incurred and the amount can be reasonably estimated. | |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that these assets are believed to be more likely than not to be realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. Tax benefits for uncertain tax positions are based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more-likely-than-not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more-likely-than-not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of provision for income taxes. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheets, as applicable. The Company files income tax returns in the U.S. federal jurisdiction, Illinois and other state jurisdictions. It is difficult to predict the final timing and resolution of any particular uncertain tax position. Based on the Company’s assessment of many factors, including past experience and complex judgments about future events, the Company does not currently anticipate significant changes in its uncertain tax positions over the next 12 months. | |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs of $5.8 million , primarily consisting of certain legal, accounting and other third-party fees that were directly associated with the IPO, were recorded in stockholders’ equity as a reduction of additional paid-in capital generated upon closing of the IPO on December 17, 2019. | |
Net Loss per Share | Net Loss per Share The Company calculates basic net loss per share by dividing net loss attributable to common shareholders by the weighted-average number of the Company’s common stock shares outstanding during the respective period. Net loss attributable to common shareholders is net loss minus convertible preferred stock dividends declared, of which there were none during the periods presented. The Company calculates diluted net loss per share using the treasury stock and if-converted methods, which consider the potential impacts of outstanding stock options, RSUs, warrants and convertible preferred stock. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share. During the periods presented, the impact is to decrease net loss per share and therefore the Company is precluded from adjusting its calculation for these securities. As a result, diluted net loss per share is calculating using the same formula as basic net loss per share. | |
Marketable Securities | 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 June 30, 2020 and December 31, 2019, the Company’s AOCI bal | |
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 (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for interim and annual reporting 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. | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016 02”), including subsequent amendments. ASU 2016-02 requires lessees to record a ROU asset and lease liability for almost all leases. This ASU does not substantially impact lessor accounting. The Company adopted the standard on January 1, 2019 using a modified retrospective approach of applying the new standard at the adoption date. Under this approach, the Company will continue to report comparative periods presented in the period of adoption under ASC 840. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard, which does not require it to reassess 1) whether any expired or existing contracts contain leases, 2) the lease classification of any expired or existing leases or 3) any initial direct costs for any existing leases. Adoption of this standard resulted in recognition of ROU assets of $6.7 million , short-term lease liabilities of $1.8 million , long-term lease liabilities of $20.3 million , a decrease in accrued expenses and other of $0.7 million and a decrease in deferred rent, net of current portion of $14.7 million , with no impact on retained earnings as of January 1, 2019. The adoption of the standard is not expected to have a significant impact on the Company’s condensed consolidated statement of operations. See Note 5 for further details. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Activity related to the allowance for doubtful accounts | The activity related to the allowance for doubtful accounts for the year ended December 31, 2019 was as follows (in thousands): Balance at December 31, 2018 $ 374 Additions 1,920 Write-offs, net of recoveries (1,588 ) Balance at December 31, 2019 $ 706 |
Schedule of property and equipment | Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment and hardware 3-5 years Furniture and fixtures 3-7 years Leasehold improvements Lesser of useful life or remaining lease term As of the dates specified below, property and equipment consisted of the following (in thousands): As of December 31, 2019 2018 Leasehold improvements $ 15,075 $ 15,045 Furniture and fixtures 3,630 3,498 Computer equipment and hardware 1,926 1,590 Total property and equipment 20,631 20,133 Less: Accumulated depreciation (7,102 ) (4,609 ) Total property and equipment, net $ 13,529 $ 15,524 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment and hardware 3-5 years Furniture and fixtures 3-7 years Leasehold improvements Lesser of useful life or remaining lease term As of the dates specified below, property and equipment consisted of the following (in thousands): As of December 31, 2019 2018 Leasehold improvements $ 15,075 $ 15,045 Furniture and fixtures 3,630 3,498 Computer equipment and hardware 1,926 1,590 Total property and equipment 20,631 20,133 Less: Accumulated depreciation (7,102 ) (4,609 ) Total property and equipment, net $ 13,529 $ 15,524 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Intangible assets are all amortizable and have weighted-average amortization periods as follows: Intangible assets Years Customer relationships 7 Trademark 2 Technology platform 3 Noncompetition agreement 2 As of the dates specified below, intangible assets, net consisted of the following (in thousands): As of December 31, 2019 2018 Customer relationships $ 7,300 $ 7,300 Trademark 120 120 Technology platform 1,150 1,150 Noncompetition agreement 110 110 8,680 8,680 Less: Accumulated amortization Customer relationships (2,169 ) (1,126 ) Trademark (120 ) (65 ) Technology platform (799 ) (415 ) Noncompetition agreement (110 ) (60 ) (3,198 ) (1,666 ) Intangible assets, net $ 5,482 $ 7,014 |
Finite-lived intangible assets amortization expense | The expected future amortization of intangible assets as of December 31, 2019 is summarized as follows (in thousands): Years Ending December 31, Amortization Expense 2020 $ 1,394 2021 1,043 2022 1,043 2023 1,043 2024 959 $ 5,482 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of operating lease assets and liabilities | The following table provides a summary of operating lease assets and liabilities as of December 31, 2019 (in thousands): Assets Operating lease right-of-use assets $ 5,618 Liabilities Operating lease liabilities 2,331 Operating lease liabilities, non-current 18,196 Total operating lease liabilities $ 20,527 |
Schedule of remaining maturities of operating lease liabilities | Remaining maturities of operating lease liabilities as of December 31, 2019 are as follows (in thousands): Years ending December 31, 2020 $ 3,474 2021 2,969 2022 3,033 2023 3,097 2024 3,165 Thereafter 10,108 Total future minimum lease payments $ 25,846 Less: imputed interest $ (5,319 ) Total operating lease liabilities $ 20,527 |
Schedule of future minimum lease payments | Future minimum lease payments under ASC 840 for non-cancellable operating leases as of December 31, 2018 was as follows (in thousands): Years ending December 31, 2019 $ 2,889 2020 3,474 2021 2,969 2022 3,033 2023 3,097 Thereafter 13,424 Total future minimum lease payments $ 28,886 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of loss before income taxes | The components of loss before income taxes are as follows (in thousands): Year Ended December 31, 2019 2018 Domestic $ (45,106 ) $ (20,748 ) Foreign (1,635 ) (164 ) Loss before income taxes $ (46,741 ) $ (20,912 ) |
Schedule of effective income tax rate reconciliation | A reconciliation of the difference between the federal statutory rate and the effective income tax rate as a percentage of income before taxes for the years ended December 31, 2019 and 2018 is as follows (in thousands): Year Ended December 31, 2019 2018 Amount Tax Rate Amount Tax Rate Federal statutory income tax $ (9,801 ) 21.00 % $ (4,414 ) 21.00 % State income tax, net of federal tax benefit (1,577 ) 3.38 (618 ) 2.94 Foreign tax (25 ) 0.05 22 (0.10 ) Other 328 (0.72 ) 253 (1.20 ) Valuation allowance net of deferred tax assets 12,989 (27.83 ) 4,247 (20.21 ) Stock-based compensation (1,267 ) 2.71 11 (0.05 ) Return to provision (581 ) 1.25 (45 ) 0.21 Change of rate — — 566 (2.69 ) Effective income tax rate $ 66 (0.2 )% $ 22 (0.1 )% |
Schedule of deferred tax assets and liabilities | Significant components of the Company’s deferred taxes at December 31, 2019 and 2018 are as follows (in thousands): As of December 31, 2019 2018 Deferred tax assets Net operating loss carryforwards $ 30,285 $ 17,228 Operating lease liability 4,915 — Deferred rent — 3,940 Other 1,522 678 Total deferred tax assets 36,722 21,846 Deferred tax liabilities Depreciation and amortization (3,598 ) (4,193 ) Deferred commissions and bonus (2,652 ) (1,848 ) Operating lease right-of-use asset (1,345 ) — Other (847 ) (514 ) Total deferred tax liabilities (8,442 ) (6,555 ) Less: Valuation allowance (28,280 ) (15,291 ) Net deferred tax asset (liability) $ — $ — |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Preferred Stock | As of December 31, 2018 , the Company had the following preferred stock outstanding (in thousands, except share and per share data): As of December 31, 2018 Series Issue Date Shares Authorized Shares Issued and Outstanding Carrying Amount Aggregate Liquidation Preference Issuance Price Per Share Series A convertible preferred stock (“Series A”) April and June 2010 2,690,403 2,690,403 $ 448 $ 448 $ 0.1667 Series A-1 convertible preferred stock (“Series A-1”) October 2010 1,600,000 1,600,000 800 800 0.5000 Series B convertible preferred stock (“Series B”) February 2011 6,108,000 6,108,000 9,961 9,999 1.6370 Series B-1 convertible preferred stock (“Series B-1”) June 2014 2,492,570 2,449,700 9,663 9,714 3.9655 Series C convertible preferred stock (“Series C”) February 2016 6,989,863 6,989,863 41,799 42,000 6.0087 Series D convertible preferred stock (“Series D”) December 2018 2,176,297 2,176,297 40,305 40,500 18.6096 Total all series 22,057,133 22,014,263 $ 102,976 $ 103,461 |
Incentive Stock Plan (Tables)
Incentive Stock Plan (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Schedule of Stock Option Activity | The table below summarizes the stock option activity for the year ended December 31, 2019 : Number of Options Weighted Average Exercise Price Weighted Average Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding at beginning of period 1,328,696 $ 0.54 3.67 $ 8,529 Granted at fair value — — Exercised (163,962 ) 0.56 Forfeited (5,157 ) 1.08 Outstanding at end of period 1,159,577 $ 0.54 2.67 $ 17,990 Options exercisable at December 31, 2019 1,159,577 $ 0.54 2.67 $ 17,990 | |
Schedule of Stock Options by Exercise Price Range | At the end of 2015, the Company ceased issuing stock options. The following summarizes information about the Company’s options outstanding as of December 31, 2019 : Options Outstanding Options Exercisable Exercise Price Shares Weighted- Average Remaining Contractual Term Shares Weighted- (in years) (in years) $0.31 - $0.69 952,867 2.1 952,867 2.1 $0.70 - $1.07 35,000 4.5 35,000 4.5 $1.08 - $1.10 101,405 5.1 101,405 5.1 $1.11 - $3.97 70,305 5.3 70,305 5.3 1,159,577 1,159,577 | |
Summary of Restricted Stock Units | The table below summarizes the activity regarding unvested restricted stock units for the year ended December 31, 2019 : Restricted Stock Units Weighted Average Grant Date Fair Value Unvested at December 31, 2018 2,477,569 $ 6.19 Granted 1,742,551 13.32 Vested (2,024,786 ) 7.52 Forfeited (183,986 ) 6.67 Unvested at December 31, 2019 2,011,348 $ 11.02 | |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Cost of revenue $ 169 $ — $ 464 $ — Research and development 450 — 934 — Sales and marketing 697 — 1,166 — General and administrative 1,165 5,298 3,439 5,298 Total stock-based compensation $ 2,481 $ 5,298 $ 6,003 $ 5,298 | Stock-based compensation expense is included in the consolidated statement of operations and comprehensive loss as follows (in thousands): Years Ended December 31, 2019 2018 2017 Cost of revenue $ 1,126 $ 9 $ 20 Research and development 2,290 28 161 Sales and marketing 8,697 15 259 General and administrative 13,220 1 33 Total stock-based compensation expense $ 25,333 $ 53 $ 473 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of contractual commitments | Contractual commitments as of June 30, 2020 are as follows (in thousands): Years ending December 31, 2020 $ 6,786 2021 20,486 2022 27,495 2023 15,222 2024 — Thereafter — Total contract commitments $ 69,989 | Contractual commitments as of December 31, 2019 are as follows (in thousands): Years ending December 31, 2020 $ 13,572 2021 20,486 2022 27,495 2023 15,222 2024 — Thereafter — Total contractual obligations $ 76,775 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Schedule of revenue by geographical region | Revenue by geographical region is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Americas $ 24,592 $ 19,542 $ 48,392 $ 37,781 EMEA 5,048 3,882 10,059 7,615 Asia Pacific 1,762 1,339 3,486 2,746 Total $ 31,402 $ 24,763 $ 61,937 $ 48,142 | Revenue by geographical region is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Americas $ 80,574 $ 61,501 $ 33,853 EMEA 16,220 12,674 7,914 Asia Pacific 5,913 4,638 3,048 Total $ 102,707 $ 78,813 $ 44,815 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss attributable to common shareholders $ (8,302 ) $ (10,755 ) $ (18,782 ) $ (15,918 ) Weighted average common shares outstanding 50,527,432 16,753,014 50,263,061 16,832,105 Net loss per share, basic and diluted $ (0.16 ) $ (0.64 ) $ (0.37 ) $ (0.95 ) | The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data): Year Ended December 31, 2019 2018 2017 Net loss attributable to common shareholders $ (46,807 ) $ (20,934 ) $ (21,910 ) Weighted average common shares outstanding 18,438,695 16,593,258 16,400,767 Net loss per share, basic and diluted $ (2.54 ) $ (1.26 ) $ (1.34 ) |
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. June 30, 2020 2019 Stock options outstanding 416,081 1,275,473 RSUs 2,155,006 — Convertible preferred stock — 22,014,263 Warrants — 35,305 Total potentially dilutive shares 2,571,087 23,325,041 | 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 were 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. As of December 31, 2019 2018 2017 Stock options outstanding 1,159,577 1,313,121 1,523,328 RSUs outstanding 2,364,650 — Convertible preferred stock — 19,945,290 19,837,966 Warrants 35,305 35,305 35,305 Total potentially dilutive shares 3,559,532 21,293,716 21,396,599 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 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): June 30, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 75,147 $ — $ — $ 75,147 Marketable Securities: Corporate bonds — 23,061 — 23,061 Commercial paper — 16,444 — 16,444 U.S. Treasury securities — 10,166 — 10,166 Total assets $ 75,147 $ 49,671 $ — $ 124,818 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_4
Nature of Operations and Summary of Significant Accounting Policies - Initial Public Offering and Over Allotment Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2020 | Dec. 17, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Offering expenses | $ 216 | $ 529 | $ 5,227 | $ 0 | $ 0 | ||
Common Stock, shares authorized (in shares) | 46,000,000 | ||||||
Preferred Stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |||||
Class A common stock | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Common Stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||
Class A common stock | IPO | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shares issued and sold in offering (in shares) | 8,823,530 | ||||||
Price per share (in dollar per share) | $ 17 | ||||||
Aggregate gross offering price | $ 150,000 | ||||||
Total proceeds from offering | 134,300 | ||||||
Payments for underwriting expense | 10,500 | ||||||
Offering expenses | $ 5,200 | ||||||
Class A common stock | 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 | $ 10,000 | ||||||
Class B common stock | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Common Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 | ||||
Common Stock | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Conversion of stock (in shares) | 22,014,263 | 22,014,263 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of operating segments | segment | 1 | 1 | |||
Bad debt expense | $ 1,340 | $ 685 | $ 2,208 | $ 793 | $ 86 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 706 | $ 374 | 374 | ||
Additions | 1,920 | ||||
Write-offs, net of recoveries | (1,588) | ||||
Ending balance | $ 706 | $ 374 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Property and Equipment, Goodwill and Impairment of Long-Lived Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Goodwill impairment loss | $ 0 | $ 0 |
Impairment of long-lived assets | $ 0 | $ 0 |
Minimum | Computer equipment and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Maximum | Computer equipment and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 7 years |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Sales Commissions, Advertising Costs and Deferred Offering Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 17, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Increase in deferred commissions | $ 3,300 | $ 4,200 | ||||
Incremental costs of obtaining contract with customer | $ 5,417 | $ 2,748 | 8,170 | 6,964 | $ 3,063 | |
Amortization of deferred commissions | $ 3,414 | $ 2,126 | 4,812 | 2,795 | 1,358 | |
Advertising costs | $ 2,400 | $ 1,500 | $ 4,600 | |||
Deferred offering costs | $ 5,800 |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease, right-of-use asset | $ 10,443 | $ 5,618 | ||
Operating lease liability | 1,941 | 2,331 | ||
Operating lease liability, net of current portion | $ 22,889 | $ 18,196 | $ 0 | |
Decrease in deferred rent | $ (14,651) | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease, right-of-use asset | $ 6,700 | |||
Operating lease liability | 1,800 | |||
Operating lease liability, net of current portion | 20,300 | |||
Decrease in accrued liabilities and other | 700 | |||
Decrease in deferred rent | $ 14,700 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||||||
Increase in deferred revenue | $ 5,690 | $ 2,848 | $ 8,235 | $ 7,162 | $ 5,404 | ||
Additional invoices | 111,000 | 86,000 | |||||
Revenue | $ 31,402 | $ 24,763 | 61,937 | 48,142 | 102,707 | 78,813 | $ 44,815 |
Revenue recognized previously deferred | 16,400 | $ 11,400 | 22,300 | $ 16,600 | 20,900 | $ 14,100 | |
Revenue expected to be recognized | $ 50,900 | $ 50,900 | $ 42,100 | ||||
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]: 2020-07-01 | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Revenue expected to be recognized, percentage | 86.00% | 86.00% | |||||
Revenue, remaining performance obligation, period | 12 months | 12 months |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | $ 20,631 | $ 20,133 | |||
Less: Accumulated depreciation | (7,102) | (4,609) | |||
Total property and equipment, net | $ 13,410 | 13,529 | 15,524 | ||
Depreciation | $ 1,434 | $ 1,335 | 2,736 | 2,441 | $ 1,233 |
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 15,075 | 15,045 | |||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 3,630 | 3,498 | |||
Computer equipment and hardware | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | $ 1,926 | $ 1,590 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 8,680 | $ 8,680 |
Less: Accumulated amortization | (3,198) | (1,666) |
Intangible assets, net | 5,482 | 7,014 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 7,300 | 7,300 |
Less: Accumulated amortization | (2,169) | (1,126) |
Trademark | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 120 | 120 |
Less: Accumulated amortization | (120) | (65) |
Technology platform | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 1,150 | 1,150 |
Less: Accumulated amortization | (799) | (415) |
Noncompetition agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 110 | 110 |
Less: Accumulated amortization | $ (110) | $ (60) |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangible assets | $ 713 | $ 771 | $ 1,532 | $ 1,545 | $ 121 |
2020 | 1,394 | ||||
2021 | 1,043 | ||||
2022 | 1,043 | ||||
2023 | 1,043 | ||||
2024 | 959 | ||||
Intangible assets, net | $ 5,482 | $ 7,014 |
Intangible Assets - Amortizat_2
Intangible Assets - Amortization Periods (Details) - Weighted average | 12 Months Ended |
Dec. 31, 2019 | |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 7 years |
Trademark | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 2 years |
Technology platform | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Noncompetition agreement | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 2 years |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 23, 2020 | Jan. 21, 2020 | |
Lessee, Lease, Description [Line Items] | |||||||||
Operating lease expense | $ 733,000 | $ 592,000 | $ 1,407,000 | $ 1,202,000 | $ 2,300,000 | ||||
Variable lease expense | 806,000 | 858,000 | 1,582,000 | 1,681,000 | 2,800,000 | ||||
Rent expense | $ 4,700,000 | $ 2,200,000 | |||||||
Sublease income | 102,000 | $ 131,000 | 203,000 | 280,000 | 500,000 | ||||
Sublease rental income | $ 400,000 | ||||||||
Operating lease, right-of-use asset | 10,443,000 | 10,443,000 | 5,618,000 | ||||||
Operating lease liability | $ 24,830,000 | 24,830,000 | 20,527,000 | ||||||
Payments related to operating leases | $ 3,200,000 | $ 2,700,000 | $ 5,600,000 | ||||||
Weighted-average remaining lease term | 8 years 2 months 12 days | 8 years 2 months 12 days | 7 years 10 months 24 days | ||||||
Weighted-average discount rate | 5.70% | 5.70% | 6.00% | ||||||
Minimum | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Monthly rental payments | $ 17,000 | $ 17,000 | |||||||
Maximum | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Monthly rental payments | $ 280,000 | $ 280,000 | |||||||
Lease Commenced In August 2020 Expiring In December 2030 | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Expected total future commitment | $ 10,000,000 | ||||||||
Lease Commenced in August 2020 Expiring In November 2030 | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Expected total future commitment | $ 7,900,000 | ||||||||
Lease Commenced on January 23, 2020 | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating lease, right-of-use asset | $ 5,400,000 | ||||||||
Operating lease liability | $ 5,400,000 |
Operating Leases - Summary of o
Operating Leases - Summary of operating lease assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease, right-of-use asset | $ 10,443 | $ 5,618 | |
Operating lease liability | 1,941 | 2,331 | |
Operating lease liability, net of current portion | 22,889 | 18,196 | $ 0 |
Total operating lease liabilities | $ 24,830 | $ 20,527 |
Operating Leases - Lease cost (
Operating Leases - Lease cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating lease expense | $ 733 | $ 592 | $ 1,407 | $ 1,202 | $ 2,300 |
Variable lease expense | 806 | 858 | 1,582 | 1,681 | 2,800 |
Sublease income | $ 102 | $ 131 | $ 203 | $ 280 | $ 500 |
Operating Leases - Remaining ma
Operating Leases - Remaining maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 1,536 | $ 3,474 |
2021 | 3,840 | 2,969 |
2022 | 3,930 | 3,033 |
2023 | 4,021 | 3,097 |
2024 | 4,117 | 3,165 |
Thereafter | 16,353 | 10,108 |
Total future minimum lease payments | 33,797 | 25,846 |
Less: imputed interest | (6,971) | (5,319) |
Less: lease incentives | (1,996) | |
Total operating lease liabilities | $ 24,830 | $ 20,527 |
Operating Leases - Future Minim
Operating Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 2,889 |
2020 | 3,474 |
2021 | 2,969 |
2022 | 3,033 |
2023 | 3,097 |
Thereafter | 13,424 |
Total future minimum lease payments | $ 28,886 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||
Domestic | $ (45,106) | $ (20,748) | |||||
Foreign | (1,635) | (164) | |||||
Loss before income taxes | $ (8,284) | $ (10,736) | $ (18,761) | $ (15,888) | $ (46,741) | $ (20,912) | $ (21,910) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||||||
Federal statutory income tax | $ (9,801) | $ (4,414) | |||||
State income tax, net of federal tax benefit | (1,577) | (618) | |||||
Foreign tax | (25) | 22 | |||||
Other | 328 | 253 | |||||
Valuation allowance net of deferred tax assets | 12,989 | 4,247 | |||||
Stock-based compensation | (1,267) | 11 | |||||
Return to provision | (581) | (45) | |||||
Change of rate | 0 | 566 | |||||
Effective income tax rate | $ 18 | $ 19 | $ 21 | $ 30 | $ 66 | $ 22 | $ 0 |
Tax Rate | |||||||
Federal statutory income tax | 21.00% | 21.00% | |||||
State income tax, net of federal tax benefit | 3.38% | 2.94% | |||||
Foreign tax | 0.05% | (0.10%) | |||||
Other | (0.72%) | (1.20%) | |||||
Valuation allowance net of deferred tax assets | (27.83%) | (20.21%) | |||||
Stock-based compensation | 2.71% | (0.05%) | |||||
Return to provision | 1.25% | 0.21% | |||||
Change of rate | 0.00% | (2.69%) | |||||
Effective income tax rate | (0.20%) | (0.10%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 30,285 | $ 17,228 |
Operating lease liability | 4,915 | 0 |
Deferred rent | 0 | 3,940 |
Other | 1,522 | 678 |
Total deferred tax assets | 36,722 | 21,846 |
Deferred tax liabilities | ||
Depreciation and amortization | (3,598) | (4,193) |
Deferred commissions and bonus | (2,652) | (1,848) |
Operating lease right-of-use asset | (1,345) | 0 |
Other | (847) | (514) |
Total deferred tax liabilities | (8,442) | (6,555) |
Less: Valuation allowance | (28,280) | (15,291) |
Net deferred tax asset (liability) | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Increase in valuation allowance | $ 13,000,000 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | $ 0 |
Federal tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 25,900,000 | |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 4,400,000 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details) | Nov. 26, 2019USD ($) | Jan. 22, 2020USD ($) | Dec. 31, 2019USD ($)letter_of_credit | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Number of standby letters of credit | letter_of_credit | 2 | |||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 40,000,000 | |||
Outstanding balance | 0 | $ 0 | ||
Streamline balance | $ 75,000,000 | |||
Interest rate | 4.75% | |||
Reduction in borrowing capacity | $ 800,000 | $ 3,200,000 | $ 3,200,000 | |
Revolving Credit Facility | Line of Credit | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders’ Equity - Narrative (Details) | Dec. 17, 2019shares | Dec. 31, 2019vote$ / sharesshares | Jun. 30, 2020$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Class of Stock [Line Items] | ||||
Common Stock, shares authorized (in shares) | 46,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
Maximum combined voting power, percent | 10.00% | |||
Period from closing of initial public offering | 7 years | |||
Common stock, shares outstanding (in shares) | 16,697,109 | |||
Preferred stock, shares outstanding (in shares) | 0 | |||
Class A common stock | ||||
Class of Stock [Line Items] | ||||
Common Stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Number of votes | vote | 1 | |||
Common stock, shares outstanding (in shares) | 39,041,065 | 40,961,808 | ||
Class B common stock | ||||
Class of Stock [Line Items] | ||||
Common Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Number of votes | vote | 10 | |||
Conversion feature (in shares) | 1 | |||
Common stock, shares outstanding (in shares) | 9,803,933 | 9,927,749 | ||
Convertible preferred stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 0 | 22,014,263 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Conversion of stock (in shares) | 22,014,263 | 22,014,263 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders’ Equity - Schedule Of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2019 | Dec. 17, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued (in shares) | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | ||
Carrying Amount | $ 0 | $ 0 | |
Series A convertible preferred stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized (in shares) | 2,690,403 | ||
Preferred stock, shares issued (in shares) | 2,690,403 | ||
Preferred stock, shares outstanding (in shares) | 2,690,403 | ||
Carrying Amount | 0 | $ 448 | |
Aggregate Liquidation Preference | $ 448 | ||
Issuance Price Per Share (in dollars per share) | $ 0.1667 | ||
Series A-1 convertible preferred stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized (in shares) | 1,600,000 | ||
Preferred stock, shares issued (in shares) | 1,600,000 | ||
Preferred stock, shares outstanding (in shares) | 1,600,000 | ||
Carrying Amount | 0 | $ 800 | |
Aggregate Liquidation Preference | $ 800 | ||
Issuance Price Per Share (in dollars per share) | $ 0.5000 | ||
Series B convertible preferred stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized (in shares) | 6,108,000 | ||
Preferred stock, shares issued (in shares) | 6,108,000 | ||
Preferred stock, shares outstanding (in shares) | 6,108,000 | ||
Carrying Amount | 0 | $ 9,961 | |
Aggregate Liquidation Preference | $ 9,999 | ||
Issuance Price Per Share (in dollars per share) | $ 1.6370 | ||
Series B-1 convertible preferred stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized (in shares) | 2,492,570 | ||
Preferred stock, shares issued (in shares) | 2,449,700 | ||
Preferred stock, shares outstanding (in shares) | 2,449,700 | ||
Carrying Amount | 0 | $ 9,663 | |
Aggregate Liquidation Preference | $ 9,714 | ||
Issuance Price Per Share (in dollars per share) | $ 3.9655 | ||
Series C convertible preferred stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized (in shares) | 6,989,863 | ||
Preferred stock, shares issued (in shares) | 6,989,863 | ||
Preferred stock, shares outstanding (in shares) | 6,989,863 | ||
Carrying Amount | 0 | $ 41,799 | |
Aggregate Liquidation Preference | $ 42,000 | ||
Issuance Price Per Share (in dollars per share) | $ 6.0087 | ||
Series D convertible preferred stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized (in shares) | 2,176,297 | ||
Preferred stock, shares issued (in shares) | 2,176,297 | ||
Preferred stock, shares outstanding (in shares) | 2,176,297 | ||
Carrying Amount | $ 0 | $ 40,305 | |
Aggregate Liquidation Preference | $ 40,500 | ||
Issuance Price Per Share (in dollars per share) | $ 18.6096 | ||
Convertible preferred stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized (in shares) | 22,057,133 | ||
Preferred stock, shares issued (in shares) | 22,014,263 | ||
Preferred stock, shares outstanding (in shares) | 0 | 22,014,263 | |
Carrying Amount | $ 102,976 | ||
Aggregate Liquidation Preference | $ 103,461 |
Incentive Stock Plan - Narrativ
Incentive Stock Plan - Narrative (Details) - USD ($) | Apr. 27, 2016 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 12, 2019 | Oct. 17, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total stock-based compensation expense | $ 2,481,000 | $ 5,298,000 | $ 6,003,000 | $ 5,298,000 | $ 25,333,000 | $ 53,000 | $ 473,000 | ||||
Intrinsic value of options exercised | $ 2,500,000 | 1,100,000 | 800,000 | ||||||||
2016 Stock Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized (in shares) | 5,467,862 | ||||||||||
2019 Incentive Award Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized (in shares) | 5,293,497 | ||||||||||
Class B Incentive Award Plan | Class B common stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized (in shares) | 550,000 | ||||||||||
Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum exercise period | 10 years | ||||||||||
Dividend yield | 0.00% | ||||||||||
Total stock-based compensation expense | $ 0 | $ 100,000 | $ 500,000 | ||||||||
Stock Options | 2016 Stock Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Minimum fair market value of option, percent | 110.00% | ||||||||||
Option ownership percentage | 10.00% | ||||||||||
Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Risk free interest rate | 1.61% | ||||||||||
Expected volatility | 62.50% | ||||||||||
Weighted average grant date fair value (in dollars per share) | $ 13.32 | $ 6.91 | $ 6.15 | ||||||||
Unrecognized stock-based compensation expense | $ 17,400,000 | ||||||||||
Recognition period | 3 years | ||||||||||
Grants in period (in shares) | 1,742,551 | ||||||||||
Restricted Stock Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total stock-based compensation expense | $ 5,300,000 | ||||||||||
Chief Executive Officer | Restricted Stock Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grants in period (in shares) | 434,436 | ||||||||||
Chief Executive Officer | Restricted Stock Awards | Common Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net issuance (in shares) | 242,155 |
Incentive Stock Plan - Stock Op
Incentive Stock Plan - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | ||
Outstanding at beginning of period (in shares) | 1,328,696 | |
Granted at fair value (in shares) | 0 | |
Exercised (in shares) | (163,962) | |
Forfeited (in shares) | (5,157) | |
Outstanding at end of period (in shares) | 1,159,577 | 1,328,696 |
Exercisable at end of the period (in shares) | 1,159,577 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 0.54 | |
Granted at fair value (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0.56 | |
Forfeited (in dollars per share) | 1.08 | |
Outstanding at end of period (in dollars per share) | 0.54 | $ 0.54 |
Exercisable at the end of the period (in dollars per share) | $ 0.54 | |
Outstanding, weighted-average contractual term (years) | 2 years 8 months 1 day | 3 years 8 months 1 day |
Exercisable, weighted-average contractual term (years) | 2 years 8 months 1 day | |
Outstanding, aggregate intrinsic value | $ 17,990 | $ 8,529 |
Exercisable, aggregate intrinsic value | $ 17,990 |
Incentive Stock Plan - Stock _2
Incentive Stock Plan - Stock Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, shares (in shares) | 1,159,577 |
Options exercisable, shares (in shares) | 1,159,577 |
$0.31 - $0.69 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ / shares | $ 0.31 |
Exercise price range, upper range limit (in dollars per share) | $ / shares | $ 0.69 |
Options outstanding, shares (in shares) | 952,867 |
Options outstanding, weighted average remaining contractual term | 2 years 1 month 6 days |
Options exercisable, shares (in shares) | 952,867 |
Options exercisable, weighted average remaining contractual term | 2 years 1 month 6 days |
$0.70 - $1.07 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ / shares | $ 0.70 |
Exercise price range, upper range limit (in dollars per share) | $ / shares | $ 1.07 |
Options outstanding, shares (in shares) | 35,000 |
Options outstanding, weighted average remaining contractual term | 4 years 6 months |
Options exercisable, shares (in shares) | 35,000 |
Options exercisable, weighted average remaining contractual term | 4 years 6 months |
$1.08 - $1.10 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ / shares | $ 1.08 |
Exercise price range, upper range limit (in dollars per share) | $ / shares | $ 1.10 |
Options outstanding, shares (in shares) | 101,405 |
Options outstanding, weighted average remaining contractual term | 5 years 1 month 6 days |
Options exercisable, shares (in shares) | 101,405 |
Options exercisable, weighted average remaining contractual term | 5 years 1 month 6 days |
$1.11 - $3.97 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ / shares | $ 1.11 |
Exercise price range, upper range limit (in dollars per share) | $ / shares | $ 3.97 |
Options outstanding, shares (in shares) | 70,305 |
Options outstanding, weighted average remaining contractual term | 5 years 3 months 18 days |
Options exercisable, shares (in shares) | 70,305 |
Options exercisable, weighted average remaining contractual term | 5 years 3 months 18 days |
Incentive Stock Plan - Restrict
Incentive Stock Plan - Restricted Stock Units (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Unvested at beginning of period (in shares) | 2,477,569 | ||
Grants (in shares) | 1,742,551 | ||
Vested (in shares) | (2,024,786) | ||
Forfeited (in shares) | (183,986) | ||
Unvested at end of period (in shares) | 2,011,348 | 2,477,569 | |
Weighted Average Grant Date Fair Value | |||
Unvested at beginning of period (in dollars per share) | $ 6.19 | ||
Granted (in dollars per share) | 13.32 | $ 6.91 | $ 6.15 |
Vested (in dollars per share) | 7.52 | ||
Forfeited (in dollars per share) | 6.67 | ||
Unvested at end of period (in dollars per share) | $ 11.02 | $ 6.19 |
Incentive Stock Plan - Stock-ba
Incentive Stock Plan - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Total stock-based compensation expense | $ 2,481 | $ 5,298 | $ 6,003 | $ 5,298 | $ 25,333 | $ 53 | $ 473 |
Cost of revenue | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Total stock-based compensation expense | 169 | 0 | 464 | 0 | 1,126 | 9 | 20 |
Research and development | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Total stock-based compensation expense | 450 | 0 | 934 | 0 | 2,290 | 28 | 161 |
Sales and marketing | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Total stock-based compensation expense | 697 | 0 | 1,166 | 0 | 8,697 | 15 | 259 |
General and administrative | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Total stock-based compensation expense | $ 1,165 | $ 5,298 | $ 3,439 | $ 5,298 | $ 13,220 | $ 1 | $ 33 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
2020 | $ 13,572 | |
2020 | $ 6,786 | |
2021 | 20,486 | 20,486 |
2022 | 27,495 | 27,495 |
2023 | 15,222 | 15,222 |
2024 | 0 | 0 |
Thereafter | 0 | 0 |
Total contractual obligations | $ 69,989 | $ 76,775 |
Segment and Geographic Data (De
Segment and Geographic Data (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||
Number of operating segments | segment | 1 | 1 | |||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | $ 31,402 | $ 24,763 | $ 61,937 | $ 48,142 | $ 102,707 | $ 78,813 | $ 44,815 |
Americas | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 24,592 | 19,542 | 48,392 | 37,781 | 80,574 | 61,501 | 33,853 |
EMEA | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 5,048 | 3,882 | 10,059 | 7,615 | 16,220 | 12,674 | 7,914 |
Asia Pacific | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | $ 1,762 | $ 1,339 | $ 3,486 | $ 2,746 | $ 5,913 | $ 4,638 | $ 3,048 |
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% | 29.00% | 30.00% | 32.00% |
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 | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||
Net loss attributable to common shareholders | $ (8,302) | $ (10,755) | $ (18,782) | $ (15,918) | $ (46,807) | $ (20,934) | $ (21,910) |
Weighted average common shares outstanding | 50,527,432 | 16,753,014 | 50,263,061 | 16,832,105 | 18,438,695 | 16,593,258 | 16,400,767 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.16) | $ (0.64) | $ (0.37) | $ (0.95) | $ (2.54) | $ (1.26) | $ (1.34) |
Net Loss per Share - Shares exc
Net Loss per Share - Shares excluded from the calculation of diluted net loss per share (Details) - shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive shares (in shares) | 2,571,087 | 23,325,041 | 3,559,532 | 21,293,716 | 21,396,599 |
Stock options outstanding | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive shares (in shares) | 416,081 | 1,275,473 | 1,159,577 | 1,313,121 | 1,523,328 |
RSUs outstanding | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive shares (in shares) | 2,155,006 | 0 | 2,364,650 | 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 | 0 | 19,945,290 | 19,837,966 |
Warrants | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive shares (in shares) | 0 | 35,305 | 35,305 | 35,305 | 35,305 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |||
Matching contributions | $ 1.3 | $ 1 | $ 0.6 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | Dec. 17, 2019USD ($) |
Underwriting discounts and commissions payment | Goldman Sachs & Co. LLC | |
Related Party Transaction [Line Items] | |
Amount of transaction with related party | $ 4.2 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 124,818 | $ 129,280 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 23,061 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 16,444 | |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,166 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 75,147 | 129,280 |
Level 1 | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 49,671 | 0 |
Level 2 | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 23,061 | |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 16,444 | |
Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,166 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 75,147 | 129,280 |
Money Market Funds [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 75,147 | 129,280 |
Money Market Funds [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | 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) - Over-allotment option - Class A common stock $ in Millions | Jan. 15, 2020USD ($)shares |
Subsequent Event [Line Items] | |
Shares issued and sold in offering (in shares) | shares | 629,603 |
Total proceeds from offering | $ 10 |
Subsequent event | |
Subsequent Event [Line Items] | |
Shares issued and sold in offering (in shares) | shares | 629,603 |
Aggregate gross offering price | $ 10.7 |
Total proceeds from offering | $ 10 |