Cover page
Cover page - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40465 | |
Entity Registrant Name | Marqeta, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-4306690 | |
Entity Address, Address Line One | 180 Grand Avenue | |
Entity Address, Address Line Two | 6th Floor | |
Entity Address, City or Town | Oakland | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94612 | |
City Area Code | 888 | |
Local Phone Number | 462-7738 | |
Title of 12(b) Security | Class A common stock, $0.0001 par value per share | |
Trading Symbol | MQ | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001522540 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 475,928,000 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 54,671,318 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 950,157 | $ 1,183,846 |
Restricted cash | 9,375 | 7,800 |
Short-term investments | 432,354 | 440,858 |
Accounts receivable, net | 15,253 | 15,569 |
Settlements receivable, net | 10,515 | 18,028 |
Network incentives receivable | 67,063 | 42,661 |
Prepaid expenses and other current assets | 29,098 | 38,007 |
Total current assets | 1,513,815 | 1,746,769 |
Property and equipment, net | 14,330 | 7,440 |
Operating lease right-of-use assets, net | 7,784 | 9,015 |
Goodwill | 123,446 | 0 |
Other assets | 44,768 | 7,122 |
Total assets | 1,704,143 | 1,770,346 |
Current liabilities: | ||
Accounts payable | 2,818 | 3,798 |
Revenue share payable | 125,853 | 142,194 |
Accrued expenses and other current liabilities | 189,669 | 136,887 |
Total current liabilities | 318,340 | 282,879 |
Operating lease liabilities, net of current portion | 7,132 | 9,034 |
Other liabilities | 6,056 | 5,477 |
Total liabilities | 331,528 | 297,390 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 100,000,000 and 100,000,000 shares authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock, $0.0001 par value: 1,500,000,000 and 1,500,000,000 Class A shares authorized, 479,526,954 and 486,530,334 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively. 600,000,000 and 600,000,000 Class B shares authorized, 54,689,722 and 54,833,765 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 52 | 53 |
Additional paid-in capital | 2,103,870 | 2,082,373 |
Accumulated other comprehensive loss | (1,476) | (7,237) |
Accumulated deficit | (729,831) | (602,233) |
Total stockholders’ equity | 1,372,615 | 1,472,956 |
Total liabilities and stockholders’ equity | $ 1,704,143 | $ 1,770,346 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 479,526,954 | 486,530,334 |
Common stock, shares, outstanding (in shares) | 479,526,954 | 486,530,334 |
Class B Common Stock | ||
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 54,689,722 | 54,833,765 |
Common stock, shares, outstanding (in shares) | 54,689,722 | 54,833,765 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net revenue | $ 231,115 | $ 186,678 | $ 448,456 | $ 352,780 |
Costs of revenue | 146,506 | 108,629 | 274,685 | 200,005 |
Gross profit | 84,609 | 78,049 | 173,771 | 152,775 |
Operating expenses: | ||||
Compensation and benefits | 126,788 | 97,868 | 274,547 | 198,216 |
Technology | 13,154 | 13,154 | 27,744 | 24,538 |
Professional services | 4,873 | 5,794 | 10,310 | 10,564 |
Occupancy | 1,057 | 1,148 | 2,211 | 2,263 |
Depreciation and amortization | 2,494 | 921 | 4,474 | 1,900 |
Marketing and advertising | 561 | 886 | 1,002 | 1,445 |
Other operating expenses | 5,103 | 4,995 | 10,336 | 9,838 |
Total operating expenses | 154,030 | 124,766 | 330,624 | 248,764 |
Loss from operations | (69,421) | (46,717) | (156,853) | (95,989) |
Other income (expense), net | 10,762 | 1,802 | 22,434 | (9,875) |
Loss before income tax expense | (58,659) | (44,915) | (134,419) | (105,864) |
Income tax expense (benefit) | 138 | (227) | (6,821) | (578) |
Net loss | (58,797) | (44,688) | (127,598) | (105,286) |
Other comprehensive income (loss), net of taxes: | ||||
Change in foreign currency translation adjustment | 100 | (181) | 119 | (200) |
Net change in unrealized gain (loss) on short-term investments | 1,607 | (1,896) | 5,642 | (7,763) |
Net other comprehensive income (loss) | 1,707 | (2,077) | 5,761 | (7,963) |
Comprehensive loss | $ (57,090) | $ (46,765) | $ (121,837) | $ (113,249) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.11) | $ (0.08) | $ (0.24) | $ (0.19) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.11) | $ (0.08) | $ (0.24) | $ (0.19) |
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares) | 538,267,449 | 544,704,146 | 538,988,940 | 543,524,008 |
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares) | 538,267,449 | 544,704,146 | 538,988,940 | 543,524,008 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (loss) | Accumulated Deficit |
Balance at the beginning of the period (in shares) at Dec. 31, 2021 | 541,383,518 | ||||
Balance at the beginning of the period at Dec. 31, 2021 | $ 1,573,426 | $ 54 | $ 1,993,055 | $ (2,230) | $ (417,453) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of vested options (in shares) | 1,604,022 | ||||
Issuance of common stock upon exercise of options | 2,285 | 2,285 | |||
Repurchase of early exercised stock options (in shares) | (22,751) | ||||
Issuance of common stock net settlement of restricted stock units (in shares) | 642,827 | ||||
Issuance of common stock upon net settlement of restricted stock units | (4,702) | (4,702) | |||
Vesting of common stock warrants | 2,102 | 2,102 | |||
Share-based compensation | 37,005 | 37,005 | |||
Change in accumulated other comprehensive income (loss) | (5,886) | (5,886) | |||
Net loss | (60,598) | (60,598) | |||
Balance at the end of the period (in shares) at Mar. 31, 2022 | 543,607,616 | ||||
Balance at the end of the period at Mar. 31, 2022 | 1,543,632 | $ 54 | 2,029,745 | (8,116) | (478,051) |
Balance at the beginning of the period (in shares) at Dec. 31, 2021 | 541,383,518 | ||||
Balance at the beginning of the period at Dec. 31, 2021 | 1,573,426 | $ 54 | 1,993,055 | (2,230) | (417,453) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in accumulated other comprehensive income (loss) | (7,963) | ||||
Net loss | (105,286) | ||||
Balance at the end of the period (in shares) at Jun. 30, 2022 | 545,933,730 | ||||
Balance at the end of the period at Jun. 30, 2022 | 1,534,557 | $ 54 | 2,067,435 | (10,193) | (522,739) |
Balance at the beginning of the period (in shares) at Mar. 31, 2022 | 543,607,616 | ||||
Balance at the beginning of the period at Mar. 31, 2022 | 1,543,632 | $ 54 | 2,029,745 | (8,116) | (478,051) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of vested options (in shares) | 1,314,467 | ||||
Issuance of common stock upon exercise of options | 1,543 | 1,543 | |||
Repurchase of early exercised stock options (in shares) | (28,268) | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 368,955 | ||||
Issuance of common stock under employee stock purchase plan | 2,775 | 2,775 | |||
Issuance of common stock net settlement of restricted stock units (in shares) | 670,960 | ||||
Issuance of common stock upon net settlement of restricted stock units | (3,878) | (3,878) | |||
Vesting of common stock warrants | 2,102 | 2,102 | |||
Share-based compensation | 35,148 | 35,148 | |||
Change in accumulated other comprehensive income (loss) | (2,077) | (2,077) | |||
Net loss | (44,688) | (44,688) | |||
Balance at the end of the period (in shares) at Jun. 30, 2022 | 545,933,730 | ||||
Balance at the end of the period at Jun. 30, 2022 | 1,534,557 | $ 54 | 2,067,435 | (10,193) | (522,739) |
Balance at the beginning of the period (in shares) at Dec. 31, 2022 | 541,364,099 | ||||
Balance at the beginning of the period at Dec. 31, 2022 | 1,472,956 | $ 53 | 2,082,373 | (7,237) | (602,233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of vested options (in shares) | 803,333 | ||||
Issuance of common stock upon exercise of options | 1,051 | 1,051 | |||
Issuance of common stock net settlement of restricted stock units (in shares) | 1,469,996 | ||||
Issuance of common stock upon net settlement of restricted stock units | (3,746) | (3,746) | |||
Vesting of common stock warrants | 2,102 | 2,102 | |||
Share-based compensation | 47,027 | 47,027 | |||
Repurchase and retirement of common stock, including excise tax (in shares) | (3,205,808) | ||||
Repurchase and retirement of common stock, including excise tax | (20,993) | (20,993) | |||
Change in accumulated other comprehensive income (loss) | 4,054 | 4,054 | |||
Net loss | (68,801) | (68,801) | |||
Balance at the end of the period (in shares) at Mar. 31, 2023 | 540,431,620 | ||||
Balance at the end of the period at Mar. 31, 2023 | 1,433,650 | $ 53 | 2,107,814 | (3,183) | (671,034) |
Balance at the beginning of the period (in shares) at Dec. 31, 2022 | 541,364,099 | ||||
Balance at the beginning of the period at Dec. 31, 2022 | 1,472,956 | $ 53 | 2,082,373 | (7,237) | (602,233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in accumulated other comprehensive income (loss) | 5,761 | ||||
Net loss | (127,598) | ||||
Balance at the end of the period (in shares) at Jun. 30, 2023 | 534,216,676 | ||||
Balance at the end of the period at Jun. 30, 2023 | 1,372,615 | $ 52 | 2,103,870 | (1,476) | (729,831) |
Balance at the beginning of the period (in shares) at Mar. 31, 2023 | 540,431,620 | ||||
Balance at the beginning of the period at Mar. 31, 2023 | 1,433,650 | $ 53 | 2,107,814 | (3,183) | (671,034) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of vested options (in shares) | 827,683 | ||||
Issuance of common stock upon exercise of options | 1,310 | 1,310 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 446,228 | ||||
Issuance of common stock under employee stock purchase plan | 1,775 | 1,775 | |||
Issuance of common stock net settlement of restricted stock units (in shares) | 2,679,165 | ||||
Issuance of common stock upon net settlement of restricted stock units | (6,324) | (6,324) | |||
Vesting of common stock warrants | 2,372 | 2,372 | |||
Share-based compensation | 45,419 | 45,419 | |||
Repurchase and retirement of common stock, including excise tax (in shares) | (10,168,020) | ||||
Repurchase and retirement of common stock, including excise tax | (48,497) | $ (1) | (48,496) | ||
Change in accumulated other comprehensive income (loss) | 1,707 | 1,707 | |||
Net loss | (58,797) | (58,797) | |||
Balance at the end of the period (in shares) at Jun. 30, 2023 | 534,216,676 | ||||
Balance at the end of the period at Jun. 30, 2023 | $ 1,372,615 | $ 52 | $ 2,103,870 | $ (1,476) | $ (729,831) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (127,598) | $ (105,286) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 4,474 | 1,900 |
Share-based compensation expense | 90,164 | 72,153 |
Non-cash postcombination compensation expense | 32,430 | 0 |
Non-cash operating leases expense | 1,231 | 1,111 |
Amortization of premium (accretion of discount) on short-term investments | (2,311) | 338 |
Impairment of other financial instruments | 0 | 11,616 |
Other | 499 | 326 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 63 | 5,067 |
Settlements receivable | 7,513 | 833 |
Network incentives receivable | (24,402) | 17,133 |
Prepaid expenses and other assets | 14,467 | (14,982) |
Accounts payable | (3,239) | (1,609) |
Revenue share payable | (16,341) | (4,092) |
Accrued expenses and other liabilities | (11,828) | (6,987) |
Operating lease liabilities | (1,642) | (1,464) |
Net cash used in operating activities | (36,520) | (23,943) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (668) | (868) |
Capitalization of internal-use software | (6,395) | 0 |
Business combination, net of cash acquired | (131,914) | 0 |
Purchases of short-term investments | (279,548) | (12,999) |
Maturities of short-term investments | 296,000 | 12,900 |
Net cash used in investing activities | (122,525) | (967) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options | 2,299 | 3,407 |
Proceeds from shares issued in connection with employee stock purchase plan | 1,775 | 2,775 |
Taxes paid related to net share settlement of restricted stock units | (10,070) | (8,580) |
Repurchase of common stock | (67,073) | 0 |
Net cash used in financing activities | (73,069) | (2,398) |
Net decrease in cash, cash equivalents, and restricted cash | (232,114) | (27,308) |
Cash, cash equivalents, and restricted cash- Beginning of period | 1,191,646 | 1,255,381 |
Cash, cash equivalents, and restricted cash - End of period | 959,532 | 1,228,073 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | 950,157 | 1,220,273 |
Restricted cash | 9,375 | 7,800 |
Total cash, cash equivalents, and restricted cash | 959,532 | 1,228,073 |
Supplemental disclosures of cash flow information: | ||
Cash paid for operating lease liabilities | 2,096 | 2,039 |
Cash paid for income taxes | 915 | 84 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchase of property and equipment accrued and not yet paid | 137 | 1,184 |
Share-based compensation capitalized to internal-use software | 2,282 | 0 |
Repurchase of common stock, including excise tax, accrued and not yet paid | $ 2,417 | $ 0 |
Business Overview and Basis of
Business Overview and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Business Overview and Basis of Presentation | Business Overview and Basis of Presentation Marqeta, Inc., (“the Company”) creates digital payment technology for innovation leaders. The Company's modern card issuing platform places control over payment transactions into the hands of its customers enabling them to develop modern, state-of-the-art product experiences. The Company provides all of its customers with issuer processor services and for most of its customers it also acts as a card program manager. The Company primarily earns revenue from processing card transactions for its customers. The Company was incorporated in the state of Delaware in 2010 and is headquartered in Oakland, California, with offices in the United States and United Kingdom and a legal entity in Australia, Brazil, Canada, and Singapore as of June 30, 2023. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission, (“SEC”), for interim reporting. Certain information and note disclosures included in the Company’s annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The Condensed Consolidated Balance Sheet as of December 31, 2022 has been derived from the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 28, 2023. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Annual Report on Form 10-K. The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal, recurring nature considered necessary for a fair presentation of the Company's consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods presented. The interim results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or for any other future annual or interim period. Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions relating to reported amounts of assets and liabilities, disclosure of contingent liabilities, and reported amounts of revenue and expenses. Significant estimates and assumptions include, but are not limited to, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, the estimation of contingent liabilities, the estimation of variable consideration in contracts with customers, and the reserve for contract contingencies and processing errors. Actual results could differ materially from these estimates. Business Risks and Uncertainties The Company has incurred net losses since its inception. For the three and six months ended June 30, 2023, the Company incurred net losses of $58.8 million and $127.6 million, respectively, and had an accumulated deficit of $729.8 million as of June 30, 2023. The Company expects to incur net losses from operations for the foreseeable future as it incurs costs and expenses related to creating new products for customers, acquiring new customers, developing its brand, expanding into new geographies and developing the existing platform infrastructure. The Company believes that its Cash and cash equivalents of $950.2 million and Short-term investments of $432.4 million as of June 30, 2023 are sufficient to fund its operations through at least the next twelve months from the issuance of these financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in “Consolidated Financial Statements—Note 2. Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. There have been no significant changes to these policies during the three and six months ended June 30, 2023, except for the addition of new policies relating to business combinations, goodwill and acquisition-related intangible assets, and restructuring as described below. Segment Information The Company operates as a single operating segment. The Company's chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, allocating resources, and evaluating the Company's financial performance. For the three and six months ended June 30, 2023 and 2022, revenue outside of the United States, based on the billing address of the customer, was not material. As of June 30, 2023 and December 31, 2022, long-lived assets located outside of the United States were not material. Restricted Cash Restricted cash consists of deposits with financial institutions that issue payment cards (credit, debit, or prepaid) either on their own behalf or on behalf of businesses that issue customized card products to their end users (“Issuing Banks”) to provide the Issuing Bank collateral in the event that customers’ funds are not deposited at the Issuing Banks in time to settle customers’ transactions with the networks that provide the infrastructure for settlement and card payment information flows (“Card Networks”). Restricted cash also includes cash used to secure a letter of credit for the Company’s lease of its office headquarters in Oakland, California. Capitalized Internal-use Software Development Costs The Company capitalizes certain costs incurred in developing internal-use software when capitalization requirements have been met. Internal and external costs incurred in the preliminary project stage of internal-use software development are expensed as incurred. Once the software development process reaches the application development stage, qualifying internal costs including compensation and benefits costs of employees who are directly associated with and devote time to the software project as well as external direct costs are capitalized. Capitalization of costs ends when the developed software is substantially complete and ready for its intended internal use, which is typically upon completion of all substantial testing. Capitalized internal-use software development costs are included in property and equipment, net, and then amortized on a straight-line basis over the estimated useful life of the software. The amortization of these costs is recorded within Depreciation and amortization expense on the Condensed Consolidated Statements of Operations and Comprehensive Loss. Business Combinations The Company allocates the purchase consideration for acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Condensed Consolidated Statements of Operations and Comprehensive Loss. Acquisition-related expenses and postcombination integration and employee compensation costs are recognized separately from the business combination and are expensed as incurred. Goodwill and Acquisition-related Intangible Assets The excess purchase price over the fair value of assets acquired is recorded as goodwill. Goodwill amounts are not amortized. Acquisition-related intangible assets with finite lives are amortized over their estimated useful lives on a straight-line basis. Goodwill and acquisition-related intangible assets are tested for impairment at least annually, and more frequently whenever events or changes in circumstances indicate its carrying value may not be recoverable. Deferred Contract Costs Deferred contract costs mainly consist of sales commissions and related fringe benefits that are incremental costs of obtaining contracts with customers. The Company amortizes the costs incurred on initial contracts on a straight-line basis over an estimated period of benefit determined to be approximately four years. The period of benefit is determined based on a review of customer contract terms and churn rates. The Company exercises the practical expedient to expense commissions on arrangements in which the amortization period is expected to be one year or less. Deferred contract costs that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other assets on the Condensed Consolidated Balance Sheets. The amortization of these costs is recorded within Compensation and benefits expenses on the Condensed Consolidated Statements of Operations and Comprehensive Loss. Restructuring |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table provides information about disaggregated revenue from customers: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Platform services revenue, net $ 226,198 $ 181,102 $ 436,530 $ 342,100 Other services revenue 4,917 5,576 11,926 10,680 Total net revenue $ 231,115 $ 186,678 $ 448,456 $ 352,780 Contract Balances The following table provides information about contract assets and deferred revenue: Contract balance Balance sheet line reference June 30, December 31, Contract assets - current Prepaid expenses and other current assets $ 134 $ 621 Contract assets - non-current Other assets 2,107 1,323 Total contract assets $ 2,241 $ 1,944 Deferred revenue - current Accrued expenses and other current liabilities $ 12,971 $ 17,048 Deferred revenue - non-current Other liabilities 4,954 4,202 Total deferred revenue $ 17,925 $ 21,250 Net revenue recognized during the three months ended June 30, 2023 and 2022 that was included in the deferred revenue balances at the beginning of the respective periods was $3.2 million and $3.4 million, respectively. Net revenue recognized during the six months ended June 30, 2023 and 2022 that was included in the deferred revenue balances at the beginning of the respective periods was $7.8 million and $8.4 million, respectively. Remaining Performance Obligations The Company has performance obligations associated with commitments in customer contracts for future stand-ready obligations to process transactions throughout the contractual term. |
Short-term Investments
Short-term Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Short-term Investments | Short-term Investments During the second quarter of 2023, the Company renamed the Marketable securities financial statement line item to Short-term investments in the Condensed Consolidated Balances Sheets to more accurately align with the Company’s current investment portfolio. The amortized cost, unrealized gain (loss), and estimated fair value of the Company's short-term investments consisted of the following: June 30, 2023 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Short-term Investments U.S. treasury securities $ 251,806 $ — $ (1,201) $ 250,605 U.S. agency securities 68,403 3 (64) 68,342 Commercial paper 28,262 1 — 28,263 Asset-backed securities 11,705 — (39) 11,666 Corporate debt securities 11,013 — (28) 10,985 Certificate of deposits 62,493 — — 62,493 Total short-term investments $ 433,682 $ 4 $ (1,332) $ 432,354 December 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Short-term investments U.S. treasury securities $ 384,951 $ — $ (6,949) $ 378,002 U.S. agency securities 29,012 47 — 29,059 Commercial paper 28,815 — — 28,815 Corporate debt securities 5,049 — (67) 4,982 Total short-term investments $ 447,827 $ 47 $ (7,016) $ 440,858 The Company had thirty-seven and thirteen separate short-term investments in unrealized loss positions as of June 30, 2023 and December 31, 2022, respectively. The Company does not intend to sell any short-term investments that have unrealized losses as of June 30, 2023, and it is not more likely than not that the Company will be required to sell such securities before any anticipated recovery of the entire amortized cost basis. There were no realized gains or losses from short-term investments that were reclassified out of accumulated other comprehensive loss for the three and six months ended June 30, 2023 and 2022. For short-term investments that have unrealized losses, the Company evaluated whether (i) the Company has the intention to sell any of these investments, (ii) it is not more likely than not that the Company will be required to sell any of these available-for-sale debt securities before recovery of the entire amortized cost basis and (iii) the decline in the fair value of the investment is due to credit or non-credit related factors. Based on this evaluation, the Company determined that for its short-term investments, there were no material credit or non-credit related impairments as of June 30, 2023. The following table summarizes the stated maturities of the Company’s short-term investments: June 30, 2023 December 31, 2022 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 309,082 $ 308,166 $ 447,827 $ 440,858 Due after one year through two years 124,600 124,188 — — Total $ 433,682 $ 432,354 $ 447,827 $ 440,858 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present the fair value hierarchy for assets and liabilities measured at fair value: June 30, 2023 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 447,636 $ — $ — $ 447,636 Commercial paper — 19,983 — 19,983 Short-term investments U.S. government securities 250,605 — — 250,605 U.S. agency securities — 68,342 68,342 Commercial paper — 28,263 — 28,263 Asset-backed securities — 11,666 — 11,666 Corporate debt securities — 10,985 — 10,985 Certificate of deposit $ — $ 62,493 — 62,493 Total assets $ 698,241 $ 201,732 $ — $ 899,973 Accrued expenses and other current liabilities Contingent consideration liability $ — $ — $ 53,067 $ 53,067 Total liabilities $ — $ — $ 53,067 $ 53,067 December 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 462,459 $ — $ — $ 462,459 Short-term investments U.S. government securities 378,002 — — 378,002 U.S. agency securities — 29,059 — 29,059 Commercial paper — 28,815 — 28,815 Corporate debt securities — 4,982 — 4,982 Total assets $ 840,461 $ 62,856 $ — $ 903,317 The Company classifies money market funds, commercial paper, U.S. government securities, U.S. agency securities, asset-backed securities, corporate debt securities, and certificate of deposits within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company determines the fair value of contingent consideration based on a probability-weighted discounted cash flow analysis. The fair value remeasurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in the fair value hierarchy. In each period, the Company reassesses its current estimates of performance relative to the stated targets and adjusts the liability to fair value. Any such adjustments are included in Other income (expense), net in the Condensed Consolidated Statements of Operations and Comprehensive Loss. There were no transfers of financial instruments between the fair value hierarchy levels during the three and six months ended June 30, 2023 and the year ended December 31, 2022. |
Certain Balance Sheet Component
Certain Balance Sheet Components | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Certain Balance Sheet Components | Certain Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: June 30, December 31, Prepaid expenses $ 8,569 $ 9,082 Inventory 5,046 5,150 Prepaid hosting and data costs 4,672 6,443 Accrued interest receivable 4,164 3,983 Prepaid insurance 392 3,729 Card program deposits 128 2,128 Contract assets, current 135 621 Other current assets 5,992 6,871 Prepaid expenses and other current assets $ 29,098 $ 38,007 Property and Equipment, net Property and equipment consisted of the following: June 30, December 31, Leasehold improvements $ 8,110 $ 8,110 Computer equipment 8,965 9,115 Furniture and fixtures 2,519 2,542 Internally developed and purchased software 11,813 3,082 31,407 22,849 Accumulated depreciation and amortization (17,077) (15,409) Property and equipment, net $ 14,330 $ 7,440 Depreciation and amortization expense was $2.5 million and $0.9 million for the three months ended June 30, 2023 and 2022, respectively, and $4.5 million and $1.9 million for the six months ended June 30, 2023 and 2022, respectively. The Company capitalized $4.6 million and $8.7 million as internal-use software development costs during the three and six months ended June 30, 2023, respectively. Internal-use software development costs during the three and six months ended June 30, 2022 were not material during the respective periods. Other Assets Other assets consisted of the following: June 30, December 31, Contract assets, noncurrent $ 2,106 $ 1,323 Deferred tax assets 776 1,240 Other noncurrent assets 3,326 4,559 Acquired developed technology, net 38,560 — Other assets $ 44,768 $ 7,122 The amortization period for acquired developed technology is 7 years. Amortization expense for acquired developed technology was $1.5 million and $2.4 million for three and six months ended June 30, 2023, respectively. Expected future amortization expense for acquired developed technology was as follows as of June 30, 2023: Remainder of 2023 $ 2,929 2024 5,857 2025 5,857 2026 5,857 2027 5,857 Thereafter 12,203 Total expected future amortization expense for acquired developed technology $ 38,560 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: June 30, December 31, Accrued costs of revenue $ 66,272 $ 57,191 Contingent consideration liability 53,067 — Accrued compensation and benefits 18,161 41,268 Accrued restructuring 9,567 — Deferred revenue 12,971 17,048 Accrued tax liabilities 4,573 4,978 Accrued professional services 3,885 4,784 Operating lease liabilities, current portion 3,654 3,394 Reserve for contract contingencies and processing errors 2,538 2,494 Other accrued liabilities 14,981 5,730 Accrued expenses and other current liabilities $ 189,669 $ 136,887 Other Liabilities Other liabilities consisted of the following: June 30, December 31, Deferred revenue, net of current portion $ 4,954 $ 4,202 Other long-term liabilities 1,102 1,275 Other liabilities $ 6,056 $ 5,477 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company has a lease agreement for its corporate headquarters in Oakland, California for a total of 63,000 square feet. The non-cancellable operating lease expires in February 2026 and includes options to extend the lease term, generally at the then-market rates. The Company excludes extension options that are not reasonably certain to be exercised from its lease terms. The Company’s lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. The Company is responsible for operating expenses that exceed the amount of base operating expenses as defined in the original lease agreement. The Company's operating lease costs are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating lease cost $ 843 $ 843 $ 1,686 $ 1,686 Variable lease cost 98 261 229 418 Short-term lease cost 39 219 147 331 Total lease cost $ 980 $ 1,323 $ 2,062 $ 2,435 The Company does not have any sublease income and the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The weighted average remaining operating lease term and the weighted average discount rate used in the calculation of the Company's lease assets and lease liabilities were as follows: June 30, December 31, Weighted average remaining operating lease term (in years) 2.6 3.1 Weighted average discount rate 7.7% 7.7% Maturities of the Company’s operating lease liabilities by year are as follows as of June 30, 2023: Remainder of 2023 $ 2,142 2024 4,472 2025 4,599 2026 780 Total lease payments 11,993 Less imputed interest (1,207) Total operating lease liabilities $ 10,786 Letters of Credit In connection with the lease for its corporate headquarters office space, the Company is required to provide the landlord a letter of credit in the amount of $1.5 million. The Company has secured this letter of credit by depositing $1.5 million with the issuing financial institution, which deposit is classified as Restricted cash in the Condensed Consolidated Balance Sheets. Purchase Obligations As of June 30, 2023, the Company had non-cancellable purchase commitments with certain service providers and Issuing Banks of $213.0 million, payable over the next 5 years. These purchase obligations include $197.7 million related to minimum commitments as part of a cloud-computing service agreement. The remaining obligations are related to various service providers and Issuing Banks processing fees over the fixed, non-cancellable respective contract terms. Defined Contribution Plans The Company maintains defined contribution plans for eligible employees, including a 401(k) plan that covers substantially all of its U.S. based employees and to which the Company provides a matching contribution of 50% of the first 6% of eligible compensation that an employee contributes. During the three months ended June 30, 2023 and 2022, the Company contributed a total of $1.5 million and $1.3 million to its defined contribution plans, respectively. During the six months ended June 30, 2023 and 2022, the Company contributed a total of $3.7 million and $3.4 million to its defined contribution plans, respectively. Legal Contingencies 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. As of June 30, 2023 and December 31, 2022, there were no legal contingency matters, either individually or in aggregate, that would have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Given the unpredictable nature of legal proceedings, the Company bases its assessment on the information available at the time. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. Settlement of Payment Transactions Customers deposit a certain amount of pre-funding into accounts maintained at Issuing Banks to settle their payment transactions. Such pre-funding amounts may only be used to settle customers’ payment transactions and are not considered assets of the Company. As such, the funds held in customers’ accounts at Issuing Banks are not reflected on the Company’s Condensed Consolidated Balance Sheets. If a customer fails to deposit sufficient funds to settle a transaction, the Company is liable to the Issuing Bank to settle the transaction and would therefore incur losses if such amounts cannot be subsequently recovered from the customer. Indemnifications In the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. With respect to Issuing Banks, the Company has received requests for indemnification from time to time and may indemnify the Issuing Bank for losses the Issuing Bank may incur for non-compliance with applicable law and regulation, if those losses resulted from the Company’s failure to perform under its program agreement with the Issuing Bank. In addition, the Company has entered into indemnification agreements with its directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees. No demands have been made upon the Company to provide indemnification under such agreements and there are no claims that the Company is aware of that could have a material effect on its Condensed Consolidated Financial Statements. The Company also includes service level commitments to its customers, warranting certain levels of performance and permitting those customers to receive credits in the event the Company fails to meet the levels specified. |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company has a lease agreement for its corporate headquarters in Oakland, California for a total of 63,000 square feet. The non-cancellable operating lease expires in February 2026 and includes options to extend the lease term, generally at the then-market rates. The Company excludes extension options that are not reasonably certain to be exercised from its lease terms. The Company’s lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. The Company is responsible for operating expenses that exceed the amount of base operating expenses as defined in the original lease agreement. The Company's operating lease costs are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating lease cost $ 843 $ 843 $ 1,686 $ 1,686 Variable lease cost 98 261 229 418 Short-term lease cost 39 219 147 331 Total lease cost $ 980 $ 1,323 $ 2,062 $ 2,435 The Company does not have any sublease income and the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The weighted average remaining operating lease term and the weighted average discount rate used in the calculation of the Company's lease assets and lease liabilities were as follows: June 30, December 31, Weighted average remaining operating lease term (in years) 2.6 3.1 Weighted average discount rate 7.7% 7.7% Maturities of the Company’s operating lease liabilities by year are as follows as of June 30, 2023: Remainder of 2023 $ 2,142 2024 4,472 2025 4,599 2026 780 Total lease payments 11,993 Less imputed interest (1,207) Total operating lease liabilities $ 10,786 Letters of Credit In connection with the lease for its corporate headquarters office space, the Company is required to provide the landlord a letter of credit in the amount of $1.5 million. The Company has secured this letter of credit by depositing $1.5 million with the issuing financial institution, which deposit is classified as Restricted cash in the Condensed Consolidated Balance Sheets. Purchase Obligations As of June 30, 2023, the Company had non-cancellable purchase commitments with certain service providers and Issuing Banks of $213.0 million, payable over the next 5 years. These purchase obligations include $197.7 million related to minimum commitments as part of a cloud-computing service agreement. The remaining obligations are related to various service providers and Issuing Banks processing fees over the fixed, non-cancellable respective contract terms. Defined Contribution Plans The Company maintains defined contribution plans for eligible employees, including a 401(k) plan that covers substantially all of its U.S. based employees and to which the Company provides a matching contribution of 50% of the first 6% of eligible compensation that an employee contributes. During the three months ended June 30, 2023 and 2022, the Company contributed a total of $1.5 million and $1.3 million to its defined contribution plans, respectively. During the six months ended June 30, 2023 and 2022, the Company contributed a total of $3.7 million and $3.4 million to its defined contribution plans, respectively. Legal Contingencies 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. As of June 30, 2023 and December 31, 2022, there were no legal contingency matters, either individually or in aggregate, that would have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Given the unpredictable nature of legal proceedings, the Company bases its assessment on the information available at the time. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. Settlement of Payment Transactions Customers deposit a certain amount of pre-funding into accounts maintained at Issuing Banks to settle their payment transactions. Such pre-funding amounts may only be used to settle customers’ payment transactions and are not considered assets of the Company. As such, the funds held in customers’ accounts at Issuing Banks are not reflected on the Company’s Condensed Consolidated Balance Sheets. If a customer fails to deposit sufficient funds to settle a transaction, the Company is liable to the Issuing Bank to settle the transaction and would therefore incur losses if such amounts cannot be subsequently recovered from the customer. Indemnifications In the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. With respect to Issuing Banks, the Company has received requests for indemnification from time to time and may indemnify the Issuing Bank for losses the Issuing Bank may incur for non-compliance with applicable law and regulation, if those losses resulted from the Company’s failure to perform under its program agreement with the Issuing Bank. In addition, the Company has entered into indemnification agreements with its directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees. No demands have been made upon the Company to provide indemnification under such agreements and there are no claims that the Company is aware of that could have a material effect on its Condensed Consolidated Financial Statements. The Company also includes service level commitments to its customers, warranting certain levels of performance and permitting those customers to receive credits in the event the Company fails to meet the levels specified. |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive PlansThe Company has granted share-based awards to employees, non-employee directors, and other service providers of the Company under the Amended and Restated 2011 Equity Incentive Plan (“2011 Plan”) and the 2021 Stock Option and Incentive Plan (“2021 Plan”), collectively, the Plans. The 2011 Plan was terminated in June 2021 in connection with the Company’s initial public offering (“IPO”) but continues to govern the terms of outstanding awards that were granted prior to the IPO. Additionally, the Company offers an employee stock purchase plan (“ESPP”), which allows employees to purchase shares of common stock at 85% of the fair value of the Company’s Class A common stock on the first or last day of the offering period, whichever is lower. The offering periods are six months long and start in May and November of each year. The following table presents the share-based compensation expense recognized in the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Restricted stock units $ 25,179 $ 15,078 $ 49,970 $ 30,423 Stock options 5,309 6,160 12,793 13,818 Executive Chairman Long-Term Performance Award 13,267 13,267 26,388 26,388 Employee Stock Purchase Plan 410 643 1,013 1,524 Total $ 44,165 $ 35,148 $ 90,164 $ 72,153 Restricted Stock Units Restricted stock units (“RSUs”), generally vest over three A summary of the Company's RSU activity under the Plans is as follows: Number of Restricted Stock Units Weighted-average grant date fair value per share Balance as of December 31, 2022 34,146,546 $ 9.74 Granted 26,556,500 4.45 Vested (6,289,563) 9.60 Canceled and forfeited (9,271,109) 8.39 Balance as of June 30, 2023 45,142,374 $ 6.92 As of June 30, 2023, unrecognized compensation costs related to unvested RSUs was $283.4 million. These costs are expected to be recognized over a weighted-average period of 2.9 years. Stock Options Under the Plans, the exercise price of a stock option shall not be less than the fair market value per share of the Company’s common stock on the date of grant (and not less than 110% of the fair market value per share of common stock for grants to stockholders owning more than 10% of the total combined voting power of all classes of stock of the Company, or a 10% stockholder). Options are exercisable over periods not to exceed ten years from the date of grant (five years for incentive stock options granted to 10% stockholders). A summary of the Company's stock option activity under the Plans is as follows: Number of Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (1) Balance as of December 31, 2022 36,156,445 $ 16.37 7.67 years $ 29,101 Granted 6,080,148 5.35 Exercised (1,631,016) 1.41 Canceled and forfeited (2,228,604) 10.45 Balance as of June 30, 2023 38,376,973 $ 15.61 7.75 years $ 14,943 Exercisable as of June 30, 2023 (2) 11,157,842 $ 11.17 7.39 years $ 13,162 Vested as of June 30, 2023 8,267,104 $ 9.39 6.26 years $ 11,972 (1) Intrinsic value is calculated based on the difference between the exercise price of in-the-money-stock options and the fair value of the common stock as of the respective balance sheet dates. (2) The 2011 Plan allows for early exercise of stock options. Accordingly, options granted under this plan are included as exercisable stock options regardless of vesting status. As of June 30, 2023, aggregate unrecognized compensation costs related to unvested outstanding stock options, excluding the Executive Chairman Long-Term Performance Award, was $57.0 million. These costs are expected to be recognized over a weighted-average period of 2.5 years. The fair value of stock options granted was estimated using the Black-Scholes option pricing model and the following weighted average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2023 (1) 2022 2023 2022 Dividend yield —% 0.0% 0.0% 0.0% Expected volatility —% 61.90% 70.78% 59.37% Expected term (in years) — 6.08 6.04 6.08 Risk-free interest rate —% 2.81% 3.78% 2.18% (1) The Company did not grant any stock options during the three months ended June 30, 2023. The fair value of the Company’s common stock is determined by the closing price, on the date of grant, of its Class A common stock, which is traded on the Nasdaq Global Select Market. Executive Chairman Long-Term Performance Award In April and May 2021, the Company’s board of directors granted the Company’s Executive Chairman and then-Chief Executive Officer equity incentive awards in the form of performance-based stock options covering 19,740,923 and 47,267 shares of the Company’s Class B common stock with an exercise price of $21.49 and $23.40 per share, respectively (collectively, the “Executive Chairman Long-Term Performance Award,” formerly known as the CEO Long-Term Performance Award). The Executive Chairman Long-Term Performance Award vests upon the satisfaction of a service condition and the achievement of certain stock price hurdles over a seven-year performance period following the expiration of the lock-up period associated with the Company’s IPO in 2021. The stock price hurdle will be achieved if the average closing price of a share of the Company’s Class A common stock during any 90 consecutive trading day period during the performance period equals or exceeds the Company stock price hurdle set forth in the table below. The Executive Chairman Long-Term Performance Award is divided into seven equal tranches which vest upon the achievement of the following Company stock price hurdles: Tranche Company Stock Price Hurdle Number of Options Eligible to Vest 1 $67.50 2,826,884 2 $78.98 2,826,884 3 $92.40 2,826,884 4 $108.11 2,826,884 5 $126.49 2,826,884 6 $147.99 2,826,884 7 $173.15 2,826,884 Total 19,788,188 The grant date fair value of the Executive Chairman Long-Term Performance Award was estimated using a Monte Carlo simulation model that incorporated multiple stock price paths and probabilities that the Company stock price hurdles are met. The weighted-average grant date fair value of the seven tranches of the Executive Chairman Long-Term Performance Award was estimated to be $10.53 per option share. As of June 30, 2023, the aggregate unrecognized compensation cost of the Executive Chairman Long-Term Performance Award was $90.6 million, which is expected to be recognized over the remaining derived service period of 2.6 years. |
Stockholders_ Equity Transactio
Stockholders’ Equity Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity Transactions | Stockholders’ Equity Transactions Warrants to Purchase Common Stock In 2021 and 2020, the Company issued warrants to customers to purchase up to 1,150,000 and 750,000 shares of the Company’s common stock, respectively. These warrants vest based on certain performance conditions that include issuing a specific percentage of new cards on the Company’s platform over a defined measurement period and reaching certain annual transaction count thresholds over the contract term, respectively. All warrants have an exercise price of $0.01 per share. These warrants are classified as equity instruments and are treated as consideration payable to a customer. The grant date fair values of these warrants are recorded as a reduction to net revenue over the term of the respective customer contract based on the expected pattern of processing volume generated by the customer and the probability of vesting conditions being met. The aggregate fair values of the warrants issued in 2021 and 2020 were $26.4 million and $5.7 million, respectively. As of June 30, 2023 , 886,470 warrants were vested. The Company recorded $2.4 million and $4.5 million as a reduction of revenue during the three and six months ended June 30, 2023, respectively. The Company recorded $1.8 million and $3.4 million as a reduction of revenue during the three and six months ended June 30, 2022, respectively. Upon vesting, the fair values of the vested warrants are recorded into the Company’s Additional paid-in capital. Timing differences caused by the pattern of processing volume generated by the customer over the term of the contract and the vesting schedules of the warrants can cause differences in the amount of grant date fair value that is credited to additional paid in capital upon vesting and the amount recorded as a reduction in net revenue during any particular reporting period. Share Repurchase Programs On September 14, 2022, the Company’s board of directors authorized a share repurchase program of up to $100 million of the Company’s Class A common stock beginning September 15, 2022 (“2022 Share Repurchase Program”). Under the 2022 Share Repurchase Program, the Company was authorized to repurchase shares through open market purchases, in privately negotiated transactions or by other means, in accordance with applicable federal securities laws, including through trading plans under Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”). The number of shares repurchased and the timing of purchases are based on general business and market conditions, and other factors, including legal requirements. The 2022 Share Repurchase Program has no set expiration date; however, repurchases under the program were complete as of March 31, 2023. During the six months ended June 30, 2023, the Company repurchased and subsequently retired 3.2 million shares for $21.0 million under the 2022 Share Repurchase Program, for an average price of $6.46. The total price of the shares repurchased and related transaction costs and excise taxes are reflected as a reduction to Common stock and additional paid-in capital on the Company’s Condensed Consolidated Balance Sheets. On May 8, 2023, the Company’s board of directors authorized a share repurchase program of up to $200 million of the Company’s Class A common stock (“2023 Share Repurchase Program”). Under the 2023 Share Repurchase Program, the Company is authorized to repurchase shares through open market purchases, in privately negotiated transactions or by other means, in accordance with applicable federal securities laws, including through trading plans under Rule 10b5-1 of the Exchange Act. The number of shares repurchased and the timing of purchases are based on general business and market conditions, and other factors, including legal requirements. The 2023 Share Repurchase Program has no set expiration date. During the three and six months ended June 30, 2023, the Company repurchased and subsequently retired 10.2 million shares for $48.5 million under the 2023 Share Repurchase Program, for an average price of $4.75. The total price of the shares repurchased and related transaction costs and excise taxes are reflected as a reduction to Common stock and additional paid-in capital on the Company’s Condensed Consolidated Balance Sheets. As of June 30, 2023, $151.7 million remained available for future share repurchases under the 2023 Share Repurchase Program. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The Company calculated basic and diluted net loss per share attributable to common stockholders as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator Net loss attributable to Class A and Class B common stockholders $ (58,797) $ (44,688) $ (127,598) $ (105,286) Denominator Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 538,267,449 544,704,146 538,988,940 543,524,008 Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.11) $ (0.08) $ (0.24) $ (0.19) Basic net loss per share is the same as diluted net loss per share because the Company reported a net loss for the three and six months ended June 30, 2023 and 2022. The rights, including the liquidation and dividend rights, of the holders of Class A common stock and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical for Class A common stock and Class B common stock, the undistributed earnings are allocated on a proportionate basis and the resulting loss per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis. The Company considered its proportionate share of the potentially dilutive shares issued by its former equity method investee in its dilutive net loss per share calculation for prior periods. All potentially dilutive shares of its equity method investee were excluded from the computation as they would have an anti-dilutive effect. Potentially dilutive securities that were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect were as follows: As of June 30, 2023 2022 Warrants to purchase Class B common stock 1,900,000 1,900,000 Stock options outstanding, including early exercise of options 38,376,973 41,524,641 Unvested RSUs outstanding 45,142,374 20,470,957 Shares committed under the ESPP 277,286 247,589 Stock options and RSUs available for future grants 62,079,654 75,973,184 Total 147,776,287 140,116,371 |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The Company calculates its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. The Company recorded income tax expense of $0.1 million and an income tax benefit $0.2 million for three months ended June 30, 2023 and 2022, respectively. The Company recorded an income tax benefit of $6.8 million and $0.6 million for the six months ended June 30, 2023 and 2022, respectively. The income tax benefit for the six months ended June 30, 2023 was primarily attributed to a $7.2 million partial valuation allowance release due to the acquisition of Power Finance Inc. (see Note 13 “Business Combination” for additional information), offset by $0.4 million of income tax expenses resulting from profitable foreign operations. The income tax benefit for the six months ended June 30, 2022 was primarily attributable to stock-based compensation deductions for certain foreign jurisdictions. On August 16, 2022, the Inflation Reduction Act of 2022 (Inflation Reduction Act) was enacted in the United States. The Inflation Reduction Act imposes a 1% excise tax on the fair market value of stock repurchases made by covered corporations after December 31, 2022. The total taxable value of shares repurchased is reduced by the fair market value of any newly issued shares during the taxable year. The amount of excise tax accrued for repurchases made by the Company during the three and six months ended June 30, 2023, was immaterial. The remaining corporate tax changes included in the Inflation Reduction Act are not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Concentration Risks and Signifi
Concentration Risks and Significant Customers | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration Risks and Significant Customers | Concentration Risks and Significant Customers Financial instruments that potentially expose the Company to concentration of credit risk consist of cash and cash equivalents, short-term investments, accounts receivable, and unbilled customers' receivable (collectively, “customers' receivables”, and “settlements receivable”). Cash on deposit with financial institutions may exceed federally insured limits. Cash and cash equivalents as of June 30, 2023 and December 31, 2022 include $447.6 million and $462.5 million, respectively, of investments managed by four financial institutions, which invest primarily in securities issued by the U.S. Government or U.S. Government agencies. As of June 30, 2023, short-term investments were $432.4 million, and there was no concentration of securities of the same issuer with an aggregate fair value greater than 5% of the total balance, except for U.S. Treasuries and U.S. agency securities, which amounted to $318.9 million, or 74% of the short-term investments, commercial paper which amounted to $28.3 million, or 7% of the short-term investments, and certificate of deposits which amount to $62.5 million, or 14% of the short-term investments. As of June 30, 2023, all debt securities within the Company's portfolio are investment grade. As of December 31, 2022, short-term investments were $440.9 million, and there was no concentration of securities of the same issuer with an aggregate fair value greater than 5% of the total balance, except for U.S. Treasuries and U.S. agency securities, which amounted to $407.1 million, or 92% of the short-term investments. As of December 31, 2022, all debt securities within the Company's portfolio are investment grade. A significant portion of the Company's payment transactions are settled through one Issuing Bank, Sutton Bank. For the three months ended June 30, 2023 and 2022, 77% and 83% of Total Processing Volume, which is the total dollar amount of payments processed through the Company’s platform, net of returns and chargebacks, was settled through Sutton Bank, respectively. For the six months ended June 30, 2023 and 2022, 78% and 84% of Total Processing Volume was settled through Sutton Bank, respectively. A significant portion of the Company's revenue is derived from one customer. For the three months ended June 30, 2023 and 2022, this customer accounted for 78% and 69% of the Company’s net revenue, respectively. For the six months ended June 30, 2023 and 2022, this customer accounted for 77% and 68% of the Company’s net revenue, respectively. As of June 30, 2023, another customer accounted for 12% of the Company’s customers’ receivables. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On February 3, 2023, the Company acquired all outstanding stock of Power Finance Inc. (“Power Finance”) for a base cash purchase price of $221.9 million. The purchase price does not include a $53.1 million contingent consideration tied to performance-based goals which were expected to be achieved within 12 months from the date of acquisition. The Company determined the acquisition-date fair value of the contingent consideration liability, based on the likelihood of payment related to the contingent earn-out clauses, as part of the consideration transferred. The following table summarizes the components of the preliminary purchase consideration transferred (in thousands): Cash $ 221,933 Less: postcombination cash and non-cash expense 117,972 Plus: cash acquired on acquisition date 7,059 Total purchase consideration, excluding contingent consideration 111,020 Contingent consideration 53,067 Purchase consideration $ 164,087 Of the $118.0 million postcombination compensation excluded from the purchase consideration above, approximately $32.4 million was recognized as a non-cash postcombination compensation at closing as a result of the vesting provisions of employee replacement awards on the acquisition date. The remaining $85.6 million is subject to continuous employment and will be recognized as postcombination cash compensation over the required service period of two years. Power Finance’s cloud-based platform offers credit card program management services for companies creating new credit card programs. The acquisition of Power Finance is expected to accelerate the capabilities offered in the Company’s credit product and allow the Company’s customers to launch a wide range of credit products and constructs. The assets acquired and liabilities assumed were recorded at fair value as of the acquisition date. The preliminary $164.0 million purchase consideration was attributed to $41.0 million of developed technology intangible assets (to be amortized over an estimated useful life of 7.0 years), $7.4 million of deferred tax liabilities, and $7.0 million of net assets acquired, with the $123.4 million excess of purchase consideration over the fair value of assets acquired and liabilities assumed recorded as goodwill. The fair value of the acquired developed technology intangible assets was estimated using the multi-period excess earnings method (“MPEEM”), a form of the income approach. The principle behind this method is that the value of the intangible asset is equal to the present value of the after-tax cash flows attributable to the intangible asset. The Company applied judgment which involved the use of certain assumptions with respect of the revenue and EBITDA forecasts, obsolescence rate, research and development for future technology, and discount rate. The goodwill recognized was primarily attributable to the expected synergies from integrating Power Finance’s technology into the Company’s platform. Goodwill is not expected to be deductible for tax purposes. The fair values of assets acquired and liabilities assumed may change over the measurement period as additional information is received. The measurement period will end no later than one year from the acquisition date. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the second quarter of 2023, the Company approved a restructuring plan (the “Restructuring Plan”) intended to reduce operating expenses and improve profitability by reducing the Company’s workforce. The net restructuring charges incurred in connection with the Restructuring Plan is approximately $8.4 million, which is expected to be substantially complete by the end of the third quarter of 2023. The Company recorded $8.4 million in restructuring charges during the three and six months ended June 30, 2023, which consisted of $14.2 million primarily related to one-time severance and benefit payments, as well as a net reduction of stock-based compensation of $2.9 million related to the vesting of certain equity awards and the forfeiture of certain equity awards which are accounted for as occurred. Additionally, the Company reduced previously accrued bonuses for impacted employees of $2.9 million due to the terms of the Restructuring Plan. These costs were included in Compensation and benefits in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The following table summarizes the Company’s restructuring liability that is included in Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheet: Balance as of December 31, 2022 $ — Restructuring charges 14,167 Cash payments (4,600) Balance as of June 30, 2023 $ 9,567 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventOn August 4, 2023, the Company and Block, Inc. (formerly Square, Inc., or “Block”) executed a contract amendment (“the Amendment”), effective as of July 1, 2023, to their Master Services Agreement (together the “Amended Agreement”). Pursuant to the terms of the Amended Agreement, the Cash App program term will expire on June 30, 2027 and shall automatically renew thereafter for successive one-year periods, unless terminated earlier by either party. In addition to reduced pricing for the Cash App program, the Amended Agreement provides that the Company will continue to provide various services to Block, though Block will be responsible for defining and managing the primary Card Network relationship for the Cash App program going forward, including being responsible for managing the financial relationship between the Cash App Program and the primary Card Network, choosing the card brand, determining the product type, and meeting program parameters. The Amendment also includes a continuation of services for the Cash App program for a period of time in the event of a change of control of the Company. As a result of the Amendment, the Company will no longer serve as principal in providing services to Block for the Cash App program as it relates to that program’s primary Card Network volume. Beginning on July 1, 2023, fees owed to Issuing Banks and Card Networks related to the Cash App primary Card Network volume will be netted against amounts earned from the Cash App program within Net Revenue such that Net Revenue in the Condensed Consolidated Statements of Operations and Comprehensive Loss will reflect the net amount of consideration that the Company retains on Cash App primary Card Network volume. In prior periods, these fees were included within Costs of Revenue in the Condensed Consolidated Statements of Operations and Comprehensive Loss. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net loss | $ (58,797) | $ (68,801) | $ (44,688) | $ (60,598) | $ (127,598) | $ (105,286) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission, (“SEC”), for interim reporting. Certain information and note disclosures included in the Company’s annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The Condensed Consolidated Balance Sheet as of December 31, 2022 has been derived from the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 28, 2023. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Annual Report on Form 10-K. The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal, recurring nature considered necessary for a fair presentation of the Company's consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods presented. The interim results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or for any other future annual or interim period. |
Use of Estimates | Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions relating to reported amounts of assets and liabilities, disclosure of contingent liabilities, and reported amounts of revenue and expenses. Significant estimates and assumptions include, but are not limited to, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, the estimation of contingent liabilities, the estimation of variable consideration in contracts with customers, and the reserve for contract contingencies and processing errors. Actual results could differ materially from these estimates. |
Segment Information | Segment Information The Company operates as a single operating segment. The Company's chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, allocating resources, and evaluating the Company's financial performance. |
Restricted Cash | Restricted Cash Restricted cash consists of deposits with financial institutions that issue payment cards (credit, debit, or prepaid) either on their own behalf or on behalf of businesses that issue customized card products to their end users (“Issuing Banks”) to provide the Issuing Bank collateral in the event that customers’ funds are not deposited at the Issuing Banks in time to settle customers’ transactions with the networks that provide the infrastructure for settlement and card payment information flows (“Card Networks”). Restricted cash also includes cash used to secure a letter of credit for the Company’s lease of its office headquarters in Oakland, California. |
Capitalized Internal-use Software Development Costs | Capitalized Internal-use Software Development Costs The Company capitalizes certain costs incurred in developing internal-use software when capitalization requirements have been met. Internal and external costs incurred in the preliminary project stage of internal-use software development are expensed as incurred. Once the software development process reaches the application development stage, qualifying internal costs including compensation and benefits costs of employees who are directly associated with and devote time to the software project as well as external direct costs are capitalized. Capitalization of costs ends when the developed software is substantially complete and ready for its intended internal use, which is typically upon completion of all substantial testing. Capitalized internal-use software development costs are included in property and equipment, net, and then amortized on a straight-line basis over the estimated useful life of the software. The amortization of these costs is recorded within Depreciation and amortization expense on the Condensed Consolidated Statements of Operations and Comprehensive Loss. |
Business Combinations | Business Combinations The Company allocates the purchase consideration for acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Condensed Consolidated Statements of Operations and Comprehensive Loss. Acquisition-related expenses and postcombination integration and employee compensation costs are recognized separately from the business combination and are expensed as incurred. |
Goodwill and Acquisition-related Intangible Assets | Goodwill and Acquisition-related Intangible AssetsThe excess purchase price over the fair value of assets acquired is recorded as goodwill. Goodwill amounts are not amortized. Acquisition-related intangible assets with finite lives are amortized over their estimated useful lives on a straight-line basis. Goodwill and acquisition-related intangible assets are tested for impairment at least annually, and more frequently whenever events or changes in circumstances indicate its carrying value may not be recoverable. |
Deferred Contract Costs | Deferred Contract Costs Deferred contract costs mainly consist of sales commissions and related fringe benefits that are incremental costs of obtaining contracts with customers. The Company amortizes the costs incurred on initial contracts on a straight-line basis over an estimated period of benefit determined to be approximately four years. The period of benefit is determined based on a review of customer contract terms and churn rates. The Company exercises the practical expedient to expense commissions on arrangements in which the amortization period is expected to be one year or less. Deferred contract costs that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other assets on the Condensed Consolidated Balance Sheets. The amortization of these costs is recorded within Compensation and benefits expenses on the Condensed Consolidated Statements of Operations and Comprehensive Loss. |
Restructuring | RestructuringRestructuring costs stem from employee related severance charges and include both cash and non-cash compensation. The Company generally recognizes restructuring costs upon communication of the plan to the identified employees or when payments are probable and amounts are estimable, depending on the region an employee works. Restructuring liabilities are classified in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue The following table provides information about disaggregated revenue from customers: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Platform services revenue, net $ 226,198 $ 181,102 $ 436,530 $ 342,100 Other services revenue 4,917 5,576 11,926 10,680 Total net revenue $ 231,115 $ 186,678 $ 448,456 $ 352,780 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | Contract Balances The following table provides information about contract assets and deferred revenue: Contract balance Balance sheet line reference June 30, December 31, Contract assets - current Prepaid expenses and other current assets $ 134 $ 621 Contract assets - non-current Other assets 2,107 1,323 Total contract assets $ 2,241 $ 1,944 Deferred revenue - current Accrued expenses and other current liabilities $ 12,971 $ 17,048 Deferred revenue - non-current Other liabilities 4,954 4,202 Total deferred revenue $ 17,925 $ 21,250 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Schedule of Short-term Investments | The amortized cost, unrealized gain (loss), and estimated fair value of the Company's short-term investments consisted of the following: June 30, 2023 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Short-term Investments U.S. treasury securities $ 251,806 $ — $ (1,201) $ 250,605 U.S. agency securities 68,403 3 (64) 68,342 Commercial paper 28,262 1 — 28,263 Asset-backed securities 11,705 — (39) 11,666 Corporate debt securities 11,013 — (28) 10,985 Certificate of deposits 62,493 — — 62,493 Total short-term investments $ 433,682 $ 4 $ (1,332) $ 432,354 December 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Short-term investments U.S. treasury securities $ 384,951 $ — $ (6,949) $ 378,002 U.S. agency securities 29,012 47 — 29,059 Commercial paper 28,815 — — 28,815 Corporate debt securities 5,049 — (67) 4,982 Total short-term investments $ 447,827 $ 47 $ (7,016) $ 440,858 |
Schedule of Available-for-sale Securities Reconciliation | The following table summarizes the stated maturities of the Company’s short-term investments: June 30, 2023 December 31, 2022 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 309,082 $ 308,166 $ 447,827 $ 440,858 Due after one year through two years 124,600 124,188 — — Total $ 433,682 $ 432,354 $ 447,827 $ 440,858 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities at Fair Value | The following tables present the fair value hierarchy for assets and liabilities measured at fair value: June 30, 2023 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 447,636 $ — $ — $ 447,636 Commercial paper — 19,983 — 19,983 Short-term investments U.S. government securities 250,605 — — 250,605 U.S. agency securities — 68,342 68,342 Commercial paper — 28,263 — 28,263 Asset-backed securities — 11,666 — 11,666 Corporate debt securities — 10,985 — 10,985 Certificate of deposit $ — $ 62,493 — 62,493 Total assets $ 698,241 $ 201,732 $ — $ 899,973 Accrued expenses and other current liabilities Contingent consideration liability $ — $ — $ 53,067 $ 53,067 Total liabilities $ — $ — $ 53,067 $ 53,067 December 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 462,459 $ — $ — $ 462,459 Short-term investments U.S. government securities 378,002 — — 378,002 U.S. agency securities — 29,059 — 29,059 Commercial paper — 28,815 — 28,815 Corporate debt securities — 4,982 — 4,982 Total assets $ 840,461 $ 62,856 $ — $ 903,317 |
Certain Balance Sheet Compone_2
Certain Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: June 30, December 31, Prepaid expenses $ 8,569 $ 9,082 Inventory 5,046 5,150 Prepaid hosting and data costs 4,672 6,443 Accrued interest receivable 4,164 3,983 Prepaid insurance 392 3,729 Card program deposits 128 2,128 Contract assets, current 135 621 Other current assets 5,992 6,871 Prepaid expenses and other current assets $ 29,098 $ 38,007 |
Property and Equipment, net | Property and Equipment, net Property and equipment consisted of the following: June 30, December 31, Leasehold improvements $ 8,110 $ 8,110 Computer equipment 8,965 9,115 Furniture and fixtures 2,519 2,542 Internally developed and purchased software 11,813 3,082 31,407 22,849 Accumulated depreciation and amortization (17,077) (15,409) Property and equipment, net $ 14,330 $ 7,440 |
Schedule of Other Assets | Other assets consisted of the following: June 30, December 31, Contract assets, noncurrent $ 2,106 $ 1,323 Deferred tax assets 776 1,240 Other noncurrent assets 3,326 4,559 Acquired developed technology, net 38,560 — Other assets $ 44,768 $ 7,122 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Expected future amortization expense for acquired developed technology was as follows as of June 30, 2023: Remainder of 2023 $ 2,929 2024 5,857 2025 5,857 2026 5,857 2027 5,857 Thereafter 12,203 Total expected future amortization expense for acquired developed technology $ 38,560 |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: June 30, December 31, Accrued costs of revenue $ 66,272 $ 57,191 Contingent consideration liability 53,067 — Accrued compensation and benefits 18,161 41,268 Accrued restructuring 9,567 — Deferred revenue 12,971 17,048 Accrued tax liabilities 4,573 4,978 Accrued professional services 3,885 4,784 Operating lease liabilities, current portion 3,654 3,394 Reserve for contract contingencies and processing errors 2,538 2,494 Other accrued liabilities 14,981 5,730 Accrued expenses and other current liabilities $ 189,669 $ 136,887 |
Other Liabilities | Other Liabilities Other liabilities consisted of the following: June 30, December 31, Deferred revenue, net of current portion $ 4,954 $ 4,202 Other long-term liabilities 1,102 1,275 Other liabilities $ 6,056 $ 5,477 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components Lease Costs | The Company's operating lease costs are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating lease cost $ 843 $ 843 $ 1,686 $ 1,686 Variable lease cost 98 261 229 418 Short-term lease cost 39 219 147 331 Total lease cost $ 980 $ 1,323 $ 2,062 $ 2,435 The weighted average remaining operating lease term and the weighted average discount rate used in the calculation of the Company's lease assets and lease liabilities were as follows: June 30, December 31, Weighted average remaining operating lease term (in years) 2.6 3.1 Weighted average discount rate 7.7% 7.7% |
Future Minimum Lease Payments | Maturities of the Company’s operating lease liabilities by year are as follows as of June 30, 2023: Remainder of 2023 $ 2,142 2024 4,472 2025 4,599 2026 780 Total lease payments 11,993 Less imputed interest (1,207) Total operating lease liabilities $ 10,786 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense Recognized in the Period | The following table presents the share-based compensation expense recognized in the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Restricted stock units $ 25,179 $ 15,078 $ 49,970 $ 30,423 Stock options 5,309 6,160 12,793 13,818 Executive Chairman Long-Term Performance Award 13,267 13,267 26,388 26,388 Employee Stock Purchase Plan 410 643 1,013 1,524 Total $ 44,165 $ 35,148 $ 90,164 $ 72,153 |
Summary of RSU Activity Under the Plans | A summary of the Company's RSU activity under the Plans is as follows: Number of Restricted Stock Units Weighted-average grant date fair value per share Balance as of December 31, 2022 34,146,546 $ 9.74 Granted 26,556,500 4.45 Vested (6,289,563) 9.60 Canceled and forfeited (9,271,109) 8.39 Balance as of June 30, 2023 45,142,374 $ 6.92 A summary of the Company's stock option activity under the Plans is as follows: Number of Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (1) Balance as of December 31, 2022 36,156,445 $ 16.37 7.67 years $ 29,101 Granted 6,080,148 5.35 Exercised (1,631,016) 1.41 Canceled and forfeited (2,228,604) 10.45 Balance as of June 30, 2023 38,376,973 $ 15.61 7.75 years $ 14,943 Exercisable as of June 30, 2023 (2) 11,157,842 $ 11.17 7.39 years $ 13,162 Vested as of June 30, 2023 8,267,104 $ 9.39 6.26 years $ 11,972 (1) Intrinsic value is calculated based on the difference between the exercise price of in-the-money-stock options and the fair value of the common stock as of the respective balance sheet dates. (2) The 2011 Plan allows for early exercise of stock options. Accordingly, options granted under this plan are included as exercisable stock options regardless of vesting status. The Executive Chairman Long-Term Performance Award is divided into seven equal tranches which vest upon the achievement of the following Company stock price hurdles: Tranche Company Stock Price Hurdle Number of Options Eligible to Vest 1 $67.50 2,826,884 2 $78.98 2,826,884 3 $92.40 2,826,884 4 $108.11 2,826,884 5 $126.49 2,826,884 6 $147.99 2,826,884 7 $173.15 2,826,884 Total 19,788,188 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of stock options granted was estimated using the Black-Scholes option pricing model and the following weighted average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2023 (1) 2022 2023 2022 Dividend yield —% 0.0% 0.0% 0.0% Expected volatility —% 61.90% 70.78% 59.37% Expected term (in years) — 6.08 6.04 6.08 Risk-free interest rate —% 2.81% 3.78% 2.18% (1) The Company did not grant any stock options during the three months ended June 30, 2023. |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Share, Basic and Diluted | The Company calculated basic and diluted net loss per share attributable to common stockholders as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator Net loss attributable to Class A and Class B common stockholders $ (58,797) $ (44,688) $ (127,598) $ (105,286) Denominator Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 538,267,449 544,704,146 538,988,940 543,524,008 Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.11) $ (0.08) $ (0.24) $ (0.19) |
Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share | As of June 30, 2023 2022 Warrants to purchase Class B common stock 1,900,000 1,900,000 Stock options outstanding, including early exercise of options 38,376,973 41,524,641 Unvested RSUs outstanding 45,142,374 20,470,957 Shares committed under the ESPP 277,286 247,589 Stock options and RSUs available for future grants 62,079,654 75,973,184 Total 147,776,287 140,116,371 |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the components of the preliminary purchase consideration transferred (in thousands): Cash $ 221,933 Less: postcombination cash and non-cash expense 117,972 Plus: cash acquired on acquisition date 7,059 Total purchase consideration, excluding contingent consideration 111,020 Contingent consideration 53,067 Purchase consideration $ 164,087 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Liability | The following table summarizes the Company’s restructuring liability that is included in Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheet: Balance as of December 31, 2022 $ — Restructuring charges 14,167 Cash payments (4,600) Balance as of June 30, 2023 $ 9,567 |
Business Overview and Basis o_2
Business Overview and Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||||||
Net loss | $ (58,797) | $ (68,801) | $ (44,688) | $ (60,598) | $ (127,598) | $ (105,286) | |
Accumulated deficit | (729,831) | (729,831) | $ (602,233) | ||||
Cash and cash equivalents | 950,157 | $ 1,220,273 | 950,157 | $ 1,220,273 | $ 1,183,846 | ||
Short-term investments | $ 432,400 | $ 432,400 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 231,115 | $ 186,678 | $ 448,456 | $ 352,780 |
Platform services revenue, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 226,198 | 181,102 | 436,530 | 342,100 |
Other services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 4,917 | $ 5,576 | $ 11,926 | $ 10,680 |
Revenue - Contract Assets and D
Revenue - Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Contract assets - current | $ 135 | $ 621 |
Contract assets - non-current | 2,106 | 1,323 |
Total contract assets | 2,241 | 1,944 |
Deferred revenue - current | 12,971 | 17,048 |
Deferred revenue - non-current | 4,954 | 4,202 |
Total deferred revenue | 17,925 | 21,250 |
Prepaid expenses and other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets - current | 134 | 621 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets - non-current | 2,107 | 1,323 |
Accrued expenses and other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue - current | 12,971 | 17,048 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue - non-current | $ 4,954 | $ 4,202 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue recognized during the period | $ 3.2 | $ 3.4 | $ 7.8 | $ 8.4 |
Short-term Investments - Unreal
Short-term Investments - Unrealized Gain (Loss) on Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 433,682 | $ 447,827 |
Unrealized Gain | 4 | 47 |
Unrealized Loss | (1,332) | (7,016) |
Short-term investments | 432,354 | 440,858 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 251,806 | 384,951 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (1,201) | (6,949) |
Short-term investments | 250,605 | 378,002 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 68,403 | 29,012 |
Unrealized Gain | 3 | 47 |
Unrealized Loss | (64) | 0 |
Short-term investments | 68,342 | 29,059 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,262 | 28,815 |
Unrealized Gain | 1 | 0 |
Unrealized Loss | 0 | 0 |
Short-term investments | 28,263 | 28,815 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,705 | |
Unrealized Gain | 0 | |
Unrealized Loss | (39) | |
Short-term investments | 11,666 | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,013 | 5,049 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (28) | (67) |
Short-term investments | 10,985 | $ 4,982 |
Certificate of deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 62,493 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Short-term investments | $ 62,493 |
Short-term Investments - Narrat
Short-term Investments - Narrative (Details) - investment | Jun. 30, 2023 | Dec. 31, 2022 |
Investments [Abstract] | ||
Number of marketable securities in unrealized loss positions | 37 | 13 |
Short-term Investments - Stated
Short-term Investments - Stated Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due within one year | $ 309,082 | $ 447,827 |
Due after one year through two years | 124,600 | 0 |
Amortized Cost | 433,682 | 447,827 |
Estimated Fair Value | ||
Due within one year | 308,166 | 440,858 |
Due after one year through two years | 124,188 | 0 |
Total | $ 432,354 | $ 440,858 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Short-term investments | $ 432,354 | $ 440,858 |
Accrued expenses and other current liabilities | ||
Contingent consideration liability | 53,067 | 0 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Total assets | 899,973 | 903,317 |
Accrued expenses and other current liabilities | ||
Contingent consideration liability | 53,067 | |
Total liabilities | 53,067 | |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Total assets | 698,241 | 840,461 |
Accrued expenses and other current liabilities | ||
Contingent consideration liability | 0 | |
Total liabilities | 0 | |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Total assets | 201,732 | 62,856 |
Accrued expenses and other current liabilities | ||
Contingent consideration liability | 0 | |
Total liabilities | 0 | |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Total assets | 0 | 0 |
Accrued expenses and other current liabilities | ||
Contingent consideration liability | 53,067 | |
Total liabilities | 53,067 | |
Money market funds | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 447,636 | 462,459 |
Money market funds | Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 447,636 | 462,459 |
Money market funds | Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 0 | 0 |
Commercial paper | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 19,983 | |
Short-term investments | 28,263 | 28,815 |
Commercial paper | Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 0 | |
Short-term investments | 0 | 0 |
Commercial paper | Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 19,983 | |
Short-term investments | 28,263 | 28,815 |
Commercial paper | Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 0 | |
Short-term investments | 0 | 0 |
U.S. government securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 250,605 | 378,002 |
U.S. government securities | Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 250,605 | 378,002 |
U.S. government securities | Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | 0 |
U.S. government securities | Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | 0 |
U.S. agency securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 68,342 | 29,059 |
U.S. agency securities | Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | 0 |
U.S. agency securities | Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 68,342 | 29,059 |
U.S. agency securities | Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | |
Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 11,666 | |
Asset-backed securities | Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | |
Asset-backed securities | Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 11,666 | |
Asset-backed securities | Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 10,985 | 4,982 |
Corporate debt securities | Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | 0 |
Corporate debt securities | Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 10,985 | 4,982 |
Corporate debt securities | Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | $ 0 |
Certificate of deposits | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 62,493 | |
Certificate of deposits | Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 0 | |
Certificate of deposits | Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 62,493 | |
Certificate of deposits | Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | $ 0 |
Certain Balance Sheet Compone_3
Certain Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 8,569 | $ 9,082 |
Inventory | 5,046 | 5,150 |
Prepaid hosting and data costs | 4,672 | 6,443 |
Accrued interest receivable | 4,164 | 3,983 |
Prepaid insurance | 392 | 3,729 |
Card program deposits | 128 | 2,128 |
Contract assets, current | 135 | 621 |
Other current assets | 5,992 | 6,871 |
Prepaid expenses and other current assets | $ 29,098 | $ 38,007 |
Certain Balance Sheet Compone_4
Certain Balance Sheet Components - Property and Equipment, net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 31,407,000 | $ 31,407,000 | $ 22,849,000 | ||
Accumulated depreciation and amortization | (17,077,000) | (17,077,000) | (15,409,000) | ||
Property and equipment, net | 14,330,000 | 14,330,000 | 7,440,000 | ||
Depreciation and amortization | 2,494,000 | $ 921,000 | 4,474,000 | $ 1,900,000 | |
Capitalized internal-use software costs | 4,600,000 | $ 0 | 8,700,000 | $ 0 | |
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 8,110,000 | 8,110,000 | 8,110,000 | ||
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 8,965,000 | 8,965,000 | 9,115,000 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,519,000 | 2,519,000 | 2,542,000 | ||
Internally developed and purchased software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 11,813,000 | $ 11,813,000 | $ 3,082,000 |
Certain Balance Sheet Compone_5
Certain Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Contract assets - non-current | $ 2,106 | $ 2,106 | $ 1,323 |
Deferred tax assets | 776 | 776 | 1,240 |
Other noncurrent assets | 3,326 | 3,326 | 4,559 |
Acquired developed technology, net | 38,560 | 38,560 | 0 |
Other assets | $ 44,768 | $ 44,768 | $ 7,122 |
Developed Technology | |||
Finite-Lived Intangible Assets | |||
Amortization period | 7 years | 7 years | |
Amortization expenses | $ 1,500 | $ 2,400 |
Certain Balance Sheet Compone_6
Certain Balance Sheet Components - Expected Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Remainder of 2023 | $ 2,929 |
2024 | 5,857 |
2025 | 5,857 |
2026 | 5,857 |
2027 | 5,857 |
Thereafter | 12,203 |
Total expected future amortization expense for acquired developed technology | $ 38,560 |
Certain Balance Sheet Compone_7
Certain Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued costs of revenue | $ 66,272 | $ 57,191 |
Contingent consideration liability | 53,067 | 0 |
Accrued compensation and benefits | 18,161 | 41,268 |
Accrued restructuring | 9,567 | 0 |
Deferred revenue | 12,971 | 17,048 |
Accrued tax liabilities | 4,573 | 4,978 |
Accrued professional services | 3,885 | 4,784 |
Operating lease liabilities, current portion | 3,654 | 3,394 |
Reserve for contract contingencies and processing errors | 2,538 | 2,494 |
Other accrued liabilities | 14,981 | 5,730 |
Accrued expenses and other current liabilities | $ 189,669 | $ 136,887 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Certain Balance Sheet Compone_8
Certain Balance Sheet Components - Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred revenue, net of current portion | $ 4,954 | $ 4,202 |
Other long-term liabilities | 1,102 | 1,275 |
Other liabilities | $ 6,056 | $ 5,477 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) ft² in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) ft² | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) ft² | Jun. 30, 2022 USD ($) | |
Guarantor Obligations | ||||
Area of real estate property | ft² | 63 | 63 | ||
Purchase commitment | $ 213 | $ 213 | ||
Purchase commitment period (in years) | 5 years | |||
Company matching contribution, percent | 50% | |||
Employer matching contribution, percent of employees' gross pay | 6% | |||
Employer contribution amount | 1.5 | $ 1.3 | $ 3.7 | $ 3.4 |
Cloud Computing Service Agreement | ||||
Guarantor Obligations | ||||
Purchase commitment | 197.7 | 197.7 | ||
Letter of Credit | ||||
Guarantor Obligations | ||||
Letters of credit, amount | 1.5 | 1.5 | ||
Letter of Credit | Restricted Cash | ||||
Guarantor Obligations | ||||
Deposit assets | $ 1.5 | $ 1.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease cost | $ 843 | $ 843 | $ 1,686 | $ 1,686 |
Variable lease cost | 98 | 261 | 229 | 418 |
Short-term lease cost | 39 | 219 | 147 | 331 |
Total lease cost | $ 980 | $ 1,323 | $ 2,062 | $ 2,435 |
Commitments and Contingencies_3
Commitments and Contingencies - Weighted Average Lease Term and Weighted Average Discount Rate (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted average remaining operating lease term (in years) | 2 years 7 months 6 days | 3 years 1 month 6 days |
Weighted average discount rate | 7.70% | 7.70% |
Commitments and Contingencies_4
Commitments and Contingencies - Lease Maturity Schedule (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2023 | $ 2,142 |
2024 | 4,472 |
2025 | 4,599 |
2026 | 780 |
Total lease payments | 11,993 |
Less imputed interest | (1,207) |
Total operating lease liabilities | $ 10,786 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
May 31, 2021 $ / shares shares | Apr. 30, 2021 $ / shares shares | Jun. 30, 2023 USD ($) tranche $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of tranches | tranche | 7 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 2 years 6 months | ||
Compensation costs related to unvested outstanding stock options | $ | $ 57 | ||
Stock options | 2021 Stock Option and Incentive Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Purchase price of common stock, percent | 85% | ||
Restricted Stock Units with Service Condition | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period (in years) | 3 years | ||
Restricted Stock Units with Service Condition | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period (in years) | 4 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
CEO Long-term performance awards | $ | $ 283.4 | ||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 2 years 10 months 24 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Granted (in shares) | shares | 6,080,148 | ||
Granted (in dollars per share) | $ / shares | $ 5.35 | ||
Stock Options | 2021 Stock Option and Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair market value of one share of common stock threshold | 110% | ||
Stock Options | 2021 Stock Option and Incentive Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair market value of one share of common stock threshold | 110% | ||
Combined voting power of stockholder, 10% Stockholder | 10% | ||
Expiration period (in years) | 10 years | ||
Stock options, 10% Stockholders | 2021 Stock Option and Incentive Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Combined voting power of stockholder, 10% Stockholder | 10% | ||
Expiration period (in years) | 5 years | ||
Executive Chairman Long-Term Performance Award | Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period (in years) | 7 years | ||
Compensation costs related to unvested outstanding stock options, period for recognition (in years) | 2 years 7 months 6 days | ||
Granted (in shares) | shares | 47,267 | 19,740,923 | |
Granted (in dollars per share) | $ / shares | $ 23.40 | $ 21.49 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 10.53 | ||
Expected cost to be recognized over remaining derived service period | $ | $ 90.6 |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 44,165 | $ 35,148 | $ 90,164 | $ 72,153 |
Restricted stock units | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 25,179 | 15,078 | 49,970 | 30,423 |
Stock options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 5,309 | 6,160 | 12,793 | 13,818 |
Executive Chairman Long-Term Performance Award | Chief Executive Officer | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 13,267 | 13,267 | 26,388 | 26,388 |
Employee Stock Purchase Plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 410 | $ 643 | $ 1,013 | $ 1,524 |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Restricted Stock Units | |
Balance at beginning of the period (in shares) | shares | 34,146,546 |
Granted (in shares) | shares | 26,556,500 |
Vested (in shares) | shares | (6,289,563) |
Canceled and forfeited (in shares) | shares | (9,271,109) |
Balance at the end of the period (in shares) | shares | 45,142,374 |
Weighted-average grant date fair value per share | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 9.74 |
Grant (in dollars per share) | $ / shares | 4.45 |
Vested (in dollars per share) | $ / shares | 9.60 |
Canceled and forfeited (in dollars per share) | $ / shares | 8.39 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 6.92 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Stock Option Activity Under Stock Incentive Plan (Details) - Stock Options $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Options | ||
Balance at the beginning of the period (in shares) | shares | 36,156,445 | |
Granted (in shares) | shares | 6,080,148 | |
Exercised (in shares) | shares | (1,631,016) | |
Canceled and forfeited (in shares) | shares | (2,228,604) | |
Balance at the end of the period (in shares) | shares | 38,376,973 | 36,156,445 |
Number of options, Exercisable | shares | 11,157,842 | |
Vested, Number of Options (in shares) | shares | 8,267,104 | |
Weighted-Average Exercise Price per Share | ||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 16.37 | |
Granted (in dollars per share) | $ / shares | 5.35 | |
Exercised (in dollars per share) | $ / shares | 1.41 | |
Canceled and forfeited (in dollars per share) | $ / shares | 10.45 | |
Balance at the end of the period (in dollars per share) | $ / shares | 15.61 | $ 16.37 |
Exercisable, Weighted-Average Exercise Price, Per Share (in dollars per share) | $ / shares | 11.17 | |
Vested, Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares | $ 9.39 | |
Option Activity, Additional Disclosures | ||
Options outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 9 months | 7 years 8 months 1 day |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 7 years 4 months 20 days | |
Options Vested, Weighted Average Remaining Contractual Life (Years) | 6 years 3 months 3 days | |
Options outstanding, Aggregate Intrinsic Value (in USD) | $ | $ 14,943 | $ 29,101 |
Options Vested, Aggregate Intrinsic Value (in USD) | $ | 11,972 | |
Exercisable, Aggregate Intrinsic Value | $ | $ 13,162 |
Stock Incentive Plans - Weighte
Stock Incentive Plans - Weighted Average Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Dividend yield | 0% | 0% | 0% | 0% |
Expected volatility | 0% | 61.90% | 70.78% | 59.37% |
Expected term (in years) | 6 years 29 days | 6 years 14 days | 6 years 29 days | |
Risk-free interest rate | 0% | 2.81% | 3.78% | 2.18% |
Stock Incentive Plans - CEO Per
Stock Incentive Plans - CEO Performance Awards (Details) - Chief Executive Officer - Executive Chairman Long-Term Performance Award | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options Eligible to Vest (in shares) | 19,788,188 |
Tranche 1 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 67.50 |
Number of Options Eligible to Vest (in shares) | 2,826,884 |
Tranche 2 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 78.98 |
Number of Options Eligible to Vest (in shares) | 2,826,884 |
Tranche 3 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 92.40 |
Number of Options Eligible to Vest (in shares) | 2,826,884 |
Tranche 4 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 108.11 |
Number of Options Eligible to Vest (in shares) | 2,826,884 |
Tranche 5 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 126.49 |
Number of Options Eligible to Vest (in shares) | 2,826,884 |
Tranche 6 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 147.99 |
Number of Options Eligible to Vest (in shares) | 2,826,884 |
Tranche 7 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 173.15 |
Number of Options Eligible to Vest (in shares) | 2,826,884 |
Stockholders_ Equity Transact_2
Stockholders’ Equity Transactions- Warrants to Purchase Common Stock (Details) - Common Stock Warrants - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Warrant or Right [Line Items] | ||||||
Number of securities called by each warrant (in shares) | 1,150,000 | 750,000 | ||||
Exercise price of warrants (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Redeemable convertible preferred stock warrant liabilities | $ 26.4 | $ 5.7 | ||||
Vested warrants outstanding (in shares) | 886,470 | 886,470 | ||||
Class of warrant or right, reduction to net revenues in the period | $ (2.4) | $ (1.8) | $ (4.5) | $ (3.4) |
Stockholders_ Equity Transact_3
Stockholders’ Equity Transactions- Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | May 08, 2023 | Sep. 14, 2022 | |
Class of Warrant or Right [Line Items] | |||||
Repurchase and retirement of common stock | $ 48,497,000 | $ 20,993,000 | |||
Additional Paid-in Capital | |||||
Class of Warrant or Right [Line Items] | |||||
Repurchase and retirement of common stock | $ 48,496,000 | $ 20,993,000 | |||
2022 Share Repurchase Program | |||||
Class of Warrant or Right [Line Items] | |||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||
Repurchase and retirement of common stock (in shares) | 3.2 | ||||
Shares repurchased, average price per share (in usd per share) | $ 6.46 | ||||
2023 Share Repurchase Program | |||||
Class of Warrant or Right [Line Items] | |||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||
Repurchase and retirement of common stock (in shares) | 10.2 | 10.2 | |||
Shares repurchased, average price per share (in usd per share) | $ 4.75 | $ 4.75 | |||
Stock repurchase program, remaining authorized repurchase amount (less than) | $ 151,700,000 | $ 151,700,000 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Class A and Class B common stockholders, basic | $ (58,797) | $ (44,688) | $ (127,598) | $ (105,286) |
Net loss attributable to Class A and Class B common stockholders, diluted | $ (58,797) | $ (44,688) | $ (127,598) | $ (105,286) |
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 538,267,449 | 544,704,146 | 538,988,940 | 543,524,008 |
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 538,267,449 | 544,704,146 | 538,988,940 | 543,524,008 |
Net loss per share attributable to Class A and Class B common stockholders, basic (in dollars per share) | $ (0.11) | $ (0.08) | $ (0.24) | $ (0.19) |
Net loss per share attributable to Class A and Class B common stockholders, diluted (in dollars per share) | $ (0.11) | $ (0.08) | $ (0.24) | $ (0.19) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 147,776,287 | 140,116,371 |
Warrants to purchase Class B common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,900,000 | 1,900,000 |
Stock options outstanding, including early exercise of options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 38,376,973 | 41,524,641 |
Unvested RSUs outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 45,142,374 | 20,470,957 |
Shares committed under the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 277,286 | 247,589 |
Stock options and RSUs available for future grants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 62,079,654 | 75,973,184 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 138 | $ (227) | $ (6,821) | $ (578) |
Partial valuation allowance | 7,200 | 7,200 | ||
Profitable foreign operations | $ 400 | $ 400 |
Concentration Risks and Signi_2
Concentration Risks and Significant Customers (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) investment | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) investment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Concentration Risk [Line Items] | |||||
Cash and cash equivalents | $ 950,157 | $ 1,220,273 | $ 950,157 | $ 1,220,273 | $ 1,183,846 |
Short-term investments | 432,354 | 432,354 | 440,858 | ||
Investments | Credit Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Cash and cash equivalents | $ 447,600 | $ 447,600 | 462,500 | ||
Number of investments | investment | 4 | 4 | |||
Debt Securities, Available-For-Sale | Credit Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Short-term investments | $ 318,900 | $ 318,900 | $ 407,100 | ||
Debt Securities, Available-For-Sale | Credit Concentration Risk | Commercial paper | |||||
Concentration Risk [Line Items] | |||||
Short-term investments | 28,300 | 28,300 | |||
Debt Securities, Available-For-Sale | Credit Concentration Risk | Certificate of deposits | |||||
Concentration Risk [Line Items] | |||||
Short-term investments | $ 62,500 | $ 62,500 | |||
Debt Securities, Available-For-Sale | Credit Concentration Risk | Marketable Securities | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 74% | 92% | |||
Debt Securities, Available-For-Sale | Credit Concentration Risk | Marketable Securities | Commercial paper | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 7% | ||||
Debt Securities, Available-For-Sale | Credit Concentration Risk | Marketable Securities | Certificate of deposits | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 14% | ||||
Accounts Receivable | Credit Concentration Risk | Largest customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 12% | ||||
Accounts Receivable | Credit Concentration Risk | Sutton Bank | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 77% | 83% | 78% | 84% | |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Largest customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 78% | 69% | 77% | 68% |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 03, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Jul. 31, 2023 | Dec. 31, 2022 | |
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Contingent consideration liability | $ 53,067 | $ 53,067 | $ 0 | ||
Goodwill | 123,446 | 123,446 | $ 0 | ||
Power Finance, Inc. | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Cash purchase price | $ 221,933 | ||||
Contingent consideration liability | 53,100 | ||||
Less: postcombination cash and non-cash expense | (117,972) | ||||
Non-cash postcombination compensation | 32,400 | ||||
Postcombination cash combination liability, subject to continuous employment | $ 85,600 | ||||
Postcombination cash combination liability, subject to continuous employment, service period (in years) | 2 years | ||||
Fair value of total consideration | $ 164,000 | ||||
Other intangible assets | $ 41,000 | ||||
Estimated useful life (in years) | 7 years | ||||
Deferred tax liabilities | $ 7,400 | ||||
Net assets acquired | 7,000 | ||||
Goodwill | $ 123,400 | ||||
Acquisition related costs | $ 400 | $ 1,900 | |||
Power Finance, Inc. | Subsequent Event | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Contingent consideration liability | $ 52,700 |
Business Combination - Componen
Business Combination - Components of Preliminary Purchase Consideration (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Feb. 03, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Purchase consideration | $ 131,914 | $ 0 | |
Power Finance, Inc. | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Cash | $ 221,933 | ||
Less: postcombination cash and non-cash expense | 117,972 | ||
Plus: cash acquired on acquisition date | 7,059 | ||
Total purchase consideration, excluding contingent consideration | 111,020 | ||
Contingent consideration | 53,067 | ||
Purchase consideration | $ 164,087 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $ 8,400 | $ 8,400 |
Severance costs | 14,167 | |
Net reduction of stock-based compensation | (2,900) | |
Restructuring reserve, accrual adjustment | $ 2,900 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Liability (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability beginning balance | $ 0 |
Restructuring charges | 14,167 |
Cash payments | (4,600) |
Restructuring liability ending balance | $ 9,567 |
Subsequent Event (Details)
Subsequent Event (Details) | Aug. 04, 2023 |
Subsequent Event | |
Subsequent Event [Line Items] | |
Automatic contract renewal period (in years) | 1 year |